(PREIT MK/HOLD/RM1.75/Target: RM1.65)

PREIT’s bottom line contracted as top-line growth was not sufficient to mitigate the impact of lower rental collection and higher operating cost due to major tenant relocation and refurbishment. PREIT is also proposing to acquire Pavilion Extention, which may lead to a 15% and 7% growth in net profit and DPU respectively in 2018. Maintain HOLD and target price of RM1.65. Entry price: RM1.50.

Source: UOB Kay Hian Research - 28 Jul 2017