Stock Name: FABER
Company Name: FABER GROUP BHD
Research House: OSK

KUALA LUMPUR: OSK Research said it is not entirely concerned about the expiry of the original deadline for renewal of FABER GROUP BHD []'s Hospital Support Services (HSS) concession.

In its research note issued on Tuesday, Nov 2, it said that Pharmaniga Bhd experienced the same thing with regard to the renewal of its pharmaceutical supply concession, which was eventually renewed.

'While there is speculation that the Government might not renew Faber's concession for East Malaysia and politics may possibly take priority, we strongly believe that the renewal should be based on track record and performance if the Government is truly committed to its transformation plan,' it said.

OSK Research said it maintains its BUY recommendation on Faber at an unchanged TP of RM4 as the current uncertainty may present a buying opportunity for investors who are still hopeful of a favourable outcome.