Stock Name: TA
Company Name: TA ENTERPRISE BHD
Research House: HWANGDBS



HwangDBS rates TA Enterprise a "buy" with a lower target price of RM1.25, given that TAE one of the key beneficiaries given the scarcity and rapid rise in prime land prices in Kuala Lumpur.

TA Enterprise owns 7 acres of prime land bank in KL.

The Greater KL plan under the Economic Transformation Programme aspires to transform the city into a vibrant economic hub and the top-20 most livable cities globally.

TAE's plan to launch projects with potential RM2.6 billion Gross Development Value in the KL prime area is intact, says HwangDBS.

Average daily trading value and volume soared to RM1.5 billion (+36 per cent quarter-on-quarter) and RM1.0 billion (+40 per cent), respectively, in the third quarter of 2010, and almost doubled TAE's broking income in 3QFY11.

Income from hotel operations grew 84 per cent driven by strong occupancy rates at Swisshotel. However, 9MFY11 net profit of RM49 million fell short of "our estimate as we were too bullish on its hotel and property divisions," says the research firm.

" Hence, we cut FY11-13F EPS by 26 per cent-42 per cent.

"Our forecast for the broking division is intact, and we believe trading momentum is sustainable given the slew of structural changes taking place in Bursa that are aimed at improving trading interests and liquidity," says HwangDBS.