Underappreciated. Since we highlighted TDM as an undervalued stock in our 2012 outlook report of 6 Jan 2012, share price has appreciated +15%. Still, it remains deep in value, trading at 8.7x 2013 PER with an EV/planted ha of just c.RM27,900 (sector average: RM72,000). The market has also ignored TDM's long-term growth catalysts, namely the potential doubling of planted area and tripling of hospital beds. TDM could be a strategic privatization target for its relatively low valuation. We attach a fair value of RM5.50 (based on 11x 2013 PER) to TDM. A further re-rating could come in in 2014 when it reaps the benefits of recently planted landbank and its extended hospital chain.


Maybank Research 30 January 2012

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