• GOB’s 4QFY17 net profit grew 361.8% YoY to RM15.3mil. As we expect stronger performance for the rest of the year from its property division.

• The current quarter’s profit before tax of RM15.9 million was higher as compared to RM11.8 million of the immediate preceding quarter. The improved profit before tax was mainly contributed by higher profit recognition upon completion of the development project in USJ, Subang Jaya during the current quarter.

Techincal Review

• Target price RM0.40, RM0.425, RM 0.455
• Last closing price RM0.38
• Support RM0.37

Possible for Resume Uptrend. GOB's share price now supported above RM0.37 with anticipation of continuous improvement in its momentum and should the price rebound, it may continue to lift price higher to the next resistance levels of RM0.40 and RM0.425.

Conclusion

Fundamentally, We believe the outlook for GOB in 2017 remains positive as the Group has planned to launch several new projects in Klang Valley and Seri Manjung, Perak and continues to manage current business operations prudently. Beside, key drivers to a positive year are expected to come from infrastructure – HSR, MRT and LRT additional lines and stations, new highways and expressways especially in Klang Valley which will directly benefit to GOB. We give it as TP of RM 0.80, pegged at 20% discount to its RNAV estimate.

Technically, GOB is well support at RM 0.37 and it ready to challenge the immediate resistance to lift the price higher to unlock the value of its company.