• Trading 71.6% below its 1HFY15 BVPS. MULPHA (listed in 1983) is a diversified investment company specialising in the infrastructure, hospitality and real estate sectors. It invests in some of the fastest-growing and most vibrant economies in the world, including Malaysia, Indonesia, Philippines, India, Australia and the United Kingdom.
• In Malaysia, Mulpha holds strategic stakes in Mudajaya Group Bhd and Mulpha Land Bhd, and is the developer of the award winning 1,765-acre Leisure Farm in Iskandar Malaysia.
• It is one of Malaysia's largest real estate investor and developer in Australia. Assets in Australia include the world renowned, resort-styled Sanctuary Cove, the Norwest Business Park Sydney, as well as the ultra-luxury private island resort One&Only Hayman Great Barrier Reef. Mulpha also has a significant investment in the Aveo Group, Aus tralia’s larges t owner, operator and manager of retirement communities.
• In the UK, Mulpha has a strategic investment in the London Marriot Grosvenor Square, a landmark hotel in the heart of London’s famous Wes t End.
• At RM0.315, MULPHA is trading at 0.29x P/BV (against its peers 0.56x-1.27x- FIG1). As at 1HFY15, MULPHA’s total assets are in excess of RM4.7bn, with s hareholders’ funds in exces s of RM2.4bn.
• Poised to revisit RM0.335-0.36 territory. Since tumbling 35% from YTD high of RM0.415 (27 Mar) to low of RM0.27 (26 Aug), MULPHA’s correction phase may have been exhausted. Given the higher closing by 3.3% last Friday to RM0.315 (above 10-d/20-d/30-d/50-d SMAs) and supported by heavy volume of 9.51m shares (692% higher against 3M average 1.2 shares) and bottoming up indicators, a resumption of uptrend is on the cards towards RM0.325 (38.2% FR). A decisive breakout above RM0.325 will lift prices higher to retest RM0.34 (50% FR) and our LT objective at RM0.36 (61.8% FR and 200-d SMA). Immediate supports are situated at RM0.30 (psychological level and RM0.29 (lower Bollinger Band). Cut loss at RM0.285.

Source: Hong Leong Investment Bank Research - 12 Oct 2015