Equipped with a proven track record of over 20 years, NCT is a dynamic and allrounded developer that is qualified to embark into different types of development projects: (1) Residential: La Cottage (Sepang), The Glades (Penang), Bandar Salak Perdana (Dengkil), Mahkota Kampar (Kampar), Acacia Residences (Dengkil); (2) Commercial: Salak Perdana Business Park (Dengkil), Ion Vivace (Sg Petani). N-City (Sg Petani); (3) Industrial: The Vortex (Batu Kawan); (4) Hospitality: Grand Ion Delemen, (Genting), Grand Ion Majestic, (Genting), Ion Forte Green City (Ayer Keroh).

NCT is also dubbed as the White Knight developer with niche expertise in rehabilitating and unlocking abandoned mega projects (underserved segment with huge potential). Its expertise in reviving abandoned projects allows sustainability & profitability with higher margins owing to its technical know-how, strong rapport with stakeholders, compelling entry cost, and synergistic in-sourcing capabilities. Some of these notable projects completed over the years were Bandar Salak Perdana (GDV RM118m), Salak Perdana Business Park (GDV RM48m), and Grand Ion Delemen (GDV RM1.2bn).

Promising outlook: Management expects stronger earnings in the coming quarters (from less than RM1m in 1QFY21) and 2022, supported by: (1) The acquisition of Genting Highlands projects (i.e. GIM and GID) expected to provide earnings visibility for the next 2-3 years underpinned by vaccination program & opening of the theme park; (2) Remaining GDV of RM726.3m and unbilled sales of RM375m; (3) Acquisition of another abandoned project in pipeline by end 2021, and (4) Vast future developments amounting RM4bn from mixed development (RM1bn), industrial (RM3bn) and residential (RM400m) segments.

NCT is poised for a bullish ascending triangle breakout, holding up well above the support trend line with bottoming up indicators and robust volume yesterday. A successful breakout above RM0.595 will lift share prices higher towards RM0.645- 0.73. The collection range is RM0.55-0.58 whilst the cut loss is pegged at RM0.52 zones.

Source: Hong Leong Investment Bank Research - 14 Jul 2021