Mulpha International; Trading Buy
Resistance Targets: RM0.45 and RM0.50; MIT MK

Mulpha International is a beneficiary of rising land values in Iskandar Malaysia (IM), Johor. The stock’s valuation is also supported by three listed entities, namely 22%-owned Mudajaya Group, 71%-owned Mulpha Land and 26%-owned FKP Property Group, which adds up to RM739m or approximately threequarter of Mulpha International’s existing market cap of RM942m.

Meanwhile, Mulpha International’s share price is poised for a technical catch-up following the run-up in other property companies with exposure in IM. After being stuck inside a downward sloping price channel since mid-Feb last year, a positive breakout may be on the cards. Riding on this momentum, the stock could extend its recovery to climb towards our resistance targets of RM0.45 (offering a potential upside of 12.5%) and RM0.50 (+25.0%%). Trading Buy.

Source: HwangDBS Research - 10 Apr 2013