BHB  announced  that  Strategic  Land  and  Heritage  Land  Realty  ,  both wholly-owned subsidiaries of Benalec Sdn. Bhd. (BSB), which in turn is a wholly-owned  subsidiary  of  BHB,  had  on  9  March  2015  entered  into  3 separate Sale and Purchase Agreements with Arena Progresif to dispose of all  nine  parcels  of  leasehold  land  which  have  been  reclaimed  by  BSB located  in  Pekan  Klebang  Seksyen  II,  Daerah  Melaka  Tengah,  Melaka measuring  approximately  70.46  acres  for  a  total  consideration  of RM128.9m. The disposal is expected to be completed in 1Q16 with an after tax gain of RM33.6m.

Comments:  The  gain  from  the  proposed  disposal  is  equivalent  to  51%  of our  FY16E  forecast  of  RM65.3m.  We  maintain  our  FY15E-17E  core  net profit forecasts and BUY rating with an unchanged target price of RM0.98 based on a CY16E PE of 12x. The stock closed at RM0.83 yesterday. The fundamentals of the group will strengthen significantly as implementation of its Johor land reclamation concessions gathers momentum.

Source: Affin Hwang Capital Research - 10 Mar 2015