The share price of MPHB has come under pressure after news that the listing of MPHB Capital could be delayed for three months from end-Jan/early-Feb after SC approved the new listing with conditions such as requiring the company to revalue its property assets. To recap, the offer for sale of 1-for-2 MPHB Capital's share to its existing shareholders at RM1.00 a piece is to reward its shareholders as the market price would be higher. We have valued MPHB Capital's assets at RM1.73/share. The huge discount is because the assets, mainly property assets, are re-valued in 2009-2011, which is not reflective of its market value. In addition, its existing shareholders will be rewarded with a RM0.49/share special dividend three months after the new listing. With that, the shareholders are practically getting the MPHB Capital's share for free. Our TP for MPHB is RM4.31/share, which implies an upside potential of 30% from here. Hence, the recent weakness in share price offers a great opportunity to accumulate the stock and it fits into the objective of our Thematic portfolio. Hence, we are buying 4,000 MPHB shares into our Thematic portfolio.

Source: Kenanga