FY19 within expectations, 4Q19 lower revenue but higher profit
FY19 result in line with expectation, revenue and core profit accounted for 101.4% and 68.6% of our full year estimate respectively. The lower profit was mainly due to deferred launching of new property projects and lower sale in Hotel due to closure of Puteri Garden and an F&B outlet in Klang.
IA advise to minority shareholders that Takeover Offer not fair but reasonable
On 13 Feb 2020, independent adviser to minority shareholders commented that the takeover offer for the remaining shares in the company is not fair but reasonable, said that the offer price of RM1.20 is significantly discount of 68.3% to the estimated fair value of RM3.79 however RNAV for the property, hospitality and plantation segment was based on assumption Amverton able t realise all its assets on willing buyer willing seller basis in open market at the indicated value and added that it was reasonable as the Offeror does not intend to maintain the listing status of Amverton. The offer is intended by the offeror and ultimate offeror to result in the delisting of Amverton from the Official List and thereby resolve the ongoing non-compliance of the Public Spread Requirement
Maintain Hold call with unchanged TP
The property sector outlook remains challenging and there is still no indication that sentiment is turning upbeat anything soon. We maintained our Hold recommendation with unchanged target price of RM1.20 based on P/B of 0.6x on our estimated FY20F NTA
Source: Mercury Research - 3 Mar 2020
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Created by kltrader | Apr 12, 2024