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Puncak Niaga is grossly undervalued from its NTA, MRT3 finalization in 2H 2023 will be a boost

Publish date: Fri, 14 Apr 2023, 01:00 AM



About 10 years ago, Puncak is one of the favorite topics among the investor and trader due to the Selangor government water restructuring exercise where multiple water concession will be taken over by the state government, which includes Puncak water asset.

Fast forward the deal is signed at RM 1.56b.

While the deal is far lesser than many had thought, it still went through.

Puncak then buy out entire Triplc property and construction firm which will automatically inherit UITM building and campus expansion plan. It also expanded into 43k hectare of oil palm plantation in Sarawak.

While the company NTA is RM 2.89, the current share price of RM 0.25 is a far cry from the value of the NTA, which is not even 10% of the NTA.

Technical outlook on the short term indicate an uptrend, highlighted in green zone.

On the longer term outlook, the current price might had break away from a long term downtrend line.

Hence, there will be a good chance for Puncak share price to appreciate further in the short term outlook towards 30 cents.

With the current government retendering most of the infrastructure project from previous administration, there will be a good chance for Puncak to enhance their book order in Peninsula Malaysia as well as Sabah Sarawak.

The case of Puncak vs TS Khalid estate and Selangor state government

Based on experienced and learned people in the industry, while declining to comment into much detail, it is said that Puncak might have some chance to salvage something in compensation to the earlier disposal which might be deemed undervalued.

The current price of Puncak compared to it's NTA is very undervalued. Puncak upside tendency is good with supportive technical outlook and improving fundamental on business prospect. With government finalizing MRT3 costing in 2H 2023, construction sector will be in the look out by investor and trader for a bargain hunt.


Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.



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