MALAYSIA

Tebrau Teguh (BUY/ RM1.31/ Target Price: RM5.00)
In talks with MRCB?
We understand that in an on-going conference in Singapore, Malaysian Resources Corporation (MRCB) has openly stated that they are currently in talks with Tebrau Teguh.

Tebrau Teguh (42% owned by Kumpulan Prasarana Rakyat Johor, Johor's state government development arm) owns the largest undeveloped landbank (1,012 acres) within a 5km radius from Johor Bahru city centre.

MRCB is the contractor for the RM1b Eastern Dispersal Link (EDL) which will connect the North South Expressway to Tebrau, Johor Bahru City Centre and Nusajaya. The EDL will improve accessibility in South Johor and boost surrounding land values, with Tebrau Teguh being the prime beneficiary.

Tebrau Teguh has the strongest RNAV upgrade potential in the sector as commercial land in Johor Bahru city centre have been transacted at RM110psf vs its current book value of just RM13.40psf. At RM110psf, Tebrau Teguh's RNAV is RM7.06.

Maintain BUY.

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Added on January 11, 2008, 12:13 amDJ MARKET TALK: CS Keeps UEM World At Outperform, Target MYR5.88

10/01/2008 01:13:00 AM


0113 GMT [Dow Jones] STOCK CALL: Credit Suisse keeps UEM World (1775.KU) at Outperform with target price of MYR5.88. Says views company as general election play, with election fever heating up in 1Q08. We view UEM World as a General Election play as election fever heats up in 1Q 2008; "Politically-linked stocks like UEM World are typical candidates to participate in any preelection rally." Says company also large, liquid Malaysian property play, beneficiary of EPF housing loan withdrawal plan now in effect. Notes shares lagging KLCI for past eight months, due to catch up given high correlation to KLCI. Expects more positive news flow as government's efforts to develop South Johor Economic Region (SJER) progress. Notes Khazanah announcement of Nusajaya theme park operator awaited; also, ongoing Malaysia-Singapore discussions on smartcard access, monorail links between Johor, Singapore. Says also expects further land transactions between UEM World, foreign partners. Share ended Wednesday up 3.3% at MYR4.34; market closed today. (LES)




This post has been edited by Jim: Jan 11 2008, 12:13 AM