SINGAPORE (Feb 28): NRA Capital has initiated coverage on property developer Hatten Land with an “overweight” rating and a fair value estimate of 44 cents.
Hatten Land shares opened at 29.5 cents when it started trading on the Catalist board of Singapore Exchange (SGX) on Tuesday.
“The key selling point of Hatten Land is its portfolio of choice sites in Malacca. Most of its sites face the sea, overlooking Pulau Melaka and the Straits of Malacca,” says NRA analyst Liu Jinshu in a Tuesday report.
With Pulau Melaka slated to be transformed into a tourism and entertainment hub on the back of a RM42 billion ($13.3 billion) Melaka Gateway project, Hatten Land’s projects offer significant upside and hence marketability, Liu says.
Liu opines that Hatten Land’s strong pipeline of projects offers high growth prospects.
The analyst forecasts that its profits after taxes will surge from RM68.6 million in FY16 to more than RM100 million in FY18 and RM300 million in FY19.
“We like the company for its visible pipeline of value-accretive projects,” Liu says. “Potential catalysts include any future partnerships with high profile funds or institutions and the completion of on-going acquisitions.”
As at 12.28pm, Hatten Land is trading 1.5 cents higher at 28.5 cents.
