SINGAPORE (Nov 14): CIMB is maintaining its “add” call on Aspen (Group) Holdings with an unchanged target price of 29 cents, based on a 45% discount to RNAV of 53 cents after leaving FY17-19F earnings estimates unchanged.
In a Monday report, analyst Lock Mun Yee says she continues to like the property developer for its robust balance sheet and a net cash position of RM92 million ($29.9 million), which puts Aspen on a strong footing to acquire more development land for growth.
Noting a significant jump in its latest set of 3Q results, Lock highlights how the group’s ongoing projects, such as Aspen Vision City (AVC) and Vervea have been experiencing better take-up rates, with the addition of Beacon Executive Suites and Tri Pinnacle’s take-up rates translating to RM1.015 billion worth of unbilled pre-sales as at end-3Q17.
More importantly, the analyst is positive on the impending opening of Aspen’s IKEA store in 1Q19, along with its broadening footprint in Malaysia with the group’s recently-acquired mixed SOHO which has a potential gross development value (GDV) of RM500 million.
“Aspen has 4 new projects lined up, with a potential GDV of RM2 billion… Recent efforts to boost home-ownership announced in the Malaysian Budget and active promotion of Batu Kawan Industrial Estate by the Penang Government should continue to underpin medium-term demand,” she adds.
As at 1.15pm, shares in Aspen are trading 2.3% lower at 22 cents, or 2.04 times FY18 book.
