=MARKET BUZZ: Maybank Starts Malaysia's Yong Tai With Buy, TP MYR1.75
KUALA LUMPUR (Feb 14) -- Maybank Investment Bank initiates coverage on Yong Tai with Buy and target price of MYR1.75, says company is best proxy to Melaka state’s growing tourism. Shares now flat at MYR1.49. "With Encore Melaka, the 10th instalment of the Impression Series, a popular series of live musical shows in China co-founded by Zhang Yimou, we believe Yong Tai is the best proxy for this growth story," says house in investor note; expects core earnings to surge over MYR150 million by FY2020. House also believes not much value has been ascribed to its active property developments and investment properties. "Yong Tai still has 102.5 acres or 72% of undeveloped Impression City land bank that it intends to extract gross development value of MYR5.6 billion," says house. Adds, entertainment shares usually perform well ahead of the opening of their major attractions, which is positive for Yong Tai as its Encore Melaka is scheduled to open in 2Q this year.
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