© Reuters.
KUALA LUMPUR – RHB Small Cap Asean Analysis has reaffirmed its “purchase” ranking on AME Elite Consortium Bhd, with the goal worth raised from RM1.82 to RM2, in mild of the sturdy demand for industrial land in Iskandar Malaysia. The revised valuation displays a optimistic outlook for the corporate’s strategic landbanks and the potential development pushed by the anticipated Johor-Singapore particular financial zone.
AME’s industrial initiatives inside its i-TechValley have been significantly famous for his or her vital gross improvement worth (GDV) prospects. RHB Analysis has elevated the GDV estimate for i-TechValley by 10% to RM1.17 billion, following latest land disposals by Crescendo Corp close to the Nusajaya Tech Park (NCIP), which have set new worth benchmarks at RM120-RM125 per sq. foot (psf).
Regardless of AME’s 160-acre landbank adjoining to NCIP being marketed under these charges at RM80-85 psf, there may be potential for a rise in step with present market developments. This adjustment is a part of a broader replace to Johor’s industrial challenge GDVs, which have been raised by a mean of 10-12%, and a narrowing of RNAV reductions to twenty%.
The agency additionally acknowledges AME’s potential for an RNAV re-rating amid ongoing developments within the Johor-Singapore particular financial zone. Moreover, AME’s substantial post-REIT itemizing warfare chest of RM180 million is poised to assist additional growth and improvement alternatives.
RHB Analysis’s valuation additionally features a 2% ESG premium attributable to AME’s favorable ranking of three.1 out of 4, indicating sturdy environmental, social, and governance practices that contribute to the corporate’s total enchantment to traders.
The strategic positioning of AME’s landbank alongside the Second Hyperlink Expressway and its proximity to NCIP are key elements on this optimistic evaluation, as they provide a aggressive edge within the thriving industrial sector of Johor. The corporate’s skill to capitalize on these benefits is predicted to drive its monetary efficiency and shareholder worth within the coming interval.
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