KUALA LUMPUR, Feb 10 (Bernama) -- Multi-Purpose Holdings Bhd's (MPHB) divestments of its stockbroking, general insurance and hospitality businesses and landbank development will be the catalysts for its next re-rating after it takes full control of Magnum Corp Bhd.
In a note today, ECM Libra Investment Research said the disposals made sense given favourable valuations now and the lack of organic growth potential.
"On the other hand, its vast landbank within its property division could be jointly developed with other developers," it said.
ECB Libra said MPHB was trading at a massive 42 per cent discount to a valuation of RM4.61.
"With Magnum valued at RM3.08 per share, investors are practically buying it at a discount and get all other assets for free.
"While some may argue that the conglomerate should trade at discount, we believe the non-core assets divestment programme and landbank development will narrow this valuation gap," it said.
In a note today, ECM Libra Investment Research said the disposals made sense given favourable valuations now and the lack of organic growth potential.
"On the other hand, its vast landbank within its property division could be jointly developed with other developers," it said.
ECB Libra said MPHB was trading at a massive 42 per cent discount to a valuation of RM4.61.
"With Magnum valued at RM3.08 per share, investors are practically buying it at a discount and get all other assets for free.
"While some may argue that the conglomerate should trade at discount, we believe the non-core assets divestment programme and landbank development will narrow this valuation gap," it said.
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