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Thursday, August 4, 2011

NADAYU - Potential upside (Jupiter)

We value Nadayu shares using the RNAV approach based on its prospective project GDVs. Our model values NPB at a discounted 60% of its RNAV of RM2.65, i.e., at RM1.59 per share in line with observed discounted valuations using the Price/BV per share approach. This value also places the share at a PE of 7.3x and 8.4x based on forecasted EPS of 21.21 sen (FYE11F) and 18.57 sen (FYE12F) respectively. Nadayu’s current projects coupled with a strategic landbank area offers the potential upside to the share price.

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