KUALA LUMPUR (Jan 18): Hong Leong IB Research has initiated coverage on Taliworks Corporation Bhd with a “Buy” rating and target price of RM1.85 and said Taliworks stands a high chance to recoup RM471 million receivables from SPLASH post water restructuring by Selangor government. In a note today, the research house said this will provide a strong boost to its cash pile (27% of market capitalisation). “Newly acquired business (waste management) is expected to grow by double-digit mainly driven by tariff hike and efficiency gain. “Strong partnership with EPF enables Taliworks to acquire assets with lower cost of capital. “Initiate with Buy, SOP-driven target price: RM1.85 (28% upside).

Source: The Edge Markets January 18, 2017 00:39 UTC