UEM Edgenta Bhd(Oct 26, RM3.30)Maintain neutral with an unchanged target price (TP) of RM3.41: UEM Edgenta Bhd was awarded a contract for the provision of operation and maintenance of Central Utilities Facilities for Biotechnology Park at Iskandar Puteri, Johor. The contract was awarded by Malaysian Bio-Xcell Sdn Bhd which is a 60:40 joint-venture (JV) company between Biotech Corp Investment Holdings Sdn Bhd and UEM Sunrise Bhd. The contract award is not unexpected as, under a separate JV between UEM Edgenta and UEM Sunrise, UEM Edgenta was given a first right of refusal to undertake the provision of property and township management services for projects under UEM Sunrise in Johor. That said, we expect more contracts to be awarded to UEM Edgenta in the future under this JV. We are maintaining our “neutral” call with an unchanged sum-of-parts-based TP of RM3.41 on UEM Edgenta, post-earnings revision.

Source: The Edge Markets October 27, 2016 02:03 UTC