KUALA LUMPUR (May 30): Mercury Securities Sdn Bhd has a 'subscribe' recommendation for KTI Landmark Bhd at 30 sen, with a fair value price of 36 sen, based on 15 times earnings per share estimated for the financial year ending Dec 31, 2025 (FY2025), in line with comparable peers’ valuations.
In a note on Thursday, the research house said KTI Landmark offers an attractive investment prospect with growth opportunities in Sabah's property market, driven by its unique partnership with the Housing and Urban Development Board and a strong project pipeline, which includes a mix of premium property and affordable housing developments.
KTI Landmark is a Sabah-based integrated property developer.
Mercury Securities said that as of April, KTI Landmark's unbilled sales amounted to RM272 million, more than half of which were contributed by the five-acre (2.02-hectare) mixed development known as The Logg (with RM156 million in value sold).
“This level of unbilled sales should be enough to provide good earnings visibility for the group over the next two years,” it said.
The research house said KTI Landmark is expanding into the hotel industry, with Avani Luyang @ The Logg (gross development value: RM270 million), managed by Minor Hotel Group Ltd under the 'Avani' brand.
“Additionally, the group also plans to manage the tenancy of the commercial building within The Logg.
“We anticipate that the government's Visit Malaysia 2026 initiatives in Sabah, along with the expertise of the luxury hotel operator managing Avani, will boost future hotel occupancy rates,” it said.
KTI is scheduled to list on the ACE Market on June 19.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the initial public offering exercise.