KUALA LUMPUR (July 23): CGS International maintained its 'add' rating for Genting Plantations Bhd (KL:GENP) at RM5.88, with an unchanged target price of RM6.62, saying Genting Plantations' plan to acquire some 152 hectares of land in Indonesia is positive for the group, as it expands its footprint in the property development business in the republic.
In a note on Monday, the research house said the land bank is located about an hour's drive from the Jakarta central business district. Meanwhile, Sentul City’s accessibility will be enhanced with the upcoming Light Rapid Transit (LRT) and two new toll roads.
“We also believe this acquisition is strategic for Genting Plantations, as this is in addition to its current land bank in Sentul City.
“Note that Genting Plantations, in a joint venture with Simon Property Group, is also constructing a Jakarta Premium Outlet in West Jakarta,” the house said.
Last week, Genting Plantations, in which Genting Bhd (KL:GENTING) owns a 55.4% stake, said it is planning to buy two plots of land in Indonesia for RM593 million for property development.
The plots, measuring 152ha, are located in Sentul City, in the Bogor Regency of the West Java Province of Jakarta, according to a bourse filing last Friday.
At the time of writing, Genting Plantations had dipped 1.55% or nine sen to RM5.80, with 172,500 shares traded.