Take a long-term view on TAHPS, says PIBV Research

KUALA LUMPUR: PublicInvestment Bank (PIVB) Research has started coverage on TAHPS Group, one of the oldest companies publicly listed on Bursa Malaysia, boasting a rich history of about 110 years.

It said the former plantation-based company is now a low-profile property developer focusing solely on Bandar Bukit Puchong township.

The greatest attraction about the company is the low-cost land bank it is sitting on, well-placed in a suburban area with good accessibility and huge potential development value.

“Due to the thin trading liquidity and a lacklustre sales outlook in the near term, however, we see the company’s share price continuing to trade at a steep discount of more than 70% to our realised net asset value valuations.

“We are initiating coverage on TAHPS Group with a neutral call and sum-of-parts based target price of RM7.37. Investors with very long term horizons may find this an attractive proposition, given its deep value,” it said.

PIBV Research pointed out TAHPS, established in 1907, started as a rubber plantation company. Originally founded by foreigners, the current owners’ emergence in the company occurred in 1965 through an injection of their estate land in Raub into the company.

In 1992, TAHPS ventured into property development via its units, The Ayer Hitam Development Sdn Bhd and Bukit Hitam Development Sdn Bhd, with projects focused primarily in Puchong.

Today, TAHPS is one of the largest owners of undeveloped land in the Puchong township with a remaining 610 acres in Bandar Bukit Puchong and Puchong Utama (a 15-minute drive from Puchong city centre), placing it as a great proxy to the real estate exposure of this mature township development.