Ter­mi­nal Kam­par on track for Q4 com­ple­tion

Perak Tran­sit fi­nal­is­ing an­chor ten­ants

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Perak Tran­sit Bhd is on track to com­plete the con­struc­tion of Ter­mi­nal Kam­par by the the fourth quar­ter of this year, which is cur­rently 60% com­pleted.

Ac­cord­ing to a re­port by PublicIn­vest Re­search, the con­struc­tion is al­ready at the third or fourth floor of the 10-storey in­te­grated bus ter­mi­nal in Kam­par.

“The con­cept of the ter­mi­nal will be on the food and bev­er­age (F&B) ser­vices.

“Perak Tran­sit is in the midst of fi­nal­is­ing the an­chor ten­ants for the su­per­mar­ket as well as op­er­a­tors for the ho­tel, cin­ema, and bowl­ing cen­tre,” said PublicIn­vest Re­search.

Apart from that, Perak Tran­sit has in­creased its rental of ad­ver­tis­ing and pro­mo­tional (A&P) spa­ces in its cur­rent Ter­mi­nal AmanJaya by an es­ti­mated 15%, be­gin­ning early of this year.

This is due to the adop­tion of new dig­i­tal boards, which en­ables more ad­ver­tis­ing space. Perak Tran­sit cur­rently rents its A&P spa­ces to third party com­pa­nies for a fixed an­nual pay­ment, where the third party com­pa­nies will source for ad­ver­tis­ers and pro­mot­ers. Ac­cord­ing to a source, the in­crease in rental of A&P spa­ces pro­vides an or­ganic growth av­enue for Perak Tran­sit, which should trans­late to a dou­ble digit net profit growth on an an­nual ba­sis.

Mean­while, PublicIn­vest Re­search com- mented that Perak Tran­sit’s plan to mi­grate onto the Main Mar­ket of Bursa Malaysia is pos­i­tive as the group will be able to open it­self to a wider pool of in­sti­tu­tional in­vestors, which cur­rently makes up only 7%.

The mi­gra­tion to the Main Mar­ket is ex­pected to com­pleted by July or Au­gust this year.

On the ter­mi­na­tion of a new share place­ment with Mac­quarie, the re­search house be­lieves that the ter­mi­na­tion is pos­i­tive as it re­moves the di­lu­tion ef­fect on earn­ings per share.

“Also, given the weak­ness in share price, the ex­pected pro­ceeds to be raised would have been lower.

“Hence, we think it is ben­e­fi­cial for Perak Tran­sit to ter­mi­nate the deal and opt for al­ter­na­tive fund­ing like bank bor­row­ings.

“We like Perak Tran­sit, as it is the only bus ter­mi­nal op­er­a­tor in Ipoh and likely to be as such in other satel­lite towns within the state.

“Strong earn­ings growth is ex­pected from op­er­a­tions of the new Ter­mi­nal Kam­par, which is es­ti­mated to be eight times larger than Ter­mi­nal AmanJaya’s gross leasable area,” said PublicIn­vest Re­search.

The re­search houe added that the com­pany’s man­age­ment has hinted that its div­i­dend pay­out will be main­tained around 30% this year, higher than its div­i­dend pol­icy of 25% an­nu­ally.

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