RHBInvest Research

Top Story: Great Wall Plastics

Visit Note

• An undervalued package
• Our indicative fair value for the stock is RM0.96.
• We believe the premium is fair given GWP’s clarity in terms of its topline growth projections, and to a certain extent its earnings visibility.

Corporate Highlights

KSL:

News Update

• KSL Proposed rights issue of warrants at an issue price of 20 sen each on the basis of one warrant for every four existing shares.
• Overall, we are neutral on this exercise as we do not think that the company is in urgency to raise funds.
• We maintain our fair value at RM2.40. Prior to price-fixing date for the warrants, share price is likely to trend upward, as the company has also just received its final approval for the township project in Klang.