0306 GMT [Dow Jones] STOCK CALL: Hwang-DBS Vickers initiates coverage on TA Enterprise (4898.KU) with Buy call, MYR2.10 target based on 13X FY11-12F EPS for broking business and revaluing its 55% stake in TA Global's property assets at current market value. Says TA is established player in local stockbroking industry, 5th largest market cap property stock with prime KLCC landbank; but stockbroking remains core earnings driver contributing 60% of EBIT for FY10F. Adds TA is better alternative to Bursa Malaysia to ride recovery in trading volumes given latter's richer valuations. "Given TA's strong retail base, it has managed to raise its market share of the stockbroking business to 6.4% up to August 2009 vs 3.9% in 2008. Projects TA to post net profit of MYR107 million in FY10 (ending January 31), MYR124 million in FY11 and MYR153 million in FY12 vs MYR92 million in FY09. Stock last +1.4% at MYR1.41.
Dow Jones Newswires
September 28, 2009 23:06 ET (03:06 GMT)
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