RHB Research has maintained a “Buy” recommendation for Advancecon Holdings Bhd with SOP based TP from RM0.47 from RM0.46, 38% upside and 3% FY22F yield.
This comes after incorporating Spring Energy Resources Bhd’s acquisition at cost, and enlarged share base post-private placement, in addition to a 4% ESG discount to our SOP fair value derivation.
The research house said that Its 3Q21 core net profit of RM1.5million was below its estimates, mainly due to higher-than-expected taxes during the quarter.
Nonetheless, the results marked a steep improvement from the 2Q21 core loss of RM1.8million following a broad resumption in works from August since the imposition of MCO 3.0.
RHB Research said that it likes Advancecon for its ability to continually secure new jobs even amidst the pandemic period, which also bodes well for its subsequent job tender prospects.
