PETALING JAYA: Kumpulan Kitacon Bhd’s stock price has been assigned a fair value of 96 sen by PublicInvest Research, translating into a 41% premium over the initial public offering (IPO) price of 68 sen per share.
In a note, the research unit said the fair value of 96 sen for the construction group is based on an eight times price-earnings (PE) multiple to Kitacon’s financial year ending Dec 31, 2023 (FY23) estimated earnings per share of 12 sen.
“We select MGB Bhd and Inta Bina Group Bhd as Kitacon’s peers given their expertise in landed residential construction,” said PublicInvest Research, adding the fair value is justifiable given that Kitacon’s market capitalisation is comparable against its peers, and it also has a formal dividend policy.
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