Analysts attended a briefing held by GENT’s 20% associate, TauRx (Not Listed) after it announced results for its Phase 3 Alzheimer’s disease study, Lucidity (TRx-237-09).
The bottom line is hydromethylthionine mesylate or HMTM is effective, safe and cheaper than its competitors. TauRx will submit HMTM for US Food & Drug Administration approval in 1Q23.
"We ascribe USD1.0b valuation to TauRx and raise our GENT SOP-based TP to MYR5.35 from MYR5.25.
"If TauRx is worth USD15b, GENT will be worth a much higher MYR8.57/shr," says Maybank.
It maintains a BUY call.
Hibiscus has settled the disputed Sabah SST issue and will pay up. While the impact to earnings is about -8-9% p.a.; starting FY23, and analysts see many positives from this.
It offers closure on this overhang issue, which has affected sentiment, price performance and disrupted its operations unnecessarily in the past.
"Elsewhere, Hibiscus has proposed a final 1 sen DPS, initiated share buybacks & added another headcount to the board.
"Our unchanged TP is based on USD11/boe of EV/2P reserves valuations."
"We came away from ATECH’s investors briefing feeling positive. We maintain our BUY call, forecasts, and TP of MYR2.07 from pegging our CY23 EPS of 13.7sen to the industry’s historical 5- year weighted average PER of 15.1x.
"We like ATECH for (i) its robust earnings growth prospects; (ii) growing exposure to higher value-added multicomponent integrated circuits (MCICs); as well as (iii) its operational resilience, underpinned by its strategy to grow its wallet share with regards existing customers," says Maybank.
Ranhill’s more pertinent growth projects (Indonesia Source-to-Tap and RSAJ’s solar farm) remain in the negotiation stage, with management still working on securing approvals.
For now, the investment thesis continues to revolve around the timing and quantum of a water tariff hike in Johor (which the Cabinet has approved but the State has not implemented).
Maybank maintains its BUY with an unchanged MYR0.60 SOP-based TP.