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| Inter-Pac sees limited downside in UBG |
| Written by Financial Daily | |||
| Thursday, 28 May 2009 11:33 | |||
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“We believe downside is limited in view of the thin public shareholding of 10% with free float of a mere 1.33%,” it said in a research note yesterday. The research house said the construction firm could be a potential beneficiary from several pump-priming exercises, which could take place soon. “With Abu Dhabi-Kuwait-Malaysia Investment Corp (ADKM) and Cahya Mata Sarawak Bhd as its major shareholders, UBG should benefit from government’s pump-priming activities, especially in areas like Iskandar Malaysia, Sabah and Sarawak. “Besides, Putrajaya Perdana Bhd, a subsidiary of UBG, is a niche player in the construction of energy efficient buildings, could also be a beneficiary for the development in Node 1 of Iskandar Malaysia where Mubadala Development Co, which is related to ADKM has  investments,” it noted. On the other hand, Loh & Loh Corp which has the experience in water infrastructure projects could benefit from the rollout of water related works in Sabah and Sarawak, it added. Commenting on UBG’s first quarter results (1Q09), Inter-Pacific said its revenue was largely in line with forecasts. The company suffered a net loss of RM5.1 million. However, UBG’s 1Q09 revenue rose to RM295.7 million from RM31.8 million a year earlier due to contribution from Putrajaya Perdana Bhd and Loh & Loh Corp Bhd, which were acquired in Sept 2008. It posted a loss before tax of RM3.98 million mainly attributed to impairment and unrealised losses on the group’s short-term investments coupled with increased operational and personnel costs. UBG was not traded yesterday. It last closed at RM2.81. This article appeared in The Edge Financial Daily, May 28, 2009.
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