Power and quarry player Mega First Corp Bhd’s proposed a rights issue with free warrants to partly fund its US$500mil (RM2.1bil) Don Sahong Hydropower project in Laos is not expected to have substantial dilutive impacts.
“We do not anticipate significant dilutive impacts as there will be additional construction profits of RM35mil-RM38mil per annum recognised in the group’s bottom-line for FY16-19, an increase of 63-69% from our FY15 estimated earnings. Valuations will remain undemanding at 10 times FY16 earnings per share,” PublicInvest said.
The research house has maintained an “outperform” call on Mega First with a target price of RM3.14.
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“We do not anticipate significant dilutive impacts as there will be additional construction profits of RM35mil-RM38mil per annum recognised in the group’s bottom-line for FY16-19, an increase of 63-69% from our FY15 estimated earnings. Valuations will remain undemanding at 10 times FY16 earnings per share,” PublicInvest said.
The research house has maintained an “outperform” call on Mega First with a target price of RM3.14.
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