KUALA LUMPUR (July 10): Rakuten Trade has rated SkyWorld Development Bhd a “buy” at 80 sen with a target price (TP) of 96 sen based on the average PER of 8x and P/BV 0.8x.
In a note on Monday (July 10), the research house said it expects SkyWorld to register net earnings of RM149.3 million and RM158.3 million for FY3/24 and FY3/25 respectively.
“SkyWorld is targeting to pay dividend of 20% from its net profit.
“Based on our estimates, the company is expecting to pay dividend of three sen and 3.2 sen per share for FY3/24 and FY3/25, translating into yield of 3.7% and 4%.
“Financial leverage is manageable with net gearing of 0.4x as at FY3/23 with strong interest coverage of about 15x.
“Proceeds from the IPO will be mainly used for land acquisition, working capital and repayment of borrowings,” it said.
SkyWorld was listed on the Main Market of Bursa Malaysia today (July 10).
Source: EdgeProp.my
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