Jan 16, 2014

Stock Pick - TAE

TA ENTERPRISE BHD Stock code 4898 Price: RM0.775

1) M&A activities will continue to hog the stockbroking industry. TAE’s stockbroking franchise stands out among the remaining players because of its sizeable market share.
2) Positive stock market momentum post general elections  TAE will benefit from increase in trading volume and value given its sizeable market share – it has a strong retail base.
3) Improving property sales will continue to lift profits. Development of its prime land bank in KL couldrerate SOP valuation. Future development in Malaysia is TA3 & TA4 with expected GDV of RM1.5bn.
4)  BUY and RM1.00 TP. TAE remains a better proxy to TA Global (TAG) –market valuation implies the market is assigning zero value to TAE’s cash-generating broking business.

by DBS Vickers

TA Securities is involved in futures broking, unit trust management, asset management, banking and property development.