Affin Hwang Capital starts coverage on AME Elite, target price RM1.83

KUALA LUMPUR (Oct 14): Affin Hwang Capital Research has initiated coverage on AME Elite Consortium Bhd (AME) with a “Buy” rating at its retail IPO price of RM1.30 and target price of RM1.83.

In a note today, the research house said AME, a total solutions provider for industrial parks and factory units, started out as a contractor for industrial buildings in 1995, and has since expanded into industrial park development, leasing of industrial properties and managed workers’ dormitories.

‘AME benefits from rising demand for industrial properties in Malaysia due to trade diversion amidst the ongoing US-China trade war.

“We initiate coverage on AME with a BUY call and target price of RM1.83, based on 30% discount to RNAV,” it said.