KUALA LUMPUR: PublicInvest Research says it is encouraged over news that Prestariang will continue to implement and roll out the RM3.5bil Sistem Kawalan Imigresen Nasional (SKIN) project as per the definitive concession agreement.
According to the research house, the mega project had been seen to be in limbo in light of the new government's belt tightening.
"Post-General Election, the share price has tumbled more than 29% and fell to as low as RM1 recently. Following a better picture on the outlook of the SKIN project, we reduce the discount attached on our SOP-based valuation to 10%."
Prestariang's 15-year concession agreement with the Home Ministry to implement SKIN, a border control protection control system, will replace the existing Malaysian Immigration System.
"The Group has done site surveys and finalized the“Business Process Reengineering”. The development stage will take at least a year before being gradually deployed to 274 sites nationwide. It has brought in 158 experts to handle various tasks and targets a total of 300 experts by year-end. It has targeted to reach 30% completion by end of this year," it said.
PublicInvest retained its outperform call on the counter with a higher target price of RM1.79, up from RM1.39 previously.
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