PETALING JAYA: LBS Bina Group (LBS) Bhd’s participation within the proposed gentle rail transit (LRT) challenge within the Johor Baru metropolis heart is a chance for the corporate to monetise its land there and take part in an infrastructure concession if the challenge is accepted, says RHB Analysis.
The analysis agency, which is “mildly optimistic” on the event, stated the approval course of for this mega infrastructure challenge could take a very long time.
As such, it made no modifications to its earnings forecasts and valuations pending the inexperienced gentle from the state authorities for this challenge.
It maintained its “purchase” name on the inventory with a 63 sen goal worth.
LBS had entered right into a heads of settlement with Ancom BhdNylex (M) Bhd, Sinar Bina Infra Sdn Bhd (SBI) and BTS Group Holdings PCL to take part within the collaboration to construct and function an LRT system. This shall be linked to the Johor Baru-Singapore fast transit system (RTS), in addition to an built-in property challenge utilizing the transit-oriented growth idea within the state capital.
The LRT challenge is topic to the feasibility examine being accomplished, and the grant of the concession award for the LRT challenge by the Johor state authorities
The analysis agency famous that LBS’ participation is through a proposed disposal of 5.5 acres, to be happy through the issuance of latest Nylex shares.
“LBS’ land is throughout the business space alongside Jalan Dato’ Dalam within the metropolis centre, lower than 3km from the RTS station at Bukit Chagar. We additionally perceive that LBS will not be more likely to contribute additional fairness within the consortium, other than the disposal of its land to Nylex,” it stated.