The development in Iskandar Malaysia is picking up with 2012 as the potential inflection year. Investment targets have been surpassed and foreign participation is coming in. The key sectors to benefit from Iskandar are property and construction.
For Iskandar exposure, OSK recommend UEM Land for the property side given that it is the largest land owner at Nusajaya and KimLun Corp for the construction angle as it has a strong orderbook track record in Johor.
Other names offering Iskandar exposure include SP Setia for its Setia Eco Gardens development, Gamuda for its Horizon Hills development and Sunway which is constructing Legoland and BioX-Cell.
The table below is the target price for selected stocks for Iskandar exposure.
|Stocks||Price (RM)||Target price (RM)||Market Cap (RM million)||Rating|
Source : OSK Research