TA Enterprise

Stock Pick: TA Enterprise

Posted on Mar 10, 2014

TA ENTERPRISE BHD symbol: TA | stock code: 4898 Price: 0.77

above: 3 months daily chart of TA Securities with 50 day Moving Average (click to enlarge)
1)  M&A activities will continue to hog the stock broking industry. broking industry. broking industry. TAE’s stock broking 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 could rerate SOP valuation. Future development in Malaysia is TA3 & TA4 with expected GDV of RM1.5bn.
4)  BUY and RM 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 HwangDBS Vickers

TA Enterprise Berhad, an investment holding company, engages in the provision of broking and financial services. The company’s Broking and Financial Services segment engages in stock broking, fund management, unit trust, and derivatives broking and trading activities. Its Credit and Lending segment provides finance and related services. The company’s Property Investment segment invests in residential and commercial properties. Its Property Development segment engages in the development of residential and commercial properties. The company’s Hotel Operations segment is involved in the operation of hotel and provision of related services. TA Enterprise Berhad is also involved in the provision of nominee services for Islamic broking, and property management and project management services; general construction and money lending businesses; trading of building materials; and operation of residential apartments. The company operates primarily in Malaysia, Australia, Canada, Hong Kong, Singapore, China, Thailand, and the British Virgin Islands. TA Enterprise Berhad was founded in 1973 and is based in Kuala Lumpur, Malaysia.