KUALA LUMPUR: Affin Research has maintained its Trading Buy* call on Benalec with a target price of RM1.98 as it is positive on the company’s outlook.

In a note on Wednesday, Affin said Benalec announced that its unit Orientalcove Property had on Tuesday sold six parcels of land in Melaka Tengah for RM51mil or RM39 per square foot to Ultra Harmony Development.

“This sale follows the disposal of eight pieces of land measuring a total of 168,160 square metres in the same vicinity for a total cash consideration of RM54.3mil or RM30 psf two months ago,” it said.

Affin added the latest land disposal is expected to be completed by first quarter 2014 and result in a net gain of RM9.2mil or RM7 psf compared to a net gain of RM7.1mil or RM4 psf for the July land disposal.

“Rising demand and selling prices of land in the reclamation concession area off Melaka bodes well for the group as it still has 360 acres of land stocks as well as significant area to be reclaimed in the area.

“The group also has land stocks for sale in Selangor. We expect more disposals in the coming months,” it said.

*Trading Buy: Total return is expected to exceed +15% over a three-month period due to short-term positive development, but fundamentals are not strong enough to warrant a Buy call. This is to cater to investors who are willing to take on higher risks