TA Securities Sees Bottom-Fishing Opportunity on PTRANS with 61% Upside
STR AI ·
TA Securities analyst Tan Kam Meng has maintained a Buy call on Perak Transit, with a lower target price of RM0.45 from RM1.08, still implying 61.3% upside. He noted that following the recent selloff, the weakness presents a bottom-fishing opportunity, as he expects the company’s fundamentals to reassert themselves once the margin-call pressure eases.
Yesterday, Perak Transit reported a 9M25 core profit of RM59.5 million (+12.1% YoY), which came in within expectations. The solid performance was driven by margin recovery, helped by the absence of Sukuk issuance-related costs that were incurred in 9M24.
Tan believes the recent plunge was triggered by heavy short-selling that led to margin calls on founder Dato’ Sri Cheong (DSC) and other shareholders, resulting in forced selling of his pledged shares. DSC’s substantial stake reduction and high margin exposure added to uncertainty, and although pledged shares have declined, the risk of further margin calls remains.
As of 9:55 a.m. on November 20, Perak Transit's share price rose 1.8% to RM0.29.