KUALA LUMPUR: AME Elite Consortium Bhd's new land in Penang, the Northern TechValley, will be the company's growth driver from 2025, says RHB Investment Bank Bhd (RHB Research).
The Northern TechValley will be officially launched in the fourth quarter of this year.
"We learnt that the marketing team has already received various interest from local and foreign players during the current soft launch.
"Some are in the medical equipment device manufacturing sector, as well as the distribution and warehouses industry," RHB Research said in a note.
The firm added that the company is currently in the midst of converting a new 15-hectare land in Taman Teknologi in Kulai from commercial to industrial status.
Depending on market demand, the firm said some built-to-suit units may be rolled out.
Otherwise, the land may be subdivided into three parcels to cater for the demand from multinational corporations (MNCs), which are looking for a larger land size.
The firm also noted that AME Elite's major landbanking in the central region could be a share price catalyst in the coming months.
"It may be exploring some joint venture opportunities with landowners, and we think if the land is sizeable enough, it could be a share price catalyst given the potential incremental value to our revalued net asset value (RNAV) estimate.
"Currently the group has a net cash of RM115 million, and it is also in the midst of monetising some industrial properties worth RM119 million to the REIT," it said.
RHB Research maintained a 'buy' call on AME Elite with a target price of RM2.20 per share.