[%UgKf%] 
Research by HLIB
Hold-TP RM5.80

“Establishing property presence in Indonesia”

GENP’s indirect subsidiaries had entered into two conditional SPAs to acquire two adjacent land parcels (totalling 152 ha) in Sentul City (in the Bogor Regency of the West Java Province in Jakarta, Indonesia) for Rp2,052bn (or RM593m). Scheduled to be completed in 1Q25, the proposed acquisitions provide GENP the opportunity for it to establish its presence in the Jakarta property market, which may offer other opportunities to further its Indonesian expansion initiative. The latest proposed acquisitions will result in GENP’s net debt and net gearing increasing to RM1.7bn and 0.32x (from RM1.2bn and 0.22x as at 3 Mar 2024). Earnings impact, on the other hand, will likely be muted in the near term. Maintain earnings forecasts, TP of RM5.80 and HOLD rating on GENP for now, pending more updates from management. 

Analyst:
Chye Wen Fei
[%rBsN%]

$KLSE-GENP 
Research by HLIB
Hold-TP RM5.80

“Establishing property presence in Indonesia”

GENP’s indirect subsidiaries had entered into two conditional SPAs to acquire two adjacent land parcels (totalling 152 ha) in Sentul City (in the Bogor Regency of the West Java Province in Jakarta, Indonesia) for Rp2,052bn (or RM593m). Scheduled to be completed in 1Q25, the proposed acquisitions provide GENP the opportunity for it to establish its presence in the Jakarta property market, which may offer other opportunities to further its Indonesian expansion initiative. The latest proposed acquisitions will result in GENP’s net debt and net gearing increasing to RM1.7bn and 0.32x (from RM1.2bn and 0.22x as at 3 Mar 2024). Earnings impact, on the other hand, will likely be muted in the near term. Maintain earnings forecasts, TP of RM5.80 and HOLD rating on GENP for now, pending more updates from management. 

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my

$GENP / 2291 (GENTING PLANTATIONS BERHAD)