KUALA LUMPUR: OSK Research Bhd sees SEG International Bhd’s (SEGi) land acquisition move at Sepang as being positive, reflecting the management’s confidence in further expanding its student base.
“The land purchase would likely form the foundation of its next growth phase,” said OSK Research in a research note today.
SEGi, through its wholly-owned subsidiary Andaman Daya Sdn Bhd, has proposed to acquire a piece of leasehold land valued at RM22 million at the Selangor Science Park 2, Sepang, from the Selangor State Development Corporation (PKNS).
The 5.83 hectare (14.4 acres) land is geared towards SEGi’s future expansion of the institution’s facilities, comprising a new campus building and student residences, and is expected to be completed in the first quarter 2014.
The research house said SEGi’s upcoming fourth quarter financial year 2011 results is in line with its expectation. Therefore, it reaffirmed the “buy” call on SEGi with the fair value remaining unchanged at RM2.16.