We are rating Faber a BUY with a target price of RM1.24 based on a sum-of-parts valuation (SOP) given the company’s different business segments. Despite the currently weak earnings, we believe its ongoing overseas expansion and the recovery in the property market will enhance earnings in the next few years. We see Faber as a good choice for portfolio balancing as well as long-term investment in view of the relatively defensive nature of its business and potential upside on its dividend payout. The potential consolidation in the healthcare business may also provide a potential upside on the company’s share price. 
Re-initiate with BUY. We are valuing Faber based on a sum-of-parts (SOP) methodology given its many different business segments and arrive at a target price of RM1.24 after incorporating a 20% discount on our SOP valuation. Our SOP valuation comprises a PER valuation for the IFM segment, PER valuation for the property segment (ex-Laman Rimbunan) and a DCF value for its Laman Rimbunan project. Our RM1.24 TP represents an upside of about 20% from the current price. We believe that Faber is a good choice for portfolio balancing as well as long-term investment in view of its relatively recession-proof business and potential upside on its dividend payout.
Re-initiate with BUY. We are valuing Faber based on a sum-of-parts (SOP) methodology given its many different business segments and arrive at a target price of RM1.24 after incorporating a 20% discount on our SOP valuation. Our SOP valuation comprises a PER valuation for the IFM segment, PER valuation for the property segment (ex-Laman Rimbunan) and a DCF value for its Laman Rimbunan project. Our RM1.24 TP represents an upside of about 20% from the current price. We believe that Faber is a good choice for portfolio balancing as well as long-term investment in view of its relatively recession-proof business and potential upside on its dividend payout.