AME Elite looking into further data centre land sales
PETALING JAYA: AME Elite Consortium Bhd is looking into the possibility of further land sales to data centre (DC) operators after receiving several inquiries recently.

Beyond land sales, the group is also exploring opportunities to tender for DC-related construction works involving core structural and mechanical and electrical scope, said Phillip Capital Research.

AME recently announced the acquisition of a 38-acre plot of land in Johor, which could increase the group’s gross development value (GDV) to about RM1.4bil.

It added the group continues to be on the lookout for further land acquisitions to replenish its land bank and Phillip Capital has viewed this positively, as it helps to strengthen the long-term earnings visibility.

The research house anticipates a strong financial year 2025 (FY25) earnings trajectory, driven by the recent land sales to DC operator and the upcoming launch of the Penang industrial park.

Its first industrial park in Penang, Northern TechValley, has an estimated RM1bil GDV in the third quarter of FY25, marking a significant step in replicating its successful industrial park business model to another foreign direct investment hotspot.

With a robust project pipeline, AME has increased its annual sales target to RM400mil from RM350mil in FY24.

The research house has reiterated its “buy” call on the stock with an unchanged target price of RM2.15 a share.

It also remained positive on AME’s earnings prospects.

This is supported by the demand for industrial properties and the potential setting up of the Johor-Singapore Special Economic Zone.

The key risks to its call include weaker-than-expected property sales, higher raw material prices which could lead to further margin pressure.
Property,AME Elite Consortium Bhd,data centre
PETALING JAYA: AME Elite Consortium Bhd is looking into the possibility of further land sales to data centre (DC) operators after receiving several inquiries recently.