KUALA LUMPUR, Jan 8 — Online stock trading company Rakuten Trade Sdn Bhd has recommended a ‘buy’ call on Binasat Communications Bhd with a target price of 65 sen from its initial public offering price of 46 sen.

In a note today, Rakuten said the ‘buy’ call was based on its 13 times price to earnings ratio for the financial year (FY) 2019.

"We like their recurring income from their operations and maintenance services which account for 48 per cent of total revenue providing sustainable and stable earnings visibility.

"Revenue has been growing steadily for the past four years with compound annual growth rate (CAGR) of 19.7 per cent and is anticipated to remain robust with double-digit growth and earnings per share growth of 12.8 per cent for FY 2018 and 13.6 per cent for FY 2019,” it said.

Binasat is principally involved in telecommunication supporting services for satellite, mobile and fibre optic telecommunications networks.

It made its debut today as a public listed company on the Ace Market of Bursa Malaysia, the first company to be listed in 2018 with a market capitalisation of RM119.6 million.

At lunch break, Binasat’s share price was flat at 60 sen, with 58.36 million shares traded. — Bernama