Kenanga Research has maintained its"outperform" call on Benalec Holdings Bhd with its target price unchanged at RM1.71.

In a research note, Kenanga Research said Benalec's balance sheet was in good position to support its rollout of new projects due to ample cash for working capital requirements.

Recently, Benalec proposed to dispose 16 parcels of land in Melaka for RM97 million to Oceancove Development Sdn Bhd.

"There is no change to our forecast as the transacted land value is within our expectation," said the note.

The proceeds would be used for Benalec's current and future working capital requirements.

On outlook, Kenanga said Benalec's Johor land development was expected to be an exciting boost in the near-term as the company was finalising the environment impact assessment and awaiting further approvals from Johor state agencies.

"Further development of its Johor land will be its next catalytic factor," said Kenanga. Bernama