RHBInvest Research

Thursday, April 14, 2011

Top Story: IJM Land

  • Company Update
  • IJMLD shares’ performance was flattish (YTD -2%) vs. Mah Sing’s 41% and SP Setia’s 11%.
  • We believe the current valuations on IJMLD are decent, given the unchanged solid fundamentals, strategic landbank exposure and >50% FY12 net earnings growth.
  • The value of the 2000-acre Canal City land will be unlocked next year. The project will be a bread-and-butter township development.
  • IJMLD is our top pick besides Mah Sing. Maintain Outperform with a higher FV of RM3.28 (from RM3.18).

Corporate Highlights

UEM Land:
  • News Update
  • Secured maintenance contract
  • Minimal impact on net profit. We expect the contract to yield a gross margin of 20%.
  • No change to forecasts, Market Perform call and fair value of RM2.80.

Parkson: Market Perform
  • News Update
  • Clarity on the Centro deal
  • For the time being, given that there is no cash involved in the deal, the cost to Parkson is a 9.9% earnings dilution in its Malaysian and Vietnamese operations earnings, which is to be transferred into Parkson Asia.
  • As highlighted, the deal also involves Parkson granting MS a put option which, if exercised by June 2014, would require Parkson to purchase MS’ 9.9% stake in Parkson Asia at a total value of RM112.6m.
  • Our SOP-derived fair value is maintained at RM5.90. Maintain Market Perform for the stock.


Post a Comment

Related Posts with Thumbnails

About This Blog

To learn better Bursa Malaysia Stock Market & build up My Portfolio.

Current stock in my portfolio:
1) Hupseng
2) Glomac
3) Masteel
4) Supermax
5) Cocoland
6) Xinquan

Unit Trust Price


  © Blogger template On The Road by Ourblogtemplates.com 2009

Back to TOP