RHBInvest Research

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.