Published: Wednesday August 29, 2012 MYT 9:15:00 AM
Kenanga Research maintains Outperform on IJM Land, TP RM2.75
“More affordable products are coming on line, with the company being seen as one of the most sustainable' developers. Key project catalysts (e.g. Rimbayu, Sebana Cove and UK project) and more overseas ventures will excite investors, particularly given IJM Land's net cash position,” it said on Wednesday.
Kenanga Research said the target price was maintained at RM2.75 based on a 10% discount to its FD sum-of-parts RNAV of RM3.05.
The research house said the Q1, 2013 core net profit of RM35.0mil was considered as broadly within expectations. Although it only made up 15% of the street's and Kenanga Research's estimates, the first quarter results were typically the weakest.
“Furthermore, we expect the realisation of land sale gains of RM13mil to cause a spike in 2Q13/3Q13,” it said.
Kenanga Research expected Q2, 2013 sales could be higher on-quarter. In addition to its ongoing projects, two new projects have started sales; Seri Riana and S2 Centrio, which have seen 70%-90% take-ups. Rimbayu (GDV: RM11bil) will likely be launched in H2, 2013.
It added that projects like Sebana Cove and its maiden UK project will take place from FY14 onwards.