KUALA LUMPUR (Feb 28): HwangDBS Vickers Research said Eastern & Oriental Bhd’s 3QFY12 net profit came in at RM15.4 million (up 106% on-year excluding exceptionals, up 11% on-quarter), bringing 9MFY12 core earnings to 60-86% of its and consensus expectations.
It said on Tuesday that E&O could still meet management’s profit target (RM250 million to RM300 million over FY11-12 RM150 million to RM200 million per annum thereafter).
HDBSVR said the factors would be on the back of record RM930 million unbilled sales and new launches.
The research house said E&O and Sime Darby have held their second monthly collaboration meeting and we expect more detailed plans to be unveiled by 1H12.
“Cut FY12-13F earnings by 6%-8% to push forward profit recognition for Andaman condos. Maintain Hold, raise TP to RM1.80 (from RM1.50) based on a lower 40% discount (from 50%) to RNAV of RM3.05 as STP continues to see strong demand amid a softer property market.
“We have assumed RM265psf for STP’s remaining landbank (including Phase 2), 10% premium to RM240psf Ivory PROPERTIES [] paid for Bayan Mutiara given STP’s more prime location (sea-facing),” said HDBSVR.
It said on Tuesday that E&O could still meet management’s profit target (RM250 million to RM300 million over FY11-12 RM150 million to RM200 million per annum thereafter).
HDBSVR said the factors would be on the back of record RM930 million unbilled sales and new launches.
The research house said E&O and Sime Darby have held their second monthly collaboration meeting and we expect more detailed plans to be unveiled by 1H12.
“Cut FY12-13F earnings by 6%-8% to push forward profit recognition for Andaman condos. Maintain Hold, raise TP to RM1.80 (from RM1.50) based on a lower 40% discount (from 50%) to RNAV of RM3.05 as STP continues to see strong demand amid a softer property market.
“We have assumed RM265psf for STP’s remaining landbank (including Phase 2), 10% premium to RM240psf Ivory PROPERTIES [] paid for Bayan Mutiara given STP’s more prime location (sea-facing),” said HDBSVR.
