KUALA LUMPUR (Feb 20): RHB Research Institute is maintaining its market perform on IJM Land Bhd with a higher fair value of RM2.33.
It said on Monday the launch of 1,879-acre Canal City in 3Q2012 will rightly meet the sector’s switch to the middle-end housing. The gross development value could potentially be expanded to RM12 billion to RM15 billion, vs RM10 billion in its RNAV estimate.
“We are confident that Phase 1 (GDV RM250m) will be well-received, driven by: (i) limited new phases in established townships nearby; (ii) continued pent-up demand on mid-end housing, which banks are still supportive in their lending; and (iii) lack of sizeable self-contained new township development in the Klang Valley by reputable developer,” it said.
RHB Research revised up its GDV and margin assumption for Canal City. This results in an RNAV enhancement of 14 sen a share. Based on an unchanged 15% discount to RNAV, its fair value was raised to RM2.33.
It said on Monday the launch of 1,879-acre Canal City in 3Q2012 will rightly meet the sector’s switch to the middle-end housing. The gross development value could potentially be expanded to RM12 billion to RM15 billion, vs RM10 billion in its RNAV estimate.
“We are confident that Phase 1 (GDV RM250m) will be well-received, driven by: (i) limited new phases in established townships nearby; (ii) continued pent-up demand on mid-end housing, which banks are still supportive in their lending; and (iii) lack of sizeable self-contained new township development in the Klang Valley by reputable developer,” it said.
RHB Research revised up its GDV and margin assumption for Canal City. This results in an RNAV enhancement of 14 sen a share. Based on an unchanged 15% discount to RNAV, its fair value was raised to RM2.33.
