RHB raises IJMland fair value to RM3.42
Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com
Monday, 08 April 2013 10:36
Monday, 8 April 2013
KUALA LUMPUR (APRIL 8): RHB Research has maintained a ‘buy’ rating on IJM Land Bhd with a higher fair value of RM3.42 (previously RM2.89), expecting the stock to gradually garner more premium.
In a note today, RHB Research said that it chose IJM Land over SP Setia as the Malaysia property play, given that IJM Land has a wide presence in most of the key states in Malaysia.
“SP Setia’s current product portfolio has skewed towards the overseas markets.”
The research house added that the recent sector re-rating has largely underestimated the growth potential of IJM Land.
“The stock is currently trading at a price to earning ratio of only 13 times, still some 30% below the previous up-cycle price to earning of 18-19 times in the first half of 2011.”
RHB Research anticipates that Pantai Sentral Park as the next earnings kicker. The project has an estimated gross development value of RM3 to RM4 billion.
“Depending on the election outcome, the project could benefit from the proposed MRT Line 2, which could pass through Pantai Dalam,” added RHB Research.