KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call on IJM Corp and raised the target price to RM6.20 with 24% upside.
It said on Thursday, Aug 12 that IJM has zero legacy jobs in its orderbook currently. 1Q FY11 (Apr-June) results due-end August will be the last quarter of more benign margins.
Hwang DBS Vickers Research said a more pronounced uptick in CONSTRUCTION [] margins will be seen from 2QFY11 onwards, driven by more meaningful contributions from RM545m Grand Hyatt (18% completed), RM640m Besraya, RM247m Mukah access roads and RM350m Penang approach roads.
'We expect robust property sales of RM300m-RM400m in 1QFY11 following RM1.2bn record sales in FY10.
'The strength was seen across its mass-market projects in Klang Valley, Penang and Sabah. For IJM PLANTATION []s, we are expecting a 55% on-quarter jump in 1Q FY11 earnings (excluding exceptional items), given RM100 rise in CPO average selling price, expected lower tax rate, and absence of impairment loss,' it said.
It said on Thursday, Aug 12 that IJM has zero legacy jobs in its orderbook currently. 1Q FY11 (Apr-June) results due-end August will be the last quarter of more benign margins.
Hwang DBS Vickers Research said a more pronounced uptick in CONSTRUCTION [] margins will be seen from 2QFY11 onwards, driven by more meaningful contributions from RM545m Grand Hyatt (18% completed), RM640m Besraya, RM247m Mukah access roads and RM350m Penang approach roads.
'We expect robust property sales of RM300m-RM400m in 1QFY11 following RM1.2bn record sales in FY10.
'The strength was seen across its mass-market projects in Klang Valley, Penang and Sabah. For IJM PLANTATION []s, we are expecting a 55% on-quarter jump in 1Q FY11 earnings (excluding exceptional items), given RM100 rise in CPO average selling price, expected lower tax rate, and absence of impairment loss,' it said.
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