KUALA LUMPUR: CIMB Equities Research said it was floored by BERJAYA LAND BHD []'s 1QFY4/12 core net loss of RM3.9 million as it had forecast RM46.7 million core net profit for the full year.
It said on Friday, Sept 23 the variance stemmed mainly from higher tax expenses, weaker-than-expected property earnings and lower contribution from the hotel and recreation business.
'Factoring in a scaled-back sales schedule and lower EBITDA margin assumption for its property projects, we now slash our FY12-14 EPS forecasts by 35%-46%,' it said.
CIMB Research said it also imputed a higher tax rate on FY12-14 earnings. In view of its volatile earnings and the macro headwinds, it widen its sum-of-parts discount from 10% to 40%, which reduces its target price from RM1.11 to 93 sen.
'B-Land remains a SELL, with potential downside catalysts being these poor results, execution risk for its overseas projects and continuous losses for its club division,' it said.
It said on Friday, Sept 23 the variance stemmed mainly from higher tax expenses, weaker-than-expected property earnings and lower contribution from the hotel and recreation business.
'Factoring in a scaled-back sales schedule and lower EBITDA margin assumption for its property projects, we now slash our FY12-14 EPS forecasts by 35%-46%,' it said.
CIMB Research said it also imputed a higher tax rate on FY12-14 earnings. In view of its volatile earnings and the macro headwinds, it widen its sum-of-parts discount from 10% to 40%, which reduces its target price from RM1.11 to 93 sen.
'B-Land remains a SELL, with potential downside catalysts being these poor results, execution risk for its overseas projects and continuous losses for its club division,' it said.
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