Monday, December 5, 2011

Glomac rises on firm 2Q earnings

KUALA LUMPUR (Dec 5): GLOMAC BHD [] shares rose in early trade on Monday after its net profit for the second quarter ended Oct 31, 2011 rose 50% to RM23.78 million from RM15.88 million a year ago, underpinned by on-going projects particularly Glomac Damansara, Glomac Cyberjaya, Saujana Rawang and Bandar Saujana Utama.

At 9.05am, Glomac added 1.5 sen to 83.5 sen with 76,500 shares traded.

Its revenue for the quarter however declined 4.3pct to RM134.83 million from RM140.89 million, due to completion of two projects namely Glomac Tower and Glomac Galleria.

ECM Libra Investment Research said it maintained its Buy call on the stock premised on Glomac's strong 3-year earnings CAGR of 35% and more positive news flow on landbanking, en bloc sale and estimated GDV of RM2.6 billion beyond FY12.

'The revised target price of RM1.12 is due to the effect of the share split, and is based on 6x P/E valuation for FY13 earnings.

'RNAV estimate is also revised to RM1.55 which further supports our target price this is at a 28% discount to RNAV,' the research house said on Monday.

No comments:

Post a Comment