Wednesday, September 22, 2010

GLOMAC still a ‘buy’: ECM Libra

property developer, Glomac Bhd.

In a research note here today, ECM Libra said the call was premised on Glomac's three-year earnings compound annual growth rate of 19.4 per cent.

ECM Libra said it has raised Glomc's estimates for financial years 2011 and 2012 by 24 per cent and 19 per cent respectively after imputting higher margins.

"Our earning upgrade has led us to revised the target price from RM1.87 to RM1.93," it said.

It said Glomac's results for first quarter of 2011 (Q1FY11) financial year were above house and market expectations as the net profit of RM15.6 million already made up 33 per cent and 35 per cent of house and consensus full-year estimates respectively.

"Its Q1FY11 revenue of RM126.3 was 114.1 per cent higher year-on-year as the Glomac Tower project is now full swing and we expect this to continue given the slew of commercial projects in the pipeline," it said.

ECM Libra said Glomac achieved decent property sales of RM80 million in Q1FY11. Unbilled sales of RM585 million would provide earnings visibility over the next two-three years. - Bernama

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...