IJM Land Bhd is expected to maintain a healthy growth momentum in the quarters ahead, underpinned by its high level of unbilled sales, which currently stands at around RM2bil.
The property development arm of IJM Corp Bhd last month reported stronger-than-expected earnings for its first quarter ended June 30, as its net profit grew 60% to RM81.7mil, or 5.7 sen per share, from RM51.1mil, or 3.67 sen per share, in the previous corresponding quarter. Revenue, on the other hand, almost doubled to RM459.9mil, compared with RM251.2mil previously.
Analysts seem optimistic on the performance of IJM Land’s shares given the strong fundamentals of the company. A Bloomberg survey of eight research houses that have updated their ratings on IJM Land since last month puts the average 12-month target price at RM3.51 for the counter. There are seven “buy” calls on the stock against one “hold” call.
IJM Land’s shares yesterday closed eight sen higher at RM2.59.
The company’s high level of unbilled sales is expected to support earnings growth for the next two to three years.
Of its RM3bil worth of property launches expected for this year, IJM Land launched RM1bil between April and July. In the pipeline include RM300mil worth of properties in Penang, RM1.25bil in the Klang Valley and Seremban, RM300mil in the southern region and RM150mil in Sabah and Sarawak.
In addition, IJM Land is expected to launch a build-and-sell Royal Mint Gardens residential apartments in London later this month. The project, which comes with an estimated gross development value of £280mil (RM1.46bil), is a 51:49 IJM-led joint venture with another private UK-based company.
The comments above do not represent a recommendation to buy or sell.
Source from thestar.com.my.
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