Highlights

Logic Invest Research Blog

Author: loginvest   |   Latest post: Mon, 9 Mar 2020, 9:21 AM

 

Land & General Bhd - Above Expectations

Author:   |    Publish date:


What’s New

Strong 3QFY19. L&G reported 3QFY19 earnings of RM11m which was a huge improvement from its 1HFY19 earnings of a mere RM0.2m. The stronger-than-expected results were largely due to much improved margins for its ongoing projects, RM3.1m share of profit contribution from its 45%- owned Country Garden Properties (Malaysia) Sdn Bhd, and RM3.05m fair value gain on its financial investment.

Weak property sales. L&G achieved RM11m property sales in 3QFY19, largely due to its Sena Parc project in Senawang and Damansara Seresta in Bandar Sri Damansara. This takes 9MFY19 property sales to RM54m, which trails our initial property sales assumption. Meanwhile, unbilled sales stood at RM189m which will underpin its earnings visibility in the near term.

Lack of launches in the near term. L&G has only launched the second phase of Damansara Foresta called Damansara Seresta (RM480m GDV) since 2HCY18 in view of the sluggish property market. We believe most of its pipeline will now be further delayed until there is a turnaround in the operating environment. The delay has derailed L&G’s earnings growth momentum, and a strong sales performance from Damansara Seresta would be critical to sustain its earnings growth.

Revise FY19-21F earnings by +84%/+7%/-11%. This is mainly to account for the higher margins from its ongoing projects, partially offset by slower sales assumptions. Nevertheless, we maintain our TP of RM0.16, based on an unchanged 75% discount to our RNAV. We reiterate our HOLD as we believe it would take a long time for the company to monetise its deep land value.

Source: Alliance Research - 28 Feb 2019

Share this
Labels: L&G

Related Stocks

Chart Stock Name Last Change Volume 
L&G 0.085 0.00 (0.00%) 4,988,000 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program
 
 

245  300  483  1180 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 AVI 0.07+0.015 
 VC 0.085+0.015 
 HIBISCS 0.52+0.015 
 MRCB-WB 0.13+0.025 
 HIBISCS-WC 0.15+0.015 
 ARMADA 0.18+0.005 
 HSI-H8M 0.335-0.075 
 HSI-C9J 0.205+0.02 
 EKOVEST 0.475+0.015 
 SAPNRG 0.11+0.005 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
2. MQ Affiliate – A smarter way to earn more rewards MQ Trader Affiliate Program
3. MQ Affiliate – How to become an effective affiliate MQ Trader Affiliate Program
4. MQ Affiliate – Upgrading to Affiliate Partner MQ Trader Affiliate Program
Partners & Brokers