Stock Name: IVORY
Company Name: IVORY PROPERTIES GROUP BERHAD
Research House: AMMB

KUALA LUMPUR: AmResearch reaffirms its BUY rating on Ivory PROPERTIES [] Bhd (Ivory) with unchanged fair value of RM1.75 a share based on 35% discount to its net asset value (NAV) of RM2.70 a share.

Ivory had on Wednesday, Sept 15 has entered into an agreement to buy shares of Tanjong Tokong Garden Development Sdn Bhd (TTG) at RM37.6 million.'' Significance of this deal is that via TTG, Ivory would have the rights to develop prime freehold land in Tanjung Tokong, Penang measuring 2.3 acres.

'With an estimated gross development value of RM368 million, Ivory plans to develop "City Mall" comprising of 175 condominium units and a retail mall.

'We expect take-up to be strong due to its strategic location and we have initially assumed a GDV of RM250 million this into our NAV estimate. Based on an additional net profit of RM37 million, the development may boost our NAV by 17 sen a share (+6%) to RM2.87 a share,' it said.