Stock Name: GLOMAC
Company Name: GLOMAC BHD
Research House: ECMLIBRA



ECM Libra has reiterated a "Buy" call for property developer, Glomac Bhd, and has raised estimates of financial year 2011 to financial year 2013 by between 0.3 per cent and 11.1 per cent after taking into account higher project launches over the next 12 months.

It said Glomac remains a buy premise on its strong three-year earnings compound annual growth rate of 24.9 per cent.

"Our earnings upgrade led to target price revision from RM1.93 to RM1.98, which are derived from historical average nine times per earnings on 2011.

"We believe Glomac has the financial capacity to grow, given its strong balance sheet with net debt/equity of just 0.12 times," it said in a research note today.

The research house said Glomac was entering into a new growth phase as it aims to launch RM1 billion worth of projects over the next 12 months, of which 60 per cent are residential and 40 per cent commercial.

Meanwhile, AmResearch said it was placing its rating and fair value on Glomac under review, pending a meeting with the management later. -- Bernama