Guocoland; Trading Buy
Fair Value: RM1.45; GUOL MK

Prime RM2bn Damansara City will be a game changer, boosting earnings growth and to pare down high gearing. Mass residential projects in Rawang and Sungai Buloh supported by robust local demand; RM48bn Sepang International City to underpin future growth. Attractive valuation (68% discount to RNAV, 0.86x P/BV on depressed historical value), potential privatization candidate. Fair value of RM1.45 based on 50% discount to RNAV of RM2.86, implying 45% upside potential.

Source: HwangDBS Research - 16 Apr 2013