We maintain our BUY call and MYR3.70 FV. We expect a strong take-up for IJMLD’s Royal Mint Gardens project in London, given its strategic location, design, furnishing and decent pricing. Thus far, it has received 40% booking. Upon the announcement of Budget 2014 next month,IJMLD is scheduled to launch a slew of projects, which should keep its sales momentum going. We expect FY14 sales to reach MYR2.3bn.

• Royal Mint Gardens. IJMLD held a briefing last Friday to introduce Royal Mint Gardens (RMG), which is slated for launch next month. RMG is strategically located within Zone 1, where iconic London landmarks such as Tower Bridge, Tower of London, and the tube station are all within 2-3 min walk. The project is also conveniently linked to the TowerGate Docklands Light Railway (DLR) station. Phase 1 (comprising three blocks and 254 units) is estimated to have a GDV of GBP200m. The company expects to see the impact of RMG sales in FY17-18 earnings.

• 40% booked in London. RMG’s design, location and decent pricing are attracting buyers. Before the official launch, IJMLD has already received 40% booking, mostly from local Londoners. As expected, the design of IJMLD’s products is always very thoughtful. All residents in RMG will be able to enjoy common facilities such as a wellness centre and a roof-top garden, which provides a view of the Tower Bridge. With unit sizes in the range of 387-1,431 sqf, the apartments are priced at GBP1,000-1,300 psf. This is relatively decent when compared to the nearby One Tower Bridge by Berkeley, which is priced at GBP1,300-1,800 psf.

•  368 Residences. Dato’ Soam, the CEO, has also taken the opportunity to explain IJMLD’s recent JV project with FCW (FCW MK, NR) – ie 368 Residences at Jalan Segambut. The project will benefit from the extension of DUKE Highway to Sri Damansara (from Ampang). Upon the conversion of the 15.4-acre land to commercial status, the JV will put up seven blocks of commercial towers and serviced apartments on the site worth MYR1.5bn GDV. The units will be preliminarily priced at MYR550-600 psf. We believe further upside to pricing is possible.

•  Maintain BUY. Depending on the outcome of the Budget 2014, IJMLD is scheduled to launch a slew of projects in Oct-Nov, including two condo blocks at Seri Riana, Collection IV, Pantai Sentral Park and Rimbayu Ph.3. We remain upbeat on IJMLD’s property sales in FY14.  Maintain BUY and a MYR3.70 FV on IJMLD.

Source: RHB