Flash: IGB Corp (IGBS.KL): Buy: 9MFY08 Results Within Expectations
§ 9MFY08 in-line - 3Q net profit of RM31.1m brought 9MFY08 net profit to RM110.8m (-5.8% YoY). This amounts to 73% and 71% of our and consensus' full-year estimates. We consider the results to be within expectations.
§ 9M pretax down 6.5% YoY - A decline in pretax profit is due to the lower contribution from property development and hotel segments. Property development EBIT fell 19.1% YoY, due to fewer projects being recognised as there were no new launches this year. Hotel EBIT dropped by 38.3% YoY, due mainly to the closure of MiCasa Hotel for renovation works.
§ Rental revenue up - Property investment revenue rose 54.2% in 9MFY08, due to higher rental rates and first full-year contribution from The Gardens mall and from Centrepoint North & South office towers. Key property investment asset, the Mid Valley Megamall, reported pretax improvement of 16.7% due to higher rental income.
§ Office rental still firm - The two new office buildings finished this year - Gardens South and North Tower - are now 80% and 40% occupied. Asking rental rates are still around RM6psf. Our latest check with the company reveals that the occupancy rate has not declined and that rental rates are holding firm.
§ Maintain Buy - We believe IGB offers good value, trading at a steep discount of 72% to its RNAV/share of RM4.27. Our RM2.56 target price is based on 40% discount to RNAV, reflecting the current discount to its closest peer.
Well done! manage to make contra on resorts. I'm still holding resorts at average cost 2.48, after bought again at 2.41-2.43 in the afternoon. Waiting for rebound as today knee-jerk effect on Q3 result may overreact. Selling pressure very high in the afternoon session. Wonder whether resorts will start its buy-back scheme since its still holding 4.5bil net cash or 77sen/share.
Another pattern i realize is resorts share movement tend to move in different direction compare to index.
4 comments:
Flash: IGB Corp (IGBS.KL): Buy: 9MFY08 Results Within Expectations
§ 9MFY08 in-line - 3Q net profit of RM31.1m brought 9MFY08 net profit to RM110.8m (-5.8% YoY). This amounts to 73% and 71% of our and consensus' full-year estimates. We consider the results to be within expectations.
§ 9M pretax down 6.5% YoY - A decline in pretax profit is due to the lower contribution from property development and hotel segments. Property development EBIT fell 19.1% YoY, due to fewer projects being recognised as there were no new launches this year. Hotel EBIT dropped by 38.3% YoY, due mainly to the closure of MiCasa Hotel for renovation works.
§ Rental revenue up - Property investment revenue rose 54.2% in 9MFY08, due to higher rental rates and first full-year contribution from The Gardens mall and from Centrepoint North & South office towers. Key property investment asset, the Mid Valley Megamall, reported pretax improvement of 16.7% due to higher rental income.
§ Office rental still firm - The two new office buildings finished this year - Gardens South and North Tower - are now 80% and 40% occupied. Asking rental rates are still around RM6psf. Our latest check with the company reveals that the occupancy rate has not declined and that rental rates are holding firm.
§ Maintain Buy - We believe IGB offers good value, trading at a steep discount of 72% to its RNAV/share of RM4.27. Our RM2.56 target price is based on 40% discount to RNAV, reflecting the current discount to its closest peer.
Well done! manage to make contra on resorts. I'm still holding resorts at average cost 2.48, after bought again at 2.41-2.43 in the afternoon. Waiting for rebound as today knee-jerk effect on Q3 result may overreact. Selling pressure very high in the afternoon session. Wonder whether resorts will start its buy-back scheme since its still holding 4.5bil net cash or 77sen/share.
Another pattern i realize is resorts share movement tend to move in different direction compare to index.
Resorts should be a save bet...average cost at 2.48 not extremly high, a swing will bring you to profit i believe.
i am queuing to buy more of resorts.....
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