Hot Stock L&G rises on positive outlook from Hwang DBS Vickers Research

Business & Markets 2013
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Wednesday, 11 December 2013 15:09
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KUALA LUMPUR (Dec 11): Land & General (L&G) Bhd rose as much as 4.7%
after positive comments by HwangDBS Vickers Research (HDBSVR) on the
company’s stronger earnings and improved balance sheet.
At 2.53pm, L&G traded at 44 sen, up 1.5 sen with some 10.8 million shares
done.
It was one of the most active stocks on the bourse, and had earlier risen as
much as 2 sen to 44.5 sen.
Its loan stock L&G-LA also rose by 1.5 sen or 5% to 31 sen.
On Tuesday, HDBSVR said that L&G has approximately RM800 million unbilled
sales for Elements@Ampang and Damansara Foresta Phase 1, which will be
completing in 2QCY14 and 4Q2015.
“This turns out to be 4 times its FY13 property development revenue, translating to RM200 million in profit, to be recognized over the next
three years,” said HDBSVR.
L&G will be launching RM1.5 billion worth of residential projects in 2014, which includes Damansara Foresta Phase 2, Elements
2@Ampang and Seremban Phase 1.
“Not only has earnings visibility improved, L&G’s net cash has also grown to RM250 million with potential maiden dividends to be declared
next year,” said the research house.
HDBSVR gives a “trading buy” call on L&G with a fair value (FV) of RM0.65.
In a statement to the bourse on 20 Nov, L&G recorded 2QFY13 net profit of RM23.1 million, a huge jump from RM2.2 million in 2QFY12.
Its revenue also saw a leap to RM140 million, from RM50 million last year.