Public Investment Research maintains Outperform on E&O (3417)

KUALA LUMPUR: Public Investment Research is maintaining its Outperform recommendation on Eastern & Oriental (E&O) and target price of RM2.20.
It said on Wednesday that price target of RM2.20 was a 30% discount to fully diluted RM3.10 RNAV.
“Potential catalyst include final approval for STP2 (760 acres, GDV RM12bil to RM13bil), JVs with Sime Darby
(37,000 acres landbank with an estimated RM100bil. GDV) and realising
its KPT of targeting RM250mil-RM300mil in FY12/13,” it said.
Public
Investment Research said year-to-date, the group has achieved 26% of
its earlier FY13 net profit estimate, primarily driven by the Quayside
and Andaman condominiums in Penang and the St Mary Residences in Kuala
Lumpur.
“Margins remained steady at c. 25% EBIT, despite the
recent cost pressures. Separately, we tweaked our earnings estimates to
reflect changes in our profit recognition assumptions and revised our
FY13-15F estimates upwards by +10.7% and +6.1% respectively. We expect
E&O to meet its bi-annual profit target of RM250mil-RM300mil,” it
said.

MIDF say 1.92 PBB say 2.20