GLOMAC (5020) : RHB Research Neutral on Glomac
KUALA LUMPUR: RHB Research has maintained its Neutral on Glomac with a target price of RM1.08 from RM1.28 in light of the expected challenging environment ahead and slower earnings recovery.
In a note on Thursday, the research house said Glomac’s 1HFY15 (Apr) results missed expectations at only 31%/33% of its/consensus full-year estimates.
"Earnings continued to be affected by delays in new launches. We believe management’s FY15 new sales target of RM504mil is a tall order, as its new launches will likely be delayed into 1QCY15," it said.
RHB added that new sales performance has been lacklustre at only RM62mil for 1HFY15 (vs RM30mil in 1QFY15) due to the lack of new launches.
"Management continues to guide for RM824mil of GDV to be launched in 2HFY15. However, the project launches will likely be delayed to after 1 Jan, as management awaits the implementation of new incentives for buyers that were announced in Budget 2015 (such as the 50% discount in stamp duty).
"Among the major projects to be rolled out are Glomac Centro V and the first phase of Saujana KLIA. Management is confident that FY15 total new sales will at least match the FY14 total of RM504mil, but we think this is rather bullish given the expected delays," it noted.
Therefore, the research house has slashed Glomac's FY15/FY16 net profit numbers by 23%/16% given the expected delays in new project launches.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has maintained its Neutral on Glomac with a target price of RM1.08 from RM1.28 in light of the expected challenging environment ahead and slower earnings recovery.
In a note on Thursday, the research house said Glomac’s 1HFY15 (Apr) results missed expectations at only 31%/33% of its/consensus full-year estimates.
"Earnings continued to be affected by delays in new launches. We believe management’s FY15 new sales target of RM504mil is a tall order, as its new launches will likely be delayed into 1QCY15," it said.
RHB added that new sales performance has been lacklustre at only RM62mil for 1HFY15 (vs RM30mil in 1QFY15) due to the lack of new launches.
"Management continues to guide for RM824mil of GDV to be launched in 2HFY15. However, the project launches will likely be delayed to after 1 Jan, as management awaits the implementation of new incentives for buyers that were announced in Budget 2015 (such as the 50% discount in stamp duty).
"Among the major projects to be rolled out are Glomac Centro V and the first phase of Saujana KLIA. Management is confident that FY15 total new sales will at least match the FY14 total of RM504mil, but we think this is rather bullish given the expected delays," it noted.
Therefore, the research house has slashed Glomac's FY15/FY16 net profit numbers by 23%/16% given the expected delays in new project launches.
http://www.thestar.com.my
