STOCK FOCUS OF THE DAY
Titijaya Land : Much larger share base after corporate exercises BUY
We raise our FY18-19F net profit forecasts by 14.4% and 22.1% respectively, but cut our FY18-19F FD EPS forecasts by about 60% each. We trim our FV by 5% to RM1.91 (from RM2.01) but maintain our BUY call.
The upgrade in our net profit forecasts is largely to reflect some RM65.3mil government compensation, particularly, the half-yearly rental of RM7.95mil for three years from Nov 2017. The compensation arises from the temporary occupation and usage of Titijaya's 16-acre land in Shah Alam by contractors during the construction of LRT3.
On the other hand, the downgrade in our FD EPS forecasts is to reflect the almost tripling in Titajaya's FD share base from 410mil to 1.1bil following: (1) the issuance of 79.7mil new shares at an issue price of RM1.45/share for recent land acquisitions; and (2) the issuance of 615mil Irredeemable Convertible Preference Shares (ICPS) at an issue price of RM0.165/share.
The ICPS is convertible into new Titijaya share either by way of: (1) the ICPS option, i.e. ten ICPS into one share; or (2) the cash option, i.e. one ICPS + RM1.485 cash for every one share. Thus far, we understand that 33mil ICPS have been converted into new shares by way of the cash option.
Others :
Unisem : Lower WLCSP production dulls prospects HOLD
STOCKS ON RADAR
Bumi Armada, Reach Energy, Kerjaya Prospek,Signature International
ECONOMIC HIGHLIGHT
US : December rate hike is almost certain
NEWS HIGHLIGHTS
Axis Real Estate Investment Trust : Inks deal with MAHB
Cab Cakaran Corporation Bhd : Makes progress towards Indonesia dream
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