STOCK FOCUS OF THE DAY
TTjaya Land: Sales sustaining despite soft property market Buy
We lower our FY18-20F FD EPS by 37-40% and adjust our FV down to RM0.95 (from of RM1.91) (Exhibit 4) largely to reflect the recent 1-for-1 share split. We maintain our BUY call. Despite the overall still soft local property market, we estimate that Titijaya in 2QFY18 (Oct-Dec 2017) has been able to match its sales of about RM100mil achieved in 1QFY18 (Jul-Sep 2017), which helps to sustain its unbilled sales at about RM400mil. Similar to 1QFY18, we believe the bulk of the sales in 2QFY18 has come from the RM916mil 4-block H2O Residences in Ara Damansara, one the most sought-after addresses in the Klang Valley.
Titijaya has lined up RM1.45bil new launches in FY18, largely in the affordable segment such as high-rise residential units in Damansara West, Bukit Subang (RM300K-450K/unit) and The Shore @ Kota Kinabalu (RM455K-810K/unit), as well as compact serviced suites in Riveria @ KL Sentral (RM340K-780K/unit).
While we are cautious on the property sector, we continue to like Titijaya for its focus in the affordable high-rise residential segment in the Klang Valley, its strong earnings visibility and its ability to secure new landbank at attractive prices.
QUICK TAKE
Plantation Sector: News flow for week 8 – 12 January Neutral
STOCKS ON RADAR
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ECONOMIC HIGHLIGHT
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NEWS HIGHLIGHTS
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The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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