Glomac (Hold): Building warchest for landbanking

Date: 
2011-12-05
Firm: 
MAYBANK
Stock: 
GLOMAC
Price Target: 
0.88
Price Call: 
HOLD
Last Price: 
0.38
Upside/Downside: 
+0.50 (131.58%)
Maintain Hold. Glomac's RM35m 1HFY12 core net profit accounted for 45% of our and consensus full-year estimates. With close to RM50m (8.6sen/sh) net cash, Glomac is in a good position for accretive landbanking opportunities. We raise FY13-14 earnings forecasts by 4% and RNAV by 2sen. We now value Glomac at RM0.88 on a lower 40% discount (previously 50%). The formalization of BNM's prudent lending guidelines should remove surrounding policy risk.

Maybank research (5 December 2011)

Click here for full report
Discussions
Be the first to like this. Showing 2 of 2 comments

valueinvestor

If not for the aggressive share buyback that happened today, it would be interesting to see if its share price could have shot up so much at one stage today. Why the aggressive buyback had to take place today after announcing the so-called good first half yearly result??? :-)

2011-12-05 20:16

bjgdila123

be cool collect and wait for the time .....

2011-12-06 09:39

Post a Comment