KUALA LUMPUR (Nov 03) — AllianceDBS Research initiates coverage on Land & General with Buy call and target price of MYR0.28. “With a net cash position of MYR230 million representing about 35% of its market cap, L&G is set to unlock its deep land value via more launches,” says house in investor note. Expects company core earnings to grow at average 226%/annum in FY18-20F, in anticipation of better property market in 2018. Adds, “while the market may be sceptical on the company due to the perceived conflict of interest with its major shareholder (Mayland) that is also involved in property development, we draw comfort from the fact that the bulk of Mayland’s prime landbank has been injected into L&G.” Shares now flat at MYR0.22.
– By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
– Edited by Abhijit Basu
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Source: Nikkei Asian Review