May 20, 2010

BRDB - OSK Research upgrades BDRB to trading buy

Stock Name: BRDB
Company Name: BANDAR RAYA DEVELOPMENTS BHD
Research House: OSK

KUALA LUMPUR: OSK Investment Research has upgraded BANDAR RAYA DEVELOPMENTS BHD [] to a trading buy at RM1.62 with target price RM1.83 and said the company's annualised 1QFY10 net profit was within its expectation but 36% below consensus estimates.

It said that as expected, 1QFY10 year-on-year (y-o-y) and quarter-on-quarter (q-o-q) turnover fell marginally by 7% on lower property sales and diminishing unbilled sales due to lack of new launches.

Net profit, however, improved by 16% y-o-y and 18% q-o-q on Mieco's improving operating performance, it said.

"We are leaving our earnings forecast unchanged for now.

"As the stock price has now fallen substantially inline with other property counters, we are upgrading the stock back to a Trading Buy, with an unchanged CY10 target price of RM1.83 based on 0.52 times CY10 P/NTA," it said.

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