Stock Name: YNHPROP
Company Name: YNH PROPERTY BHD
Research House: RHB
YNH Property Bhd
(Feb 28, RM2.05)
Maintain market perform at RM2.08 with target price of RM2.31: YNH announced that its wholly-owned subsidiary Kar Sin Bhd had entered into an agreement to develop and lease the AEON Seri Manjung Shopping Centre. The shopping mall will be built on a 13ha parcel of land, with a gross floor area of about 661,000 sq ft.
The township currently has a population of about 300,000 people. The entrance of AEON into Seri Manjung is expected to bring up property values in the township, which has about 320ha of remaining landbank. Already, we have seen strong take-up for YNH's recent launches of shoplots and terrace houses. Just at the end of last year, YNH generated RM155 million in new sales from the township. With the completion of the Pantai Hospital this year, as well as management's plan to bring in an international school in the foreseeable future, the township will become more self-contained over the next few years.
Taking a cue from the disposal of AEON Melaka mall by IJM Land Bhd last year, YNH's management has not discounted the possibility of disposing of the shopping mall in the future. The mall's construction cost is estimated at RM135 million. Given the size of the mall, together with the population growth of the township, we believe YNH will be able to realise a fair amount of gain upon the sale of the mall in three or four years' time.
We make no change to our forecasts. We have factored in expectations of higher property sales contributed by the township. Earnings over the next two to three years will be underpinned by Seri Manjung township, Kiara 163 and Fraser Residence.
The risks to YNH's performance include competition from peers, delays in launches, approvals and construction, besides country risk.
We maintain our fair value for the stock at RM2.31, based on a 30% discount to revalued net asset value. We maintain our 'market perform' rating on the stock. ' RHB Research, 28 Feb
This article appeared in The Edge Financial Daily, March 1, 2011.
Company Name: YNH PROPERTY BHD
Research House: RHB
YNH Property Bhd
(Feb 28, RM2.05)
Maintain market perform at RM2.08 with target price of RM2.31: YNH announced that its wholly-owned subsidiary Kar Sin Bhd had entered into an agreement to develop and lease the AEON Seri Manjung Shopping Centre. The shopping mall will be built on a 13ha parcel of land, with a gross floor area of about 661,000 sq ft.
The township currently has a population of about 300,000 people. The entrance of AEON into Seri Manjung is expected to bring up property values in the township, which has about 320ha of remaining landbank. Already, we have seen strong take-up for YNH's recent launches of shoplots and terrace houses. Just at the end of last year, YNH generated RM155 million in new sales from the township. With the completion of the Pantai Hospital this year, as well as management's plan to bring in an international school in the foreseeable future, the township will become more self-contained over the next few years.
Taking a cue from the disposal of AEON Melaka mall by IJM Land Bhd last year, YNH's management has not discounted the possibility of disposing of the shopping mall in the future. The mall's construction cost is estimated at RM135 million. Given the size of the mall, together with the population growth of the township, we believe YNH will be able to realise a fair amount of gain upon the sale of the mall in three or four years' time.
We make no change to our forecasts. We have factored in expectations of higher property sales contributed by the township. Earnings over the next two to three years will be underpinned by Seri Manjung township, Kiara 163 and Fraser Residence.
The risks to YNH's performance include competition from peers, delays in launches, approvals and construction, besides country risk.
We maintain our fair value for the stock at RM2.31, based on a 30% discount to revalued net asset value. We maintain our 'market perform' rating on the stock. ' RHB Research, 28 Feb
This article appeared in The Edge Financial Daily, March 1, 2011.
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