Glomac ' Strong performance driven by better margins

Stock Name: GLOMAC
Company Name: GLOMAC BHD

Research House: RHB

Price Call: BUY

Target Price: 0.96

Glomac ' Strong performance driven by better margins                                            Market Perform

Results/Briefing Note

-          3QFY12 net profit came in above expectations. A 2.75 sen interim dividend was declared.

-          In view of stronger profit margins, we raise our FY12-13 forecasts by 17-32%. We also revise up FY14 earnings projection by 25% to account for the contribution from the Sg Buloh land project.

-          As we impute the value contribution from the Sg. Buloh land, our fair value is raised to RM0.96, based on an unchanged 35% discount to RNAV. Maintain Market Perform.

Source: RHB Research 23 March 2012