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Hunza Properties
Well Above Expectation
Hunza’s FY10 earnings came in 11% above our expectation and street’s estimates. FY10 y-o-y turnover and net profit soared 172% (26% q-o-q) and 85% (23% q-o-q) respectively.
The huge improvement was mainly due to better property sales and an encouraging pick-up in construction works on Gurney Paragon. The stock’s cheap valuation, estimated at 0.6x CY10 P/NTA and its potentially strong earnings recovery in the immediate term on the back of a brighter sector outlook, could well spur a rerating on the stock.
Having said that, we keep our CY10 TP of RM1.54, based on 0.71x CY10 P/NTA, and maintain our Trading Buy call for now.
Slightly above expectation. Given the improving property sales and encouraging pick-up in construction works on Gurney Paragon, Hunza reported significantly better numbers for
FY10 on a y-o-y basis that surpassed our and street estimates.
As construction works on Gurney Paragon gain pace, it is highly likely that Hunza will report rather good results in FY11 on the back of its total unbilled sales of RM103m. The company’s FY10 y-o-y turnover and net profit surged 172% (-26% q-o-q) and 85% (-23% q-o-q) respectively.
The progress of construction works on its Gurney Paragon condos is progressing well, with the East Tower already reaching level 43 and West Tower at level 40. Overall, construction is estimated to be about 74% complete.
Potentially strong re-rating in the horizon? After 4 quarters of sustainable and encouraging new property sales since mid-09 in Penang, it appears that the island’s property market is on a firmer footing. Recent buying activities, particularly on the island’s high-end condos segment, is said to be sustained by domestic real demand, although we do see fast emerging signs of speculative activities.
We believe that the next property upcycle is just over the horizon. As such, we believe that developers such as Hunza, with primary focus in the developments of mid- to high-end residential properties in prime locations, will likely to be the prime beneficiaries of this impending upcycle.
In the most immediate future, Hunza could be looking to launch its RM300m Alila II condominiums in Penang sometime in FY11. Over to FY12, Hunza has lined up its RM300m Segambut condominiums for launch. However, pending confirmation of the launch details, this project has yet to be imputed into our earnings forecasts.
Maintain Trading Buy for now. The stock’s cheap valuation, estimated at 0.6x CY10 P/NTA coupled with a potentially strong earnings recovery in the immediate term on the back of a brightening sector outlook, may well spur a re-rating on the stock. We are keeping our CY10 TP of RM1.54, based on 0.71x CY10 P/NTA, and maintain our Trading
Buy call for now.
Well Above Expectation
Hunza’s FY10 earnings came in 11% above our expectation and street’s estimates. FY10 y-o-y turnover and net profit soared 172% (26% q-o-q) and 85% (23% q-o-q) respectively.
The huge improvement was mainly due to better property sales and an encouraging pick-up in construction works on Gurney Paragon. The stock’s cheap valuation, estimated at 0.6x CY10 P/NTA and its potentially strong earnings recovery in the immediate term on the back of a brighter sector outlook, could well spur a rerating on the stock.
Having said that, we keep our CY10 TP of RM1.54, based on 0.71x CY10 P/NTA, and maintain our Trading Buy call for now.
Slightly above expectation. Given the improving property sales and encouraging pick-up in construction works on Gurney Paragon, Hunza reported significantly better numbers for
FY10 on a y-o-y basis that surpassed our and street estimates.
As construction works on Gurney Paragon gain pace, it is highly likely that Hunza will report rather good results in FY11 on the back of its total unbilled sales of RM103m. The company’s FY10 y-o-y turnover and net profit surged 172% (-26% q-o-q) and 85% (-23% q-o-q) respectively.
The progress of construction works on its Gurney Paragon condos is progressing well, with the East Tower already reaching level 43 and West Tower at level 40. Overall, construction is estimated to be about 74% complete.
Potentially strong re-rating in the horizon? After 4 quarters of sustainable and encouraging new property sales since mid-09 in Penang, it appears that the island’s property market is on a firmer footing. Recent buying activities, particularly on the island’s high-end condos segment, is said to be sustained by domestic real demand, although we do see fast emerging signs of speculative activities.
We believe that the next property upcycle is just over the horizon. As such, we believe that developers such as Hunza, with primary focus in the developments of mid- to high-end residential properties in prime locations, will likely to be the prime beneficiaries of this impending upcycle.
In the most immediate future, Hunza could be looking to launch its RM300m Alila II condominiums in Penang sometime in FY11. Over to FY12, Hunza has lined up its RM300m Segambut condominiums for launch. However, pending confirmation of the launch details, this project has yet to be imputed into our earnings forecasts.
Maintain Trading Buy for now. The stock’s cheap valuation, estimated at 0.6x CY10 P/NTA coupled with a potentially strong earnings recovery in the immediate term on the back of a brightening sector outlook, may well spur a re-rating on the stock. We are keeping our CY10 TP of RM1.54, based on 0.71x CY10 P/NTA, and maintain our Trading
Buy call for now.
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