JF Apex Research cuts A&M's 2015E earnings estimate to RM43.6m

KUALA LUMPUR (Feb 27): JF apex Securities Research has maintained its "Hold" rating on A&M Realty Bhd with an unchanged target price of 92 sen, and said
it was slashing its 2015F net earnings estimate for the company to RM43.6 million from RM78.3 million by lowering the Group’s new launches for this year coupled with lower take-up rate for existing projects in light of current slowdown in property market.

In a note Friday, the research house said A&M reported 4Q14 net profit of RM12.0 million (up 4.3% q-o-q but down 5.5% y-o-y) which brought its full year 2014 net profit to RM34.9 million (+9.1% y-o-y).

"The results were within our expectation as it accounted for 99% of our full year estimate," it said.

ON A&M's earnings outlook, the research house said iy was now assuming Amverton Kiara (estimated GDV of RM306 million) and Amverton Cove, Serviced Apartment phase 1 (estimated GDV of RM115 million) to be officially launched in 2016.

"We also introduce our 2016F net earnings estimate of RM90.4 million. Our new sales assumption for the Group is now at RM170 million and RM378 million for 2015 and 2016 respectively based on overall take-up rate of 60-70%," it said.


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