OSK Research positive on Hunza's earnings outlook

KUALA LUMPUR: Hunza Properties Bhd's mid-term earnings outlook is now seen to be more positive, supported by improving property sales and better progress billings, according to OSK Research.

"After adjusting for better progress billings, particularly for Gurney Paragon condo project and expectation of better sales in Penang, we are upgrading our financial year 2010 earnings by some 23%," it said in a research note on Feb 8.

The research house, however, finetuned its financial year 2011 forecast downwards by 5%.

OSK Research expects Hunza to rake in RM124.7 million revenue this year on the back of RM45.9 million net profit.

It said another upside catalyst is the group's upcoming project in Segambut, Kuala Lumpur, with an estimated gross development value (GDV) of RM300 million in financial year 2011.

Another research house, Kenanga Research, maintained its financial year 2010's net profit forecast for Hunza at RM51.3 million year-on-year.

It, however, raised its financial year 2011-2012 net profit forecast by 11% and 17% to RM47 million and RM29.4 million respectively.

"This is mainly due to our quicker take-up rate assumption for Alila, Mutiara Seputeh, Gurney Paragon Condo and Infiniti projects, as well as introducing Bandar Putra Bertam's new RM30 million GDV residential launch," it said. -- Bernama
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