News by Kenanga Research

Property sales of RM120.6 million are on track to meet our full-year target of RM251.7 million.

The stronger sales were attributed to higher contribution from the new AEON Mall Kuching and maiden contribution from the new AEON Mall Nilai, Negeri Sembilan and its other shopping malls that were renovated and expanded. CNP was cushioned by the lower effective tax rate at 45.5% (1H18: 52.0%).

Magna Prima’s focus will still be on clearing its existing inventory of RM254.4 million at cost in Boulevard Business Park, Jalan Kuching, and Desa Mentari projects.

We expect minimal capital expenditure of RM25 million-RM10 million for FY19-FY20 for minor refurbishment and upkeep of two malls. FY19 will see 23% and 44% of Mid Valley Megamall and The Gardens Mall’s net lettable area up for expiry respectively.

This would be Mitrajaya’s first job replenishment in FY19.

On landbanking, the group is looking at niche parcels with a quick turnaround time span in matured areas; take note the group has acquired a small parcel in Mont’Kiara.

The land in a matured area with established neighbourhoods of Old Klang Road, Sri Petaling, Bukit Jalil and Salak South is just 800m to the Taman Naga Emas mass rapid transit station and 1.1km from the Kajang Dispersal Link Expressway and New Pantai Expressway.

Downgrade to market perform with an unchanged target price (TP) of RM1.20.

Kenanga Research: Maintain market perform with a lower target price (TP) of 84.5 sen

We are neutral on this as the contract value is within our replenishment target of RM1.2 billion for financial year 2018 (FY18). No changes to FY18 estimate (FY18E) and FY19E earnings. Maintain “outperform” with an unchanged TP of RM1.40.