Monday, May 14, 2012

Glomac: Maintain BUY - Glowing And Growing

Our top pick in the property sector. Glomac is very likely to have exceeded its internal sales target of MYR500m for FY4/12 thanks to the strong take-ups of its Reflection Residences (RR) despite the slowdown in the broader property market. We continue to like Glomac for its double-digit earnings growth at single-digit valuations. The attractiveness is further enhanced by its REIT-like net yield of 4.9%. We maintain our earnings forecasts and MYR0.96 target price (49% discount to RNAV). The stock is undervalued and should re-rate. BUY.

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 Source: Maybank Research - 14 May 2012

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