IJM Corporation - Plantation Weakness, Forex Loss

• Maintain HOLD. IJM's 1QFY3/13 net profit of MYR89m (-23% YoY, +6% QoQ) fell short, at just 18% of our and 17% of consensus full-year forecasts.
• Plantation earnings were much weaker, while the group also suffered a MYR31m forex translation loss for its USD-denominated loans, mainly for its investments in India.
• We lower our FY3/13 net profit forecast by 5%. Our new TP (-10%) pegs the stock at a lower RNAV, and its also implies 14.6x FY3/14 PER, close its historical mean.

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Source: Maybank Research - 29 August 2012