Sunday, July 28, 2013
Property Developers Shifting Southwards
Loong Kok Wen, RHB Research analyst talks about Tambun Indah Land:
- Tambun Indah is buying a minority stake in Pearl City from Nadayu Properties (Not rated, NPB MK). Using a proposed private placement to partially fund this. Tell us more about Pearl City, what stage of development is it at?
- sales forecast raised to RM500m on the back of launches such as Straits Garden and Pearl Avenue shop lots - exceeded 70%.
- After the 2nd Penang Bridge Ramp collapsed, confidence level in the bridge’s construction - ready when?
- Islanders typically don’t quite consider mainland as part of Penang per se. How would that perception affect Penang mainland from being viewed as a desirable area?
- bullish on Penang island property? Seems like a very crowded market though.
- Stock is somewhat illiquid though, with Teh Kiak Seng holding 47%, so free float comes in at 53%.
- In terms of property stocks, your overall sector outlook? Between Penang, Iskandar, Rawang - property hot spot?
Tambun Indah hit a 52-week high earlier this week of RM1.50 on 22 July. RHB Research has a Buy call on Tambun Indah at RM1.71.