MCL Land: record 1H10 net profit of US$169.2m as expected, mainly driven by Waterfall Gardens at Farrer Road. MCL Land is on track for a bumper year, to be boosted by sales of the 50-unit D’Pavilion when it is completed in 2H10. FY11/12 earnings have also been locked-in, as the fully-sold The Peak@Balmeg and Parvis at Holland Hill TOP in the respective years...
MCL Land had previously written-down US$134m against a number of its unlaunched properties. Market prices have since rebounded. Assuming all projects are launched and full write backs are made, we est NAV/sh would increase by 20% to $3.02.
We expect MCL to match last year’s div of 12.5 cts/sh, translating to an attractive 6.7% yield. KE maintains BUY with a target price of $2.76, pegged at a 25% discount to RNAV of $3.68/share.
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