Sinarmas Land: FY14 revenue down 29.7% to $828.6m due to absence of $302m land parcel sales. Excluding that, top line decreased marginally due to lower contributions from less completed residential units in Indonesia and China’s development reaching its tail-end.
The proposed wavier of the existing mutual undertakings between Sinarmas Land (SML) and Bund Center Investment Limited was approved at the Extraordinary General Meeting held in Nov 14. With that, SML will be on a look out for investment opportunities for development projects in China to diversify the revenue income stream.
Though share price has risen 33% for the past few weeks, the strong company fundamentals justify for further upside in the share price.
PhillipCapital favours SML for its buoyant sales performance, deep development pipeline and positive operating cash flows to strengthen the balance sheet. House maintains BUY on Sinarmas with an unchanged TP of $0.96.
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