Gallant: FY10 results in line. Revenue +19.1% yoy on the back of utilities, land sales, and a slight recovery in its resorts operations business, as Bintan saw visitor numbers grow 5% yoy. Net profit came in at $9.4m, a sharp turnaround from a loss of $10.5m a year ago, led by contributions from land sales in Lagoi Bay worth $33m. There remains $50-55m worth of land sales pending title transfer and recognition...
Mgt is currently negotiating more deals, and is optimistic that they will go through, given the higher tourist arrivals and completion of new attractions in Bintan. Returns from an iron ore subsidiary should also start giving earnings a lift this year.
No dividends. Stock trades at 0.76x P/B.
KE reiterates at Buy with $0.75 target.
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