PP 7767/09/2010(025354)

25 June 2010

Malaysia Corporate Highlights

RHB Research
Institute Sdn Bhd
A member of the
RHB Banking Group
Company No: 233327 -M

News Upda te
25 June 2010
MARKET DATELINE

IJM Land Share Price

Fair Value
:
:
RM2.16
RM3.11
Disposes Of Aeon Bandaraya Melaka Recom : Outperform
(Maintained)

Table 1 : Investment Statistics (IJMLAND; Code: 5215) Bloomberg: IJMLD MK

Net Net
FYE Turnover profit EPS Growth PER C.EPS* P/CF P/NTA ROE Gearing GDY
Mar (RMm) (RMm) (sen) (%) (x) (sen) (x) (x) (%) (%) (%)
2009 671.0 51.1 5.9 4.0 36.5 - (32.6) 1.2 3.3 0.1 0.0
2010 1,101.1 98.3 8.9 50.4 24.2 - 11.6 1.4 6.6 0.3 0.9
2011F 1,418.0 201.5 18.3 104.9 11.8 15.0 2.1 1.3 10.9 0.5 0.9
2012F 1,654.2 301.0 27.3 49.4 7.9 21.0 2.0 1.1 14.2 0.6 0.9
Main Market Listing /Non-Trustee Stock * Consensus Based On IBES Estimates

Issued Capital (m shares) 1,103.27

♦ RM64m disposal gains. IJM Land is disposing of its retail property Aeon Market Cap(RMm) 2,383.1
Bandaraya Melaka to ADF Tiger III Ltd, a Bermuda-incorporated foreign Daily Trading Vol (m shs) 0.6
fund, for RM66.3m cash (plus debt of Aeon Bandaraya Melaka, we believe, 52wk Price Range (RM) 1.27-2.68
taking the cue from the property’s net book value of RM319.4m as at 31 Major Shareholders: (%)
Mar 2010). IJM Land expects to record RM64m gains from the disposal, IJM Corp 62.8
translating to 5.8sen/share. GIC 7.4

♦ Positive. We are positive on the deal that is in line with IJM Land’s
strategy to continuously develop, nurture and eventually unlock value of its
FYE Mar FY11 FY12 FY13
investment properties. Proceeds from the disposal are estimated to reduce EPS chg (%) - - -
IJM Land’s net debt and gearing of RM845.4m and 0.51x (including Var to Cons (%) 21.8 29.9 -
advances from IJM but excluding RCULS) as at 31 Mar 2010 to RM462m
and 0.28x. PE Band Chart

♦ Risks and concerns. The risks include: 1) competition from peers; 2) PER = 20x
PER = 15x
surge in raw material costs; 3) delays in launches and approvals; and 4) PER = 10x
country risk.

♦ Forecasts. Maintained as our forecasts exclude one-off gains.

♦ Maintain Outperform. Indicative fair value based on RNAV is raised by

2% from RM3.06 to RM3.11 to reflect the gains from the disposal (see
Table 2). We continue to like IJM Land for: (1) Its strong net profit CAGR Relative Performance To FBM KLCI
of 66% between FY12/09-12; and (2) It being a good proxy to the upturn
in the local property market.
IJM Land

FBM KLCI

Joshua CY Ng
(603) 92802237
Please read important disclosures at the end of this report. joshuang@rhb.com.my

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Table 2: RNAV
No Landbank Description Tenure Equity stake GDV (RMm) Landbank DCF (RMm)
(%) (acre)

1 Bukit Mandaa'rina, Cheras Mixed developement Leasehold 100 600 50 100.4

2 Laman Granview, Puchong Residential Leasehold 100 150 31 20.7
3 Serenia Gardens (Ukay Perdana) Residential Leasehold 50 500 64 40.0
4 Sh'ng Villa (Pandan Bistari) Residential Leasehold 50 390 42 32.3
5 Riana Green East, Phase 2 & 3, Residential Leasehold 50 329 8 28.9
Wangsamaju
6 Rimbunan Selayang Residential Leasehold 50 500 204 29.0
7 Jalan Raja Laut, KL Commercial Leasehold 100 750 3 154.6
8 S2, Seremban Mixed developement Freehold 100 726 434 80.2
9 S2 Heights Mixed developement Freehold 100 2,420 1,293 190.3
10 S2 CC/GC Mixed developement Freehold 100 91 63 9.7
11 Shah Alam 2 Mixed developement Leasehold 100 930 682 80.7
12 SS2, PJ Commercial Freehold 100 25 1 4.5
13 Melaka Commercial Leasehold 100 450 98 53.5
Sub-total 7,861 2,973 824.9
Northern Region
14 Permatang Tinggi Mixed developement Freehold 100 130 132 12.9
15 Jelutong Mixed developement Freehold 80 5,000 136 557.4
16 Jelutong Mixed developement Leasehold 80 1,300 52 135.4
17 Bukit Jambul Residential Leasehold 86 243 30 23.1
Sub-total 6,673 350 728.8
Southern Region
18 Suria Bistari / Suria Heights Residential Leasehold 51 300 9 12.7
19 Mount Austin Mixed developement Freehold 100 500 250 34.8
20 Sebana Cove Mixed developement Leasehold / 70 1,400 1188 91.0
Freehold
21 Nusa Duta Mixed developement Freehold 100 320 128 29.7
22 Permas Jaya Apartments Freehold 100 100 10 7.7
Sub-total 2,620 1585 176.0
Eastern Region
23 Bandar Utama, Sandakan Mixed developement Freehold 100 1,000 155 111.5
Sub-total 1,000 155 111.5
24 China Mixed developement - 50 500 0.0 21.1
25 Vietnam Mixed developement - 70 427 7.0 25.3
Sub-total 927 7.0 46.4
Unbilled sales 45.4
Total 19,081 5,070 1,933

Investment properties Book value Market Surplus

(RMm) value
(RMm)
1 Hotel Hotel and recretional club Leasehold 100 117.2 273.2 156.0
2 Menara IJM Land Office - 100 45 70 25.0
3 Aeon Bandaraya Melaka (Disposed) Retail Mall - - - - 64
Sub-total 181.0
Grand total (landbank & investment 2,177.9
properties)
Shareholder fund as at Mar 10 1,655.4
Conversion of warrants 306.5
RNAV (RMm) 4,139.8
Share base (m) 1,330.3
RNAV / share (RM) 3.11

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Table 3. Earnings Forecasts

FYE Mar (RMm) FY09a FY10a FY11F FY12F

Turnover 671.0 1,101.1 1,418.0 1,654.2

Gross Op Profit 82.5 143.7 294.6 441.8
Op Profit 80.7 201.2 278.2 421.3
Int exp (17.2) (52.0) (4.4) (8.2)
Associates 4.8 (0.3) 10.7 32.9
Exceptional item 0.0 10.3 0.0 0.0
Pretax Profit 68.3 148.9 284.5 445.9
Tax (13.4) (33.9) (71.1) (111.5)
Minorities (3.8) (6.4) (11.8) (33.4)
Net profit 51.1 108.7 201.5 301.0
Normalised net profit 51.1 98.3 201.5 301.0
Source: Company data, RHBRI estimates

IMPORTANT DISCLOSURES

This report has been prepared by RHB Research Institute Sdn Bhd (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank Berhad
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be contrary to opinions expressed by other business units within the RHB Group as a result of using different assumptions and criteria. This report is not to be
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may from time to time have an interest in the securities mentioned by this report.

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The research analysts, economists or research associates principally responsible for the preparation of this research report have received compensation based
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The recommendation framework for stocks and sectors are as follows : -

Stock Ratings

Outperform = The stock return is expected to exceed the FBM KLCI benchmark by greater than five percentage points over the next 6-12 months.

Trading Buy = Short-term positive development on the stock that could lead to a re-rating in the share price and translate into an absolute return of 15% or more
over a period of three months, but fundamentals are not strong enough to warrant an Outperform call. It is generally for investors who are willing to take on
higher risks.

Market Perform = The stock return is expected to be in line with the FBM KLCI benchmark (+/- five percentage points) over the next 6-12 months.

Underperform = The stock return is expected to underperform the FBM KLCI benchmark by more than five percentage points over the next 6-12 months.

Industry/Sector Ratings

Overweight = Industry expected to outperform the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

Neutral = Industry expected to perform in line with the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

Underweight = Industry expected to underperform the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

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