- IJM Land launched its much-awaited Bandar Rimbayu project
over the weekend.
- Phase 1, called Chimes, consists of 526 link units to be built
on 56 acres of land. It comes with two sizes – i.e. 22’x75’ and 24’x75’ – with
prices starting from RM580,000 and RM640,000 respectively.
- The project was off to a roaring start, with all of the
nonbumiputera units on offer fully-taken up. Over 3,000 attended the balloting
exercise held during the weekend.
- We are not unduly surprised by the strong-take up, given that
Chimes had already garnered over 16,000 registrants prior to its debut.
- Judging by the strong response for Chimes, we would not be
surprised if IJM Land accelerates the launch of Phase 2 in about four months’
time.
- We understand that Phase 2 (roughly 500 units) would offer
colonial-styled link homes that are slightly larger in built-up (22’x75 and
24’x80’). With the strong take-up, we expect prices to trend higher.
- Work on a clubhouse is set to start by the middle of this month
at an estimated cost of RM40mil.
- The successful launch of Chimes would further underpin IJM
Land’s strong sales pipeline. For the 9MFY13 period, new sales have already
reached RM1.4bil – already on par with the total sales last year.
- We are therefore assured that the group would meet our FY13F
new sales target. This is supported by healthy unbilled sales of circa
RM1.4bil.
- We expect Bandar Rimbayu to be self-sustaining, providing
annual recurring sales of over RM1bil when this green township matures –
similar to what S P Setia has enjoyed with its highly-successful Setia Eco Park
development.
- From a valuation standpoint, IJM is currently trading at a
steep 49%-discount to its estimated FD NAV. While sales are still strong with
exciting projects in the pipeline, we expect the stock to trade sideways amid
election risks.
Source: AmeSecurities
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