KUALA LUMPUR, 4 March: Following LBS Bina Group Berhad’s announcement of its Q4 2015 results last week, CIMB released its research report. The report highlighted the following:
■LBS defied the weak property market by delivering 55% sales growth in 2015, thanks to its focus on mass-market housing.
■ We think its strong sales will translate into stronger earnings in next few years. We project 32% EPS CAGR in 2015-17. It also offers 7-9% dividend yield in 2016-17.
■ Initiate coverage with an Add rating and target price of RM1.85, based on 40% discount to its RNAV.
■ Strong sales and higher dividends are the key potential re-rating catalysts.
To download the full report for free, please click on the link below: