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Research by HLIB
Buy – TP RM1.72

“Land banking near RTS"

Kimlun is forming a JVCo in partnership with Astaka Holdings to develop a RM600m GDV serviced apartment located near the CIQ and JB-SG RTS Link. Through this, the company could secure construction contract of RM300m lifting total orderbook to RM3.5bn and also recognising 49% of development profits. Land cost to GDV ratio of 10% could provide adequate safety margin while its prime location is reassuring. No change to forecasts pending finalisation. Maintain BUY with unchanged TP of RM1.72 pegged to 11x P/E multiple (roughly 50% discount to KLCON).

Analyst:
Edwin Woo, CFA
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$KLSE-KIMLUN
Research by HLIB
Buy – TP RM1.72

“Land banking near RTS"

Kimlun is forming a JVCo in partnership with Astaka Holdings to develop a RM600m GDV serviced apartment located near the CIQ and JB-SG RTS Link. Through this, the company could secure construction contract of RM300m lifting total orderbook to RM3.5bn and also recognising 49% of development profits. Land cost to GDV ratio of 10% could provide adequate safety margin while its prime location is reassuring. No change to forecasts pending finalisation. Maintain BUY with unchanged TP of RM1.72 pegged to 11x P/E multiple (roughly 50% discount to KLCON).

Analyst:
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my

$KIMLUN / 5171 (KIMLUN CORPORATION BERHAD)