By Surin Murugiah
KUALA LUMPUR (Feb 25): JF Apex Research has upgraded Tambun Indah Land Bhd (TIL) to “Buy” at 75 sen with a higher target price of 93 sen (from 75 sen) following its earnings upgrade.
In a note Friday (Feb 25), the research house said its revised target price is now pegged at 7x 2022F PE multiple, which is at its 5-year mean PE and in line with other small and mid-cap property counters’ current valuations.
It said TIL posted a net profit of RM28.5 million for its 4Q21 results, soaring 108.0% y-o-y and 260.8% q-o-q on the back of surging revenue, up 75.7% y-o-y and 218.0% q-o-q respectively.
“For 2021, TIL recorded net profit of RM61.6 million, rising 140.6% y-o-y, which exceeds our/consensus full year net profit estimates by 43%/41%.
“The stronger-than-expected results were mainly due to higher recognition of progress billings during this quarter as actual revenue (+93.6% y-o-y) exceeds our full year topline estimate by 41%,” it said.
JF Apex said shareholders could expect decent dividend yield of slightly over 7% for 2021-2022F.
“This is assuming dividend per share of 5.7 sen/5.3 sen to be declared for 2021/2022 with minimum dividend payout of 40%.
“The Group will commit its dividend payments to reward long-term investors amid current economic uncertainty,”it said.