KUALA LUMPUR: Tambun Indah Land Bhd experienced growing sales momentum and a pick-up in sales in July and August due to the pent-up demand from the lockdown, says Maybank Investment Bank Research.
Post-meeting, the research house has kept its “buy” call on the stock with an unchanged earnings forecast and target price of 62 sen.
It said the property developer remains confident of achieving its RM130mil sales target for 2020.
Its sole project launch this year, Amby Park, recorded a slow take up at 19.6% at end-June but sales have picked up post-lockdown, due to the pent-up demand and attractive discounts offered.
For 2021, Tambun Indah Land plans to launch two projects named Aster Villa and Ambay Garden, catering for local who work in Batu Kawan.
Moving forward, the developer does not discount the possibility of acquiring more landbank backed by its strong balance sheet.
Tambun Indah Land’s net gearing stood at 1.3% at end June and has an internal net gearing target of 0.5x.
“We maintain our earnings forecasts and FY20 sales assumption of MYR100m (23% below management’s target). Our RNAV estimate is MYR2.28,” said Maybank IB.