Property is hot again, and many property counters have been moving quite a bit. I particularly like IJM Land at levels below RM1.85. Its a prime beneficiary of asset reflation. Its RNAV is close to RM3.10. But of course it will not get to that level anytime soon.
IJM Land's star is hitched onto two projects: one is The Light project in Penang. Recent good take up rates for neighbouring launches such as Platino and Nautilus Bay gives a good indication that The Light (currently has launched Light Linear and Light Point) will do well too. The scrapping of the huge but controversial PGCC actually puts the spotlight back on The Light as the primero uno projecto in Penango. Pardon my Japanese.
The other is its strategic location of its latest property development project in Nusa Duta. The project is different from other existing and on-going projects within a 5km radius from Nusa Duta as it did not have commercial properties within its plot. The project is surrounded with existing and upcoming conveniences and facilities developed by other developers, such as Bukit Indah AEON shopping mall, banks, schools, fast food outlets, a police station and Giant and Tesco hypermarkets which will open by the year-end and early 2010. There is also the on-going RM1.3bil new coastal highway linking Nusajaya and the Johor Baru city centre, which will pass through the project, and would boost accessibility to Nusa Duta.
Presently, IJM Corp has 4.04ha in Permas Jaya and 101.17ha in Mount Austin, both within Iskandar Malaysia, and 477.52ha in Sebana Cove in Kota Tinggi district in the eastern part of Johor. When IJM Land Bhd acquired 1,188 acres in Johor’s Sebana Cove marina from AMDB Bhd last August for a mere RM120 million, many were sceptical. Now its worth a whole lot more money.
Has an issued capital of 1.1bn shares, a 52 week high-low of RM2.28-RM0.55. The other thing is that the counter has a limited free float which makes it very easy to see its share price move just catching the right trend. IJM Corp has 77% in IJM Land locked up while Singapore's giant GIC has 7%. The trend is now, Property is hot and I think it can take out its 52 week high easily.
IJM LAND BHD's pre-tax profit for financial year ended March 31, 2009 rose to RM68.303 million from RM54.893 million in the same period of 2008. In actual fact, the real operating results of IJM Land was a lot better save for certain one off items which dragged down profits, legacy issues from the merger with RB Land. Has one of the lowest net gearing ratio among its peers at 0.2x, the rest are around 0.5x. Can gear up to take advantage of any decent opportunity.