| CGS CIMB |
MAYBANK KIM ENG |
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Japfa Ltd FY18: A recovery year
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High inventory = spill over into profits in FY19?
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| OCBC | UOB KAYHIAN |
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YANLORD LAND GROUP: THIS YEAR, I'LL PULL UP MY SOCKS
Yanlord Land Group Limited’s (Yanlord) 4Q18 results missed ours and the street’s expectations, as PATMI dipped 78.5% YoY to RMB256.9m. A first and final dividend of 6.8 S cents was declared, unchanged from FY17. Looking ahead, Yanlord is targeting contracted sales of ~RMB40b in 2019 on the back of more abundant saleable resources of RMB84b. However, we opt to adopt a more conservative stance and are projecting contracted sales of RMB35.2b for 2019. Management acknowledged that its net gearing ratio of 96.8% was on the high-side relative to historical levels, but is hopeful of bringing it down by end-2019. We cut our FY19 core PATMI forecasts by 15.6% and introduce our FY20 projections. Rolling forward our valuations and applying an unchanged P/E target peg of 5x to our core FY19 EPS forecast, we derive a lower fair value of S$1.75 (previously S$2.04).
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2018: Results Above Expectation; Better Earnings Quality
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