Top Story : Faber – IFM business likely boost 2QFY10 earnings Outperform
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- Faber is expected to announce its 2QFY10 results on 5 Aug. We believe 2Q net profit could be higher yoy due to stronger contribution from both concession and non-concession businesses, while qoq, net profit is expected to be better thanks to higher contribution from its overseas IFM business.
- Faber recently secured a new contract with Abu Dhabi Health Services Company and the project is worth approximately RM20.4m for a three-year period starting from 16 Aug. We also note that an IFM contract in Madinat Zayed, Abu Dhabi was renewed in May for another year with an annual value of RM57.8m, while a second contract (likely to be >RM100m) also in Madinat Zayed is expected to be renewed by year-end.
- We expect stronger property earnings to come on stream in 2HFY10 following the recognition of earnings from the launch of Taman Desa Phase 1A DBKL in May.
- Maintain forecasts and fair value of RM3.54, which is based SOP valuation. Reiterate Outperform.
RHB Equity 360° (Faber, Fitters, Quill Capita; Technical: Landmarks) - 30/07/2010
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