The Malay Mail, 13 May 2014 - Kenanga Research raises Tropicana's annual outlook

The Malay Mail, 13 May 2014

KUALA LUMPUR - Kenanga Research has tweaked higher its financial year 2014 estimate (FY14E) for Tropicana Corporation Bhd higher by 20 per cent to RM233 million, from the initial RM194 million.

The research house said it has included the land sale gains of Tropicana Aman and Jalan Kia Peng which is expected to be completed by this year.

"At the same time, we also introduced our FY15 estimate earnings of RM207 million, which includes the Jalan Bukit Bintang land sale," it said in a note yesterday.

The change in forecast came after Tropicana Corporation reported its first quarter results ended March 31, 2014 which was within Kenanga Research's and consensus forecast.

"Tropicana continues to target FY14E sales of RM2.0 billion, while unbilled sales remain fairly strong at RM2.4 billion or about two year's earnings visibility," Kenanga Research said.

It has raised its target price for Tropicana higher by three per cent to RM1.94 with an unchanged "outperform" rating.

Tropicana's share was half-a-sen lower at RM1.54, with 368,400 lots changing hands as at 11:58am yesterday. - Bemama.