Focus Malaysia - 16 May 2015 - Tropicana Corp Bhd

16 May 2015

Tropicana Corp Bhd Current Price: RM1.10(as of May 14) Target Price: Affin Hwang Capital Research IN Q1FYI5. Tropicana Corp's core net profit more than doubled to RM19,3 mil year-on-year (yoy) on the back of a 55% increase in revenue to 11M390 mil, as well as small gain from the sale of land amounting to RM5.9 mil (Q4FY14: RM168 mil). We expect earnings to come in stronger in the subsequent quarters on the back of land sale as well as stronger property sales. For now, Tropicana has total asset sales of RM1.2 bil with a net gain of KM205 mil pending completion, and hence deem the results to be in line with our expectations. Ill Ql, Tropicana achieved RM176 mil of property sales (-55% vov due to softer market conditions and soft launch). Tropicana targets an ambitious RML4 bil of new t)n)perty sales this year on the back of new launches and existing projects. As at end-March, total unbilled sales remain high at RM2.G bi . We make no changes to our FY15-171i HPS forecast Also unchanged is our revalued net asset value-based (RNAV) target price of KMT95- We continue to like Tropicana for its strategic landbank, undemanding valuation and its ongoing asset monetisation exercise..