KUALA LUMPUR (Jan 15): AmInvestment Bank Research has maintained its “Buy” rating on Titijaya Land Bhd at 68 sen with a lower fair value of 95 sen (from RM1.91) and lowered its FY18-20F FD EPS by 37-40% largely to reflect the recent 1-for-1 share split.

In a note today, the research house said despite the overall still soft local property market, it estimates that Titijaya in 2QFY18 (Oct-Dec 2017) has been able to match its sales of about RM100 million achieved in 1QFY18 (Jul-Sep 2017), which helps to sustain its unbilled sales at about RM400 million.

“Similar to 1QFY18, we believe the bulk of the sales in 2QFY18 has come from the RM916 million 4-block H2O Residences in Ara Damansara, one the most sought-after addresses in the Klang Valley,” it said.

AmInvestment said Titijaya has lined up RM1.45 billion new launches in FY18, largely in the affordable segment such as high-rise residential units in Damansara West, Bukit Subang (RM300K-450K/unit) and The Shore @ Kota Kinabalu (RM455K-810K/unit), as well as compact serviced suites in Riveria @ KL Sentral (RM340K-780K/unit).

“While we are cautious on the property sector, we continue to like Titijaya for its focus in the affordable high-rise residential segment in the Klang Valley, its strong earnings visibility and its ability to secure new landbank at attractive prices,” it said.