RHB Equity 360° - IJM Land : Mishap In Melaka Aeon Mall

Outperform

News Update

- A fatal gas explosion was happened in IJM Land Melaka AEON
Mall yesterday. The accident had killed 25-year-old supervisor while
injuring 16 others. The blast is believed to have been caused by a
leak when workers were testing the gas meters from the centralised
Liquid Petroleum Gas system. Further investigation needed to determine
the exact location of the blast or the cause (source: Star Biz).

- We do not expect significant impact from the accident to
IJM Land as: a) any losses from the accident will be covered by
insurance; and b) we understand from IJM Land's management that the
delay in signing the SPA for the mall is caused by the due diligence
process by potential buyer, not the alleged accident that occurred in
AEON mall. The management remains confident on the sale and is
targeting to conclude it by 1QFY10. In our FY10-12 earnings forecasts,
its Melaka project accounts for 4.2-9.2% of our bottom line.

- No change to our earnings forecasts and fair value of
RM3.19. Maintain Outperform rating on the stock.




IJM Land : Mishap In Melaka Aeon Mall
Outperform