MORNING CALL:14/8/23

CGS-CIMB thinks Sime Prop has industrial sized prospects

Transcript

00:00 We kick the week off with Saimdabi Prop where CGS CIMB recently hosted a luncheon for management

00:06 and walked away assured of its prospects.

00:08 It already had an ad call on the property developer but upped its target price from

00:12 73 cent to 87 cent, which implies a possible 45% upside.

00:17 CGS CIMB recently hosted Saimdabi Prop Group MD Datuk Azmir Marikan where he reaffirmed

00:22 that demand for industrial products remains strong, driven by warehousing, data centres

00:27 and manufacturing-related businesses.

00:30 For FY23, management has guided the launch of up to 795 million of industrial products.

00:36 With its around 12,000 acres of gross land bank, CGS CIMB believes Saimdabi Prop has

00:41 an edge over its peers in riding the buoyant demand for industrial products.

00:46 Demand for Saimdabi Prop's residential landed products also remains strong, the company

00:49 said, with the average take-up rate of 80% as of end-March 2023.

00:54 Management has guided for more high-rise residential launches in FY23, given the good response

00:59 to its first high-rise residential launch in FY23, Sarasi Residences.

01:05 Given its affordable price point from 250,000 per unit, we believe demand momentum will

01:10 remain strong for its subsequent launches.

01:12 Going by Bloomberg's latest, meaning we are taking updates all the way back to July, analysts

01:17 are overwhelmingly positive on Saimdabi Prop with all buys, 7 to be exact, and an average

01:22 target price of 69 cent, which is just 9 cent more than its last close.

01:26 Thanks for watching.