IJM Land Berhad KINDLY REFER TO THE LAST PAGE OF THIS PUBLICATION FOR IMPORTANT DISCLOSURES INVESTMENT HIGHLIGHTS. 23 September 2013 Corporate Update

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1 23 September 2013 Corporate Update IJM Land Berhad Launching Royal Mint Gardens project in London Maintain BUY Unchanged Target Price (TP): RM3.32 INVESTMENT HIGHLIGHTS Royal Mint Gardens to be launched end of this week Expect strong take up rate Newly acquired 368 Residences GDV is RM1.5b Maintain BUY with an unchanged TP of RM3.32 We attended an analyst briefing for the launching of IJM Land s Royal Mint Gardens (RMG) project which is located in London. The followings are the key takeaways: Royal Mint Gardens: The RMG project will be launched at end of this week in both Malaysia and London. It is expected to be completed in 4Q17. The estimated gross development value (GDV) for RMG is 200m. Strategic Location: The project is located at the prime Royal Mint Street, E1 London, adjoining to City of London which is the world s major international financial district. The RMG is situated directly to the north of the Royal Mint Court Building (refer to appendix). In addition, iconic London landmarks like Tower Bridge, Tower of London and St. Katherine Docks are located at the southern end of the project site. Connectivity: The project is also well connected with the London Underground as Tower Hill Station is located barely 3-minute walk away. Furthermore, Tower Gateway DLR station is right opposite the project hence providing direct connectivity to Canary Wharf financial hub as well as City Airport. Project details: The RMG will be launched in 2 phases. Phase 1 consists of 3 residential towers with 254 units of apartments. Built up of the apartments ranging from 387 sq ft to 1,431 sq ft with indicative selling price starting from 1,100 psf. The second phase comprises of a 236-room five-star hotel, 33 hotel serviced apartments, and 79 residential apartments. IJML might convert the hotel to residential apartments depending on the respond for the first phase. The company had secured pre-sale bookings of 40% for phase 1 of RMG from London buyers. 368 Residences: During the analyst briefing, IJML s management also provided more details on the recent acquisition of four parcels of land in Segambut. The company entered into a joint-venture (JV) with FCW Holdings to acquire the 15.4 acres land which is located diagonally opposite Segambut KTM station (Refer to appendix). The JV project is called 368 Residences with total GDV of RM1.5b. The main component for the mixed development project will be service apartments. RETURN STATS Price (20 Sep 13) Target Price Expected Share Price Return RM2.60 RM % Expected Dividend Yield +1.54% Expected Total Return % STOCK INFO KLCI 1, Bursa / Bloomberg Board / Sector Syariah Compliant 5215/ IJMLD MK Main/ Property Yes Issued shares (mil) 1,473.3 Par Value (RM) 1.0 Market cap. (RM m) 3,833.1 Price over NA 1.41x 52-wk price Range RM2.00 RM3.30 Beta (against KLCI) mth Avg Daily Vol 1.04m 3-mth Avg Daily Value Major Shareholders RM2.84m IJM Corp Berhad 62.56% EPF 6.53% Govt of Singapore Inv Corp PTE 5.46% KINDLY REFER TO THE LAST PAGE OF THIS PUBLICATION FOR IMPORTANT DISCLOSURES

2 2 MIDF EQUITY BEAT INVESTMENT STATISTICS FY Mar FY12 FY13 FY14F FY15F Revenue (RM m) 1, , , ,050.0 EBITDA (RM m) Pretax Profit (RM m) Net Profit (RM' m) Net Profit Margin (%) EPS (sen) PER (x) Gross DPS (sen) Gross dividend Yield (%) Source: Company, Forecasts by MIDFR Strategic Location: 368 Residences is located near the intersection of Jalan Segambut and DUKE Expressway with 5 minutes walking distance to Segambut KTM station. The project will benefit from the proposed extension of DUKE Expressway with one of the new interchanges will be located at the intersection with Jalan Segambut. Selling price for the project is likely to be around RM psf. We are not factoring the contribution from this project in our forecast pending the completion of the SPA as well as conversion of the land use from industrial to commercial. Hence, we do not expect the project to be launched in the near future. Valuation: According to the media, IJML is expecting take up rates to hit 70% in the first month after the launching of RMG. We hold similar view as the project is strategically located at a prime location near the famous financial district of London. We are also positive on the acquisition of the land in Segambut which is located at matured area. Additionally, the 368 Residences service apartments are relatively affordable at psf. We are maintaining our BUY recommendation for IJML with an unchanged target price of RM3.32. We are ascribing PER of 15.1X against FY14 EPS of 22.0sen. PER of 15.1X is 0.5 standard deviation below the average PER of 17.7X for the past 5 years. DAILY PRICE CHART Sean Liong Cheng Fatt Sean.Liong@midf.com.my

3 3 MIDF EQUITY BEAT Location of map of Royal Mint Gardens Location of map of 368 residences 368 Residences

4 MIDF EQUITY BEAT Appendix Realisable Net Asset Value Projects Description Remaining Size (acres) Remaining GDV (RM m) Years to develop Equity Interest (%) 11.5% Northern Region Permatang Tinggi Mixed development Jelutong Mixed development 95 6, Jelutong Mixed development Bukit Jambul Residential Southern Region Suria Bistari/Suria Heights Residential Mount Austin Mixed Development 250 1, Sebana Cove Mixed Development 1,188 1, Nusa Duta Mixed Development Permas Jaya Apartment Eastern Region Bandar Utama, Sandakan Mixed Development Bandar Utama, Sandakan Mixed Development Bandar Indah Sandakan Mixed Development Mile 3.5, Jalan Tuaran, Kota Kinabalu Condominiums Jalan Sibuga, Sandakan Mixed Development Yen Yen Park, Kuching Residential Kuching Riverine Mixed Development Central Region Bukit Manda'rina Mixed Development Laman Greenview/Saujana Puchong Residential Jalan Raja Laut Commercial Shah Alam 2 Mixed Development 410 1, SS2 PJ Commercial Segambut Land Mixed Development Seremban S2, Seremban Mixed Development S2, Heights Mixed Development 1,261 2, S2 CC/GC Mixed Development Melaka 1 Lagenda, Melaka Sentral Commercial Central Region/JV Bandar Rimbayu (BR) Mixed Development 1,878 12, Serenia Gardens(Ukau Green) Residential Sh'ng Vialla(Panda Bistari) Residential Riana Green East Residential UK Royal Mint Street project Mixed Development 3 1, Total 6,128 33, Unbilled sales net of tax 1, Shareholder funds Warrant Conversion Total RNAV Enlarged shares FD RNAV per share RM3.54 4

5 MIDF EQUITY BEAT MIDF RESEARCH is part of MIDF Amanah Investment Bank Berhad ( X). (Bank Pelaburan) (A Participating Organisation of Bursa Malaysia Securities Berhad) DISCLOSURES AND DISCLAIMER This report has been prepared by MIDF AMANAH INVESTMENT BANK BERHAD (23878-X). It is for distribution only under such circumstances as may be permitted by applicable law. Readers should be fully aware that this report is for information purposes only. The opinions contained in this report are based on information obtained or derived from sources that we believe are reliable. MIDF AMANAH INVESTMENT BANK BERHAD makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of the information contained therein and it should not be relied upon as such. This report is not, and should not be construed as, an offer to buy or sell any securities or other financial instruments. The analysis contained herein is based on numerous assumptions. Different assumptions could result in materially different results. All opinions and estimates are subject to change without notice. The research analysts will initiate, update and cease coverage solely at the discretion of MIDF AMANAH INVESTMENT BANK BERHAD. The directors, employees and representatives of MIDF AMANAH INVESTMENT BANK BERHAD may have interest in any of the securities mentioned and may benefit from the information herein. Members of the MIDF Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein This document may not be reproduced, distributed or published in any form or for any purpose. MIDF AMANAH INVESTMENT BANK : GUIDE TO RECOMMENDATIONS STOCK RECOMMENDATIONS BUY TRADING BUY NEUTRAL SELL Total return is expected to be >15% over the next 12 months. Stock price is expected to rise by >15% within 3-months after a Trading Buy rating has been assigned due to positive newsflow. Total return is expected to be between -15% and +15% over the next 12 months. Negative total return is expected to be -15% over the next 12 months. TRADING SELL Stock price is expected to fall by >15% within 3-months after a Trading Sell rating has been assigned due to negative newsflow. SECTOR RECOMMENDATIONS POSITIVE NEUTRAL NEGATIVE The sector is expected to outperform the overall market over the next 12 months. The sector is to perform in line with the overall market over the next 12 months. The sector is expected to underperform the overall market over the next 12 months. 5