KUCHING: Amcorp Properties Bhd (AmProp) will likely see its London and Tokyo property projects driving its earnings while its recurring income stream both from its investment properties (Amcorp Trade Centre) and renewable energy projects is growing.
Affin Hwang Investment Bank Bhd’s research arm (Affin Hwang Research) noted that since 2009, AmProp has been investing in the London property market taking advantage of depressed prices and the weak Pound sterling, post the Global Financial Crisis.
From a mere investor, AmProp has ventured into property development (together with strategic partners) with more sizeable projects both in London and Tokyo.
Currently, the unbilled sales from its London projects amount to a substantial 386 million pounds, set to be recognized over FY17E-FY18E.
“We believe AmProp’s earnings from FY16E are set for a quantum leap as contribution from its overseas property projects kick in. We project FY17E-FY18E earnings to jump between 31 per cent-49 per cent and achieve a three-year core earnings compounded annual growth rate (CAGR) of 64 per cent,” said the research house.
For 1QFY16, AmProp has already recorded a net profit RM57 million, exceeding its full year FY15 earnings. For FY16E, 75 per cent of group earnings will be derived from London, while contribution from overseas projects should jump to 88-91 per cent over FY17E-18E.