Pruksa Real Estate

Pruksa Real Estate Plc (PS)
 

The meeting we arranged for a group of fund managers with PS’s top management reaffirmed our belief in its turnaround story. Presales and sales have been on the rise since end-1Q12. We expect a stronger 2Q, supported by higher sales, wider margins and tighter cost control. PS’s recovery appears faster than we anticipated. We expected 1H12 to make up 35% of FY12 sales but it now looks likely to come in at 40% of our full-year estimate. But we retain our numbers as we prefer to monitor the trend in 3Q12. Also unchanged is our Outperform rating and target price basis of 8x CY13 P/E, 1SD below the historical average.