Amata Corporation

Amata Corporation Plc (AMATA)
 

The flood crisis appears to have given AMATA superior pricing power as evidenced by its improved gross margins across business segments. Despite the already buoyant 34% EPS growth in FY11, we expect continued growth of 31-59% over FY12-13 thanks to its solid backlog. At 116% of our estimate, FY11 net profit was above expectations due to better gross margins and the lower tax rate. We tweak our FY12-13 EPS forecasts but our target price, based on 14x CY13 P/E, is unchanged. Maintain Outperform. Catalysts include a positive land sales report.