LPN Development

LPN Development Plc (LPN)
 
We believe LPN’s presales target of THB4bn at a four-day sales event in June is overly ambitious given that monthly presales only averaged THB1.2bn this year (5M12 presales of THB6bn).Valuation is not cheap, while the stock has not priced in the potentially shaky 2Q12 results. Management kept its FY12 targets: THB16bn in presales and THB13.2bn in condo sales. THB10bn in sale bookings for 2H12 is challenging but we keep our EPS estimates pending transfers in 3Q12. Maintain Neutral and target basis of 8.5x CY13 P/E (1 SD above historical P/E of 7.7x for LPN’s clean balance sheet and strong position in the condo market).