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Published on March 14, 2008

While four recommend a "hold", the remaining four firms suggest selling.

These brokerages reported their analysis of Land & Houses's business and share price between February 26 and March 7.

The eight firms, who recommend a "buy"  include Asia Plus Securities, Globlex Securities, Siam City Securities, Phillip Securities (Thailand), Thanachart Securities, Tisco Securities, United Securities and Seamico Securities.

They believe the company will accrue a benefit from the new tax policy for the property sector. They said they are factoring in the reduction of the special business tax from 3.3 per cent to 0.01 per cent, and the reduction of the transfer fee from 2 per cent to 0.01 per cent.

Land & Houses develops completed houses. Homebuyers who want to avail of the tax incentive will have to buy completed

houses.

Meanwhile, the tax incentives will help the company reduce its management cost and that is expected to drive up its net profit for this year.

The majority of the brokerages expect the company to achieve a sales figure between Bt21.4 billion and Bt22 billion and a net profit of anywhere between Bt3.9 billion and Bt4.6 billion by the end of this year. That is a rise of 15 per cent to 19 per cent from last year.

The company announced a revenue of Bt19.8 billion and a net profit of Bt3.15 billion.

However, four brokerages have recommended a hold because they believe the company's share price will be limited from now on. However, existing investors can expect a dividend between 4 per cent and 5 per cent of the share price. These brokerages include Syrus Securities, Finansa Securities, IV Global Securities and Bualuang Securities.

KGI Securities (Thailand), Kiatnakin Securities, Kim Eng Securities (Thailand) and ACL Securities suggest selling the shares because they believe the company's shares are overvalued.

Somluck Srimalee

The Nation