• In a note on Friday, the research house said AME missed its earlier set property sales target of RM350 million (actual: RM284 million) in FY2024 due to timing of conversion, instead of the demand factor.

KUALA LUMPUR (May 31): Phillip Capital has maintained its 'buy' rating for AME Elite Consortium Bhd (KL:AME) at RM1.71, with a higher target price of RM2.15 (from RM2), and said AME’s results were within both the house and consensus estimates for the financial year ended March 31, 2024 (FY2024).

In a note on Friday, the research house said AME missed its earlier set property sales target of RM350 million (actual: RM284 million) in FY2024 due to timing of conversion, instead of the demand factor.

It said the group’s RM276 million bookings in hand as of the fourth quarter ended March 31, 2024 (4QFY2024) had since been converted into RM254 million sales in 1QFY2025, following the recent RM210 million land sale deal with Quantum DC (HK) Ltd, a data centre customer.

“Looking ahead, we believe its healthy unbilled property sales of RM227 million and remaining RM184 million construction order book will support earnings over the next two years," the research house said.

Land sale to bolster FY2025

“[The company in] FY2024 missed its sales target, but the land sale for a data centre will bolster its FY2025 [results].

“We like AME for its sole focus on industrial properties, which also offers a unique exposure to capture the ongoing inflow of foreign direct investment,” the research house added.

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