Thailand's Hemaraj Land & Development (HEMRAJ): Upgrade fair value to Bt1.95/sh on strong land sales expectation.

Section: Stocks - Despite concerns of political uncertainty and rising inflation, Hemaraj Land and Development (HEMRAJ) is expected to post stronger than expected land sales this year. At present, the company land sales year-to-date is 1,045 rai and 83% of the last year total of 1,264 rai. This is due to the strong land demand for Eco-car projects. Suzuki Motors from Japan has purchased 412 rai in early 2008. There has also been a sale of 121 rai in July 2008 to Danieli Far East Co., Ltd. Therefore, HEMRAJ land sales target is revised for this year from the previous forecast of 1,200 rai, up to 1,500 rai. As a result, we expect to see the company achieve Bt3,532mn in land sales …