InvestIdeas

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Uem Land Holdings Bhd [ULHB MK] - Buy: 1Q11 below 1Q11 below expectations, however 2011 will be characterized by chunky land sales
( RM2.79 / PT: RM3.29 )
Jacinda Loh; Raashi Gupta

1Q11 was below our and Street estimates (making up 7.5% of full year, while in 1Q10 it comprised only 2% of 2010 full year), but we think these results only serve to highlight the inherent unpredictability of the bulk drivers of its top line, which are chunky, like developed land sales.

Management expects to pick up the pace of launches and hence sales, and maintains its target of 50% consolidated revenue growth.


Source: Nomura

not vested

RHB Research keeps ‘buy’ call on UEM Sunrise
14 June 2014

RHB Research has maintained its “buy” call on UEM Sunrise Bhd with a fair value of RM2.73, and the high-speed rail project being a possible key to turn around the weak sentiment on Iskandar Malaysia.

This came after the RM3.7 billion integrated technology park in Nusajaya, dubbed Nusajaya Tech Park, a 60:40 joint-venture project between Ascendas Pte Ltd and UEM Sunrise, had its groundbreaking ceremony last Thursday.

The project is the first economic cluster in the 1,618ha Gerbang Nusajaya.

RHB Research said as the park is currently in its start-up phase and that more material earnings will only be seen from 2016.

“We reiterate that the high-speed rail project could be the key to turning around sentiment on Iskandar in late 2014,” the research house said in its note.

RHB Research said the Nusajaya Tech Park, located five to 10 minutes away from the Second Link Expressway, has seen initial success and will be the key economic driver to trigger a population expansion and help absorb the oversupply of residential properties in Iskandar.

The industrial park, which is expected to attract a 200,000-strong working population, will be able to nurture the economic development at Gerbang Nusajaya.

The project has received a 40 per cent pre-commitment out of the 21 units of factories marketed. Sanwa Group, YCH Group and Telekom Malaysia Bhd unit VADS Bhd are among the companies that will set up their base there.

“Sales and purchase agreements will likely to be signed in August when the building plans are approved,” RHB Research said.

Source: NST

not vested

UEM Sunrise inks deal for Hyatt House Hotel in Mont Kiara

KUALA LUMPUR: UEM Sunrise Bhd's wholly-owned subsidiary, Arcoris Sdn Bhd, has inked a management agreement with an affiliate of Hyatt Hotels and Resorts for a Hyatt House hotel in Mont Kiara.

Expected to be opened in 2017, Hyatt House Kuala Lumpur, MontKiara, will mark the first Hyatt House hotel in Malaysia, said UEM Sunrise in a statement.

"We are proud to enter into a management services agreement with Hyatt, and to bring its extended stay experience to Malaysia.

"It is a significant milestone that marks our inaugural venture into the hospitality industry as we expand our business portfolio," said Managing Director/Chief Executive Officer, Anwar Syahrin Abdul Ajib.

The hotel will feature about 298 guestrooms, a three-meal restaurant, 3,100 square feet (290 square meters) of meeting space, a fitness centre and sky pool.

It will be part of a larger mixed used development, Arcoris MontKiara, which will also feature business suites, small home offices (SoHo), residential units, and a retail plaza.

The hotel will be ideally located near top international schools, the Kuala Lumpur Golf and Country Club and the main business districts of Kuala Lumpur Sentral and Kuala Lumpur City Centre.

Source: The Star

not vested

UEM Sunrise has unbilled sales of RM4.3bil as of June 30, and more than half of its property sales in the first half of 2016 are from overseas ventures, according to its notes.

With a net gearing ratio of 23% for FY15, UEM Sunrise was the hardest hit in 2014, among other property stocks according to analysts due to poor take-up rate of launches in Iskandar Malaysia.

Source: The Star

Aug 29, 2019

Expect a strong 4Q19

Profit in line, but sales fell short

UEMS’ 1H19 core net profit of MYR107.5m (-50% YoY) was in line with our expectation as we expect earnings to surge in 4Q with lumpy recognition from the Aurora project (SP5 and Ascendas en-bloc sale) as well as land sale in Melbourne.

1H19 property sales were however below our expectation.


We revise our FY19-21 core net profit forecasts by -0.1% t -45%.

Our MYR0.95 RNAV-TP (-1sen; on 0.4x P/RNAV peg) is intact. BUY.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 2896bd.pdf

not vested

PublicInvest Research downgrades UEM Sunrise to 'underperform', ups TP to 42 sen

By Lam Jian Wyn

KUALA LUMPUR (Aug 16): PublicInvest Research downgraded UEM Sunrise Bhd to an "underperform", as it believes that Johor — which is home to the largest residential property overhang in the country — will need more time to digest the supply glut.

The research house, however, raised its target price for the property developer to 42 sen from 33 sen earlier to narrow the valuation discount to about 0.65 times its net tangible assets.

Noting that the share price had exceeded its earlier estimates after the proposal to revive the High Speed Rail between Kuala Lumpur and Singapore was mooted in July, PublicInvest Research said it is currently trading at close to 30 times consensus forecast earnings for the financial year ending Dec 31, 2024 (FY2024).

Meanwhile, the research outfit maintained its earnings estimates for UEM Sunrise after the group announced that it intends to build 430 apartments on its new Subiaco East site in Perth, Western Australia.

On Tuesday (Aug 15), the group announced that it had acquired the 1.22-acre (0.49-hectare) site for A$22.2 million, or about RM66.8 million, from DevelopmentWA.

Currently, PublicInvest Research estimated UEM Sunrise's net profit at RM80.9 million for FY2023, RM86 million for FY2024, and RM92.5 million for FY2025, underpinned by revenue of RM1.01 billion for the three years.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/678867

not vested

UEM Sunrise (UEMS MK)
2Q23: In line; Expect A Stronger 2H On Improvement In Progressive Billing

UEM’s 2Q23 results came in within expectation.

1H23 saw revenue weakness due to lower land sales but net margin improved on project cost savings and lower operating expenses (on lower headcount).

We expect a slightly stronger 2H23 on higher land sales and an improvement in progressive billing from higher unbilled sales. Maintain HOLD. Target price: RM0.58.

Source: UOBKH

https://research.uobkayhian.com/content ... 49a9a7d75a

not vested

Share price running ahead of earnings

We downgrade UEMS to Reduce (from Add), as we feel the potential revival of HSR/Johor economic activity is already reflected in the share price.

TP raised to RM0.75/share, as we base it on a 10-year mean of 0.55x FY24F P/BV to capture the valuation when HSR was first agreed on in Feb 13.

In 1H23, UEMS domestic sales were below its peers’ while a third of its unbilled sales are international sales which will only be recognised in 2026F.


Valuation

In our view, UEMS’s valuations look stretched currently at 2 s.d. above its 5-year P/BV and it also surpassed its 10-year P/BV mean of 0.5x.

Given the inconsistent earnings delivery, P/E valuations also look expensive, with the stock
trading at a hefty 48x FY24F P/E, vs. the industry average of 18x FY24F P/E.

There is also no dividend support for now.

In our view, any further share price rerating from these levels will have to be supported by better earnings delivery and a more concerted effort to monetise its Johor landbank via more aggressive launches and/or large-scale land sales to other developers.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B0DD1FE33B

not vested

With huge landbank UEMS is a key beneficiary of the JS-SEZ initiative

~8000 acres

Source: The Star

https://www.thestar.com.my/business/bus ... initiative

not vested

5148 UEMS (BUY)
A strategic reset

UEMS appears to be undergoing a strategic reset under its new CEO, with management now taking a more pragmatic and execution-oriented approach to unlock value from its sizeable prime landbank, particularly in Johor.

The group plans to monetise land through sales and JVs, ramp up launches, expand its recurring income portfolio, and enhance shareholder returns via a higher dividend payout.

With the stock having already undergone a sharp de-rating as past execution disappointed, the current low share price may have priced in much of the earlier negatives, leaving room for a re-rating if management can translate its reset strategy into tangible progress.

Maintain forecasts and upgrade the stock to a BUY rating (from HOLD) with a higher TP of RM0.90 (from RM0.56) based on a lower 60% (from 75%) discount to our estimated RNAV of RM2.25.

Source: HLIB