Wednesday, February 29, 2012

UEM Land: Maintain Hold - Boosted by strategic land sales

Above expectations. UEML's RM301.7m 2011 net profit (+55% YoY) was 18% and 23% higher than our and consensus estimates respectively. The earnings gap was largely due to higher-than-expected strategic land sales. UEML sets a RM3b sales target for 2012 (+36% YoY). We adjust our 2012-13 earnings forecasts by 0.2-7%. Our new target price is RM2.05 (+3 sen; 40% discount to RNAV). Hold.

Maybank Research 29 Feb 2012

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