UMLand (BUY)

Time for Puteri Harbour to contribute

• FY11: net profit rose 11% yoy to RM57.2m, which was 10% ahead of HLIB and consensus estimates. 
• This was due to srong margins from Suasana Bukit Ceylon.
• However, 4Q: net profit declined 28.7% yoy, indicative of a soft patch of earnings ahead due to lower contribution from the high-rise segment.
• UMLand needs to launch Sommerset @ Puteri Harbour, to sustain earnings growth. We believe it will finally happen in 2012.
• FY12-14 earnings raised by 16-17% to reflect Puteri Harbour. We raise our TP from RM1.61 to RM2.06 (reduce discount to RNAV from 65% to 55%). BUY

 Source: HLIB Research 1 March 2012