Friday, March 16, 2012

UEM Land: A young behemoth with appetite for landbank


UEM Land:
A young behemoth with appetite for landbank
  • UEM Land is transitioning to the next stage of their lifecycle, from concept stock to mature developer.
  • Share price has been supported by positive newsflow, which we expect to continue given improving bilateral relations between Malaysia and Singapore.
  • Has set an RM3.0bn sales target for FY12 on back of RM4.4bn of launches.
  • In our view, upside is capped by its sector-leading 24.9x P/E, vs. mid-teen levels for other large-cap developers.
  • We set our target price at RM2.35, based on 25% discount to RNAV. HOLD
 Source: HLIB Research - 16 March 2012

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