UOB KayHian downgrades UEM Land to ‘sell’, lowers TP to RM2.23

UOB KayHian downgrades UEM Land to ‘sell’, lowers TP to RM2.23
Business & Markets 2013
Written by Zatil Husna of theedgemalaysia.com
Tuesday, 23 April 2013 17:01


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KUALA LUMPUR (April 23): UOB KayHian has downgraded UEM LAND HOLDINGS BHD [] to ‘sell’ with a lower target price of RM2.23 compared to RM2.50 previously.

In a note, UOB KayHian said this reflects the recent run-up in UEM Land's share price as the investment community warms up to the Iskandar Malaysia theme in Johor.

“The downgrade also shows our gradual cautiousness of UEM Land’s medium-term strategy which seems to be diverting away from developments in Puteri Harbour and Medini area,” said UOB KayHian.

According to the research house, UEM Land is the sole proxy to the Iskandar theme as they own most of the land in the region.

UEM Land has said in notes accompanying its financials that it plans to launch RM3 billion worth of projects in Iskandar and RM1 billion worth of projects outside the enclave.

“We believe that property sales outside Iskandar may not be as resilient and could impact the group,” UOB KayHian said. As of 4Q12, UEM Land’s unbilled sales stood at RM2.3 billion.