UEMLand Holdings (UEML) is the country's largest property player in terms ofmarket capitalization of RM10.0bn and total asset of RM7.8bn. Its acquisitionof Sunrisecompleted in early 2011 has improved its earnings outlook. We initiate coverageon UEM Land as we view positively its progressand developments in Nusajaya which should reach its 'tipping point'by end 2012. However, we are concerned with Nusajaya's ability to attractsufficient human traffic to the area as well as the sudden increase indevelopment projects in Iskandar Malaysia (IM). Hence, we recommend a HOLD onthe counter with target price based on UEML's RNAV of RM2.25.
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