Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD
Company Name: UEM LAND HOLDINGS BHD
| Research House: HLG | Price Call: HOLD | Target Price: 2.35 |
UEM Land (HOLD)
- UEM Land (ULHB) has entered into a conditional sale and purchaseagreement with TBV (a wholly-owned subsidiary of Khazanah Nasional Berhad) toacquire 122.28 acres of freehold land in Johor Bahru for RM93.2m cash, orRM17.50 psf.
- The land was previously disposed to Khazanah as part of the de-gearingexercise of the UEM World Berhad group of companies in 2006.
- We like the RM17.50 psf acquisition price, given that the Puteri Harbourland is far more prime and prestigious vis-''-vis the 65 acres of Plentong landwhich Sunway bought for RM48 psf in Dec 2010.
- Although this nearly doubles their existing 160 acres landbank in Puteri Harbour,we still argue that impact overall is limited as they already have ~5,600 acresof land in Nusajaya.
- No change to our earnings estimates. Maintain our HOLD call, andtarget price of RM2.35 (25% discount to RNAV).
Source: HLIB Research - 10 April 2012
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