UEM Sunrise - Robust Sales

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 4.41

Second Puteri Harbour land disposal in FY13

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: TRADING BUY

Target Price: 3.23

New JVC to develop 207 acres in Puteri Harbour

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.97

Unlocking the value of Puteri Harbour Land

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.64

Kicking-off the next growth stage for Nusajaya

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.54

Unlocking potential of Gerbang Nusajaya

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.46

UEM Land (HOLD)

Stock Name: UEMLAND
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

UEM Land: Acquisition of a 122-acre land in Nusajaya

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 2.25

UEM Land Holdings' (UEML) (ULHB MK, Hold, TP: RM2.25) wholly-owned subsidiary, Nusajaya Premier Sdn Bhd, had entered into a conditional sale and purchase agreement (SPA) with TBV to acquire a 122.3-acre of land in Pulai, Johor Bahru for a total cash consideration of RM93.2m (RM17.50 psf). TBV is a wholly-owned subsidiary of Khazanah. The SPA is conditional upon the approvals being obtained from the Economic Planning Unit (EPU), Johor State Authority, Estate Land Board, and other relevant authorities. The land acquisition will be funded through existing cash balances, internally generated funds and/or borrowings. (Bursa Malaysia announcement)

Comment: Located in Nusajaya, the land is adjacent to Kota Iskandar-the Johor State Government's Administrative Centre, and Puteri Harbour. According to the Group's announcement, the land was previously disposed of to Khazanah as part of the de-gearing exercise of UEM World Berhad. UEML's re-acquisition of the land from parent Khazanah is part of its plans to consolidate land parcels which are in close proximity to the Puteri Harbour development. This would enable the Group to gain more control of the overall pace of development and property supply in Puteri Harbour.

We view the acquisition as a strategic move on UEML's part as demand and prices for residential properties in Nusajaya are expected to remain high largely due to the scheduled completion of several catalyst projects by the end of 2012 as well as strong interest from foreign investors. UEML plans to develop the land into a premier residential enclave featuring a mix of landed canal-front homes with individual berthing and high-end condominiums. This will be part of the existing Puteri Harbour township. The development is expected to start in 2013 for a period of 7 years. However, no financial details were given in the announcement as the proposed development and the SPA itself have yet to be finalised. The market valuation of RM17.50 psf was done by Knight Frank in October 2011 and is lower than our assumption of average RM40 psf (for lands in Nusajaya). We have to check with management on the particulars of this piece of land i.e. whether there are further conversion/infrastructure costs etc required before we come out with a company update. Meantime, we maintain our forecasts, target price and recommendation on UEML. (Azida Nor-Azizi)

Source: ECM Newz Bits 10 April 2012

UEM Land - The Sun Also Rises

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: PUBLIC BANK

Price Call: BUY

Target Price: 2.80

We initiate with an Outperform call and RM2.80 target price (26% upside). We believe larger developers' competitive positions have improved with their sizable landbank and ties with government-linked companies. The property industry is getting consolidated, with the larger developers commanding better margins and higher market share.

• UEM Land, the largest property developer by market capitalization and the only property player included in the KLCI 30 list is in our buy list for its huge landbank in Nusajaya Johor, which is gathering momentum with the opening of theme parks, universities and schools in 2012. Warmer Malaysia-Singapore relationship and recent tightening property policy for foreign property investors could a boon for Iskandar Malaysia.
• The integration with Sunrise should boost UEM Land's earnings profile, leveraging on Sunrise's expertise in luxury highrise and mixed development. We believe the synergy of the combined Group will translate into stronger sales going forward. UEML is launching RM4.5bn worth of properties in 2012 with sales target of RM3.0bn.
• UEML is valued at RM2.80, pegged at 10% discount to RNAV of RM3.10. Balance sheet is healthy with almost zero gearing and RM1bn cash pile. Potential catalyst include 1) larger role in M+S Pte Ltd's SGD11bn Marina South residential development in Singapore 2) meeting its sales target 3) participation in land privatization.

Source: PublicInvest Research Research - 2 April 2012
Download: Research PDF

Property & M-REIT - NEUTRAL - 28 March 2012

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: KENANGA

Price Call: BUY

Target Price: 2.65

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: KENANGA

Price Call: BUY

Target Price: 1.65

Stock Name: SPSETIA
Company Name: SP SETIA BHD

Research House: KENANGA

Price Call: HOLD

Target Price: 3.90

Stock Name: IJMLAND
Company Name: IJM LAND BERHAD

Research House: KENANGA

Price Call: HOLD

Target Price: 2.28

Stock Name: MAHSING
Company Name: MAH SING GROUP BHD

Research House: KENANGA

Price Call: HOLD

Target Price: 2.18

Stock Name: E&O
Company Name: EASTERN & ORIENTAL BHD

Research House: KENANGA

Price Call: SELL

Target Price: 1.49

Stock Name: HUNZPTY
Company Name: HUNZA PROPERTIES BHD

Research House: KENANGA

Price Call: SELL

Target Price: 1.44

We are upgrading the PROPERTY Sector to NEUTRAL fromUNDERWEIGHT. The sector will be unexciting because of weaker fundamentals onthe back of a tighter banking liquidity. We also believe that the Malaysianproperty sector has hit peak demand after two consecutive years of >20% YoYgrowth in sales. But downside risk will be cap by 1) developers' strongearnings visibility; 2) changes of sales mix towards the affordable segmentplus Johor products will buck the general flattish trend and allow for decent salestargets; 3) the market has probably priced in the negatives in the sector; 4)Bank Negara unlikely to introduce further tightening measures. We reiterateOUTPERFORM on UEMLAND (TP: RM2.65) and UOAD (TP: RM1.65) while MARKET PERFORMratings are maintained on SPSETIA (TP: RM3.90), IJMLAND (TP: RM2.28), MAHSING(TP: RM2.18).

We retainedUNDERPERFORM ratings on E&O (Top UNDERPERFORM; TP: RM1.49) and HUNZA(TP: RM1.44). M-REIT and property investment remains as OVERWEIGHT as 'flight tosafety' options given our 2Q12 house view of 'top slicing', with CMMT (OP; TP:RM1.55) and KLCC Property (MP; TP: RM3.45). Listing of IGB REIT will keepvaluations high. The market's anticipation of KLCC potentially REIT-ing some ofits assets will also add excitement to the sector, although we believe it willnot likely be in the near term (refer to our 21/3/12 report, 'REIT-ing?'). Our2Q12 Top OUTPERFORM is Axis REIT (TP: RM2.82) for 1) its strong acquisitionpipeline, which allows for faster NAV growth and hence quicker realisation ofits valuations;  2) limited officeoccupancy risks given its quality tenants; 3) there being less choices of goodoffice/industrial REITs compared to retail ones and 4) its net dividend yieldof 6.0% is higher than CMMT's 5.5%.  4Q11results were mainly within expectations, save for UEMLAND which exceeded our estimate. Developers enjoyed strongearnings growth of >40% for 2011 given their last two years' strong sales.Hunza Properties was the exception with a sharp earnings decline of 30% as ithad held back launches. Generally, the developers were able to meet their 2011sales targets, implying a 10%-50% YoY growth in sales. Meanwhile, propertyinvestment and M-REITs results under our coverage came in withinexpectations. 

Weak fundamentalswill keep the sector unexciting. The tighter mortgage assessment criteria wasobvious over the last few months based on developers' feedback and a sharp MoMdrop in Jan-12 mortgage loans approvals. Whilst residential demand interest isstill strong, loan approval periods have more than doubled. We also understandthat bank valuations of properties, even for new launches, have been toneddown, affecting buyers' effective margin of financing. Many are not getting thefull 90% margin of finance even for their 1st or 2nd  homes, given the current residential marginof finance of 80%-85% for new launches. Interestingly enough, developers underour coverage have lowered their 2012 sales growth targets from their previousquarter's guidance of 20%-60% to 5%-50% now. Those with more bullish targetshave 1) strong exposure to Johor (a market which we are very bullish on) withready launches like UEMLAND and SPSETIA; 2) overseas projects like Australia, whichare still enjoying favorable property dynamics like SPSETIA and 3) very highlyspecialised projects like UOAD, which are looking at potential en bloc sales oftheir MSC status buildings. Although it is too early to say we have seen theworse of the tighter banking liquidity given the limited data of just theJan-12 month (policy was effective 1-Jan-12), we note that Jan-12 residentialloans approval decline of 24% MOM was the sharpest is the last 12 months. Webelieve the situation will continue to persist until Bank Negara relaxes itsresponsible lending guidelines, although on the positive side, Bank Negara isunlikely to impose further tightening measures. Landbanking news flow is thin, which reinforces our view of a lacklustreyear. 

But strong earningsvisibility will limit further downside risks. We do observe more mass housingand Johor landbanking, as well as launches in the affordable housing segment.We expect this trend to continue throughout the year as developers lean theirearnings mix towards these products to realise sales targets. For now, theirsales targets look achievable as developers will be rolling out variations offinancing packages, while rebates are also here to stay. However, high volume mass housing sales also meansless attractive margins. We will be monitoring the mass market closely as tighterbanking liquidity seem to be hurting first home owners.  Ironically, nearly 50% of applicants for theMy First Home Scheme (100% financing for homes RM400,000/unit or less for firsthome buyers earning <RM3000/month). That said, we think the market haspriced in the bulk of the negative policy news and expect the sector to rangebound at its Fwd PBV mean (KLPRP CY12 PBV of 0.8x @ 6-year average). Also, mostof our developers (except for Hunza) have high unbilled sales providing strong earningsvisibility of 1-1.5 years. Developers with good dividends, like UOA (4.6% netyield) and MAHSING (4.7% net yield), should limit their share price weakness,provided they are still able to meet their sales targets.   

Source: Kenanga

UEM Land: In talks to enter India, Myanmar, Vietnam

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 2.25

UEM Land Holdings Bhd (UEML) (ULHB MK, Hold, TP: RM2.25) said it is still negotiating with certain parties on plans to enter India, Myanmar and Vietnam. MD and CEO Datuk Wan Abdullah Wan Ibrahim declined to divulge details on the negotiations, saying that the agreement is expected to be signed this year. "We are already talking to people [major developers] but until the agreement is inked, I cannot say anything," he said. Wan Abdullah added that UEML will look at other countries, wherever the opportunity arises. (Financial Daily) 

Source: ECM Newz Bits 27 March 2012

UEM Land: A young behemoth with appetite for landbank

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: HLG

Price Call: HOLD

Target Price: 2.35

UEM Land:

A young behemoth with appetite for landbank

• UEM Land is transitioning to the next stage of their lifecycle, from conceptstock to mature developer.
• Share price has been supported by positive newsflow, which we expect tocontinue given improving bilateral relations between Malaysiaand 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

Stock Overview - UEMLAND - 13 Mar 2012

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: JUPITER

Price Call: BUY

Target Price: 2.47

UEMLAND ( 5148 : 2.26 ) : Targeting 2.47

Description

Resistance : 2.47 2.68
Support : 2.18

RSI of 44
RSI appears to have stabilised

STOCHASTIC
It is oversold, indicating a limited downside

TREND INDICATOR
Comment
The current pullback may be ending as technicals are approaching oversold.

Trading Strategy
Buy. Stop loss is at 2.16

Source:Jupiter Securities Research 13 March 2012

UEM Land (ULHB MK, TRADING BUY, FV: RM3.17, Close: RM2.22)

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: OSK

Price Call: TRADING BUY

Target Price: 3.17

UEM Land's (ULHB) FY11 net profit came in well above our andconsensus expectations, making up 134% and 125% of the respective FY11forecasts. The outperformance was largely driven by higher-than-expectedrevenue and strong 4QFY11 net profit which accounted for about 46.6% of thefull-year profit. We are raising our FY12 net profit forecast by 30% andintroducing our FY13 forecast. We maintain our Trading Buy call on ULHB at anunchanged FV of RM3.17 based on a 10% discount to our RNAV valuation.

Beating our andstreet estimates. ULHB recorded a net profit of RM301.7m for FY11 whichcame in 34% and 25% above our and consensus full-year estimates respectively. Thebetter-than-expected results were largely due to robust revenue from property developmentand strategic land sales in 4QFY11. It had an exceptional 4QFY11, where quarterlynet profit alone accounted for a whopping 46.6% of the full-year earnings. For 4QFY11,property development recorded a 45% q-o-q growth in revenue, while raking in RM87mfrom strategic land sales to the Johor State Government vis-''-vis RM13.5m for 3Q.Notably, due to the consolidation of revenue from its acquisition of Sunrise,ULHB recorded a 261% y-o-y growth in revenue, though net profit was up by only55% y-o-y as property development, which now has a significantly biggercontribution, commands a lower margin relative to that of strategic land sales.

Unbilled sales atRM1.85bn. For FY11, ULHB recorded total property sales of RM2.2bn withunbilled sales standing at RM1.85bn as at end-FY11. Despite the weaker sentimentin the property market, it has maintained its sales target of RM3bn for FY12 withseveral new projects to be launched in the Klang Valley, Cyberjaya and Nusajayathis year.

Maintain Trading Buy.In light of the sterling FY11 results, we are raising our FY12 net profitforecast by 30% after revising up our revenue forecast  on the back of the strong unbilled sales andfuture launches. We also take this opportunity to introduce our FY13 forecast.We maintain our Trading Buy recommendation at an unchanged FV of RM3.17 basedon  a 10% discount  to our RNAVvaluation. As  its profitabilitycontinues to improve, ULHB's PER multiple will also continue to compress to amore reasonable level compared to its elevated historical PER multiples.

Source: OSK188 

MIDF lifts target price for UEM Land

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 2.50

MIDF Research has raised its target price for UEM Land Holdings Bhd to RM2.50 from RM2.14 after revising upwards its earnings forecast for financial year 2012 by 22 per cent.

"Nevertheless, we are still maintaining our neutral recommendation as based on target price of RM2.50, the potential upside of UEM Land's share price is less than 15 per cent," the research house said its Equity Beat report today.

It said the company's 2011 earnings of RM301 million had exceeded its earlier forecast by 34 per cent following a sudden surge in UEM Land's bottom line the fourth quarter, mainly attributable to strong revenue growth, lower expenses, higher "other income" and lower effective tax rate due to the recognition of deferred tax assets on previous years' unabsorbed tax losses.

"Our previous projection had underestimated the sales growth of direct development and strategic land sales in the fourth quarter," it said.

MIDF Research said the upward revision of its earnings forecast for UEM Land took into consideration the profitability of current mix development of RM1.8 billion unbilled sales as well as future sales from RM4.5 billion launches in financial year 2012.

Other factors included Iskandar's maturing development stage with the completion of several projects such as Marlborough College, Newcastle University and Legoland.

The new earnings forecast also took into account synergies derived from the Sunrise-UEM Land merger and its strong pipeline of properties with a balance portfolio of residential and commercial developments.

Meanwhile, OSK Research also raised its net profit forecast for UEM Land by 30 per cent for 2012 but maintained its trading buy call on the company at an unchanged fair value of RM3.17.

"UEM Land's financial year 2011 net profit came in well above our and consensus expectations, making up 134 per cent and 125 per cent of the respective financial year 2011 forecasts," it said.

In its Malaysian Equity Investment Research Daily, OSK Research said the new revenue forecasts were based on the company's strong unbilled sales and future launches. -- Bernama

UEM Land Holdings - Pushing the envelope in 2012

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: CIMB

Price Call: TRADING BUY

Target Price: 2.56

Target RM2.56

UEM Land's final results were way ahead of expectations. The RM2.2bn new sales notched up in FY11 were also impressive. The group has set the bar high for 2012 with headline KPIs of 50% revenue growth, 40% profit growth and 10% ROE.

Source: CIMB Daybreak February 29, 2012, Full PDF Report

UEMLAND - Impressive results

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: HWANGDBS

Price Call: HOLD

Target Price: 2.30

UEM Land Holdings; Hold; RM2.22
Price Target: RM2.30; ULHB MK

4Q11 earnings above expectations. RM1.9bn unbilled sales & RM4.5bn launch pipeline to provide earnings visibility, limited land sales until 2013. Maintain Hold and RM2.30 TP (40% discount to RNAV of RM3.82).

Source: HwangDBS Research 29 Feb 2012

UEM Land Holdings (4QFY11 Results): Beats consensus

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 2.25

Maintain HOLD, TP: RM2.25

UEM Land (UEML) delivered FY11results which were above consensus estimates. FY11 revenue and net profit camein at RM1.7bn (+263% y-o-y) and RM301.7m (+55% y-o-y), respectively. This wasmainly on contribution from the Group's property developments inMont'Kiara, as well as Southern Industrial and Logistics Clusters (SiLC)and East Ledang, in Nusajaya. There were nodividends recommended for the year. The Group also announced its headline KPIsfor 2012 which includes (i) revenue growth of 50%, (ii) net profit growth of40%, and (iii) ROE of 10%. Maintain our earnings forecasts and HOLD call withRNAV-based target price of RM2.25.

Source: ECM Newz Bits 29 February 2012, FULL PDF Report

UEM Land: Maintain Hold - Boosted by strategic land sales

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: MAYBANK

Price Call: HOLD

Target Price: 2.05

Above expectations. UEML's RM301.7m 2011 net profit (+55% YoY) was 18% and 23% higher than our and consensus estimates respectively. The earnings gap was largely due to higher-than-expected strategic land sales. UEML sets a RM3b sales target for 2012 (+36% YoY). We adjust our 2012-13 earnings forecasts by 0.2-7%. Our new target price is RM2.05 (+3 sen; 40% discount to RNAV). Hold.

Maybank Research 29 Feb 2012

Click here for full report

Key proxy to Malaysian property exposure

Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 2.25