Newly acquired Jalan Ipoh land strategically located

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.73

First land acquisition in FY13

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.73

Robust start to the year

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: TRADING BUY

Target Price: 2.73

Robust sales growth in FY12

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.07

UOA - Disposal of Investment Property

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.07

Strong sales momentum intact

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.07

Property sales surpasses FY11 full year sales

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 2.07

UOA Development - OUTPERFORM

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: KENANGA

Price Call: BUY

Target Price: 1.65

UOADevelopment (UOA) is proposing a dividend reinvestment scheme (DRS), which maybe applicable to FY11E NDPS of 10.0 sen (6.7% yield). Assuming 100% of FY11ENDPS is electable for the DRS, the dilution impact on  FY12E is  only  6%. Hence,  we  are not  worried  about dilutions given FY12-13E strong coreearnings growth of 39%-35%. We have raised our FY12-13E NDPS by 67%-33% to11.2-12.1 sen, respectively, as management is confident of providing similar,if not better, dividends to FY11E. Even with a 6% dilution, FY12-13E will stillprovide higher yields vs. FY11. We view the DRS positively as it will rewardshareholders, conserve internal cash and improve marketcapitalisation/liquidity. We  maintain  OUTPERFORM and  TP  of RM1.65  (based  on 52% discount* to FD SoP RNAV of RM3.46).We expect the group's products to buck the bearish property trend while theanticipation of its  continuous strongdividend payouts will lend strength to the stock. 

UOA has proposed a dividend reinvestment scheme(DRS), subject toshareholders approval  during theupcoming AGM (29/5/12). This will be the first developer to adopt such apolicy, to our knowledge. Another company which has adopted a similar policy isAxis REIT (OP; TP: RM2.82). Under the proposed DRS, UOA has the discretion toprovide shareholders an option to reinvest part or whole of the declared dividndsin new UOA shares. There is no official cap on the maximum number of new  shares arising  from  the DRS,  as  it is  only  subject to  the  quantum of dividends, issue price, electable portion and the number ofshareholders opting to reinvest their electable portions. The issue price howevermust be no more than a 10% discount to the 5-day VWAP prior to the price fixingdate. (See below). 

Proposed FY11E NDPS of 10.0 sen may be entitledto the DRS scheme.The company will be seeking shareholders' vote for concurrent approvals of theFY11E NDPS of 10.0 sen (6.7% yield) and the DRS scheme. Hence, FY11E NDPS couldbe entitled to the DRS.  We are notworried about dilutions as long as there is strong core earnings growth. We areconfident of our estimates and believe that the strong FY12-13E core earningsgrowth of 39%-35% will provide safety nets against significant dilutions.Assuming the entire FY11E NDPS of 10.0 sen (RM119.6m) is elected for the DRS,we expect the share base and market cap to grow by 7% each to 1.28b shares andRM1.91b respectively. Although the dilution impact on FY12E core EPS will thenbe 6% to 21.1sen, it will still show a 30% YoY increase. 

Dilutions on future dividends still implyattractive yields. However,we are revising up our FY12-13E NDPS by 67%-33% to 11.2-12.1 sen (7.5%-8.1%yield) on higher net payout estimates of 50%-40% vs. 30% previously, asmanagement is confident of providing similar, if not better dividends to FY11E.Assuming the 6% dilution impact as described above, FY12-13E net yields of7.0%-7.6% will still be higher than FY11E's 6.7%. Additionally, there is thepossibility of a special dividend, assuming any en bloc sales of Horizon officeblocks @ Bangsar South, which has yet to be imputed in our estimates. 

Positive on the proposed DRS. The rationale of the exercise is toreward shareholders as investors may be rewarded with cheaper entry points. Welaud UOA for the measure as it will help to improve liquidity and marketcapitalisation, while allowing the group to conserve cash and leverage on ahigher capital base for more landbanking opportunities. 

Source: Kenanga

UOA Development - Unjustified depressed valuations

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: CIMB

Price Call: TRADING BUY

Target Price: 1.84

Target RM1.84

Our visit and showroom tour with several investors reaffirmed our positive view on UOA Dev. Its 1Q new sales of over RM300m put the company firmly on the path to meet, if not exceed, its full-year target of RM1bn. Due to the depressed share price, UOA Dev's valuations are among the cheapest in our property coverage. Its P/Es are the lowest while its dividend yields are the highest. We maintain our Trading Buy call and target basis of 30% discount to RNAV.

Source: CIMB Daybreak - 06 April 2012, Full PDF Report

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

Stock Overview - UOADEV - 24 Feb 2012

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: JUPITER

Price Call: BUY

Target Price: 1.60

UOADEV ( 5200 : 1.49 ) : Targeting 1.60

Resistance : 1.60
Support : 1.42


RSI of 54
RSI is on the rise

STOCHASTIC
It is recovering

TREND INDICATOR
Down

Comment
The upside breakout of its down trend, is targeting 1.60


Trading Strategy
Buy. Stop loss is at 1.42


Source: Jupiter Research

UOA Devt at near 2-month high, very active

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: AFFIN

Price Call: BUY

Target Price: 2.07

KUALA LUMPUR: Shares of UOA Development Bhd surged to a near two-month high on Thursday, Oct 20 and it was very actively traded with more than 11 million shares done in the morning session.

At 12.30pm, it was up 13 sen to RM1.64, the highest since Aug 23. There were 11.29 million shares done.

It bucked the cautious overall market, where the FBM KLCI fell 15.10 points to 1,435.15. Turnover was 762.27 million shares valued at RM459.98 million. There were 144 gainers versus 477 losers.

This is the second time in six trading days that the share price had surged.'' It jumped to RM1.45 on Oct 13, a day after it announced that it would acquire 10 acres of Kepong land for RM73 million.

UOA Development had entered into a conditional sale and purchase agreement with Tago (Malaysia) Sdn Bhd for the proposed acquisition of a freehold land in Kepong for a cash consideration of RM72.9 million (RM170 psf). The freehold land measures approximately 428,801 sf (9.8 acres).

Affin Investment Bank Research said it was Neutral on acquisition and maintained a BUY with an unchanged TP of RM2.07.

However, the share price is sharply below its offer price when it was listed in June.'' Its institutional price was fixed at RM2.60 and the final retail price at RM2.52. At RM2.52, this was below the indicative retail price of RM2.90.

CIMB Research has technical buy on UOA Development

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: CIMB

Price Call: BUY

Target Price: 1.21

KUALA LUMPUR: CIMB Equities Research has a technical buy call on UOA Development at RM1.21 at which it is trading at a FY12 price-to-earnings of 4.8 times and price-to-book value of 0.9 times.

It said on Wednesday, Oct 5 that UOA Development is still trapped in a downtrend channel but a short term bottom could have been formed.

'Aggressive traders may start to nibble now but always keep stop tight at RM1.16,' it said.

CIMB Research said the bullish divergence on its MACD indicator suggests that selling pressure has tapered off. RSI too has bounced off its lows.

'In the immediate term, prices are likely to edge closer towards RM1.27 and RM1.38. The 30-day SMA at RM1.43 is also a magnet for prices,' it said.

CIMB Research maintains Outperform on UOA Devt

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: CIMB

Price Call: BUY

Target Price: 2.89

KUALA LUMPUR: CIMB Equities Research is maintaining its Outperform rating on UOA Developments Bhd after its annualised 1H core net profit met expectations at 93% of its forecast and 94% of consensus projections.

The research house said on Wednesday, Aug 24 that future quarters should be stronger as recognition of the strong year-to-date sales picks up pace.

CIMB Research said the good results should also boost confidence in the group's ability to meet the research house's FY11 core profit forecast of RM224 milllion.

'However, in view of the stockmarket turbulence of late and global slowdown fears, we now value UOA Dev at a 20% discount to market P/E instead of 10% given the higher risks inherent in its large exposure to high-rise residential and commercial development.

'Our target price falls from RM3.25 to RM2.89 as we lower our P/E target from 13.1x to 11.6x. We maintain our OUTPERFORM call in light of the potential catalysts of 1) improving earnings, 2) continued strong sales and 3) landbank acquisition,' it said.

CIMB Research initiates coverage on UOA Devt, TP RM3.25

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: CIMB

Price Call: BUY

Target Price: 3.25

KUALA LUMPUR: CIMB Equities Research has initiated coverage on UOA Development Bhd with a target price of RM3.25 based on 13.1 times FY12 P/E or a 10% discount to its target market P/E of 14.5 times.

'UOA Development's poor share price performance since its listing gives investors a chance to accumulate the stock on the cheap. Investors' realisation of the strong core earnings growth in FY11-13 could spark a re-rating, along with robust sales or more land banking,' it said on Tuesday, July 19.

CIMB Research said what sets UOA Development apart from its rivals is its wide gross margin of around 50%, which puts it well ahead of many sizeable established developers and will help this highly profitable developer to nearly triple its core net profit in FY12.

'In view of its relatively small landbank but consistent track record for landbanking and earnings expansion, we are valuing it on P/E basis, similar to other quick turnaround companies,' it said.

The research house said UOA Development has around 100 acres of undeveloped landbank with GDV of RM11bn. Its flagship project is the 60-acre Bangsar South project in Kuala Lumpur which has a GDV of over RM8bn.

'Besides various undeveloped residential and commercial components of Bangsar South worth RM6.1bn, UOA Development has another 10 projects with GDV worth nearly RM3bn which will be launched over the next 2-3 years. The group enjoys wide margins ranging from 35% to 60% as it prices its PROPERTIES [] at a premium and captures CONSTRUCTION [] margins internally,' it said.

UOA Development slumps to lowest since IPO

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: RHB

Price Call: BUY

Target Price: 3.45

KUALA LUMPUR: Shares of UOA Development Bhd fell to the lowest since the initial public offer, slumping to RM2.08 in late afternoon on Wednesday, July 6.

At 4.16pm, it was down 11 sen to RM2.08 with 3.32 million shares done.

The FBM KLCI was up 5.43 points to 1,587.28. Turnover was 918.23 million shares done valued at RM1.62 billion. There were 385 gainers, 338 losers and 329 stocks unchanged.

UOA Development was listed on June 8 and ended the first day at RM2.59.

The institutional price was fixed at RM2.60 and the final retail price at RM2.52 after the bookbuilding exercise. The indicative retail price was RM2.90.

The listing exercise of UOA Development included an offer for sale of up to 407 million existing shares of 50 sen each.

RHB Research Institute had valued UOA Development at RM3.45, at its RNAV per share and in line with its valuations on IJM Land Bhd.