Stock Name: UEMLAND
Company Name: UEM LAND HOLDINGS BHD
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
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
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