UEMS (5148) : AmResearch maintains Buy UEM Sunrise with FV of RM2.34
KUALA LUMPUR: AmResearch is maintaining a Buy on UEM Sunrise with an unchanged fair value of RM2.34 a share, which is a 40% discount to the net asset value.
UEM Sunrise’s 9M14 net profit (3Q14: RM71mil, -4% on-quarter) was 59% lower on-year at RM207mil.
“But earnings, ex-land sales, were a tad higher at RM181mil (+2% on-year). We maintain our FY14F net profit forecast at RM513mil as we expect the group to crystallise new land sales to Kuala Lumpur Kepong and Motorsports City totaling RM689mil in 4Q.
AmResearch said the nine-month FY14 figures were boosted by land sales totaling RM709mil to Liberty Bridge and Southern Marina (net gain: RM323mil). A year ago, land sales and net gain (to Horizon Hills) were only RM58mil and RM26mil respectively.
During the same period, revenue from property development rose 12% on-year. Key profit contributors were East Ledang, Quintet, and Nusa Idaman.
“While new sales fell further to RM202mil in 3Q14 (-36% on-quarter), we expect a marked pick-up in 4Q on conversion of the bulk of bookings from its maiden Melbourne project – the Aurora Melbourne Central by year-end.
“This should underpin the group’s FY14F sales target of RM2bil (9M14: RM641mil). Unbilled sales stood at RM4bil,” it said.
UEM has got off to a fast start in Australia. Aurora’s central location in La Trobe Street and connectivity to the prime Melbourne Central shopping centre were the main reasons for the sellout; Phase 1 (only residential units: GDV:A$570mil) saw 95% of total units booked within two weeks.
The units were priced at A$10,000 per sq m (A$930psf). The next phase will likely be launched by mid-2015 and will be within the same price bracket. Indicative project margins are 20%-25%.
“Pre-sales had picked up with three prolific launches in October alone totalling RM2.6bil (9M14: RM3bil). More importantly, the sales momentum should continue in FY14F with RM4bil worth of new launches in the pipeline.
“New launches in 1Q14 include Serene Heights (RM120mil), D’Estuary (RM470mil), Denai (RM180mil), and Sephina (RM300mil),” it said.
http://www.thestar.com.my
KUALA LUMPUR: AmResearch is maintaining a Buy on UEM Sunrise with an unchanged fair value of RM2.34 a share, which is a 40% discount to the net asset value.
UEM Sunrise’s 9M14 net profit (3Q14: RM71mil, -4% on-quarter) was 59% lower on-year at RM207mil.
“But earnings, ex-land sales, were a tad higher at RM181mil (+2% on-year). We maintain our FY14F net profit forecast at RM513mil as we expect the group to crystallise new land sales to Kuala Lumpur Kepong and Motorsports City totaling RM689mil in 4Q.
AmResearch said the nine-month FY14 figures were boosted by land sales totaling RM709mil to Liberty Bridge and Southern Marina (net gain: RM323mil). A year ago, land sales and net gain (to Horizon Hills) were only RM58mil and RM26mil respectively.
During the same period, revenue from property development rose 12% on-year. Key profit contributors were East Ledang, Quintet, and Nusa Idaman.
“While new sales fell further to RM202mil in 3Q14 (-36% on-quarter), we expect a marked pick-up in 4Q on conversion of the bulk of bookings from its maiden Melbourne project – the Aurora Melbourne Central by year-end.
“This should underpin the group’s FY14F sales target of RM2bil (9M14: RM641mil). Unbilled sales stood at RM4bil,” it said.
UEM has got off to a fast start in Australia. Aurora’s central location in La Trobe Street and connectivity to the prime Melbourne Central shopping centre were the main reasons for the sellout; Phase 1 (only residential units: GDV:A$570mil) saw 95% of total units booked within two weeks.
The units were priced at A$10,000 per sq m (A$930psf). The next phase will likely be launched by mid-2015 and will be within the same price bracket. Indicative project margins are 20%-25%.
“Pre-sales had picked up with three prolific launches in October alone totalling RM2.6bil (9M14: RM3bil). More importantly, the sales momentum should continue in FY14F with RM4bil worth of new launches in the pipeline.
“New launches in 1Q14 include Serene Heights (RM120mil), D’Estuary (RM470mil), Denai (RM180mil), and Sephina (RM300mil),” it said.
http://www.thestar.com.my
