UEMS (5148) - UEM Sunrise - Reengineering Growth
UEM Sunrise's (UEMS) analyst briefing, which was hosted by the CEO, En. Anwar Syahrin (who joined the company in Sep 2014) was well attended by more than 20 sell-side analysts. Key takeaways were; (1) the Group reiterating the profit target of RM2bn but has a stretched target of RM2.4bn, driven by projects launches worth some RM3.7bn, and (2) absence of the usual KPIs guided previously, the CEO was looking at flat revenue growth in FY15 but eyeing an ambitious profit target of RM500-550m, which is ahead of consensus and our estimates. Long term, the Group is looking to break RM5bn sales p.a. with RM1bn net profit in 5 years backed by its total outstanding GDV of RM103bn. All told, we keep our estimates unchanged and prefer to see the performance of the Group's launches in the next few months first before any changes.
Launches worth RM3.7bn. Ongoing projects have estimated GDV of RM39bn, with c.75% of it coming for the Southern region i.e. Iskandar Malaysia. Given the difficult trading environment in Iskandar Malaysia now, the Group is looking to diversify its exposure over there via land swap arrangements and allocate c.RM1bn annually to strengthen its landbank elsewhere with focus on fast turnaround projects such as its highly successful Aurora in Melbourne Australia. For 2015, UEMS has lined up projects worth c.RM3.7bn to be unveiled in the next few months. In Iskandar, it plans to launch Estuari (landed, RM533m GDV) at Puteri Harbor and Signature Residence (landed, RM152m GDV) at Gerbang Nusajaya. Meanwhile, in the Central region, it plans to launch Serene Heights (landed, Phase 1, RM181m GDV), Sefina @ Mont Kiara (Condo, RM311m GDV) and Artisan Hills (Semi-Ds, RM435m GDV). As for overseas, Conservatory at Melbourne is expected to be launched by end-2015 with RM603m GDV.
Beyond 2016. Other immediate projects that expected to be launched include Estuari (Ph 2 & 3, RM3.7bn GDV), The Waves @ Puteri Harbor (Condo RM1.2bn GDV), high-end villas at Desaru (RM397m GDV), Angkasaraya @ KLCC (RM1.2bn GDV) and a mixed development at Alderbridge, Canada (RM1.2bn GDV). Another overseas project (RM6bn GDV) that it is eyeing to unlock value is its 30.7-acre land in Durban Point, South Africa which is sea-fronting and has 15 years development period.
Source: PublicInvest Research - 5 May 2015
UEM Sunrise's (UEMS) analyst briefing, which was hosted by the CEO, En. Anwar Syahrin (who joined the company in Sep 2014) was well attended by more than 20 sell-side analysts. Key takeaways were; (1) the Group reiterating the profit target of RM2bn but has a stretched target of RM2.4bn, driven by projects launches worth some RM3.7bn, and (2) absence of the usual KPIs guided previously, the CEO was looking at flat revenue growth in FY15 but eyeing an ambitious profit target of RM500-550m, which is ahead of consensus and our estimates. Long term, the Group is looking to break RM5bn sales p.a. with RM1bn net profit in 5 years backed by its total outstanding GDV of RM103bn. All told, we keep our estimates unchanged and prefer to see the performance of the Group's launches in the next few months first before any changes.
Launches worth RM3.7bn. Ongoing projects have estimated GDV of RM39bn, with c.75% of it coming for the Southern region i.e. Iskandar Malaysia. Given the difficult trading environment in Iskandar Malaysia now, the Group is looking to diversify its exposure over there via land swap arrangements and allocate c.RM1bn annually to strengthen its landbank elsewhere with focus on fast turnaround projects such as its highly successful Aurora in Melbourne Australia. For 2015, UEMS has lined up projects worth c.RM3.7bn to be unveiled in the next few months. In Iskandar, it plans to launch Estuari (landed, RM533m GDV) at Puteri Harbor and Signature Residence (landed, RM152m GDV) at Gerbang Nusajaya. Meanwhile, in the Central region, it plans to launch Serene Heights (landed, Phase 1, RM181m GDV), Sefina @ Mont Kiara (Condo, RM311m GDV) and Artisan Hills (Semi-Ds, RM435m GDV). As for overseas, Conservatory at Melbourne is expected to be launched by end-2015 with RM603m GDV.
Beyond 2016. Other immediate projects that expected to be launched include Estuari (Ph 2 & 3, RM3.7bn GDV), The Waves @ Puteri Harbor (Condo RM1.2bn GDV), high-end villas at Desaru (RM397m GDV), Angkasaraya @ KLCC (RM1.2bn GDV) and a mixed development at Alderbridge, Canada (RM1.2bn GDV). Another overseas project (RM6bn GDV) that it is eyeing to unlock value is its 30.7-acre land in Durban Point, South Africa which is sea-fronting and has 15 years development period.
Source: PublicInvest Research - 5 May 2015
