UEM Sunrise Bhd reported 1Q25 core profit after tax and minority interests (PATAMI) of RM19.9m (-79.6% quarter-on-quarter +146.0% year-over-year which makes up 13.5% of our and 17.2% of consensus full-year forecasts. We deem the results to be within expectations as we expect stronger quarters ahead driven by East Ledang land sales with an estimated net gain of ~RM37m and accelerated billings from the handover of several projects including Residensi Ava. Post annual report updates, we tweaked our FY25/26 forecasts by -3.5%/-2.0% and introduce FY27 earnings at RM185.9m (+14.2% YoY). Upgrade to Hold (from Sell) with a higher target price of 78 sen (from 75 sen), after rolling forward our valuation base year. Our revised target price is based on a 65% discount to our estimated revalued net asset value of RM2.23. Following the recent sharp share price correction of -37.2% from its year-to-date high of RM1.17 (Jan 3, 2025), we believe the stock’s valuation has become more reasonable. – HLIB Research, a unit of Hong Leong Investment Bank Bhd (May 23, 2025)
(Calls by analysts tracked by Bloomberg: 3 Buy, 3 Hold, 2 Sell; Consensus target price: 88 sen)
The post UEM Sunrise upgraded to Hold, target price raised to 78 sen appeared first on The Malaysian Reserve.
