KUALA LUMPUR (Oct 19): Public Investment Bank Bhd Research has initiated coverage on UEM Sunrise Bhd with an “Outperform” rating and target price of RM1.85, pegged at circa 40% over the revalued net asset value (RNAV).

In a note today, the research house said the company will unveil more projects in 2017 and progress on land deals with potentially higher sales target which among others include Solaris 3 (RM1.3 billion GDV), Artisan Hills (RM1.6 billion GDV) , St Kilda and Alderbridge as well as Vancouver (RM1.5 billion).

Most of the planned launches are on track with exception St Kilda, Melbourne which has been postponed to 2017, as guided earlier in the 2QFY16 conference call.

Also, the expected land sale for Puteri Harbour (estimated land value; circa RM300 million) is now likely to be sealed next year only, from the end-2016 period expected earlier.

“All told, FY16-18 earnings are adjusted downwards by 46%/17%/15% after we remove the land gain sale and adjust our billing assumptions and impute higher marketing expenses,” it said.

At 11.04am, UEM Sunrise fell 2 sen or 1.65% to RM1.19 with 3.47 million shares done. It has a market capitalisation of RM5.44 billion. — theedgemarkets.com

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