UOA Development slows new launches

PETALING JAYA (May 8): UOA Development Bhd has planned four new launches this year worth RM1.7 billion in gross development value (GDV), compared with six (GDV: RM2 billion) last year, reports The Edge Financial Daily today, citing research by Affin Hwang Capital.

The completion of UOA’s 28-acre mixed-development project, provisionally called Jalan Ipoh Land Development, has been delayed by a year to 2016.

This is so that it can include a mass rapid transit link and access to the Duta-Ulu Klang Expressway.

The project has an estimated GDV of RM3 billion. Affin Hwang Capital says this figure could be enhanced by the inclusion of the links.

The research house has adjusted its financial year ending December 2015 (FY2015) earnings per share (EPS) forecast for UOA to reflect the delay.

However, it has raised its FY2016 and FY2017 EPS estimates for UOA by 2% and 8%, respectively, to reflect the likelihood of an increase in the project’s GDV.