UEM Sunrise to benefit from MVV 2.0
MBSB Research, which did not have a rating on the property developer, said the share price has a 'fair value' of 84 sen based on price-to-book ratio of 0.62 times pegged to latest book value per share of RM1.36, or slightly above the three-year mean.
'We think the slightly above mean valuation is justified for UEM Sunrise considering that it is the beneficiary of the property upcycle in Johor, while its growing presence in the central region of Malaysia supports future growth,' it said.
The research house noted that the development of MVV 2.0 together with job availability would drive demand for property in Seremban, which would support sales of Forest Heights, a mixed development township on 197.48ha of land in the heart of Seremban.
It pointed out that the company's offerings in Forest Heights sold at a slightly premium pricing compared to competitors in the same area due to the elevated living through its hilltop residences, providing scenic views.
Forest Heights has a gross development value (GDV) of RM1.9bil with residential projects making up 80% of total GDV and the remaining 20% comprising commercial projects.
In total, the company had 2,103.55ha of remaining land bank with a total GDV of RM90.9bil as of Dec 31, 2024.
Of the total, the company's central region comprising the Klang Valley and Negri Sembilan, had 204ha with a remaining GDV of RM28.6bil.
MBSB Research said the company has a financial year ending Dec 31, 2025 (FY25) new sales target of RM1.05bil, after achieving a new sales target of RM1.4bil in FY24.
Its first quarter ended March 31 (1Q25) new sales comprised 35% of the FY25 target, or RM370.6mil, with core net profit jumping 137% year-on-year to RM19.2mil.
In a filing with Bursa Malaysia on its 1Q25 performance, UEM Sunrise noted that the formalisation of the Johor-Singapore Special Economic Zone (JS-SEZ) in December 2024 is poised to amplify cross-border economic activity, further establishing Johor as a pivotal growth corridor.
'Looking ahead, UEM Sunrise is strategically positioned to leverage national economic initiatives, including the JS-SEZ and the National Energy Transition Roadmap, aligning its strategic vision with evolving market dynamics.
'With a firm commitment to creating stakeholder value, fostering resilient communities and shaping the future of real estate, UEM Sunrise remains poised to navigate the opportunities and challenges of 2025 with confidence.'
Against a backdrop of evolving global trade dynamics and supply chain realignments, the company noted that Malaysia faced both challenges and opportunities.
'As companies reassess their operational footprints amid geopolitical uncertainties, the country's strong economic fundamentals, advanced infrastructure, and investor-friendly policies position it as a compelling hub for industrial and logistics assets.'
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