Feb 14, 2011

UEMLAND Stock Code 5148 Buy

UEM Land (ULHB MK - RM2.79 - BUY)
UEM Land is the major developer of Nusajaya, which has been earmarked as one of the five flagship zones of Iskandar Malaysia. Iskandar Malaysia has made significant progress since its launch in 2006, attracting investments totalling RM64.38bn, exceeding the RM47bn targeted for 2010. Nusajaya has also been successful in getting foreign investments, including the projects such as Legoland, BioXCell, Newcastle University Medical Faculty and Marlborough College. The company strategy is to form joint ventures to accelerate the development of its landbank in Nusajaya. In 2010, UEM Land proposed to acquire Sunrise. Sunrise is a well known property developer for the luxury condominiums in Mont Kiara and has a strong branding. With the experience of Datuk Tong Kooi Ong from Sunrise, this will potentially help to enhance the Nusajaya development, and unlock the values from UEM Land’s massive landbank of more than 9,000 acres. 

UEM Land at AF2011 highlights
Presenter: Dato’ Wan Abdullah, Managing Director

  • The crowd consisted of prospective Marlborough College school parents and fund managers remembering how much they lost courtesy of the UEM/Renong dream circa 1994. The story has not changed. So has the execution? The market seems to think so.
  • UEM Land is the largest property company in Malaysia by a significant margin but still, it is all about the theme. Management is fully aware that delivery has been poor so far. The tipping point for its property development projects is expected to be in 2012.
  • The  recent acquisition of developer Sunrise is designed to help fast track reporting of profits rather than being  largely an NAV story. It also brings additional bricks and mortar skills. They intend to keep the Sunrise brand name. Acquisition of Sunrise will be completed by end-February 2011.
  • UEM Land provided a long list of current and proposed projects both within and outside of Nusajaya. Total gross development value is RM30.7bn. Profit margin
    is at least 30%. 

by CSLA - asia pacific