UEM Sunrise Poised For Stronger Earnings With 2026 Launches, Solid Unbilled Sales – HLIB

KUALA LUMPUR, June 5 (Bernama) -- UEM Sunrise Bhd is poised for stronger earnings momentum ahead, supported by new project launches and solid unbilled sales, according to Hong Leong Investment Bank Bhd (HLIB).

In a note today, HLIB said the property developer’s earnings are expected to strengthen from the second quarter, driven by the recognition of its Aspira Place project with a gross development value (GDV) of RM223 million, which has achieved full take-up for non-Bumiputera units.

HLIB said its 2026 launches, targeted at RM2.2 billion, will be led by The Minh Phase 2, with a GDV of RM1.09 billion in the second half of 2026. It follows Phase 1’s strong 99 per cent take-up rate.

HLIB said its solid unbilled sales of RM2.07 billion provide about 1.21 times coverage of its FY2025 property development revenue.

The stock is ripe for a technical rebound, having corrected about 30 per cent from a 52-week high of 81.5 sen to 57 sen. It is currently consolidating around the 55 sen level, HLIB said.

“A decisive breakout above 60 sen and the 30-day moving average could unlock upside towards 63 sen and 67.5 sen levels. On the downside, a breach below the 50-day moving average could see the stock retest the 53 sen and 50 sen levels,” it added.

HLIB said it is maintaining a “Buy” call on the stock, raising its target price to 92 sen from 90 sen, based on an unchanged 60 per cent discount to its revised net asset value estimate.

“We are increasingly positive on the stock, as the management’s recalibrated strategy provides a highly credible framework for sustained value creation,” it said.

At 12 noon, the counter was half-a-sen higher at 57.5 sen with 9.92 million shares transacted.

-- BERNAMA