Maybank IB believes Gentinsg Plantation’s new property project is selling well, boosted by optimism over JS-SEZ’s developments. The success of these projects are expected to be reflected in improving property earnings in 2H25 and 2026.
This is underpinned by its high unbilled sales of MYR157m (as at 31 Mar) or ~1.2x FY24 revenue, and U.Reka’s successful launch on 10 May. The house maintains BUY & TP of MYR6.89 on 19x FY25 PER (-1SD of 8Y mean).
JS-SEZ optimism: Seeing is believing GENP’s latest residential project – U.Reka was off to a rousing success. Phase 1 of U.Reka comprises 317 units of mixed residential properties with a GDV of MYR275m. All 189 non-bumi units were snapped up on the day of launch on 10 May (the same day GENP unveiled its new sales gallery. Phase 1 is only a part of U.Reka’s total GDV of MYR2.5b comprising 2,611 units (on 306 acres land) to be built over a 10 year period. Batu Pahat industrial park enjoys strong demand too
Its Genting Industrial City (GIC) in Batu Pahat was launched in late 2024 with an estimated GDV of MYR260m. The average take-up rate of the new launches was 82% (up to May 2025; excluding bumi lots. Construction works at the GIC site is also progressing well with few units visibly nearing completion.
Anticipate a pick-up in property earnings in 2H25
The above two projects are anticipated to contribute positively to the bottom line of GENP in 2H25 and 2026. This is in part due to U.Reka’s advanced construction progress as the project commenced construction work pre-launch. Maybank IB has imputed MYR141m/147m of property revenue recognition and MYR32m/34m in operating profits for FY25E-26E. The house makes no changes to its earnings forecasts as we expect its property earnings contribution to pick up after missing estimates in 1Q25. Its property earnings (incl. premium outlets) accounts for ~17% of group’s FY25E PBIT.
