Analysts are turning more positive on property developer UEM Sunrise Berhad, citing improving earnings visibility, strong project launches and a strategic transformation plan that could drive long-term value creation.
According to HLIB Research, the stock has retreated about 30% from its 52-week high of RM0.815 to around RM0.57, and is now stabilising near key technical support levels, suggesting limited downside risk and potential for a rebound.
The research house noted that a sustained move above RM0.60 could pave the way for further gains toward RM0.63 and RM0.675, while support remains around the RM0.53 to RM0.55 range.
Earnings expected to strengthen from second quarter
HLIB expects UEM Sunrise’s earnings momentum to improve from the second quarter onwards, supported by revenue recognition from Aspira Place, a RM223 million gross development value (GDV) project that achieved full take-up for its non-Bumiputera units.
The group is targeting RM2.2 billion in new property launches for FY2026, anchored by The Minh Phase 2, which carries an estimated GDV of RM1.09 billion and is scheduled for launch in the second half of the year.
The positive outlook follows strong demand for The Minh Phase 1, which achieved a 99% take-up rate.
UEM Sunrise’s unbilled sales currently stand at RM2.07 billion, providing revenue visibility equivalent to about 1.2 times its FY2025 property development revenue.
Analysts also expect growth to be supported by land sales in East Ledang and stronger billings from major high-rise developments including The Minh, Connaught One and Residensi ZIG as construction progresses.
Strategic transformation underway
Beyond near-term earnings growth, UEM Sunrise is pursuing a broader transformation strategy aimed at unlocking value from its extensive landbank and strengthening recurring income streams.
In the short term, management is focusing on land monetisation and joint-venture opportunities to enhance returns. Over the medium term, the company plans to accelerate launches in Johor to capitalise on growing investor interest and economic activity in the state.
Longer term, the developer aims to expand its investment property portfolio to build a more stable base of recurring income.
HLIB said the group’s core property development margins have remained resilient despite fewer land sales, reflecting disciplined project execution and operational efficiency.
Higher target price maintained
The research house maintained its “Buy” recommendation on UEM Sunrise and raised its target price slightly to RM0.92 from RM0.90, based on a revised revalued net asset (RNAV) valuation.
It said management’s recalibrated strategy provides a credible roadmap for sustainable earnings growth and value creation, while improving project visibility and execution should continue to support investor sentiment going forward.
