[%XYbG%]
Research by Public
Underperform - TP RM0.70

"Sales Target On Track"

UEM Sunrise (UEMS) registered 2QFY24 net profit of RM17.2m ( -38.4m YoY, >100% QoQ) which as expected, improved sequentially as margins improved. Albeit Group 1HFY24 net profit only constituted about 35% and 27% of our and consensus full-year estimates, we deem it as in line as we expect earnings to be stronger in the subsequent quarters as gains from land sales are expected to be recognized, with higher progress billings also seen. Pre-sales achieved in 1HY24 amounted to RM502.4m (from RM232.6m in 1QFY24), or about half of its FY24 sales target of RM1bn. Unbilled sales remained steady at RM2.7bn (from RM2.6bn in 1QFY24), ensuring revenue visibility until FY27. All told, we make no changes to our earnings estimates. Valuations are still rich in our view and hence, we maintain our Underperform call and fair value of 70sen, pegged at c.0.5x to book value.

Analyst:
Tan Siang Hing
[%PoiN%]

$KLSE-UEMS
Research by Public
Underperform - TP RM0.70

"Sales Target On Track"

UEM Sunrise (UEMS) registered 2QFY24 net profit of RM17.2m ( -38.4m YoY, >100% QoQ) which as expected, improved sequentially as margins improved. Albeit Group 1HFY24 net profit only constituted about 35% and 27% of our and consensus full-year estimates, we deem it as in line as we expect earnings to be stronger in the subsequent quarters as gains from land sales are expected to be recognized, with higher progress billings also seen. Pre-sales achieved in 1HY24 amounted to RM502.4m (from RM232.6m in 1QFY24), or about half of its FY24 sales target of RM1bn. Unbilled sales remained steady at RM2.7bn (from RM2.6bn in 1QFY24), ensuring revenue visibility until FY27. All told, we make no changes to our earnings estimates. Valuations are still rich in our view and hence, we maintain our Underperform call and fair value of 70sen, pegged at c.0.5x to book value.

Analyst:
Tan Siang Hing
tan.sianghing@publicinvestbank.com.my