by ANIS HAZIM / pic credit: uemsunrise.com
UEM Sunrise Bhd’s property sales target for the financial year of 2022 (FY22) is expected to be on track given the more aggressive launches and ongoing monetisation of its inventory.
According to CGS-CIMB Securities Sdn Bhd, UEM Sunrise targeted to launch new projects worth up to RM3.3 billion in gross development value (GDV) in FY22.
“We gather there will be three big projects to be launched in the second half of 2022 (2H22) KAIA Heights Phase 2 in Seri Kembangan, Selangor (Block C and D), Collingwood in Melbourne and MK31 in Mont Kiara, Kuala Lumpur with an estimated GDV between RM2 billion and RM2.6 billion,” CGS-CIMB’s analyst Ngo Siew Teng said in a report today.
The analyst said the group will continue to pursue full settlement of the remaining inventories in Aurora Melbourne Central and Conservatory by the end of 2022 (unbilled sales of RM75.6 million as of June).
For 1H22, the group’s new property sales came in lower at RM439.3 million versus RM707 million in 1H21, at 29% of its FY22F sales target of RM1.5 billion.
“Out of its 1H22 new property sales, 2% of new sales came from new launches, 39% from inventory monetisation and 59% from ongoing projects,” she noted.
Ngo noted that UEM Sunrise has launched RM100 million worth of new projects to date and currently has a booking pipeline of RM200 million as at mid of August 2022.
At the end of June 2022, the group’s unbilled sales stood at RM2.3 billion compared to the RM2 billion in the same period last year.
Meanwhile, CGS-CIMB expects the group’s stronger 2H22F earnings from the remaining settlement of its Australian projects and revenue recognition of its ongoing projects.
The research house reiterates its ‘Add’ call and unchanged TP of 40 sen, based on FY23F price to book value (P/BV) of 0.3 times.
“We like UEM Sunrise given its undemanding valuation of less than 0.3 FY23F P/BV (versus peers’ 0.41 times), anticipated earnings recovery in FY22 to FY24F due to business normalisation and realignment of group strategy, and good environmental, social and governance disclosures and action plans,” Ngo said.