With several new residential projects lined up for launch over the next 1-2 years, UM Land is well placed for a boost to sales given the promising outlook for the property sector, particularly for the residential segment. We retain our BUY recommendation and RM2.11 target price, which we continue to base on a 50% discount to its RNAV.
The share price could be catalysed by 1) robust sales for property developers in general, 2) more land acquisitions, and 3) M&A activity in the property sector. We would not discount the possibility of UM Land partaking in M&As as the group has decent landbank and its shareholding is fragmented.
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