We initiate coverage on UEM Land Holdings (ULHB) with a BUY rating at a FV of RM3.52 based on RNAV valuation. We like ULHB’s exposure to Iskandar Malaysia and the potential earnings enhancement from acquiring Sunrise as we believe there is untapped synergy and value accretion. Despite its rather premium valuation against its peers, we believe the stock’s potential inclusion into the FBM KLCI and positive news flow from Iskandar will give it the fillip for an upward rerating.
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