KUALA LUMPUR: CIMB Equities Research said higher-than-expected land sale gains pushed UM Land's FY09 net profit 22% past its and consensus estimates.
It said on Thursday,Feb 25 that it is raising its FY10-11 earnings for UM Land by 4%-12% for a more aggressive launch schedule.
"Our RNAV estimate rises from RM4.11 to RM4.21 as we adjust for balance sheet items. This raises our target price from RM2.06 to RM2.11, based on an unchanged 50% discount to RNAV," it said.
It maintains its BUY recommendation in view of the potential re-rating catalysts of 1) the strong finals and higher-than-expected dividend yield of 7%, and 2) further landbank acquisitions and new project launches.