KUALA LUMPUR: MIDF Amanah Investment Bank (MIDF Investment) believes UEM Sunrise Bhd’s fundamentals remain intact, despite a recent selldown by foreign investors to rebalance their investment portfolio.
At 11.51 am, shares of the company declined five sen to RM1.22 with 9.77 million changing hands.
MIDF Investment in a research note today said the selldown is believed to be related to concerns over the challenging property market outlook in Johor.
It said due to the selldown by foreign investors, UEM Sunrise had been removed from the MSCI Malaysia Index, the benchmark index for measuring investment performance by international investors.
However, it said the fundamentals of UEM Sunrise remained strong with unbilled sales of RM3.9 billion as of end-financial year 2014, which would provide more than two years of earnings visibility and hence, support the company’s financial year 2015 net profit.
As for new sales, the research house is keeping its estimate of RM1.95 billion for financial year 2015, lower than UEM Sunrise management’s target of between RM2 billion and RM2.4 billion, and maintained the net profit forecast of RM491 million.
MIDF Investment is “neutral” on UEM Sunrise with an unchanged target price of RM1.35. – Bernama