KUALA LUMPUR: UEM Sunrise Bhd
's net profit of RM260.3mil year to date is within expectations despite a weaker-than-expected 3QFY18 net profit of RM21.2mil.
"We deem this as in line as we expect the final quarter to be stronger, driven by gains from land sale and contributions from its projects in Australia. Aurora Melbourne Central and Conservatory are estimated to contribute RM755m in billings," said PublicInvest research.
The research house maintained its outperform rating on the counter but lowered target price to RM1.10 from RM1.50 previously.
To recap, the group's 9MFY18 revenue dropped 17% to RM1,29bil due to completion of Residensi 22, Teega and Arcoris in 2017. This was offset by contribution from Aurora in Melbourne and Aimas.
In 2QFY18 the group's revenue was lifted by land sale mainly from County VIew (RM310mil).
"In the final quarter, we expect another land sale to be completed i.e. land sold to Kimlun for RM82m and higher overseas billings from Aurora Melbourne Central and Conservatory. Unbilled sales are healthy at RM4.7bn (from RM4.9bn in 2QFY18)," said PublicInvest.
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