PETALING JAYA: UEM Sunrise Bhd
is on track for stronger earnings visibility in the second half of financial year 2026 (2H26), with land monetisation and firmer property billings expected to support growth.
Its sizeable Johor land bank and exposure to improving cross-border connectivity could also position the property developer for longer-term value creation as the region’s economic momentum builds.
CIMB Research remains constructive on UEM Sunrise’s 2026 earnings delivery, underpinned by the expected full recognition of the RM415mil guaranteed entitlement from its development rights agreement with Exsim KLCC Sdn Bhd by 2H26.
It estimates this could generate an additional RM66mil disposal gain.
“UEM Sunrise remains our top pick for exposure to Johor’s land value reflation, given its sizeable and prime southern land bank, alongside increasing efforts to accelerate land activation and recycle capital into priority southern development corridors,” it said.
It noted that UEM Sunrise’s unbilled sales at RM2.9bil as at June 30 would provide near-term earnings visibility, while the Gerbang Nusajaya industrial masterplan remains on track for a first-quarter of financial year 2027 (1Q27) launch.
CIMB Research reiterated “buy” on the counter with an unchanged target price (TP) of 85 sen.
RHB Research stated UEM Sunrise’s earnings would be supported by several upcoming launches, including MAIA Mont’ Kiara, a project on Dutch Lady Malaysia’s land in Section 13, Petaling Jaya, Estuari ParkHomes and Intrika 4 Serene Heights.
It noted that MAIA Mont’ Kiara, which features large units (1,485 sq ft to 2,982 sq ft), will be priced at RM950 per sq ft.
“We understand that the initial pre-booking response for this project has been very encouraging,” it said, in reference to MAIA Mont’ Kiara, which features large units of 1,485sq ft to 2,982 sq ft, and priced around RM950 per sq ft.
RHB Research maintained its “buy” rating on UEM Sunrise with a TP of 86 sen.
Hong Leong Investment Bank (HLIB) Research was similarly positive, seeing UEM Sunrise as being in the midst of a strategic reset through landbank monetisation, stronger Johor launches and a gradual build-up of recurring income.
“Strategically, we see UEM Sunrise as being in the midst of a reset. In the near term, the group plans to unlock value through landbank monetisation,” it said.
HLIB Research maintained “buy” on UEM Sunrise with an unchanged TP of 92 sen, based on a 60% discount to its estimated revised net asset value of RM2.31.
It expects the group’s 50%-owned Horizon Mall in Johor, with net lettable area of 150,000 sq ft, to commence operations in September 2026 with 80% committed occupancy.
For 2Q26, UEM Sunrise’s revenue rose 36.9% year-on-year to RM605.71mil, while net profit more than doubled to RM46.85mil.
For 1H26, revenue increased 10.9% to RM953.42mil and net profit rose 47% to RM63.05mil. One analyst noted UEM Sunrise’s earnings momentum is gaining traction, with land monetisation and stronger billings providing a growth path.
“Johor remains the key value driver, while the group’s strategic reset could unlock further upside from its sizeable land bank,” he pointed out.
