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Quick Summary 4QFY2025 net profit surged 50% to RM192.8m Boosted by  RM169.2m revaluation surplus Revenue fell 25.6% due to slower progress billings Final dividend maintained at  10 sen per share Profit Boosted by Revaluation Gains Property developer  UOA Development Bhd  posted a sharp rise in fourth-quarter earnings, mainly driven by higher fair value gains on its investment properties. For  4QFY2025 : Net profit:  RM192.76 million ( +50.3% YoY ) Revenue:  RM174.72 million ( -25.6% YoY ) The earnings surge was supported by a  RM169.2 million revaluation surplus , significantly higher than RM44.24 million recorded a year ago. Key point:  Profit growth was valuation-driven rather than operational. Operational Performance Revenue contribution came from progressive billings of: Bamboo Hills Residences Bangsar South medical centre Aster Hill Duo Tower Gross margin remained resilient at  35.48%  (vs 37.38% previously), indicating stable...

Key Growth Strategy Eco World Development Group Bhd (KL:ECOWLD) aims to increase recurring income from 20% to 30% of total revenue within the next three to five years , according to  President and CEO Datuk Chang Khim Wah . Growth will be driven by  five key business pillars : Eco Hubs (commercial spaces) Eco Business Parks (green industrial parks) Quantum (data centres) Eco Townships (landed residential homes) Eco Rise (high-rise developments) Quantum, which focuses on large-scale data centre-related land leases, is one of the group's fastest-growing segments . Expansion in Data Centre Leasing EcoWorld has secured four industrial land lease deals worth RM1.59 billion since August 2024  with global tech giants  Microsoft and Google . The latest deal, announced Tuesday, involves a  20-year, RM266.1 million triple-net lease with Google's affiliate, Pearl Computing Malaysia Sdn Bhd, for 92 acres of land . Despite its data-centre expansion, EcoWorld  emphasized...

  KLCC (Holdings) Sdn Bhd (KLCCH) , a subsidiary of  Petroliam Nasional Bhd (Petronas) , announced the acquisition of  486 acres  of prime land in Bandar Malaysia. The land, previously a Royal Malaysian Air Force base, is located along Jalan Sungai Besi in Kuala Lumpur. The sale-and-purchase agreement, signed on  October 4 , was only disclosed recently. While financial terms were not revealed, reports suggest the transaction could be valued at up to  RM12 billion , as mentioned in  The Edge Malaysia Weekly . Development Plans KLCCH aims to transform the area into: An  international business hub , A  liveable and inclusive city  for the community. The development will be carried out over the long term based on commercial viability. KLCCH, already renowned for managing real estate like the  Petronas Twin Towers  and other properties in Kuala Lumpur City Centre (KLCC) and Putrajaya, is expected to replicate its expertise in this p...

Analysts at CGS International predict that Sunway Bhd’s third-quarter earnings will outperform consensus estimates, driven by significant profits from the Parc Central Residences condominium project in Singapore. The project, which holds a gross development value of RM2.9 billion , has seen Sunway’s stake of RM940 million contribute around RM123 million in pre-tax profit for Q3. Sunway’s official earnings announcement is anticipated by the end of November. Additionally, Sunway Construction Group Bhd (SunCon) is expected to post a robust quarter, bolstered by lucrative data center contracts. CGS International has raised its target price to RM5.20 with an “add” recommendation for Sunway. With shares currently trading at RM4.66, the stock has surpassed the consensus 12-month target price of RM4.47, showing a strong performance this year backed by booming property sales and the increase in construction projects. Property presales are reportedly on track to meet Sunway’s RM2.6 billio...

Upgrade to OUTPERFORM with a higher target price (TP) to RM1.31 from RM1.23   Yesterday, HUAYANG announced that it will be acquiring another 20.1% stake in Magna Prima Bhd for a cash consideration of RM123.8m, effectively raising their stake to 30.9%, as part of their land banking strategy, of which we are mildly positive due to MAGNA’s strategic land banks in Klang Valley. No changes in FY17-18E earnings. Upgrade to OUTPERFORM with a higher Target Price of RM1.31 (from RM1.23) on a higher RNAV of RM3.05 with an unchanged discount factor of 57%. News.   Yesterday, HUAYANG announced that they will be acquiring another 20.1% stake in Magna Prima Bhd (MAGNA) for a cash consideration of RM123.8m - indicating RM1.85/share (same price as previous acquisition) effectively raising its stake to 30.9%. The acquisition will be funded through HUAYANG’s internally generated funds, and the exercise is expected to be completed by 2Q17 should there are no objections from its EG...

Retain BUY call with a target price (TP) of RM4.03 INVESTMENT HIGHLIGHTS Acquiring land in Singapore for SGD265m Positive on both of the news Earnings estimate unchanged Maintain BUY with higher TP of RM4.03 Acquiring land in Singapore for SGD265m . SP Setia Berhad (SPSETIA) had won a tender for a 4.6 acres land along Toh Tuck Road, Singapore for SGD265.0m (or RM847.6m). We gather that SPSETIA plans to develop a 5-storey condominium with 327 units on the 99-year leasehold land with GDV of SGD457.0m (or RM1.46b). Fundings can be from combination of internally generated funds and borrowings. Target property launch is in 2018 with expected completion period of 5 years. Details of the land.  The Land is located near the vicinity of Bukit Timah region and it is accessible to Pan Island Expressway (PIE), the Bukit Timah Expressway (BKE) and Ayer Rajah Expressway (AYE). It is also close to the Beauty World MRT station (~650m away). Nearby amenities include...

Retain NEUTRAL with a higher target price (TP) of RM24.90 We had a meeting with Kuala Lumpur Kepong (KLK)’s management recently and came away with a steady view on the company’s outlook. Despite seeing strong CPO price performance, we think current valuation remains unattractive at 23x forward PER. Hence, we maintain our  Neutral  call but with a higher  TP  of  RM24.90  (up from RM23.46) after rolling over our valuations to FY18. A rebound in FFB production.  After experiencing an 8.1% drop in FY16 FFB production, the company expects to see a recovery in FY17 with a 3-5% growth. The growth will mainly come from Kalimantan Tengah, which has seen a dip for 2 consecutive years. Malaysian production may be struggling to see a recovery due to a lagged effect of El Nino’s impact last year. Targeting a steady production cost.  Despite expecting an increase in fertiliser and labour expenses, the company targets to keep its prod...

Retain outperform with target price (TP) of RM1.85 Macquarie Equities Research (MQ Research) released a report on Malaysian Resources Corporation Berhad (MRCB) following the company’s third quarter result (3Q16). MQ Research maintains Outperform on MRCB and considers MRCB as its top pick in the Malaysian property sector as well as in the ASEAN Emerging leaders. Event MRCB reported its 3Q16 results on 30 November 2016. MRCB's cumulative 9M16 rep. PAT registered at RM79mn (-74% y/y); this is 67% of Macquarie's FY16E estimates and 72% of consensus FY16E forecasts. On the quarterly results, 3Q16 rep. PAT jumped 564% y/y to RM29mn due to the rise in revenue by 47% y/y to RM551mn. Earnings were weaker in 9M16 due to the RM279mn gain recorded from MRCB's asset disposal program in 9M15.   Impact Property division to lift earnings in 4Q16. MRCB's shareholders approved the resolution to dispose the Menara Shell at RM640mn, during an extraordinar...

Downgrade to SELL with lower target price (TP) of RM0.68 Review Excluding the disposal gain of c.RM80mn (net) and a one-off grant of RM26.3mn, Glomac’s 1HFY17 normalised net profit of RM4.9mn came in below expectations. It only accounted for 8% of both ours and consensus’ full-year forecasts. The variance was largely due to 1) lower-than-expected revenue, and 2) weaker-than-expected property margin. Glomac’s 1HFY17 headline revenue and PBT grew 25% and 140% YoY to RM335.4mn and RM143.5mn respectively. However, normalized revenue and PBT would have declined by 29% and 80% YoY after adjusting for the impact of land disposal (Cheras land sale to PR1MA for RM145.6mn announced in Oct-15) and one-off grant received for upgrade and improvement of infrastructure surrounding Glomac Damansara development amounting to RM26.3mn. The poor results were attributable to slow progress billing as its previous key contributing projects are nearing completion or have completed during the per...

Maintain OUTPERFORM with higher target price (TP) of RM1.85 UEMS delivered a lower than expected 3QFY16 net profit of RM36.3m (-23.9% YoY, -33.6% QoQ), primarily due to change in product mix, higher marketing costs, liquidated ascertained damages (LADs) and higher taxes during the quarter. YTD, the Group registered RM94.0m (-49.1% YoY), which constituted c.58% and c.49% of our and consensus full year net profit estimates. On year to year comparison, 9M15 was also lifted by one-off gain. Separately, we understand that the litigation with IRB, whereby the court ruled in favor of IRB and issued UEMS penalty of RM73.8m, is now pending an appeal to contest IRB’s rejection earlier. UEMS believes that it has a strong case, and hence no provision was made as yet. As for launches in FY17, UEMS plans to launch more projects, which among others include Solaris 3, Artisan Hills, St Kilda and Alderbridge. All told, FY16-18 earnings are adjusted downwards by 14%/10%/10% to account for...

Maintain BUY with higher target price (TP) of RM2.66 Results Kimlun reported 3QFY16 results with revenue coming in at RM224.2m (-9% QoQ, -7% YoY) and earnings of RM16.5m (-32% QoQ, -16% YoY). Cumulative 9M earnings totalled RM57.7m, increasing +17% YoY. Deviation 9M earnings made up 84% of our full year forecast (77% of consensus) which is above expectations. The stronger than expected results was attributed to the manufacturing division which enjoyed superior gross margins of 32% for the 9M period vs 24.8% last year. This was due to (i) stronger SGD against MYR and (ii) higher proportion of MRT deliveries last year which generally commands a lower margin. Dividends None declared. Highlights Orderbook remains healthy. Kimlun’s orderbook currently stands at RM2.1bn comprising RM1.8bn for construction and RM280m for manufacturing. Overall, this translates to a healthy cover ratio of 2x on FY15 revenue. Bags MRT2 TLS contract. Kimlun announced t...

Maintain UNDERPERFORM with an unchanged target price (TP) of RM0.99 9M16 core net profit of RM150.5m was within expectations, accounting for 76% of our full-year estimates. No property sales data was available. As expected, no dividend was declared. No changes to FY16-17E core earnings. Maintain UNDERPERFORM with an unchanged Target Price of RM0.99 based on 5.5x FY17E PER. Within expectation.  9M16 CNP of RM150.5m is in line with our expectation, accounting for 76% of our full-year estimate while there is no consensus available. No dividends declared as expected. Property sales data are not available, while we are expecting property sales of RM349.9m for FY16. Results review.  9M16 CNP saw sharp decline of 26% underpinned by 23% decrease in revenue as a result of lower progressive billings for its property project attributable to weak property sales due to the challenging market environment, especially in Johor. QoQ, its 3Q16 CNP picked up with an ...

Downgraded from outperform to NEUTRAL with target price (TP) of RM1.80 HSL registered 3QFY16 net profit of RM16.3m (+34.9% QoQ, -8.9% YoY), which was below our and consensus expectations. YTD, the Group’s net profit came in at RM44.7m (-18.0% YoY) which constituted only 59% and 54% of our and consensus full year estimates. The discrepancy was mainly due to our overly aggressive billings assumptions, especially for the new projects secured this year such as the RM1.7bn Pan Borneo Highway package and the RM750m Kuching Centralised Wastewater Management Package 2. As such, we revise our billings assumptions and our FY16F-17F earning expectations downwards by 20%/16%.  TP  is consequently cut from RM2.15 to  RM1.80 , pegged at an unchanged 12x FY17F EPS. With limited upside, HSL is downgraded from Outperform to  Neutral . Construction business.  We understand that physical works have begun on the section of the Pan Borneo Highway (70% stake in JV or...

Upgrade to outperform with an unchanged target price (TP) of RM2.54 9M16 CNP of RM278m was within expectations while sales surprised on the upside at RM1.15b (96% FY16E target). No dividends as expected. Being the only developer to enjoy pure exposure in KL while rolling out a pipeline of urbanbased affordable priced products will provide it an edge to generating stronger sales. Furthermore, this net cash developer offers an attractive yield of 6.3%. Upgrade to OUTPERFORM with  unchanged TP of  RM2.54. Sales beat expectations.  9M16 CNP of RM278m was within expectations at 75% of streets’ and 71% of our FY16E estimates. 9M16 sales was at RM1.15b (+62% YoY) which exceeded our expectations as it comes in at 96% of our FY16E target of RM1.20b; main drivers were United Point@Kepong, Sentul Point and Danau Kota. No dividends announced, as expected. Lower billings compensated by superior margins.  After stripping out its FV adjustments of RM55.5m, 3Q...

Maintain outperform recommendation with target price (TP) of RM4.80 IGB Corporation delivered a markedly higher net profit of RM148.1m in 3QFY16 (+228.4% YoY, +173.8% QoQ), due primarily to a one-off gain of RM136.2m from the disposal of its 65%-owned MiCasa Yangon. YTD, the Group registered RM245.0m in net profit (+47.9% YoY). After stripping out the one-off gain, the net profit YTD is estimated at RM174.3m, which was marginally above our expectations but below consensus, constituting 80% and 68% of respective full year estimates. The better than expected performance was driven mainly by the retail and hotel divisions. As such, we adjust our FY16 estimates upwards by 42%, after imputing the one-off gain from the asset disposal. Maintain  Outperform  and  RM4.80  TP, which is based on 30% discount to our RNAV estimate, as we continue to like the strong cash flow generative abilities of the company and believe that the stock is under-appreciated despite ...

Maintain Neutral call with target price (TP) of RM7.15 Sime Darby  has proposed an asset disposal and acquisition with I&P Group S/B after finalizing the recent private placement at RM7.45/share, raising RM2.3bn. The first proposal is a disposal of 325.7ha freehold oil palm plantation land in Semenyih for RM428m followed by an acquisition of 768ha freehold oil palm plantation land in Kluang and Batu Pahat as well as a 70mt/hour mill for a combined amount of RM106m. We see good opportunities in unlocking the potential value in both deals, which is a collective effort from the company and its major shareholder. We maintain our  Neutral  call and  TP  of  RM7.15. Salient details of the transactions . Firstly, Sime Darby plans to divest 325ha (805 acres) in Semenyih to Petaling Garden for RM428m or RM12.20 psf. The acquirer is a wholly-owned subsidiary of I&P Group S/B, which in turn is a 54.99%-owned subsidiary of Permodalan Nasional Mal...