Kenanga Research raised its target price for UEM Land Bhd to 2.40 ringgit per share from 2.28 ringgit as the property firm is expected to benefit from demand for its developments in Johor state.
Kenanga viewed as positive UEM Land’s recent sale of two parcels of land for 400 million ringgit ($131.49 million) and said the company is likely to announce tie-ups with foreign companies as it develops land close to Malaysia’s border with Singapore.
“We understand that UEM Land will be either looking for joint venture partners or outright land sales to boost speed of development while tapping onto new target markets,” Kenanga said in a research note on Wednesday.
It maintained its ‘market perform’ call on UEM Land to reflect “potential near term negative headwinds arising from general election risks.”
But there is potential for the stock to rise after the election, it added.
Malaysia’s upcoming general election, which must be called by April, is expected to be the country’s closest.
At 0955 (0155 GMT) UEM Land was down 0.01 ringgit at 2.13 ringgit per share while the KLSE benchmark composite index was up 2.75 points at 1691.74
(Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Anupama Dwivedi); (siva.sithraputhran.thomsonreuters.com Reuters Messaging: firstname.lastname@example.org)
$1 = 3.0421 Malaysian ringgits