KUALA LUMPUR (June 12): ECM Libra Research has maintained its Buy rating on UEM Land Holdings Bhd (UEML) at RM1.95 with a target price of RM2.25 after the company announced to Bursa Malaysia that it was undertaking a joint development of a high-end residential resort development surrounding two golf courses and a beach club in Desaru, Johor.
In a note Tuesday, the research house said UEML plans to acquire 678.7 acres of land in Desaru for the proposed development, at a purchase consideration of RM485.3 million.
“The project is expected to commence in 2013 with an estimated gross development value of RM5.4 billion.
“We have incorporated the proposed development into our earnings forecast which resulted in a slight increase of 4% to our FY13F earnings. Maintain BUY with target price RM2.25,” it said.