UEM Sunrise eyes improved outlook in 2H25

PETALING JAYA: Property developer UEM Sunrise Bhd’s performance going forward will depend on the company’s ability to sustain sales and progress billings following lower-than-expected sales and progress billings in the second quarter ended June 30, 2025 (2Q25), prompting some caution on optimism for the outlook.

According to recent reports, both CIMB Research and Hong Leong Investment Bank Bhd (HLIB) Research maintained their hold calls on the developer with a target price of RM0.86 and RM0.78, respectively.

CIMB Research said despite UEM Sunrise’s first half of financial year 2025 (1H25) performance meeting expectations, it felt the stock’s near-term performance hinges on the company’s ability to kick off several catalytic initiatives amid a challenging operating landscape.

This includes the revival of Collingwood in Melbourne and its project in Gerbang Nusantara.

HLIB Research said UEM Sunrise’s first half results were below expectations, revising the company’s financial year 2025 (FY25), FY26 and FY27 forecasts downward by minus 16.5%, minus 3.6% and minus 2.1% to reflect lower sales and slower progress billing assumptions.

“While large projects such as KAIA Heights Phase 1 and Residensi AVA have been completed, the pipeline has been replenished with fresh launches from Aspira Hills and Allegro.

“Its three major Klang Valley high-rise projects are progressing into more advanced construction stages, which should sustain billing momentum into 2H25,” it noted.

Meanwhile, RHB Research maintained its buy call with a target price of RM1.28, stating the developer’s performance should pick up in the second half of this year, driven by the disposal of some land and non-core assets.

“Performance should pick up in 2H25 – driven by the disposal of some land and non-core assets.

“Additionally, the company should be able to meet its full-year MYR1.05bil sales target, as 1H25 sales have already reached RM649mil.

“2H25 should see sales contributions stream in from the Subiaco project in Perth as well as some newly launched projects in late 2Q25,” it noted.

Furthermore, the research house believes UEM Sunrise would be able to meet its sales target by the year-end, as interest for the Subiaco project is rather strong.