KUALA LUMPUR: CIMB Equities Research is maintaining its Outperform rating on UOA Developments Bhd after its annualised 1H core net profit met expectations at 93% of its forecast and 94% of consensus projections.
The research house said on Wednesday, Aug 24 that future quarters should be stronger as recognition of the strong year-to-date sales picks up pace.
CIMB Research said the good results should also boost confidence in the group's ability to meet the research house's FY11 core profit forecast of RM224 milllion.
'However, in view of the stockmarket turbulence of late and global slowdown fears, we now value UOA Dev at a 20% discount to market P/E instead of 10% given the higher risks inherent in its large exposure to high-rise residential and commercial development.
'Our target price falls from RM3.25 to RM2.89 as we lower our P/E target from 13.1x to 11.6x. We maintain our OUTPERFORM call in light of the potential catalysts of 1) improving earnings, 2) continued strong sales and 3) landbank acquisition,' it said.
The research house said on Wednesday, Aug 24 that future quarters should be stronger as recognition of the strong year-to-date sales picks up pace.
CIMB Research said the good results should also boost confidence in the group's ability to meet the research house's FY11 core profit forecast of RM224 milllion.
'However, in view of the stockmarket turbulence of late and global slowdown fears, we now value UOA Dev at a 20% discount to market P/E instead of 10% given the higher risks inherent in its large exposure to high-rise residential and commercial development.
'Our target price falls from RM3.25 to RM2.89 as we lower our P/E target from 13.1x to 11.6x. We maintain our OUTPERFORM call in light of the potential catalysts of 1) improving earnings, 2) continued strong sales and 3) landbank acquisition,' it said.
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