KUALA LUMPUR: UEM Sunrise Bhd is expected to see stronger property sales and earnings momentum into 2027, supported by robust take-up at its MAIA Mont’ Kiara development and a planned industrial park partnership with AME Elite Consortium Bhd, according to RHB Research.
The brokerage maintained its "Buy" recommendation on UEM Sunrise with a target price of 77 sen, implying an upside potential of 68%.
It expects the developer’s 2027 sales to exceed its RM1.3 billion target for 2026 by 15% to 20%, with MAIA expected to be a key contributor from the fourth quarter of 2026 through the first half of 2027.
The Mont’ Kiara project, which has a gross development value (GDV) of RM1.2 billion and comprises 495 units, is already more than 80% booked ahead of its official launch. The larger units have been particularly popular, while buyers are now in the process of signing their sale and purchase agreements.
Following a visit to the project’s show units, RHB Research said it was impressed by the “elegant design, thoughtful layout and quality accessories”, which it considered comparable with products offered by premium developers.
With average selling prices of RM950 to RM1,000 per sq ft after discounts, the project has attracted interest from cash-rich local buyers and foreign purchasers. While some sales will be recognised in 4Q26, a larger portion is expected to contribute to 1H27 sales.
UEM Sunrise’s proposed 50:50 joint venture with AME to develop a 402-acre industrial park in Gerbang Nusajaya is another potential growth catalyst. The project is targeted for launch in late 2027.
RHB Research believes AME’s industrial development track record and existing multinational clientele could help attract investors to the site, supporting demand and potentially lifting land values in the wider Gerbang Nusajaya township.
It described the partnership as a potentially “transformative catalyst” for the area, adding that UEM Sunrise could eventually build up a portfolio of industrial assets for monetisation through bulk disposals or a real estate investment trust listing.
For the second half of 2026, earnings are expected to be supported by the Jalan Ampang land transaction, MAIA sales and the first 10% disposal gain from the AME joint venture. Unbilled sales stood at RM2.943 billion as at June 2026.
The developer also has about 350 acres of industrial land remaining in Gerbang Nusajaya after the joint venture, which could be converted for industrial use amid strong demand. RHB Research added that interest in other residential and commercial parcels under UEM Sunrise’s land monetisation programme remained encouraging.
Its target price incorporates a 2% environmental, social and governance discount.