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
"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
($1 = 3.0421 Malaysian ringgits)