26 November 2014

‘UOA may still post RM1.7b sales’

  26 November 2014

UOA Development Bhd is expected to end the year with about RM1.7 billion in sales after its third-quarter results came in within expectations, said RHB Research.

“Although it is a 15 per cent drop from last year’s RM2 billion, we expect UOA to possibly end the year with RM1.7 billion in new sales, considering the challenging operating environment this year,” it said in its note.

RHB keeps its “buy” call on UOA, with a revised target price of RM2.40 from RM2.45 previously, as it updates on its revalued net asset value for the latest share base and new landmark.

“We maintain our forecast. As a result of strong sales in the third quarter, unbilled sales rose to RM1.8 billion, mainly from Desa Green, South View, Vertical Office Suites and Scenaria projects.

“The strong sequential growth in turnover for the third quarter was mainly contributed by Desa Green, South View, Vertical Office Suites and the recently completed Desa Eight and Le Yuan Residence,” it said.

UOA’s new sales jumped to RM672 million in the third quarter, compared with RM362 million in the previous quarter, driven by the signing of the sales and purchase agreements.

These include South View (RM522 million), Scenaria (RM200 million), Southbank Residence (RM225 million), Desa Sentul (RM181 million) and Kencana Square (RM110 million).

While no other launches were planned for UOA’s in the fourth quarter, RHB expects the conversion into sales to continue in the final months, especially the SouthBank Residence and Desa Sentul projects that have received encouraging take-up rates since the launches.

~ By BUSINESS TIMES

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