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UEM Land to hit 2012 KPI despite weaker sales
Jun 14, 2012
UEM Land Holdings Bhd (UEM Land), one of Malaysia's leading property investment and development groups, expects to achieve its financial year 2012 estimated key performance indicator (KPI) target, despite weaker sales in the first quarter of this year.
Recently, UEM Land announced that it would be adopting its maiden dividend policy, which expected a 20 percent to 40 percent payout of its profit after tax and minority interest (PATAMI).
The dividend payout of the group would be in the form of single-tier dividends.
"Assuming a 30 percent payout of PATAMI, we estimate the financial year 2012 and 2013 estimated (FY12-13E) net dividend per share (NDPS) of 2.7 to 3.5 sen (1.4 percent to 1.8 percent yield)," said Kenanga Research, the research arm of Kenanga Investment Bank Bhd (Kenanga Research).
"We may raise our FY12-13E NDPS to a 40 percent payout upon further management guidance; if so, FY12-13E NDPS would be 3.6 to 4.6 sen (1.9 percent to 2.4 percent yield)."
Meanwhile, the company has completed the land acquisitions of the Puteri Harbour extension and Desaru land, which totaled to RM579 million.
"We are not concerned about cash flow given our expected strong sales for the group, which should be driven by an uptick in demand for Johor or Iskandar Malaysia properties."
"We are also looking forward to potential en bloc sales, new launches and Nusajaya land sales by second half of 2012," said the research firm.