“UEM Sunrise is set for a strong comeback in 2025, driven by its flagship developments in Iskandar Puteri, updates on the Gerbang Nusajaya master plan, and the Johor-Singapore Special Financial Zone (JS-SEZ). Maybank IB highlights its potential growth, noting the company’s strategic land bank near Singapore and readiness to capitalize on industrial property demand.“
Kuala Lumpur, 10th Dec 2024, 10.40am – Property developer UEM Sunrise Bhd is poised for a significant rebound in 2025, thanks to strategic developments in Iskandar Puteri and anticipated updates on the Gerbang Nusajaya master plan. Maybank Investment Bank (Maybank IB) highlighted these factors, alongside incentives tied to the Johor-Singapore Special Financial Zone (JS-SEZ), as key drivers for the company’s renewed momentum after a challenging 2024.
The JS-SEZ agreement, expected to be signed in January 2025 after previous delays, could serve as a major catalyst for UEM Sunrise. As one of the largest landowners in Iskandar Malaysia, with 4,783 acres and a gross development value of RM61 billion, UEM Sunrise is well-positioned to leverage rising demand for properties near Singapore, boosted by a growing commuter population and robust infrastructure.
Gerbang Nusajaya and Industrial Property Focus
Maybank IB pointed out that while the revised Gerbang Nusajaya master plan prioritizes industrial properties, on-ground activities have been limited. However, the research house anticipates an increase in activity in 2025, which could further strengthen UEM Sunrise’s foothold in the region.
Cautious Optimism in the Property Sector
Maybank IB maintained a “hold” call on UEM Sunrise with a target price of RM1.05, reflecting a 7% potential upside from its current share price of 97.5 sen. However, the research house downgraded the broader property sector due to the absence of new growth catalysts, noting that themes such as the JS-SEZ, data centre expansions, and asset value unlocking have already been factored into valuations.
Despite this, developers like S P Setia Bhd and Sime Darby Property Bhd remain Maybank IB’s top picks. S P Setia is progressing with its Tanjung Kupang industrial park joint venture, expected to be finalized in the first half of 2025, while Sime Darby Property recently secured a long-term lease with Google for its Elmina Business Park.
Navigating JS-SEZ Opportunities
The JS-SEZ, spanning areas governed by six authorities in Iskandar Malaysia and Pengerang, will provide equal opportunities for all landowners. According to Maybank IB, the competitiveness will hinge on strong management and execution capabilities. While much optimism has already been priced in since mid-2023, UEM Sunrise’s strategic positioning could enable it to stand out in this evolving landscape.
With the upcoming launch of its flagship show gallery and potential gains from Gerbang Nusajaya, UEM Sunrise is gearing up for a pivotal year ahead, making it a player to watch in 2025.
