Kuala lumpur: UEM Sunrise Bhd is set for stronger earnings momentum, bolstered by upcoming project launches and robust unbilled sales.

According to BERNAMA News Agency, Hong Leong Investment Bank Bhd (HLIB) noted that the property developer's earnings are projected to improve from the second quarter. This growth is largely driven by the recognition of its Aspira Place project, which boasts a gross development value (GDV) of RM223 million and has achieved full take-up for non-Bumiputera units.

HLIB highlighted that UEM Sunrise's 2026 launches are anticipated to reach RM2.2 billion, spearheaded by The Minh Phase 2, which is expected to have a GDV of RM1.09 billion by the second half of 2026. This follows the successful 99 percent take-up rate of Phase 1. The company's solid unbilled sales of RM2.07 billion will provide about 1.21 times coverage of its FY2025 property development revenue.

The stock, which has corrected approximately 30 percent from a 52-week high of 81.5 sen to 57 sen, is currently consolidating around the 55 sen level. HLIB suggested that a decisive breakout above 60 sen and the 30-day moving average could unlock further upside potential towards the 63 sen and 67.5 sen levels. Conversely, a breach below the 50-day moving average might see the stock retest the 53 sen and 50 sen levels.

HLIB is maintaining a 'Buy' recommendation on UEM Sunrise's stock, raising the target price to 92 sen from 90 sen, based on an unchanged 60 percent discount to its revised net asset value estimate. The investment bank expressed increased positivity about the stock, citing the management's recalibrated strategy as a credible framework for sustained value creation.

At midday, the counter was trading half-a-sen higher at 57.5 sen, with a transaction volume of 9.92 million shares.