Below expectations. UEML's 9M11 net profit made up just 60% of our 2011 estimate. 9M11 locked-in sales were however strong at RM1.6b or 79% of its 2011 target. We lower our 2011 net profit forecast by 4%. UEML is one of the high beta stocks in the property sector, and near term news-flow on government land wins may lift share price. We raise our TP to RM2.02 on a lower 40% discount (50% previously) to RNAV. The formalization of Bank Negara's prudent lending guidelines removes uncertainties surrounding policy risk. Maintain Hold.

Maybank research (25 November 2011)

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