Weaker sentiment and tariff uncertainty lead RHB to adjust RNAV discount on key Iskandar player
RHB Research has revised its target price for UEM Sunrise Bhd to RM1.28 from RM1.60, citing cautious investor sentiment, global uncertainties, and market volatility affecting conceptual plays like Iskandar Malaysia.
On April 8, RHB Investment Bank adjusted its valuation outlook for UEM Sunrise Bhd, lowering its target price to RM1.28, a reduction from RM1.60, and revising its net asset value (RNAV) discount from 25% to 40%. While maintaining a ‘Buy’ call, RHB signaled a more conservative stance amid global market turbulence.
Although RHB remains bullish on the long-term potential of Iskandar Malaysia, including government-driven catalysts like the Johor-Singapore Special Economic Zone and the RTS Link expected in 2026, it noted that near-term volatility—particularly U.S. tariff policy uncertainty—is dampening investor confidence.
RHB stated that UEM Sunrise remains the “primary property play” in the region but emphasized that such conceptual investments are more vulnerable during volatile cycles. This justified the larger RNAV discount in their latest valuation update.
UEM Sunrise recorded RM1.42 billion in property sales in 2024 and has set a RM1.05 billion target for 2025, supported by RM2 billion in new launches. Most projects are in Iskandar Malaysia, including Estuari and Aspira Hills (combined GDV: RM437 million), with Serene Heights (GDV: RM78 million) representing the only Klang Valley launch.
A highlight of UEM Sunrise’s development roadmap is Gerbang Nusajaya, where the company signed a Memorandum of Understanding in February 2025 with Singapore’s Guocoland to co-develop an industrial park. Though a formal agreement is still pending, industrial rezoning is complete, and final approvals are expected by June 2025.
Infrastructure and earthworks are expected to begin shortly. Marketing of the industrial park is targeted for 2027, with Guocoland anticipated to attract manufacturers from Hong Kong and China through its established regional network.
Despite short-term caution, RHB maintains its long-term confidence in UEM Sunrise, particularly if macroeconomic conditions stabilize and regional investment flows return. RHB also noted that UEM Sunrise’s unsold inventory stood at RM98 million (at cost), suggesting sound asset management.
While RHB’s valuation revision reflects near-term caution, the long-term fundamentals of UEM Sunrise remain intact—especially within the Iskandar growth corridor. For stakeholders in Singapore, Indonesia, and beyond, Johor’s cross-border connectivity, industrial collaborations, and infrastructure momentum continue to position it as a compelling property and logistics hub.
Sources: Business Today (2025), NST (2025)
Keywords: UEM Sunrise, RHB Research, RNAV Discount, Property Outlook, Iskandar Growth, Gerbang Nusajaya, Johor-Singapore Economic Zone
