KUALA LUMPUR (Nov 26): CIMB Research has downgraded UOA Development Bhd to Hold (from Add) at RM2.19 with a lower target price of RM2.18 (from RM2.45) and said UOA Dev's 9MFY14 core net profit was broadly in line with expectations as it made up 69% of house full-year forecast and 75% of consensus estimates.

In a note Nov 25, the research house said UAO Dev’s 9M new sales amounted to RM1.37 billion, of which it said nearly half came from 3Q.

“However, UOA Dev is unlikely to match 2013's record sales of around RM2 billion due to launch delays. This is a disappointment.

“We cut our FY15-16 EPS forecasts by 5-10% and downgrade the stock from Add to Hold, after widening the target basis from 20% discount to RNAV to 30% as we factor in the missed launch and sales targets.

“The relatively high dividend yield of 5-6% remains the key reason to hold on to the stock. For exposure to the property sector, investors should switch to Mah Sing Group Bhd,” it said.