'MMC to ride re-rating of UEM Land'

MMC Corp Bhd is well-positioned to ride on the re-rating of UEM Land supported by positive sentiment towards Iskandar, as 68 per cent of its sum-of-parts (SOP) come from Iskandar Malaysia.

In a note today, HwangDBS Vickers Research said MMC has started to unlock value with the sales of about 161.87 hectares of land in Senai to a developer.

"We estimate every RM5 per sq ft increase in land prices from our RM21-RM23 per sq ft base case would raise SOP value by eight per cent," it said.

HwangDBS said MMC, however, was in no rush now to sell more land due to the flurry activities in the state currently and the proposed high-speed rail which was likely to run through its land.