PETALING JAYA: Genting Plantations Bhd is set to record stronger property earnings from the second half of this year (2H25) and into 2026, supported by the successful launches and construction progress of its key developments in Johor, analysts say.
According to Maybank Investment Bank Research (Maybank IB Research), Genting Plantations’ property division is well-positioned to benefit from strong demand for its mixed-use township developments in Kulai and Batu Pahat in Johor, underpinned by unbilled sales and positive market sentiment linked to regional economic initiatives.
The research house also noted that optimism surrounding the Johor-Singapore Special Economic Zone has boosted demand for the Kulai development.
Maybank IB Research noted that “visible property earnings in the coming quarters” are anticipated as both the U.Reka residential development in Kulai and Genting Industrial City (GIC) in Batu Pahat are progressing well and enjoying strong take-up rates.
“We believe the success of these projects will be reflected in improving property earnings in 2H25 and 2026. This is underpinned by its high unbilled sales of RM157mil as of March 31, or 1.2 times revenue for last year, and U.Reka’s successful launch on May 10,” the research house said.
U.Reka, located in Genting Plantations’ long-standing Genting Indahpura township in Kulai, saw a rousing reception upon launch, where all 189 non-bumiputra units under first phase were taken up on the day of launch. “Genting Plantations’ latest residential project, U.Reka, has gotten off to a rousing success,” Maybank IB Research said.
Construction for U.Reka had already commenced ahead of the launch, with Maybank IB Research estimating about 30% completion by the end of last month.
Genting Plantations is developing the entire U.Reka project in phases over 10 years, with a projected gross development value (GDV) of RM2.5bil across 2,611 units on 306 acres of freehold land.
The first phase of U.Reka comprises 317 units of mixed residential properties with a GDV of RM275mil. Meanwhile, in Batu Pahat, its industrial development under the Genting Pura Kencana township has also gained strong traction.
The first phase of GIC, launched late last year, recorded an average take-up rate of 82%, excluding bumiputra units, for its terrace, semi-detached, and detached factory units priced between RM770,000 and RM3.7mil.
The GIC project was launched late last year with an estimated GDV of RM260mil.
The average take-up rate of the new launches was 82% as of May, excluding bumiputra lots.
Maybank IB Research expects the contributions from both U.Reka and GIC to positively impact Genting Plantations’ bottom line in the coming years, with property revenue recognition forecast at RM141mil this year and RM147mil next year.
Operating profit has been projected at RM32mil and RM34mil, respectively, over the same period.
“We make no changes to our earnings forecasts as we expect its property earnings contribution to pick up after missing estimates in the first quarter of this year,” Maybank IB Research said.
The research house maintained its “buy” call on Genting Plantations with an unchanged target price of RM6.89, based on a 19 times 2025 price-earnings ratio.
Nevertheless, the research house cautioned that risks to its outlook include weather anomalies, weaker crude palm oil prices and unfavourable government policies that may affect Genting Plantations core palm oil segment.
