The stock rose as much as 8 sen or 13.6% to 67 sen before closing at 66.5 sen today, valuing the property developer at RM3.36 billion. It was the third most traded stock on Bursa Malaysia with 103.6 million shares changing hands.

The shares have risen for a fourth straight session after RHB Research said in a note last Thursday that UEM Sunrise’s low valuation and its huge landbank in Johor makes it an attractive takeover or privatisation target.

The stock had opened at 50.5 sen on that day, and the rally since then has added over RM809 million to its market value.

The research house had noted the company’s then market value of RM2.6 billion significantly undervalued its 4,516.7 acres of land in Johor.

“Its current market capitalisation implies a valuation of only RM13 per sq ft for its land in Johor. Hence, UEMS looks to be an attractive takeover/privatisation target in our view,” it added.

RHB said the group indicated it has earmarked about 1,000 acres of its land in Johor for monetisation, which could fetch around RM4 billion. This essentially means UEM Sunrise’s Johor landbank is the jewel in its crown, with a value significantly higher than its market capitalisation.

It also said land prices in Iskandar Malaysia have appreciated significantly over the last two to three years, driven by the upcoming completion of the Rapid Transit System Link, Johor-Singapore Special Economic Zone, and the influx of investments.

RHB Research’s statement that the group is an attractive takeover target comes on the heels of the failed RM11 billion takeover bid by Sunway Bhd for construction company IJM Corporation Bhd earlier this month.

Meanwhile, Hong Leong Investment Bank said the stock could see a potential re-rating as its new leadership’s recalibrated strategy to unlock value from its sizeable landbank begins to deliver tangible progress.

It also upgraded the stock to “buy” from “hold”, raising its target price to 90 sen from 56 sen previously.