Higher-margin Singapore projects are improving earnings visibility for UUE Holdings Bhd, prompting RHB Research to raise its target price while downgrading the stock following its 43% year-to-date (y-t-d) rally. The research house said it had reinstated a 15% premium to peers, underpinned by UUE’s superior margins and improving earnings visibility.

The premium is backed by UUE’s superior margins, a 28% compound annual growth rate (CAGR) in forecast earnings for financial year 2026 (FY26) to FY29, and improved near-term earnings visibility from Singapore billings