UOL reported 3Q12 PATMI of S$87.8m, down 13% YoY mostly due to lower development profits and renovation works at Pan Pacific Singapore. We judge this set of results to be mostly within expectations and, excluding fair value and other gains, adjusted 9M12 PATMI cumulates to S$258.2m which makes up 74% of our annual FY12 forecast. This being so, we see the market likely taking a neutral view on 3Q numbers. We expect new residential launches at Bright Hill and St. Patrick Rd in 1H13, with Bright Hill likely to come first around Mar-Apr 2013. Management continues to execute well, and upcoming launches would be key catalysts for the share price over the mid-term. Maintain HOLD with a higher fair value estimate of S$5.48 (30% RNAV disc.), from S$5.26 previously mostly due to updated valuations of listed holdings.
3Q12 numbers within expectations
UOL reported 3Q12 PATMI of S$87.8m, down 13% YoY mostly due to lower development profits and renovation works at Pan Pacific Singapore. We judge this set of results to be mostly within expectations and, excluding fair value and other gains, adjusted 9M12 PATMI cumulates to S$258.2m which makes up 74% of our annual FY12 forecast. This being so, we see the market likely taking a neutral view on 3Q numbers. 3Q12 topline came in at S$277.7m – decreasing 33% YoY, again mainly due to lower development contributions and hotel refurbishments.
Looking ahead: new launches at Bright Hill and St. Patrick Rd
We expect new residential launches at Bright Hill and St. Patrick Rd in 1H13, with Bright Hill likely to come first around Mar-Apr 2013. Management continues to seek land-bank actively; the up-coming GLS white site at Thomson/Irrawaddy Rd could be particularly attractive to UOL, given management’s skill-set in developing mixed projects and the site’s location in a familiar area. In the overseas segment, we also expect the Changfeng (Shanghai) development to launch in 2013.
Hotel segment holding up well
Revenues from the hotel ownership segment held up well over 3Q12 – falling 1% YoY to S$91.1m. UOL reports that the office tower for ParkRoyal on Pickering has been handed over to the tenant, and that refurbishment works at Pan Pacific Singapore and Pan Pacific Orchard has been completed. However, 3Q12 REVPAR for its Singapore hotels was mostly flat YoY which, along with similar data-points from other Singapore hotel operators, points to an increased likelihood for an inflection point in domestic REVPAR growth.
Maintain HOLD with higher S$5.48 FV
Management continues to execute well and we see upcoming launches at Bright Hill and St Patrick Road as mid-term catalysts for the share price ahead. Maintain HOLD with a higher fair value estimate of S$5.48 (30% RNAV disc.), from S$5.26 previously mostly due to updated valuations of listed holdings.
UOL reported 3Q12 PATMI of S$87.8m, down 13% YoY mostly due to lower development profits and renovation works at Pan Pacific Singapore. We judge this set of results to be mostly within expectations and, excluding fair value and other gains, adjusted 9M12 PATMI cumulates to S$258.2m which makes up 74% of our annual FY12 forecast. This being so, we see the market likely taking a neutral view on 3Q numbers. 3Q12 topline came in at S$277.7m – decreasing 33% YoY, again mainly due to lower development contributions and hotel refurbishments.
Looking ahead: new launches at Bright Hill and St. Patrick Rd
We expect new residential launches at Bright Hill and St. Patrick Rd in 1H13, with Bright Hill likely to come first around Mar-Apr 2013. Management continues to seek land-bank actively; the up-coming GLS white site at Thomson/Irrawaddy Rd could be particularly attractive to UOL, given management’s skill-set in developing mixed projects and the site’s location in a familiar area. In the overseas segment, we also expect the Changfeng (Shanghai) development to launch in 2013.
Hotel segment holding up well
Revenues from the hotel ownership segment held up well over 3Q12 – falling 1% YoY to S$91.1m. UOL reports that the office tower for ParkRoyal on Pickering has been handed over to the tenant, and that refurbishment works at Pan Pacific Singapore and Pan Pacific Orchard has been completed. However, 3Q12 REVPAR for its Singapore hotels was mostly flat YoY which, along with similar data-points from other Singapore hotel operators, points to an increased likelihood for an inflection point in domestic REVPAR growth.
Maintain HOLD with higher S$5.48 FV
Management continues to execute well and we see upcoming launches at Bright Hill and St Patrick Road as mid-term catalysts for the share price ahead. Maintain HOLD with a higher fair value estimate of S$5.48 (30% RNAV disc.), from S$5.26 previously mostly due to updated valuations of listed holdings.
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