3Q13 PATMI increased 6% YoY to S$93.5m with higher contributions from ParkRoyal on Pickering and Pan Pacific Serviced Suites Beach Road (which opened in 1Q13 and 2Q13, respectively) and profits from JV companies. We judge these results to be mostly within expectations, and YTD core PATMI, adjusted for one-time items, now cumulates to 70% of our FY13 forecast. UOL is looking to launch both remaining domestic land bank sites (Sengkang West Way and St. Patrick’s Garden) as early as 1Q14 after a fairly successful launch at Thomson Three, which is now ~76% sold with ASPs just shy of S$1.4k psf. In addition, the group reports that it has now launched all four blocks of the Esplanade in Tianjin China, achieving a ~90% take-up rate, and its Jalan Conley project in Kuala Lumpur continues to be on target for its launch in 4Q13. Upgrade to BUY on valuation grounds with an unchanged fair value estimate of S$7.16 (20% RNAV disc.).
Steady numbers reported for 3Q13
3Q13 PATMI increased 6% YoY to S$93.5m with higher contributions from ParkRoyal on Pickering and Pan Pacific Serviced Suites Beach Road (which opened in 1Q13 and 2Q13, respectively) and profits from JV companies. We judge these results to be mostly within expectations, and YTD core PATMI, adjusted for one-time items, now cumulates to 70% of our FY13 forecast. 3Q12 topline was S$261.8m, down 6% YoY due to a decline in property development revenues as Double Bay Residences and Waterbank at Dakota achieved TOP in 3Q12 and 2Q13, respectively. This was partially offset by increasing revenues from hotel ownership and operation (up 15% YoY to S$105.2m) and property investments (up 12% YoY to S$46.6m).
Two residential launches expected in 1H14
For their domestic residential segment, the group is looking to launch both remaining domestic land bank sites (Sengkang West Way and St. Patrick’s Garden) as early as 1Q14 after a fairly successful launch at Thomson Three, which is now ~76% sold with ASPs just shy of S$1.4k psf. In terms of replenishing its land-bank ahead, we expect UOL to take an active yet fairly prudent stance ahead; management indicated that they remain ready to seize opportunities as land prices are expected to soften head with increasing uncertainties in the sector.
One KM now 70% pre-committed
Management reports that the pre-commitment at One KM, slated for opening in 3Q14, is now ~70% and they would like to achieve ~75% level by the end of FY13. In addition, the group reports that it has now launched all four blocks of the Esplanade in Tianjin China, achieving a ~90% take-up rate, and its Jalan Conley project in Kuala Lumpur, Malaysia continues to be on target for its launch in 4Q13.
Upgrade to BUY on valuation grounds
Upgrade to BUY on valuation grounds with an unchanged fair value estimate of S$7.16 (20% RNAV disc.).
3Q13 PATMI increased 6% YoY to S$93.5m with higher contributions from ParkRoyal on Pickering and Pan Pacific Serviced Suites Beach Road (which opened in 1Q13 and 2Q13, respectively) and profits from JV companies. We judge these results to be mostly within expectations, and YTD core PATMI, adjusted for one-time items, now cumulates to 70% of our FY13 forecast. 3Q12 topline was S$261.8m, down 6% YoY due to a decline in property development revenues as Double Bay Residences and Waterbank at Dakota achieved TOP in 3Q12 and 2Q13, respectively. This was partially offset by increasing revenues from hotel ownership and operation (up 15% YoY to S$105.2m) and property investments (up 12% YoY to S$46.6m).
Two residential launches expected in 1H14
For their domestic residential segment, the group is looking to launch both remaining domestic land bank sites (Sengkang West Way and St. Patrick’s Garden) as early as 1Q14 after a fairly successful launch at Thomson Three, which is now ~76% sold with ASPs just shy of S$1.4k psf. In terms of replenishing its land-bank ahead, we expect UOL to take an active yet fairly prudent stance ahead; management indicated that they remain ready to seize opportunities as land prices are expected to soften head with increasing uncertainties in the sector.
One KM now 70% pre-committed
Management reports that the pre-commitment at One KM, slated for opening in 3Q14, is now ~70% and they would like to achieve ~75% level by the end of FY13. In addition, the group reports that it has now launched all four blocks of the Esplanade in Tianjin China, achieving a ~90% take-up rate, and its Jalan Conley project in Kuala Lumpur, Malaysia continues to be on target for its launch in 4Q13.
Upgrade to BUY on valuation grounds
Upgrade to BUY on valuation grounds with an unchanged fair value estimate of S$7.16 (20% RNAV disc.).
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