UOBKayhian on 25 Feb 2014
FY14F PE (x): 24.7
FY15F PE (x): 21.0
2013 results in line and higher final DPS. Net profit rose 49% yoy to S$84.9m in 2013,
boosted by a S$20.4m gain from the disposal of Thong Sia Building. Excluding the gain,
net profit of S$64.5m (+13.5% yoy) was in line with our and market expectations. A final
dividend of 4.0 cents/share was announced, giving a total dividend of 5.0 cents/share for
the year, +11% yoy.
Capacity for long-term growth. Maintain BUY with a DCF-based target price of S$3.69, or
27.6x 2014F PE. This is close to +1SD to its mean PE of 28.8x but we think this is
deserved, given its strong cash flow generation and resilient business model. Meanwhile,
our 2014-16F ROEs of 15.0-16.0% are also higher than its long-term average ROE of
11.0% (1997-2012).
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