Overseas Union Enterprise

CIMB Research on 7 May 2013

OVERSEAS Union Enterprise's Q1 2013 result was below expectations due to: 1) higher administrative expenses, and 2) lower-than-expected associate income. While the result looks weak, we believe the potential Reit will remain the key share price driver in the near term.

Core net profit of $14.9 million formed 15 per cent of our and consensus's full-year estimates. We cut our FY2013 core EPS estimates on higher cost assumptions and lower associate contributions, but retain our target price at $3.53 (still at a 20 per cent discount to revalued net asset value) pending an earnings call by management. Maintain "outperform".

OUTPERFORM