Ho Bee

UOBKayhian on 28 Feb 2014

FY14F PE (x): 15.1
FY15F PE (x): 12.0

Results in line with expectations. Ho Bee Land (Ho Bee) reported a 4Q13 net profit of
S$505.3m, 580% yoy bringing 2013 full-year profit to S$591.8m (up 216.3% yoy). The
sharp increase in attributable profits was due mainly to the revaluation gain of S$493.1m
with bulk coming from The Metropolis project, divestment gain of S$47.0m gain of its 9%
stake in Chongbang Holdings and S$25.9m gain on the disposal of Hotel Windsor.
Excluding these one-off items, the core earnings of S$69m is in line with our
expectations. Maintain BUY with an increased target price of S$2.68. We have raised
our RNAV by 9% to S$3.58/share (from S$3.27) mainly factoring higher valuation for
Metropolis. We maintain our BUY recommendation with a raised target price of S$2.68
(from S$2.45) pegged at a 25% discount to RNAV.