OUE reported FY12 revenue of $417.9mn, an increase of 26%y-y mainly due to higher contributions from hospitality, property investment and property development divisions. The top line exceeded our expectations by 9.5%.
Contributions from associated co. however turned negative to -$24mn (FY11:$40.5mn) due to share of One Raffles Place’s reval losses of $40.6mn in FY12, compared to reval gain of $21.3mn in the prior year. In addition, the group also recognised lower reval gains of $24.5mn in FY12 (FY11: $253.1mn) on its investment properties. PATMI as a results decreased 76%y-y to $90.1mn. The management proposed a final dividend of S 3cents and special dividend of S 5cents, bringing the total FY12 dividend to S 11cents.
While revenue and operating profits beat our expectations, reval losses on ORP were a tad negative surprise to us. The group will continue to focus on asset enhancement works at ORP and 6 Shenton Way retail podium, and CPCA extension. We also see potential upsides from potential acquisitions, and divestments of hotel assets in the year ahead.
We increase the fair value from $2.83 to $3.07. Upgrade to Accumulate. Downside risks include poorer than expected leasing progress at ORP and 6 Shenton Way, and prolonged slow sales progress at Twin Peaks.
Source: PhillipCapital Research - 27 Feb 2013
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Created by kimeng | Dec 29, 2022
Created by kimeng | Dec 29, 2022