2Q15 PATMI increased 5.8% YoY to S$464.0m mostly due to improved operating PATMI, partially offset by an impairment for a development project in China. We judge this quarter’s results to be mostly in line with expectations and YTD operating PATMI now makes up 55.4% of our full year forecast.

In terms of the topline, 2Q15 revenues improved 17.8% mainly due to higher contributions from Chinese development projects and higher rental revenues from its shopping mall and serviced residence businesses, but partially offset by lower revenues from projects in Singapore and Vietnam.

The group also saw strong residential sales in China with 2Q15 unit sales up about three times YoY. We would meet with management later this morning and, in the meantime, maintain BUY with our fair value estimate of S$4.07 (25% discount to RNAV) under review.

Source: OCBC Research - 5 Aug 2015