HPL’s 2Q15 revenues rose 34.3% YoY to S$163.8m and the increase was mainly attributable to the sale of completed condominium units from the Tomlinson Heights development.

However, the group’s share of results of JV and associates decreased to S$1.0m in 2Q15 (versus S$6.2m in 2Q14) given the absence of contributions from d’Leedon (attained TOP in Oct 14) and losses incurred at the newly opened Four Seasons Hotel, the Wescliff in Johannesburg and weaker contributions from hospitality assets in Malaysia.

As a result, 2Q15 PATMI came in at S$12.2m – up 74.1% YoY versus S$7.0m in 2Q14 – which we deem to be in line with expectations. Maintain BUY with an unchanged FV estimate of S$5.32.

Source: OCBC Research - 14 Aug 2015