HPL reported 3Q15 PATMI of S$16.9m, up 12% YOY mostly due to higher share of results of associates and JVs which enjoyed higher profits from the Interlace condominium, Four Seasons Resorts Seychelles as well as disposal gains from several properties in Shanghai. In terms of the topline, 3Q15 revenues dipped 9% YoY largely because of lower contributions from the group’s property division.

Over the quarter, HPL also received repayments and also reduced balances at various associates/JVs which cumulated in a stronger cash position; cash and equivalents as at end Sep 2015 increased to S$173.5m versus S$136.6m as at end 2014. We judge this set of results to be broadly in line with expectations. Maintain BUY with an unchanged fair value estimate of S$5.32.

Source: OCBC Research - 13 Nov 2015