2Q16 PATMI increased 8.5% YoY to S$13.2m despite revenues for the quarter dipping 20.8% to S$129.7m. The weaker topline was mainly due to lower contributions from Tomlinson Heights, softer demand seen at the group’s Maldives resorts and on-going refurbishment works at Four Seasons Resorts Maldives at Kuda Huraa. This was more than offset by lower costs and a stronger profit from associates and JVs in 2Q16 given strong contributions from the d’Leedon development at Farrer Road.

Over the quarter, HPL also invested in an associate which completed the acquisition of two properties in London while another JV acquired The Nam Hai, a five-star beachfront resort in Vietnam. We judge this set of results to be broadly in line with expectations. Maintain BUY with an unchanged fair value estimate of S$4.83.  

Source: OCBC Research - 12 Aug 2016