2Q17 PATMI increased 97% YoY to S$579.3m mainly due to stronger operating numbers, higher revaluation gains from investment properties in Singapore and China and portfolio gains from the sale of Innov Tower in China and 18 rental housing properties in Japan. After accounting for one-time items, operating PATMI for the quarter clocked in at S$206.8m which was 21% higher YoY.

In terms of the topline, however, 2Q17 group revenues declined 12% YoY to S$992.4m mostly because of lower contributions from development projects in Singapore, partially offset by firmer contributions from Chinese developments and rental income from newly acquired and newly opened properties.

1Q17 operating PATMI now cumulates to S$544.6m, which makes up 56% of our full year forecast, and we judge this quarter’s results to be broadly within expectations.

We will meet management this morning at an analyst briefing and, in the meantime, maintain BUY with our fair value estimate of S$4.07 under review.

Source: OCBC Research - 3 Aug 2017