SGX Stocks and Warrants

OUE Limited: Hit by Lower Reversal of Impairment Losses

kimeng
Publish date: Fri, 04 Aug 2017, 09:14 AM
kimeng
0 5,634
Keeping track of stocks and warrants news

2Q17 PATMI decreased 72.6% YoY to S$7.1m from S$25.7m mainly due to lower reversal of impairment losses on OUE Twin Peaks (down YoY from S$27.8m to S$4.2m) and higher administrative expenses, partially offset by maiden contributions from International Healthway Corporation Ltd (IHC) and stronger profits from associates and joint ventures.

In terms of the topline, however, 2Q17 revenues increased 39.5% YoY to S$187.3m primarily due to stronger numbers from the Hospitality and Property Development divisions and contributions from IHC. We deem this set of results to be broadly within expectations.

Management indicates that the redevelopment of OUE Downtown has been completed, with the new Downtown Gallery and Oakwood Premier OUE Singapore commencing operations in May and June 2017, respectively. An interim taxexempt dividend of 1.0 S-cents has been declared.

Maintain BUY; our fair value estimate of S$2.17 is under review.

Source: OCBC Research - 4 Aug 2017

Related Stocks
Market Buzz
Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment