2Q17 PATMI increased 23% YoY to S$16.2m mainly due to sales of completed units from Tomlinson Heights and stronger contributions from the group’s resorts in Maldives after the completion of the upgrade of water villas at the Four Seasons Resorts Maldives at Kuda Huraa, partially offset by lower profits from associates and JV as contributions from the d’Leedon Condominium fell.

In terms of the topline, 2Q17 revenues similarly increased 47% YoY from Tomlinson Heights sales. We judge this set of results to be broadly in line with expectations.

The group’s two property developments in London, Burlington Gate and Holland Park Villas are on track for completion later this year and are expected to contribute to operating performance in the coming quarters.

Maintain BUY with an unchanged fair value estimate of S$4.83.

Source: OCBC Research - 16 Aug 2017