• UOL Group’s 2Q/1H18 EPS is deemed in line with our projections, at 22%/39% of our FY18 forecast.
• Rolling out The Tre Ver development, and another 3 new launches during 2H18-2019.
• Rental income impacted by lower retail contributions; hotel performance stable.
• Maintain ADD with an unchanged Target Price of S$8.45.

2Q18 Results Highlights

UOL reported 2Q18 net profit of S$132.7m, +21% y-o-y, on a 59% increase in revenue to S$635.9m, as it consolidated UIC results. The improved performance came from relatively stable operating performance as well as higher S$64.4m fair value gains from investment properties.

Stripping out one-offs, 2Q bottomline fell 7% y-o-y to S$93.3m (EPS: c11.1 Scts). 2Q/1H EPS makes up 22%/39% of our FY18 forecast. We deem this in line as we expect development profits from new launches to be back-end loaded.

Source: CGS-CIMB Research - 03 Aug 2018