Singapore Stock Market News

United Engineers - Humble beginnings bear fruit

StockFanatic
Publish date: Mon, 01 Oct 2012, 09:24 AM
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UE's portfolio of investment assets has grown to S$1.7bn (70% of GAV). We see potential for redevelopment of UE Square and do not rule out asset divestments. Its balance sheet should strengthen in 2014 ' a good time for large developments/acquisitions.

We expect a weak FY12 due to accounting and revisions in earnings estimates for project fees and development recognition. We raise our RNAV and target price (35% disc to RNAV) for hospitality assets and business park values. Maintain Outperform with potential asset divestments/redevelopment and dividend surprises as catalysts.
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