Singapore Stock Market News

UOL Group - Stable earnings profile

StockFanatic
Publish date: Mon, 11 Nov 2013, 06:34 PM
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3Q13's core net profit rose 27% yoy even as development revenue fell by the same margin. Its hotel segment continues to grow and do well compared to its peers. UOL's earnings profile is becoming more recurring in nature, which we believe is a positive.

Core EPS in 3Q13 was in line with expectations at 27% of our full-year estimate (9M13 at 78%) and 28% of consensus. We roll forward our estimates to CY14 and tweak our FY13-15 core EPS by +1%/-2%. Our target price of S$8.02 is intact, still at a 20% discount to RNAV. Maintain Outperform with stronger hotel rates and commercial rents as catalysts.
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