United Overseas Land

[winston]

not vested

UOL Group (UOL SP) - Bright spots amid challenging environment

UOL Group’s 1H20 results fell short of our expectations.

Revenue and core PATMI dipped 28% and 37% YoY to S$908.2m and S$103.6m, respectively.

UOL saw a decent pick up in residential units booked in May and June despite the circuit breaker.

However, given the situation at the migrant workers’ dormitory, construction progress and consequently revenue recognition for its Singapore development properties has been delayed despite brisk sales.

For its Hotels business, revenue fell 57% YoY to S$136.8m in 1H20, as RevPAR for its owned hotels slumped 54.7%, 42.1% and 58.8% in Singapore, Oceania and Others, respectively.

Committed occupancy for its investment properties portfolio remained firm, with rental reversions flattish for both retail and office.

Shopper traffic in Singapore was down 41.7% in 1H20, but has seen some sequential recovery in Jun after the circuit breaker period.

After adjustments, we derive a lower fair value estimate of S$8.48 (previously S$9.41). Maintain BUY.

Source: OCBC

[winston]

not vested

UOL Group on Wednesday said headwinds remain, although its retail portfolio's committed occupancy remains stable, with average daily footfall in the third quarter having recovered to 54 percent of pre-Covid levels.

In the first nine months of 2020, shopper footfall fell 43.1 percent from the levels in the year before.

Committed occupancy at the end of September was 93.5 percent, from 94.4 percent at the end of June.

Source: OCBC

[winston]

not vested

POTENTIAL BENEFICIARY OF ROTATION PLAY INTO LAGGARDS.

Some positives but operating environment remains challenging
Healthy balance sheet allows headroom to drive growth
Positive vaccine news and cheap valuations should help to support sentiment

Although UOL Group’s Singapore residential portfolio has been impacted by the property cooling measures, we believe its high quality projects and prudent land acquisition costs will allow it to weather the uncertainties.

UOL also has a diversified investment properties portfolio with a strong presence in the commercial and hotel industries, thus allowing the group to generate recurring income streams, although near-term headwinds are apparent.

The Group will explore redevelopment and asset enhancement initiatives amid the Covid-19 outbreak.

Source: OCBC

[behappyalways]

UOL posts 97% plunge in FY20 earnings to $13.1 mil on fair value losses on investment properties and other losses
https://www.theedgesingapore.com/capita ... properties

[winston]

not vested

UOL Group
Solid execution

UOL is replenishing its Singapore residential launch pipeline to 818 units.

Active asset management should drive commercial portfolio performance.

We reiterate our Add rating with a higher TP of S$8.00.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 0271E26E5F

[winston]

not vested

UOL Group Ltd (UOL SP) - Residential the bright spot

UOL Group’s Singapore residential portfolio has proven to be resilient despite the Covid-19 outbreak.

Management is well known for its prudent land banking strategy.

UOL also has a diversified investment properties portfolio with a strong presence in the commercial and hotel industries, thus allowing the group to generate recurring income streams, although near-term performance has been adversely impacted by the pandemic.

Given UOL’s healthy balance sheet, it is able to embark on redevelopment projects and asset enhancement initiatives to rejuvenate its portfolio. BUY.

Source: OCBC

[behappyalways]

UOL sees earnings of $91.3 mil for 1H21, reversing from previous year's losses of $82.1 mil
https://www.theedgesingapore.com/capita ... es-821-mil

[behappyalways]

UOL Group and Singapore Land Group jointly purchase Watten Estate Condominium en bloc for $550.8 mil
https://www.theedgesingapore.com/news/p ... um-en-bloc

[winston]

not vested

UOL GROUP LTD (UOL SP)
Recommendation : BUY
Fair Value : SGD 9.27

EXPECTING A SOFTER RESIDENTIAL OUTLOOK.

Forecasting FY21 core PATMI to increase 10% to SGD285.0m

Residential sector outlook dampened by recent cooling measures and higher property taxes

Look out for commentary on residential sales momentum and operational outlook for investment property portfolio

UOL Group’s Singapore residential portfolio has proven to be resilient despite the Covid-19 outbreak.

Management is well known for its prudent land banking strategy.

UOL also has a diversified investment properties portfolio with a strong presence in the commercial and hotel industries, thus allowing the group to generate recurring income streams, although near-term performance has been adversely impacted by the pandemic.

Given UOL’s healthy balance sheet, it is able to embark on redevelopment projects and asset enhancement initiatives to rejuvenate its portfolio.

Source: OCBC

[behappyalways]

UOL reports earnings recovery, says higher costs could stymie margins
https://www.theedgesingapore.com/capita ... ie-margins