Overseas Union Enterprise

[winston]

UOB KayHian analysts Vikrant Pandey and Vijay Natarajan say they understand from the OUE management that there has been no share sale or placement. "Instead, there has been a share financing arrangement by major shareholder Golden Concord Asia Limited which has been misinterpreted."

The analysts say management will be issuing a clarification announcement soon.

Source: Dow Jones Newswires

No clarification annoucement yet. How soon is soon ?

[winston]

Vested

OUE Bayfront obtains TOP


http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

Vested

OUE reports full-year net profit of S$777.2m By Travis Teo

SINGAPORE: Mainboard-listed Overseas Union Enterprise (OUE) has turned a full-year net profit of S$777.2 million.

This is a reversal from a net loss of S$93.4 million in 2009.

The firm said the better performance is on the back of a 57 per cent increase in its full-year revenue to S$215.6 million.

It added that this is driven by higher contributions from its hospitality and retail divisions, while rental income from DBS Towers, starting from the fourth quarter of 2010, also lifted its income.

Looking ahead, OUE said it has a well diversified portfolio of commercial, residential, retail and hospitality assets in Singapore.

It added that the firm is positioned for further growth on the back of a rosy economic forecast and its expertise in identifying high-yielding investments.

OUE has proposed a final dividend of 2 Singapore cents per share.

-CNA/ac


http://www.channelnewsasia.com/stories/ ... 96/1/.html

[winston]

Vested. From CIMB:-


Overseas Union Enterprise
Result note - A taste of recurring income expansion - by Donald Chua
(OUE SP / OVES.SI, OUTPERFORM - Maintained, S$2.89 - Tgt. S$3.87, Property)

--------------------------------------------------------------------------------

FY10 core net profit of S$78m forms 112% of our estimate. We believe it is above consensus as well. Stronger rents at the associate level were the reason.

Other positives were:
1) stronger hotel RevPARs;
2) partial rental contributions from DBST; and
3) a subsequent 40% upward asset revaluation from 3Q10.

The recent share financing by OUE's vendor may have raised share-overhang issues but the share price has been punished, underperforming the FSSTI by 8% YTD.

Operationally, the group has not disappointed. No changes to our FY11-12 earnings estimates but we have a lower target price of S$3.87 (S$4.14 previously) on lower ASP assumptions for Twin Peaks and a wider RNAV discount of 15% (10% previously) in view of share-overhang concerns.

At a 37% discount to RNAV, OUE remains our key pick. Catalysts to come from stronger office indicators.

[winston]

Vested. From Phillips:-

Overseas Union Enterprise Ltd – Company Results (Bryan Go)
Recommendation: Buy
Previous close: S$2.95
Fair value: S$4.13

• FY10 results in-line with expectations, revenue $215.6mil, +57% from a year ago, net profit $772.5mil, compared to a net loss of $92.2mil a year ago.

• Better performance in hospitality and property investment segments.

• Revenue growth underpinned mainly by income from DBS Towers, OUE Bayfront, and Twin Peaks in FY11 and FY12.

• Maintain Buy with fair value lowered to S$4.13.

[winston]

vested. From UOBKH:-

Valuation/Recommendation

• Maintain BUY, target price: S$4.25. The target price is pegged at parity to 2011 RNAV, taking into account a 20% premium for the office and hotel portfolio, a 20% discount for the retail and residential portfolio, and other competitive strengths and risk factors.

http://research.uobkayhian.com/research ... 977530.pdf

[winston]

Vested. From Phillips:-

Maintain Buy with fair value lowered to S$4.13

We made adjustments to our rental income estimates as well as recalibrated our estimates on sales of Twin Peaks to reflect a slower progress.

RNAV is thus decreased from $4.28 to $4.13. We continue to apply zero discount/premium on its RNAV in view of the positive sentiments in the office and hospitality sectors.

We maintain our Buy recommendation on OUE with FY11 fair value at $4.13, representing a potential 40% upside from its latest closing price.

[winston]

Vested

OVERSEAS UNION ENTERPRISE - Singapore hotel operator Overseas Union Enterprise said on Tuesday it currently has no plans for investments in China or any other country in the region as the firm is focused on the city-state's property and hospitality sectors.


Source: Reuters

[winston]

Vested

OUE remains one of our top picks for its prime commercial and hospitality exposure (58% and 19% of RNAV respectively).

We have assumed modest take-up at Twin Peaks development over the next three years given policy headwinds.

With the stock trading at a significant 40% discount to RNAV of S$4.67, we reiterate our OUTPERFORM rating.


Source: Credit Suisse

[winston]

Vested


Aftermath of share financing: a good educational process. We believe the selldown of late was partly the result of Mr Riady’s recent refinancing/hedging, whereby 42m OUE shares were used to refinance debt obligations, also at the vendor level.

Credit Suisse was the counterparty. The shares were subsequently placed out to institutional investors at a purported price of S$3.35 apiece. Due to confidentiality agreements, details could not be shared with the public.

We note that he had openly expressed his willingness to pare down his stake in OUE closer to 51% since acquiring a majority position last year.


http://www.remisiers.org/cms_images/OUE-0903111.pdf