Monday, November 11, 2013

Overseas Union Enterprise : 3Q results fall short on one-off expenses(DB)

Overseas Union Enterprise
Price at 7 Nov 2013 (SGD) 2.39
Price target - 12mth (SGD) 2.98
52-week range (SGD) 3.19 - 2.34
3Q results fall short on one-off expenses

OUE reported 3Q PATMI of S$13.4m, down 43% on account of one-off cost items and decreased contributions on lower occupancies at 6 Shenton Way. 3Q revenues rose 17% YoY on account of sales at Twin Peaks, and contributions from US Bank Tower.


One off expenses hit earnings, revaluing assets, exploring commercial REIT
The company attributes the 27% YoY rise in operating expenses from legal and professional fees due to the listing of OUE Hospitality Trust, upgrading works at hotels and S$4.8m in losses from the sale of its two hotels in China. Finance costs rose 26% YoY on higher borrowings and losses on derivatives. The group also revalued its properties, and took a S$73m gain on its US Bank Tower asset, while revaluing its OUE Bayfront building down by S$72m, resulting in a net gain of S$0.9m. Management restated that it is exploring the establishment of OUE Commercial Trust, and plans to inject OUE Bayfront as part of the initial portfolio. Recall that earlier this quarter, the company announced that it intends to submit a draft circular to the SGX for review, and the proposed REIT has entered into a conditional sale and purchase agreement with Lippo China Resources for the Lippo Plaza property.

Revising earnings and target price, Maintain Buy, RNAV of S$4.58
Taking into account the divestment of its China hotels, we adjust our FY13-15 core net profit estimates by -10%. We also widen our target discount to 35%, back to long term averages, reflecting the derating of the larger cap developer stocks within the sector, and the lack of visibility on the redeployment of capital which would help offset the hollowing out of the asset base of the company. Hence we, cut our target price by 13% to S$2.98, implying 25% upside. We believe that value unlocking moves such as the proposed commercial REIT could help to narrow NAV discounts, maintain Buy.



Source/Extract/Excerpts/来源/转贴/摘录: DB-Research,
Publish date: 07/11/13

1 comment:

  1. I love your information it helped me a lot and to my family. I recommend it because my friends are also in doubt thank you very much for this information.

    Tourist Lodging in Bryce Canyon

    ReplyDelete

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock