CIMB is maintaining its “add” rating on UOL Group with $8.26 target price as it likes the property group for its diversified earnings business model with strong recurring income.
The brokerage notes the low debt profile of UOL which is likely to help the group add to its landbank and also aid in tapping into other opportunities.
The comments come after 43% fall in UOL’s 2015 net profit. The company’s revenue from the residential business fell mainly due to unfavorable statistical comparison with the last year, CIMB says.
“The group has locked in more than $900 million of attributable residential sales in 2015 which will be gradually recognised over the next 2-3 years,” it adds.
On its recurrent income operations, CIMB expects UOL to renew 35% of its office leases in 2016 with “positive” rental revisions.
As at 10.10am, UOL is down 1.42% at $5.57 while the benchmark Straits Times Index is down 0.12%.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
The brokerage notes the low debt profile of UOL which is likely to help the group add to its landbank and also aid in tapping into other opportunities.
The comments come after 43% fall in UOL’s 2015 net profit. The company’s revenue from the residential business fell mainly due to unfavorable statistical comparison with the last year, CIMB says.
“The group has locked in more than $900 million of attributable residential sales in 2015 which will be gradually recognised over the next 2-3 years,” it adds.
On its recurrent income operations, CIMB expects UOL to renew 35% of its office leases in 2016 with “positive” rental revisions.
As at 10.10am, UOL is down 1.42% at $5.57 while the benchmark Straits Times Index is down 0.12%.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
No comments:
Post a Comment