Company Name: UOL GROUP LIMITED
Research House: RBS
Royal Bank of Scotland raises UOL Group (U14.SG) target price to $5.70 from $5.20 to factor in higher average selling price for developer's Spottiswoode residential project in Singapore, accretion from its China land acquisition, higher market valuation for its stakes in United Industrial Corp, keeps Buy call, says Dow Jones.
RBS says recent RMB2.06 billion ($405 million) purchase of Shanghai site should prove profitable, with residential project potentially fetching RMB50,000/sq m in average selling price vs RMB24,000/sq m acquisition price.
Research house adds recent Singapore housing-market curbs have resulted in subdued government land sales, which bodes well for UOL as company hasn't acquired any sites so far this year, but contemplating active participation in government tenders. Shares off 1.5% at $4.63.
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