Stock Name: UOL
Company Name: UOL GROUP LIMITED
16 June 2011: Residential Sector - Private sales update for May
Summary: The number of non-landed units sold increased 48.7% YoY in May 11 to 1,557 units. Only 1,208 non-landed units were launched in May (up 8.6% YoY), resulting in an exuberant take-up rate of 128.9%. Sales volume continued to be dominated by mass-segment units, with 60% of sales in the OCR. We analyze caveats lodged in Apr-May and estimate that psf prices, on a transaction-weighted basis, increased 0.63% MoM in May - indicating steady momentum in OCR prices. In our view, liquidity continues to be an over-arching impetus for property price momentum and policy overhang remains a concern. We maintain our NEUTRAL rating on the residential property sector. Our pick in this sector is UOL due to its limited residential exposure and the potential to pick up accretive acquisitions in a softer market ahead. Maintain BUY on UOL with a fair value estimate of S$5.57 (at 20% discount to RNAV).
Company Name: UOL GROUP LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 5.57 |
16 June 2011: Residential Sector - Private sales update for May
Summary: The number of non-landed units sold increased 48.7% YoY in May 11 to 1,557 units. Only 1,208 non-landed units were launched in May (up 8.6% YoY), resulting in an exuberant take-up rate of 128.9%. Sales volume continued to be dominated by mass-segment units, with 60% of sales in the OCR. We analyze caveats lodged in Apr-May and estimate that psf prices, on a transaction-weighted basis, increased 0.63% MoM in May - indicating steady momentum in OCR prices. In our view, liquidity continues to be an over-arching impetus for property price momentum and policy overhang remains a concern. We maintain our NEUTRAL rating on the residential property sector. Our pick in this sector is UOL due to its limited residential exposure and the potential to pick up accretive acquisitions in a softer market ahead. Maintain BUY on UOL with a fair value estimate of S$5.57 (at 20% discount to RNAV).
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