Stock Name: UOL
Company Name: UOL GROUP LIMITED
DBS Vickers Securities in an Aug 25 research report says: "UOL has a resilient business model comprising residential development (27% of RNAV), strong recurring income from leasing (28%), hotel operations (17%) and dividends from quoted investments (28%).
"UOL will benefit from the redevelopment of UIC Building, through its 42.7% stake in UIC. The mixed residential/commercial development is expected to start construction early next year and the residential portion to be launched in 1H12. We reckon UIC could realize an estimated $172m gains from this project over its existing carrying book cost.
"UOL is trading at a 26% discount to RNAV of $6.20 and offers 16% upside to our target price of $5.27, pegged at a 15% discount to asset backing. Our RNAV values the quoted equity component based on our target prices. Using the latest traded prices, this figure would be even higher at $5.35. BUY"
Company Name: UOL GROUP LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 5.27 |
DBS Vickers Securities in an Aug 25 research report says: "UOL has a resilient business model comprising residential development (27% of RNAV), strong recurring income from leasing (28%), hotel operations (17%) and dividends from quoted investments (28%).
"UOL will benefit from the redevelopment of UIC Building, through its 42.7% stake in UIC. The mixed residential/commercial development is expected to start construction early next year and the residential portion to be launched in 1H12. We reckon UIC could realize an estimated $172m gains from this project over its existing carrying book cost.
"UOL is trading at a 26% discount to RNAV of $6.20 and offers 16% upside to our target price of $5.27, pegged at a 15% discount to asset backing. Our RNAV values the quoted equity component based on our target prices. Using the latest traded prices, this figure would be even higher at $5.35. BUY"
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