CIMB Research raised its target price for property developer UOL Group to $6.23 from $5.47, to reflect its latest land acquisition and higher prices for a residential development in Singapore.
By 10:01 a.m., UOL shares fell 2% to $5.34. The stock has gained 33% so far this year, compared with the FT ST Mid Cap Index’s 19.6% rise.
UOL posted a 19% fall in its net profit at $171.7 million for the second quarter, as lower development proceeds were offset by modest growth in hotel revenues and rentals.
CIMB said UOL’s hotel earnings beyond 2012 will be driven by Parkroyal and Pan Pacific Serviced Suites in Singapore.
UOL clinched a site at Bright Hill in Singapore for a steep price of $722 per square foot, CIMB said, but noted that its management expects to sell units at $1,250-1,300 per squarefoot.
“Asset valuations remain supported by robust rents, with new hotels and residential launches being further share price drivers,” said CIMB.
No comments:
Post a Comment