Guocoland

Guocoland: 2QFYJun12 results.
Revenue at $145.8m, -43% yoy, +34% qoq.
Net profit at $12.9m, -67% yoy, but up from a loss of $12.8m qoq.
Yoy performance was lower due to the previous quarter recognizing the sale of completed projects in China, such as Ascot Park in Nanjing and SOHO units in Shanghai GuoSon Centre, in addition to progressive recognition of Spore residential projects.
The better qoq performance was mainly due to faster construction progress for the group’s Spore residential projects, such as Goodwood Residence.

Mgt notes that the latest round of cooling measures in Spore (ie. the Additional Buyer’s Stamp Duty) is expected to moderate further invmt demand for private residential properties; and in China, believes it is unlikely that in the short term, the govt’s property cooling measures will ease. Says business conditions will continue to be challenging, but is optimistic on prospects for the year.

The stock trades at 0.8x P/B
Pre-results, UOBK had a Hold rating with TP $1.80.