Ho Bee

Ho Bee: is flat at $1.39 despite reporting 1Q12 net profit fell 71% on year to $15.8m, largely on the absence of a year-earlier gain from asset sales and amid sluggish demand for high-end homes. UOBK says the results were below expectations, mainly on the Parvis and Trilight projects' slower-than-expected construction. Notes sales at the high-end residential projects are slower, with just one unit at The Orange Grove selling in 1Q12; its current launches, Trilight, Seascape and The Orange Grove, are 96%, 28% and 75% sold respectively. But the house it keeps its estimates unchanged, expecting a strong 2Q, boosted by the firm's Pemimpin Drive industrial project, which completed this month and is fully sold. Notes office project Metropolis is set for completion in 4Q13. The house raises TP to $1.80 from $1.75 after increasing RNAV on gains from an investment property sale. Keeps a Buy call on the stock's 45% RNAV discount.