Hiap Hoe

Hiap Hoe: 1Q12 earnings continues to power ahead, gaining 75% YoY to $14m. This was underpinned by progressive prpfit recognition of its residential projects, Skyline 360 and Waterscape at Cavenagh. The construction of its Zhongshan Park commercial site along Balestier Road is progressing ahead of schedule, with the Days hotel and the retail space on track for completion in 1Q13. While forward sales are likely to remain lacklustre for its prime residential units given the impact of policy measures on foreign buyers, the group has already chalked up some $400m of progress billings that will provide earnings visibility over the next 2-3 years. Its commercial site will also generate NAV growth on completion given the substantial surplus from the project. DMG see deep value emerging after the recent retracement in the stock price. Maintain BUY with $0.61 TP.