Ho Bee

Ho Bee: 2Q12 results in-line, boosted by the full recognition of One Pemimpin industrial project on completion. 2H12 will continue to be supported by strong recognitions from Parvis and Trilight. The lack of new sales at Sentosa is a key overhang, potentially offset by forays into China in 2H12/2013. Since obtaining its share buy-back mandate, Ho Bee has bought back 3.1m shares over the month of July at $1.20-1.22 per share (2011: 32.6m shares at average price of $1.33), providing a floor price. However, the lack of near-term catalysts is key grouse as Sentosa sales is unlikely to pick up anytime soon with the muted high-end segment in SG, and more attractively-priced resale market in Sentosa. CIMB note that its China projects and Metropolis office could be longer term positives. Ratings as follow: CIMB maintains neutral with $1.27 TP