UOL

UOL: Posted 2Q12 results which was in-line. Rev at $298.8m,-34% yoy and flat qoq, while core net profit at $93.7m, -15% yoy and +12.4% qoq. Gross margins improved at 43.1% vs 34.2% yoy. Lower yoy performance was dragged down by lower income from pty development sales due to the completion of dev projects in 2011 and 1Q12 and reduced fair-value gains from investment properties. Div income from available-for-sale financial assets, too, dropped 16% to $15.8m. But rev from pty investments rose 5% to $41.3m while rev from hotel ownership and operations went up 2% to $89.5m.Grp's bottom line was also hit by a 29% fall in share of profits from associated companies to $23.5m stemming from lower contribution from UIC. Going forward, grp remains cautious on outlook for 22H12 due to a weak US recovery, uncertainties in the Europe situation, and the slowing growth engines in Asia. Expect demand for new homes in the mass- and mid-market segment to remain stable, supported by high liquidity and low interest rates. The group's gearing stood at 0.33 as at June 30, down slightly from 0.35 in Dec. Grp updated that UVD, a JV held by UOL and Singapore Land was awarded the tender for a 99-yr land parcel at Bright Hill Drive. UVD intends to build a 20-storey, 420-unit condominium. Market experts estimates the selling price to be btwn $1,300 – $1,400 psf. Ratings as follow: DBSV maintains Buy and raises TP to $5.96 Nomura maintains Buy and raises TP to $6.32