UOL

UOL: 3Q12 net profit shrank 13% yoy to $87.8m, while grp's rev -33% to $277.7m in 3Q12 due chiefly to lower property development rev following the completion of some of the group's projects last yr and this yr. It appears profit recognition in FY12F will likely be less than what street had previously projected and streets have adjusted estimates accordingly. Rev for hotel mgt services fell 26% to S$3.9m, primarily because of the closure of the Pan Pacific Singapore for major renovations from April to September. Share of profit from associates declined 31% yoy $25.4m in 3Q, due mainly to a lower share of profit from Marina Centre Holdings and UIC Going forward, considering the accessibility to a good school and an upcoming MRT station, Nomura expect the launch of the Bright Hill project (405 units) in March/April to provide some positive news for the stock. In addition, the positive sentiment in the office and hotel markets could continue to underpin the performance of UIC and PPAC in the near term, which will in turn drive UOL’s performance. Ratings as follow Nomura maintains Buy with $6.60 TP