Ho Bee

Ho Bee: FY12 revenues increased 39.4% to $461.6m, earnings declined 7.6% to $187.1m; mainly due to the lack of fair value changes of properties and share of profits from associates. Property development increased by 42% to $450.7m due to a higher recognition with the completion of One Pemimpin and Trilight projects. Mgmt noted that 2013 will be a challenging year for the Group, with the recent measures for residential and commercial properties which were announced by the Government are expected to have a negative impact on the real estate sector. Group currently has the Metropolis commercial project at One-North, expected completion by 3Q13. Currently about 60% of the 1.08m sq ft of net lettable space has been pre-committed, further enhancing the Group’s recurring income in the years ahead. Dividend of $0.05/ share declared; indicative yield of 2.6% for FY12. NAV/ share at $2.58; Counter trading at 27% discount to NAV at $1.885. CIMB maintains OUTPERFORM with TP of $2.16.