Ho Bee

Ho Bee: 1Q13 earnings increased 230% y/y to $52.1m due to a $47m gain from disposal of Chongbang Holdings International Ltd. Revenues increased 68% to $60.8m from the recognition of the sale of both its Trilight residential project and One Pemimpin industrial project, which brought $58.1m to its Property Development segment, an increase of 75% y/y. Going forward, the group expects to complete its commercial development at One North called The Metropolis before 4Q13, with net lettable space currently 60% precommitted. Based on market prices of ~$5.50 psf p.m. rental for the area, its remaining space of approximately 432,000 sq ft could potentially bring in a recurring income of $2.4m per month. Gearing dropped to 0.14x, implying debt headroom of over $600m. The group remains focus on investment and acquisition opportunities in Singapore, China and Australia- although management has emphasised on overseas opportunities. NAV per share of $2.69; implied P/B of 0.8x. UOB Kay Hian maintains its BUY, with TP of $2.45.