OUE

OUE: 1Q14 Profit shot up to $945.6m from a low base, while revenue inched 1.5% higher to $106.9m on higher revenue from Lippo Plaza and US Bank Tower. Bottom line was buoyed by a $986.4m gain from the disposal of Mandarin Orchard Singapore and Mandarin Gallery to OUEHT, coupled by fair value gains from Lippo Plaza of $153.1m. These are offset by allowance for foreseeable loss of $105m for Twin Peaks. foreseeable loss of $105m for Twin Peaks. Deutsche likes OUE for a strong cash balance of $864m and gearing of 22%, and management will focus on ongoing AEIs at OUE Downtown to create portfolio returns. OUE trades at 0.56x P/B Deutsche maintains Buy with TP $2.64