UOL

UOL: CIMB likes UOL, as the stock offers value through its diversified business model. As a direct and indirect (via UIC) owner of one of the largest retail and office properties in Singapore as well as a sizeable hotel portfolio, it has a strong recurrent income base in addition to a stream of residential earnings in FY15-16 from locked-in presales. In the longer run, the target to establish a 70/30 asset split in Singapore vs. overseas would enable it to widen its geographic footprint to both developed and emerging economies. CIMB thinks the potential for corporate exercise exists as the group’s stake in UIC inches closer to 50%. CIMB maintains Add with TP of $8.37, based on a 20% discount to RNAV of $10.46.