UOL

UOL: (S$5.62) 1Q16 earnings stung by thinner development margins
- 1Q16 net profit of $77.1m (+3.8%), meeting just 18% of FY16 street estimates
- Revenue surged 39% to $330.1m on property development contribution of $164.3m (+112%)
- Gross margin narrowed to 34.5% (-9.9ppt) on thinner development margins
- Management continues to guide for sluggish demand for new homes due to government cooling measures, an impending glut in both the office and retail space and competitive tourism market in Asia Pacific.
- currently trading at a discounted 0.56x P/B