UOL

UOL: (S$5.85) 2Q16 profit misses, dampened by policy and economic headwinds
- 2Q16 results trailed estimates as net profit tumbled on fair value loss on its investment properties
- Excluding the fair value loss, 1H16 core earnings would have come in at $167.2m (-3%) or just under 40% of FY16 street estimates.
- Revenue grew 6% to $363.6m on greater contributions from its property development and hotel operations
- Amid Brexit and the uncertain global economic outlook, management continues to guide for lacklustre 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.
- UOL is currently trading at a discounted 0.6x P/B.