OUE

OUE: Results relatively in line with expectations. 1Q2011 rev is at $68.2m +42.2%yoy +5.5%qoq with net profit of $227.6m +23.3%yoy due to $249.2m in revaluation gains compared to same period last yr of $189.9m. Gross profit at $41.5m +1.8%qoq and operating profit 28.3m -3.5%qoq remained stable but if revaluation gains were stripped off, co would have incurred a loss of $21.6m…

Hospitality remained the main contributor with rev of $45.2m, 66.3% of rev and co is in midst of acquiring Crown Plaza at Changi Airport. Co expects increased office rentals to benefit both OUE Bayfront with pre-commitment lvls of 60% and DBS Towers. Residential mkt is affected by property cooling measures and is expected to be challenging but co will continue to drive the sale of its dev proj Twin Peaks at Leonie Hill...

Current NAV for co is at $3.09 per share and counter trades at approx 1.0x P/B. CS maintains Outperform with TP$4.20 likes proxy to prime office and hotel exposure and MS maintains Overweight TP$3.45 citing 44% GAV to office mkt.