UE E&C

UE E&C: Reported its 1Q12 results last evening. Rev and net profit fell by 35% and 19% YoY to $56.6m and $4.0m respectively, mainly due to lower contribution from existing projects. OCBC note however that rev recognition of construction contracts are lumpy in nature, and may not be an accurate reflection on the progress made on DBSS/EC projects. During the qtr, administrative cost also fell by 13.1% YoY to $2.6m (1Q11: S$3.0m) due to an absence of listing expenses. Other income jumped to $1m (1Q11: negligible) from fair value gains on investments. Overall, house maintains Buy but lowers TP to $0.71 from $0.82.