UOL

UOL: Inline with consensus est. 1Q Rev at $297.7m -58.9% yoy with net profit at $84.0m -63.5% yoy. Lower rev was due to completion of development projects in 2011 and 1Q2012 as well as the recognition of rev from Duchess Residences in 1Q2011 which boosted that quarter's results. Co expects that demand for new homes in the mass mkt segment will remain stable underpinned by high liquidity and low interest rates. However, investment properties saw yoy growth of 7% as its office and retail portfolio saw positive rental reversions in 1Q12 with hotels delivering 22% yoy RevPAR growth. Rentals from the Furniture Mall at The Plaza will cease from May 2012 to make space of the development of 18-unit Pan Pacific Serviced Suites Beach Rd which is due to open in 1Q2013. The 363-rm PARKROYAL on Pickering and the 13-storey One Upper Pickering office building are scheduled to open towards the end of 2012. Co currently has NAV per share of $7.08, a P/B of 0.56x BofA maintains Buy with TP$5.20 at 44% disc to RNAV and 10x 2012 P/E