UOL

UOL: Nomura reiterate Buy and lifts TP to $8.20 from $6.60, note that value enhancement at UIC does not need to wait. UIC, SL and MCH remain the key drivers for stock performance. UOL’s outperformance YTD has much to do with MCH, where the conversion of Marina Bayfront into additional retail space could now take place with the provisional permission obtained. the marked-to-market valuation of MCH’s assets alone would have added $0.37/share to UIC’s book value, all else equal. House raise NAV estimate to $10.01 (from $8.16) to principally reflect the higher valuation of UOL’s commercial properties and its stakes in UIC and PPAC. UIC and MCH represent a collective 31% of UOL’s intrinsic value on numbers. With the other 13% represented by the SG residential projects mostly secured by sales already, believe the implied up-cycle valuation is justified.