UOL headed for a strong second half as stellar Botanique sales kick in

FY15 earnings will be 2H loaded.

UOL Group reported a double-digit profit decline in the first quarter, but analysts note that the group is headed for a strong second half on back of robust sales at its Botanique@Bartley residential development.

Lock Mun Yee and Tan Xuan of CIMB noted that UOL's dismal Q1 results can be attributed to a high base in the comparable period last year, which saw a net gain from the sale of a land parcel in Malaysia.

"We expect UOL’s FY15 earnings to be 2H loaded, with profits from the recent launch of Botanique@Bartley materialising then. An estimated 38% of project have been taken up at an average ASP of S$1,290 per sq ft. Meanwhile, ongoing projects such as Seventy St Patricks (86% sold) and Riverbank@Fernvale (55%
sold) continued to be progressively taken up," they stated.