UOL's profit margins predicted to hit 15-20% post project launch

These are Thomson Three and St Patrick's Garden.

According to DBS, they like UOL for its many engines of growth that includes rental income from office and retail properties, residential development activities, hotel operations and dividend income from its investment holdings. 

Upcoming launches of its Thomson Three and St Patrick’s Garden en-bloc redevelopment projects in Singapore should generate profit before tax (PBT) margins of about 15%-20% as they were acquired earlier.

Here's more from DBS:

Recent privatization of the listed Pan Pacific Hotels Group by UOL will increase the latter’s flexibility in managing and improve economies of scale of its entire hotel portfolio.

In the longer run, potential corporate activity cannot be ruled out as UOL continues to up its stake in associate UIC. The stock is trading at a 20% discount to our revised target price (TP) of $7.85, which is based on a wider 20% discount to RNAV of $9.81.