UOL Group third-quarter PATMI up 6% to S$93.5m

FY14 looking bright with 2 launches slated.

UOL Group has announced its 3Q13 results, with 3Q13 PATMI increasing 6% YoY to S$93.5m due to higher contributions from ParkRoyal on Pickering and Pan Pacific Serviced Suites Beach Road, which opened in 1Q13 and 2Q13, respectively, and profits from JV companies.

"We judge these results to be mostly within expectations, and YTD core PATMI, adjusted for one-time items, now cumulates to 70% of our FY13 forecast," said OCBC Investment Research. 3Q12 topline was S$261.8m, down 6% YoY due to a decline in property development revenues as Double Bay Residences and Waterbank at Dakota achieved TOP in 3Q12 and 2Q13, respectively, noted the research firm.

"This was partially offset by increasing revenues from hotel ownership and operation (up 15% YoY to S$105.2m) and property investments (up 12% YoY to S$46.6m)," it said. OCBC said that group is looking to launch both remaining domestic land bank sites, Sengkang West Way and St. Patrick’s Garden, as early as 1Q14 after a fairly successful launch at Thomson Three, which is now ~76% sold with ASPs just shy of S$1.4k psf.

"In terms of replenishing its land-bank ahead, we expect UOL to take an active yet fairly prudent stance ahead; management indicated that they remain ready to seize opportunities as land prices are expected to soften head with increasing uncertainties in the sector," reckoned OCBC.