See: UOL 2Q earnings rise 59% to $109.4 mil
In a Tuesday report, analyst Eli Lee notes that the group posted $9.2 million in fair value gains in 2Q17, compared to a $21.5 million of impairment losses in 2Q16.
The group’s 2Q17 revenue also reported a 10% y-o-y growth to $399 million as contributions from property development rose 19%, while contributions from the hospitality segment remained relatively flat.
The results were above the analyst’s expectations and the group’s 2H17 PATMI constitutes 69% of the full year forecast.
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“We like that the group has continued to replenish their land bank with discipline throughout the downturn and note that management has raised concern about a possible disconnect between the recent land tender prices and achievable end sale prices,” says Lee.
The group’s management expects stable performance from its London assets despite the uncertainties over Brexit.
Meanwhile, UOL expects the trading conditions in its hospitality segment to remain competitive amid uncertain economic outlook.
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The group’s recent acquisition of a Pan Pacific hotel in Melbourne will however help further strengthen its presence in Australia.
Shares in UOL are trading 4 cents lower at $8.12 as at 4.06pm.
