OUE    Last:0.94    -0.01

OUE LTD worth buying for long term

 

 

Singapore's OUE shares jump on report of asset sale
Published: Tuesday, 18 Sep 2012 | 9:34 PM ET

SINGAPORE (Reuters) - Shares of Singapore property developer Overseas Union Enterprise < OVES.SI> jumped 10 percent to its highest level in more than a year after a newspaper report said it was planning to sell a hotel and retail asset in the city-state.

OUE shares hit an intraday high of S$2.90, the highest since August 2 last year, before retracing to S$2.89.

The Business Times reported on Wednesday that OUE could be selling its landmark Mandarin Orchard Singapore hotel and the adjoining Mandarin Gallery mall, valued at S$1.18 billion and S$520 million, respectively, last year.

American property fund manager Pramerica, partnering with Abu Dhabi Investment Authority, could be potential buyers, the Business Times reported, citing unnamed sources.

(Reporting by Charmian Kok Editing by Jacqueline Wong)

 

OUE surges from 2 to 2.8++ now. Whatever reasons, hidden gems discovered.....

I am look at JB Foods. Any fan of this counters?

 

Next hospitality trust from OUE??? Nav 3.++++

 

DMG& Partners on OUE

  http://sg-shares.blogspot.com/2012/02/overseas-union-enterprise.html 

 

good move...but yet reach its NAV!

Next...focus on TPV and Novo! Potential hidden gems

 

FOCUS

 

time for halt.. surging volume .. lol...

 

OUE: 3Q11 results below.

Net profit at $19.8m, -85% yoy, -1.5% qoq, on lower development earnings and higher interest expense. Excluding one-off gains in 3Q10, core net profit would have declined 4.6% yoy.

Revenue grew 69% yoy, underpinned by higher hospitality income and maiden contribution from Crowne Plaza Changi (CPC) and property invmt although gross margin declined sequentially from 62.6% to 58.9%.

Net gearing rose from 47.7% to a high of 55.5% after the completion of the CPC acquisition in July, above mgt's 50% optimal gearing, and could head higher with ongoing share buybacks.

Residential sales (Twinpeaks) remain muted with only 3 units sold in 3Q (49 out of 462 units sold to date, trending below mgt's target) and mgt expects the cooling measures to moderate prices and sales.


Office leasing activity has slowed markedly and occupancy at OUE Bayfront rose marginally from 77.1% in end July to 80.65%, while DBS Building is 90.19% leased, as anchor tenants relocate. One Raffles Place T.2 pre-commitment not officially disclosed, but reportedly at around 34%.

Stock trades at 0.74x P/B, 17x FY12E P/E.
Deutsche maintains Sell with TP of $1.96, pegged to 45% discount to its RNAV estimate.
BOA-ML maintains Buy with TP at $2.70, set a 20% discount to its RNAV estimate.

Credit Suisse maintains Outperform, but slashes TP to $2.93 from $4.20, as it drops its RNAV estimate to $3.66 from $4.67, and lowers the TP discount to 20% from 10% to factor in economic headwinds.

 

why halt?

anyone knows  

 

This was the DMG report of 28th July. Personally I like its commercial portfolio but is cautious about Twin Peaks (think they overpaid for the enbloc purchase of former Grangeford) and the purchase of Crowne Plaza is not too enticing.

OUE: Best Singapore-centric commercial proxy (BUY, S$2.91, TP S$4.03)

Best proxy to Singapore commercial exposure, resume coverage with BUY. With KepLand’s divestment in key assets ORQ and MBFC Phase 1 reducing office exposure to c.34% we highlight OUE as a key pick for a pure play on Singapore assets, with c.51% of OUE’s RNAV backed by office assets including OUE Bayfront, and 26% hospitality exposure anchored by flagship Mandarin Orchard Hotel. Stock is currently trading at 0.9x P/B and steep discount of 42% to RNAV. We resume coverage of OUE with a target price of S$4.03 based on 20% discount to RNAV, translating to 38% upside. Twin Peaks shaken, but not stirred. Based on URA caveats showing sales of OUE’s sole development project Twin Peaks trickling to a standstill in 1H11, we think this is a reflection of negative sentiment for high-end projects shaken by the government cooling measures in Jan 11. Despite being one of the key concerns for OUE, we believe OUE is not likely stirred by the slowing sales, given only sale of c.70 units are required to breakeven for this project with sales of 38 units to date. Visibility in earnings accretion. OUE seeks to maintain 80% as recurring income from its portfolio of commercial and hospitality assets. FY11 earnings are boosted by maiden full year contribution of the DBS Tower acquisition as well as completion of OUE Bayfront in 1Q11, while completion of One Raffles Place Tower 2 in 4Q11 would add to associate earnings in FY12. While sale of Twin Peak’s units are likely to be tepid, any further sales progress would provide a positive surprise to OUE’s earnings performance. Completes acquisition of Crown Plaza. OUE recently completed the acquisition of Crown Plaza Changi Airport, boosting its stable of > 3,000 rooms. There are asset enhancement plans in place for this latest acquisition with the addition of +200 rooms, while in the medium term plans for a retail enhancement to DBS Towers would boost NPI accretion as well as OUE’s RNAV.

 

 

 

Still no action.

 

ST Engg better....better dividend and much stable.....

 

Still sleeping.

 

i will personally wait for 3.15 level to breakout before even to look into entering long...

  Uncle Ti 88
http://uncleti88.blogspot.com/
----
I trade using simple moving average and Commitment of Traders Proxy (COT Proxy) + some other special ingredients that Colonel Sanders will be proud of.
I win some I lose some. But I make sure my wins make up more than the losses!

 

Basically the sell off is caused by the rumour of OUE is going to Low Cost housing in China.The  company has come out to clarify the rumour and the group will continue to remain entrenched in Singapore, with no changes to its group strategy.

Hopefully we wont be seeing drastic sell off today... good luck !

 

at current price, too undervalued......hold on for good gain for this large cap stock....

 

I just touch REIT, property related....

long time not see u alex 

alexchia01      ( Date: 08-Mar-2011 17:46) Posted: You can still touch property, but not all of them. CITYDEV, CapitaMall and HKLand US$ are the ones I'm monitoring now. rickyw      ( Date: 08-Mar-2011 17:34) Posted: lucky i take profit @2.85...stop touch property as for now...damn sianz..

 

You can still touch property, but not all of them.

CITYDEV, CapitaMall and HKLand US$ are the ones I'm monitoring now.

rickyw      ( Date: 08-Mar-2011 17:34) Posted: lucky i take profit @2.85...stop touch property as for now...damn sianz... des_khor      ( Date: 08-Mar-2011 16:27) Posted: Another capmallAsia...

 

lucky i take profit @2.85...stop touch property as for now...damn sianz...

des_khor      ( Date: 08-Mar-2011 16:27) Posted: Another capmallAsia.... rickyw      ( Date: 08-Mar-2011 13:34) Posted: I bot @2.83 today and UBS is selling..dunno whether another siao counter or not..

 

Another capmallAsia....

rickyw      ( Date: 08-Mar-2011 13:34) Posted: I bot @2.83 today and UBS is selling..dunno whether another siao counter or not... Zhiwei      ( Date: 08-Mar-2011 13:17) Posted: what happened with this stock today? drop so much..