Journey to Wealth

UOA Development - Within expectations, DPS of 12.0sen

kiasutrader
Publish date: Mon, 25 Feb 2013, 09:11 AM
kiasutrader
0 27,945
Following Message

Period  FY12

Actual vs. Expectations FY12 core earnings of RM301m were within expectations, being only ahead of street and our estimates by 2% and 4%, respectively.

 FY12 sales RM1.7b (+101%) was slightly above our RM1.6b due to 4 major en bloc sales (Horizon office blocks); stripping out en bloc sales, offplan sales were up by 46% YoY to RM1.2b.

Dividends  Proposed first and final single-tier DPS of 12.0sen (6.6% yield) met our expectations as we estimated FY12E NDPS of 12.6sen. Expect payout in June-12.

Key Results Highlights   YoY, FY12 core earnings grew 55% to RM301m due to en bloc sales. Pretax margins were compressed by 5ppt to 40% because of sizeable basement works of Kencana Square (more construction recognition than development earnings at this stage as it is only an associate project) and Vertical@Bangsar South.

 QoQ, 4Q12 pretax profit dipped 19% to RM97m as last quarter saw 2 en bloc sales worth RM204m vs. this quarter's 1 en bloc sale of RM173m.

Outlook  Expect 1Q13 to register 1 en bloc sale as they have sold an office block from its inventories (Tower 3, Avenue 7, Horizon P2 @ Bangsar South) to Pelaburan Hartanah Bhd for RM183m (ASP RM740psf) which we consider as fair pricing.

 Targeting FY13E new project launches of RM1.8b (Desa Green, Scenaria@North Kiara, SouthView Residence near Bangar South, Desa III).

Change to Forecasts    Minor adjustments (-3%) to FY13E net profit post house-keeping while we maintain FY13E sales assumptions of RM1.8b (+6% YoY), including 1Q13 en bloc sale. Any other en bloc sales will add upsides to our target. Unbilled sales of RM713m provide close to 1 year visibility.

Rating    Maintain OUTPERFORM

 Investors' need for defensive havens will keep this stock on the radar given FY12-13E net yields of 6.6%-7.0% which is higher than sizeable MREIT's dividend yields of 4.5%-5.0%.

Valuation  Maintain TP of RM2.30 based on 34% discount to our FD SoP RNAV of RM3.43.

Risks  Sector risks, including negative policies and disappointing dividends.

Source: Kenanga
UOADEV (5200)
Related Stocks
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City

Created by kiasutrader | Mar 29, 2018

Ekovest fails to get shareholders nod for IWCity takeover

Created by kiasutrader | Mar 29, 2018

King Wan (S$0.280) Wins $28.4m deals

Created by kiasutrader | May 17, 2013

Insurance - Key Points In BNM, IMF Reports

Created by kiasutrader | Mar 25, 2013

SapuraKencana Petroleum - Positive Outlook

Created by kiasutrader | Mar 25, 2013

Kenanga Research - On our Portfolio - Parliament dissolution around the corner?

Created by kiasutrader | Mar 25, 2013

SapuraKencana Petroleum - 4Q13 Analyst Briefing Key Updates

Created by kiasutrader | Mar 25, 2013

Plantation - Dorab Mistry turned less bearish on CPO Prices

Created by kiasutrader | Mar 25, 2013

Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT

Created by kiasutrader | Mar 25, 2013

Pavilion Reit - Limited upside, earnings upside have been priced in HOLD

Created by kiasutrader | Mar 25, 2013

Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment