Monday, August 5, 2013

OUE Ltd - Mid term turning up.

Recommendation: Accumulate
Previous close: S$2.87
Fair value: S$3.24
·          OUE 2Q13’s 15.8% y-y increase in revenue to S$112.0mn, was met with a larger 56.6% increase in cost of sales. Gross profit dipped 8.5% to S$55.4mn.
·          PATMI decreased 35.8%y-y to $14.6mn, due to higher costs incurred for administrative and marketing purposes.
·          Special dividend of 20 cents per share and interim dividend of 1 cent per share
·          Maintain Accumulate with unchanged fair value of $3.24

Source: Phillip securities research Pte Ltd

OUE ltd currently turning up for an uptrend, with the "accumulate" recommendation base on the fundamental value of the company, we see some potential in this company in the mid term time frame (1-3month). Stoploss can place at $2.77

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