- UOL Group (SGX:U14)’s 1H24 revenue declined 7% y-o-y to S$1,271.8m, as the 23% dip in revenue contribution from its property development segment was partially offset by improvements in its hotel operations (+11%) and property investments (+8%) segments. Gross profit rose 3% y-o-y to S$518.4m and translated to a gross profit margin of 40.8%, which was an uplift of 4 percentage points (ppt).
1H24 core PATMI came in within our expectations
- - Read this at SGinvestors.io -
- Excluding fair value changes and other attributable losses, UOL’s core PATMI rose 8% y-o-y to S$142.6m and constituted 47% of our FY24 forecast. We view this as within our expectations.
Robust operating metrics for property investments and hotel operations
- - Read this at SGinvestors.io -
- For UOL's retail portfolio, rental reversions were strong at 15.7%, while committed occupancy was stable h-o-h at a healthy level of 99.4%.
- Looking next at UOL’s hotel operations, 1H24 RevPAR jumped 41% y-o-y to S$298 in Singapore due to the spate of high-profile concerts. Growth was more modest at +7% for its other markets (China, Vietnam, Malaysia, Myanmar and UK), while RevPAR was flat y-o-y in Oceania due to two major hotel refurbishments which adversely affected their occupancy rates. Looking ahead, management is still expecting RevPAR growth in 3Q and 4Q but at a more moderated pace.
Active on capital recycling
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-08-14
Previous report by OCBC:
2024-08-06 UOL Group - Expect Continued Prudent Capital Management.
Price targets by other brokers at UOL Group Target Prices.
Listing of research reports at UOL Group Analyst Reports.
Relevant links:
UOL Group Share Price History,
UOL Group Announcements,
UOL Group Dividends & Corporate Actions,
UOL Group News Articles
