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
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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
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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
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
