Latest Earnings From UOL Group Limited: Multiple Challenges Await

UOL Group Limited (SGX: U14) announced its fiscal first-quarter results (for the three months ended 31 March 2016) last evening.

For a brief background, UOL is a Singapore-listed property company. It has a diversified portfolio of assets spanning residential apartments, offices, retail malls, and hotels.

With that let’s dive into UOL Group’s latest financials to see how it performed.

The following’s a quick summary of some of the latest financial figures from UOL Group:

  1. Revenue for the reporting quarter came in at S$330.1 million, up 39% from the S$238.3 million recorded for the same period a year ago.
  2. Profit attributable to shareholders climbed by 4% to S$77.1 million.
  3. Consequently, earnings per share (EPS) saw a 2.7% increase from 9.43 cents a year ago to 9.68 cents.
  4. The company’s net asset value (NAV) inched up by 0.8% to S$9.95 from S$9.87 in the first-quarter of 2015.
  5. For the reporting quarter, cash flow from operations came in at S$79.2 million with capital expenditures clocking in at S$8.4 million. This meant that UOL Group had positive free cash flow of S$70.7 million. In the first-quarter of 2015, the company reported positive free cash flow of S$116.3 million (operating cash flow of S$132.4 million and capex of S$16.1 million).
  6. As of 31 March 2016, the real estate outfit had cash and equivalents of S$268.8 million and total debt of S$2.55 billion, giving rise to a net debt position of S$2.23 billion. This also implies a net gearing ratio of 27%.

The breakdown of the revenue for the different segments can be seen below:

UOL Group segment
Source: UOL Group’s earnings release

As the table above shows, UOL Group’s revenue had increased mainly due to the property development segment. It benefited from higher progressive revenue recognition from ongoing property development projects (such as Riverbank @ Fernvale and Seventy Saint Patrick’s) and revenue from new projects, Botanique at Bartley and Principal Garden.

Speaking on its outlook, the company commented in the earnings release:

“The outlook for the residential market is expected to remain sluggish. Rents for office space will continue to face pressure with a large supply coming on in the second half of 2016 while retail rents will be subdued as retailers consolidate their operations in an increasingly challenging market. The hospitality business in Asia Pacific is expected to remain competitive given weak global economic growth”

Share of UOL Group closed at S$5.67 on Thursday, fetching a price-to-book ratio of 0.57.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Esjay doesn’t own shares in any companies mentioned.