The Motley Fool

UOL Group Limited: 5 Key Earnings Highlights

UOL Group Limited (SGX: U14) reported a strong increase in net profit excluding one-offs for the first quarter of 2019.

UOL is a Singapore-listed property company with S$20 billion of assets under management. The property group is spread across many aspects of the property market such as property development, property investments and hotel operations.

Here are the important points to take note of from UOL’s latest earnings report.

Key numbers

  1. Revenue for the quarter was up 12% to S$741.2 million while gross profit grew 27% to S$314.02 million. Looking at the breakdown, the property development segment saw a 24% increase in revenue year-on-year. This was on the back of revenue recognition from development projects. Similarly, the Property Investment and Hotel Operations segments saw revenue increase by 4% and decrease by 6% respectively. The property investments segments saw an increase due to a ramp-up in occupancy of UIC building and maiden contribution from 72 Christie Street which was acquired in December 2018. Hotel Operations, on the other hand, saw a decrease due to the closure of Pan Pacific Orchard for redevelopment, and lower revenue from hotel operations in Australia. Lastly, the management services and technologies segment saw growth of 16% year-on-year.

Source: UOL first quarter presentation slides

  1. UOL’s profit attributable to equity holders decreased by 5% year-on-year to S$72.4 million. However, if a one-off accounting reversal due to UIC consolidation is excluded, attributable profits would have increased by 27% to S$104.3 million.
  2. UOL’s earnings per share (EPS), followed suit decreasing by 4% to S$0.086 cents year-on-year.
  3. Moving on, the property conglomerate saw its net asset value (NAV) per share increasing by 2% sequentially to S$11.49.
  4. Lastly, UOL saw its financial position strengthening with net debt decreasing from S$4.03 billion to S$3.79 billion and the net gearing ratio reducing from 28% to 26% sequentially.

Looking ahead

UOL Group Chief Executive Liam Wee Sin commented:

“We are pleased with the strong operating results for 1Q19 and are particularly encouraged by the good sales momentum in the last two months for The Tre Ver, which is now over 70% sold. We expect keen interest for Avenue South Residence which capitalizes on the Greater Southern Waterfront growth story.”

Additionally, UOL commented that:

“UOL expects steady demand and tightening vacancy to support office rents, while retail rents remain under pressure amidst competition from e-commerce and a tight labor market.”

The Foolish conclusion

At the end of trading on Friday, UOL shares closed at S$7.26 apiece, translating to a price-to-book ratio of 0.63 and a dividend yield of 2.41%.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

Motley Fool Singapore contributor Esjay contributed to this article. Esjay does not own shares in UOL.

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