OUE    Last:1.07   -

OUE LTD worth buying for long term

 

 

 

OUE Commercial REIT: Book building to start.

OUE will begin book building for the OUE Commercial REIT listing that will raise as

much as US$355m. OUE Commercial REIT is targeting a market capitalisation of

S$700m, and sponsor OUE plans to retain a 40% stake in the trust. CIMB, OCBC and

Standard Chartered are the joint global coordinators of the IPO, as well as joint book





runners with Citigroup, JPMorgan and RHB.

(Source: The Business Times)

 

 

 

 

 

 

 

 

 

 

Singapore Property- Residential prices to continue

easing in 2014.



 

 

(CAPL SP/BUY/S$2.98/Target: S$3.83)

(HOBEE SP/BUY/S$2.09/Target: S$2.45)

(OUE SP/BUY/S$2.49/Target: S$3.12)



 

 

The Urban Redevelopment Authority?s (URA) latest flash estimates indicate that private

home prices fell by 0.8% qoq in 4Q13 following a 0.4% gain in the previous quarter.

Housing Development Board (HDB) data shows that the correction in public housing

prices accelerated with a 1.3% qoq fall, compared with a 0.9% qoq dip in 3Q13.

First meaningful quarterly decline in overall property prices since 2Q09 as private home

prices fell 0.8% qoq, excluding a 0.1% qoq dip in 1Q12, although overall prices rose

1.2% yoy. The impact of multiple rounds of cooling measures, on both the private and

HDB property markets, together with higher supply, will lead to further moderation in

property prices in 2014.

The first meaningful decline in property prices since 2009 is the result of measures

implemented in both the private and public property markets. We expect property prices

to fall 5-10% in 2014 as the cumulative impact of the property measures is felt. We prefer

deep value and diversified developers with exposure to the commercial segment.



CapitaLand, OUE and Ho Bee are our preferred picks.



UOBKH

 

 

 

SGX APPROVES OUE ELIGIBILITY TO LIST OUE REIT

 

 

OUE Limited: Well positioned for CBD office recoveryWe initiate coverage on OUE with a BUY rating and a fair value estimate of S$3.32. Our fair value applies a relatively less punitive 15% discount to RNAV due to three key reasons. First, the bulk of OUE?s portfolio is positioned in the Core CBD office micro-market which we believe will face significant tailwinds in FY14 second, OUE has fairly limited exposure to the uncertain residential sector (~10% of its RNAV) and finally, management?s sharp track record in creating value, seeking accretive deals and recycling capital expediently. On 25 Sep 2013, OUE also announced it was exploring the listing of a commercial REIT on the mainboard of the SGX. The initial portfolio is expected to include OUE Bayfront and other commercial properties owned by Lippo China Resources Limited (a company listed on HKSE). While the timing and size of the listing is yet to be confirmed, we believe this capital recycling may be an attractive catalyst for value realization and a possible special dividend ahead. (Research team)MORE REPORTSYangzijiang Shipbuilding: Healthy order flow for replenishmentYangzijiang Shipbuilding (YZJ) has recently secured 17 contracts worth about US$871m, bringing total orders won YTD to US$2.096b. These new contracts are scheduled for deliveries in 2015-2016, and provide much-anticipated replenishment of the order book for execution of orders further down the road. Newbuild prices for bulk carriers in Chinese yards have been on a slow but steady uptrend since early this year, but additional monitoring is needed to determine its sustainability, which is dependent on the global economic recovery, the rate of China?s yard consolidation process as well as any further tightening in China?s money supply. With a gradually recovering newbuild market, we raise our peg from 8x to 9x P/E, while rolling forward our valuations from blended FY13/14F earnings to FY14F earnings, resulting in a slight rise in YZJ?s fair value estimate to S$1.04 (prev. S$0.99). Maintain HOLD. (Low Pei Han)For more information on the above, visit www.ocbcresearch.com for the detailed report. NEWS HEADLINES- US stocks closed lower Wed, paring losses during the trading session as investors looked for a possible thaw in negotiations over the government shutdown after a private-sector jobs report came out weaker than expected.- Singapore's purchasing managers' index for Sep pointed to a further slowdown in new export orders, echoing the less-than-stellar manufacturing data from the region earlier this week.- Oil trading here remained in the trough in the Jul-Sep quarter, as the market was flat except for a brief spike in prices due to the Syrian chemical weapons crisis.- In a sign of Singapore's growing attractiveness as a listing venue for early-stage mineral, oil and gas firms, Australian upstream oil and gas company Linc Energy revealed plans to move its listing from Australia to Singapore.- Cordlife Group and Artivision Technologies announced that they are raising funds via share placements.Please refer to the full report for more information and additional disclosures. Disclaimer for Research ReportThis report is solely for information and general circulation only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This report should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this report is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. You may wish to seek advice from a financial adviser regarding the suitability of the securities mentioned herein, taking into consideration your investment objectives, financial situation or particular needs, before making a commitment to invest in the securities. OCBC Investment Research Pte Ltd, OCBC Securities Pte Ltd and their respective connected and associated corporations together with their respective directors and officers may have or take positions in the securities mentioned in this report and may also perform or seek to perform broking and other investment or securities related services for the corporations whose securities are mentioned in this report as well as other parties generally.Privileged/Confidential information may be contained in this message. If you are not the addressee indicated in this message (or responsible for delivery of this message to such person), you may not copy or deliver this message to anyone. Opinions, conclusions and other information in this message that do not relate to the official business of my company shall not be understood as neither given nor endorsed by it.For and on behalf of OCBC Investment Research Private Limited:Carmen LeeHead of ResearchCo.Reg.no.:198301152E

 

OUE revamp turns 6 Shenton Way into " crown jewel" " Will yield rich organic-returns," says Maybank. Maybank Kim Eng expressed optimism that the authorities' recent in-principle approval of the revamp of 6 Shenton Way will deliver gains to OUE because of the limited retail space currently available in the Central Business District. OUE plans to convert two-thirds of a tower at the location into serviced apartments, while the one-third will be leased to office tenants, with the retail podium comprising a sprawling four-storeys with net leasable area of approximately 155k sqft. Here's more from Maybank Kim Eng: Investment thesis intact. Our asset-play thesis remains on-track and we believe OUE?s plans to revamp the retail podiums at ORP and 6 Shenton Way will yield rich organic-returns, given the limited amount of quality retail space in the CBD area. The stock is one of the most inexpensive developers in our coverage universe (adjusted P/BV of 0.7x vs sector average of 1.1x), offering 22% EPS CAGR over FY12-15F. Reiterate BUY with unchanged TP of SGD3.57. 1Q13 PATMI dragged down by one-off F& N-related expenses. 1Q13 revenue at SGD105.4m (-14% QoQ +8% YoY) was 24% of ours and consensus estimate. The YoY increase in total revenue was mainly due to higher revenue recognised by Twin Peaks, offset partially by lower contributions from the hospitality and commercial rentals segments. The relocation of DBS out of 6 Shenton Way Twr 1 to MBFC Twr 3, resulted in a S$3.5m YoY dip in gross revenue. 1Q13 core PATMI at SGD7.8m (+126% QoQ -71% YoY) was 5% of ours and 7% of consensus estimate. Finance expenses jacked up 9% QoQ and 82% YoY on the back of the F& N acquisition transaction, which lapsed in Jan 2013. It resulted in higher interest cost from more borrowings and exchange loss arising from translation of a USD loan and the mark-to-market fair value loss on the USD/SGD currency swap. Arising from the hedge, the exchange losses (total ~SGD13m) for this quarter would be a one-off expense. 6 Shenton Way given the green light. OUE has gotten the in-principle approval from authorities to convert two-thirds of a tower of 6 Shenton Way (~163k sqft) to service apartments. The remaining one-third on the top floor will continue to be leased out to office tenants. Preliminary capex estimate stands at SGD50-60m. This property will serve as the pipeline asset for the upcoming hospitality REIT when completed in two years. OUE also revealed that the retail podium will comprise four-storeys with NLA of 155k sqft. A redevelopment tender has been called for ~SGD150m and construction will commence in three-months time. Once completed, 6 Shenton Way represents the single most important asset in OUE?s portfolio, contributing SGD1.56/shr (30%) to RNAV. Hospitality REIT coming to fruition. Management revealed that it is running full-steam on the hospitality REIT which will be announced very soon. Preliminary injected assets will include Mandarin Orchard Singapore (MOS) and Mandarin Gallery, with OUE likely taking up 20-30% stake in sponsor units. OUE also informed that MOS has a cap rate of ~7% (above our initial estimates of 5.7%) and there is a SGD750m loan (maturing in 1-2 years) secured against MOS/Mandarin gallery. We adjusted our REIT assumptions, with total equity size of ~SSGD1bn and the spin-off possibly raising ~SGD800 (SGD0.90/shr) in cash for OUE. OUE also mentioned that it is considering paying a special dividend to unitholders, which we estimate at SGD5-14 cents in FY13 (5-15% payout from proceeds). Click to zoom MORE NEWS Business park spot rents predicted to moderate by 3% in 2014 Business park spot rents predicted to moderate by 3% in 2014 Why ST Engineering?s land system business is on the mend Asia-Pac's IT spending to hit US$767b in 2014 Industrial REITs will see minimal earnings risk till 2015: DBS Chart of the Day: Here's proof that consumer firms' revenue momentum is tempering down RELATED NEWS Hisaka Holdings to acquire Regal International for S$127.25m Singapore's auction market sale value pegged to hit $70m in 2014 Here's proof that Singapore developers are gaining steam in China Ascott REIT funnels S$54m to debt repayment and asset enhancement Chart of the Day: Quit complaining, here's proof that home price hike is actually slow GET DAILY UPDATE IN YOUR FACEBOOK FEED 0 - See more at: http://sbr.com.sg/residential-property/news/oue-revamp-turns-6-shenton-way-crown-jewel#sthash.BBCgiDs3.dpuf

 

Property - GLS 1H14: Tapering the residential supply.

OUE (OUE SP/BUY/S$2.47/Target: S$3.12)

 

The Ministry of National Development (MND) unveiled the list of 23 sites (8 confirmed

and 15 reserve sites) in the 1H14 Government Land Sales (GLS) Programme. These

consist of 20 residential sites (including five executive condominium (EC) sites), one

commercial sites, one commercial & residential site and one white site. The sites can

yield 11,585 private residential units, including 2,800 ECs and 193,000 sqm (2.1msf)

GFA of commercial space.

The tapering of residential supply suggests that peak of policy measures may be behind

us. We anticipate that residential volumes will moderate by 20-30% over the next year

and prices will correct by 5-10% as the cumulative impact of the property measures is

felt. We prefer deep value and diversified developers with exposure to the commercial

segment. CapitaLand, OUE and Ho Bee are our preferred picks.

 

UOBKH

 

 

 

 

 

 

 

 

 

 

JAN 2014

 

Kajima will finish renovation of Downtown 1& 2   in 

2014. I confirmed it as I was on field today. Guaranteed no delay.

 

 

 

 

 

 

It will rise again, dont worry

 

Why down so much?

 

RESULTS OF EXTRAORDINARY GENERAL MEETING HELD ON 4 DECEMBER 2013

  http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content& B=AnnouncementToday& F=1024627& fileId=SGX_Announcement_OUE_2013EGM_Results.pdf

 

 

x 0	OUE Limited - In the Process of Transformation

WanSiTong      ( Date: 11-Nov-2013 21:14) Posted: OUE Limited - In the Process of Transformation Written By Stock Fanatic on Monday, November 11, 2013 3Q13 affected by higher borrowing costs and one-off expenses. OUE reported lower-than-expected 3Q13 net profit of SGD13.4m (-8% QoQ, -44% YoY), due mainly to higher borrowing costs as well as a SGD5m loss from the sale of its two hotels in China. 9M13 PATMI fell short, coming in at just 33% of our full-year estimate.  Maintain BUY with a revised TP of SGD3.05, pegged to a 30% discount to RNAV following a transfer of coverage.  Expenses on the rise Besides higher borrowing costs arising from fair value loss on derivatives, other OPEX also increased on higher legal and professional fees incurred in the listing of OUE Hospitality Trust (OUEHT). 3Q13 PATMI would have been even lower, if not for a SGD4.9m tax credit as opposed to a SGD4.4m tax charge in 2Q13. OUE Bayfront suffered a marginal SGD72.2m fair value loss, which was offset by a SGD73.1m fair value gain on US Bank Tower. MOS and MG remain consolidated within OUE OUE spun off Mandarin Orchard Singapore (MOS) and Mandarin Gallery (MG) into OUEHT, which was listed in Jul 2013. Despite the fact that MOS was transacted at SGD1.2b, the asset remains consolidated on OUE?s balance sheet at historical cost less accumulated depreciation (~SGD115m) due to the adoption of FRS110 ? a new accounting standard that requires investees to be consolidated if the investor retains control over the former, regardless of its equity stake. Next up, OUE Commercial Trust?  Following the listing of OUEHT, OUE is exploring the listing of a commercial REIT comprising OUE Bayfront as a seed asset, along with Lippo Plaza in Shanghai, currently held by HK-listed Lippo China Resources Limited. While we see this positively as it will strengthen OUE?s fund management business and raise the probability of bumper dividends in FY14, we will also keenly watch how OUE will redeploy the balance of the proceeds. Intra Day Gadgets powered by Google Technical Analysis Daily Chart Valuations are inexpensive We cut our FY13-15 forecasts by up to 45% after factoring in higher cost of borrowing and adjusting our sales assumptions for Twin Peaks. Nonetheless, OUE currently trades at 0.6x FY14 P/B and 0.55x FY14 P/RNAV, which we think are inexpensive. We expect some re-rating with the fruition of the commercial REIT listing, which is likely to happen in 2014.(Read Report)

 

is it 6 lot UOE Ltd , then give 1 lot UOE HT ?

 

U shd be like stockcham(stockchampion) starlene(stardarling) or Haut Ah ( ah huat)..buy thousand lots,,,sure huat wan.

victortan      ( Date: 02-Dec-2013 12:40) Posted: one lot dont qualify, too low standard, next time go buy burger. jiejie      ( Date: 27-Nov-2013 22:40) Posted: Will it raise further after the AGM? since Lippo group owns about 67.5% of the OUE, the resolution definitely will be approved. But if u own only 1 lot, how many shares of OUE HT shares will u be entitled to?

 

one lot dont qualify, too low standard, next time go buy burger.

jiejie      ( Date: 27-Nov-2013 22:40) Posted: Will it raise further after the AGM? since Lippo group owns about 67.5% of the OUE, the resolution definitely will be approved. But if u own only 1 lot, how many shares of OUE HT shares will u be entitled to?

 

Overseas Union Enterprise

(OUE SP, LJ3)

Technical BUY with +6.3% potential return

Last done : S$2.54

Resistance : S$2.97

Support : S$2.34

The stock is expected to

reverse its prior downtrend as it is now trading

above its 50-day EMA which could be acting

as a support, going forward. Watch to see

whether prices could close above S$2.56 or

near its 200-day EMA as its positive DI has

turned up and could be accompanied with a

move above its centreline at its MACD

indicator. Our institutional research has a

fundamental BUY with a target price of S$3.12.



UOBKH 

 

Will it raise further after the AGM? since Lippo group owns about 67.5% of the OUE, the resolution definitely will be approved.

But if u own only 1 lot, how many shares of OUE HT shares will u be entitled to?