STOCKS NEWS SINGAPORE-CIMB raises UOL target price
CIMB Research raised its target price for property developer UOL Group to S$6.23 from S$5.47, to reflect its latest land acquisition and higher prices for a residential development in Singapore.
By 0201 GMT, UOL shares fell 2 percent to S$5.34. The stock has gained 33 percent so far this year, compared with the FT ST Mid Cap Index's 19.6 percent rise.
UOL posted a 19 percent fall in its net profit at S$171.7 million for the second quarter, as lower development proceeds were offset by modest growth in hotel revenues and rentals.
CIMB said UOL's hotel earnings beyond 2012 will be driven by Parkroyal and Pan Pacific Serviced Suites in Singapore.
UOL clinched a site at Bright Hill in Singapore for a steep price of S$722 per square foot, CIMB said, but noted that its management expects to sell units at S$1,250-1,300 per square foot.
"Asset valuations remain supported by robust rents, with new hotels and residential launches being further share price drivers," said CIMB.
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1004 (0204 GMT) (Reporting by Charmian Kok in Singapore; email@example.com)
9:31 STOCKS NEWS SINGAPORE-Brokers cut Genting Singapore target price on Q2 miss
Casino operator Genting Singapore reported second-quarter earnings that missed expectations, prompting several brokerages to cut their target prices and its shares to fall to a two-week low.
By 0127 GMT, shares of Genting were down 2.7 percent at S$1.245, and have fallen about 17 percent so far this year, underperforming the Straits Times Index's 15 percent rise. Earlier in the session, Genting fell to an intraday low of 3.5 percent.
Genting, which owns one of Singapore's two multibillion-dollar casino complexes, posted lower quarterly core earnings that missed expectations as gaming revenue fell and expenses rose.
CIMB Research lowered its target price for Genting to S$1.60 from S$1.95, but maintained its 'outperform' rating, after cutting its assumptions for gaming revenue in the VIP and mass market segments.
"We believe this is due more to the (casino's) more prudent policy on credit following the negative swing in the second quarter macro environment rather than a sharp contraction in the business," said CIMB in a report.
The brokerage cut its 2012-2014 earnings per share estimates by 20-24 percent.
OCBC Investment Research also lowered its target price for Genting to S$1.66 from S$1.97, but noted that management expects a weaker economic outlook to present acquisition opportunities. It maintained its 'buy' rating on Genting.
Another brokerage Citigroup cut Genting's target price to S$1.34 from S$1.40 and maintained a 'neutral' rating.
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0927 (0127 GMT)
(Reporting by Charmian Kok in Singapore; firstname.lastname@example.org)