STOCKS NEWS SINGAPORE-Yanlord up on hopes of strong Q2, Aberdeen ups stake

Sun Aug 12, 2012 11:28pm EDT

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Shares of Yanlord Land Group Ltd rose as much as 4 percent to a two-week high after Aberdeen Asset Management raised its stake in the property developer and on expectations it will report strong quarterly earnings.

By 0314 GMT, Yanlord was up 2.9 percent at S$1.25, and have surged nearly 31 percent so far this year, compared to the FT ST China Index's 1.4 percent gain.

Aberdeen Asset Management Asia bought 2 million shares at S$1.2192 each in Yanlord, raising its stake in the company to 5.0793 percent from 4.9767 percent, according to a stock exchange filing.

"People are expecting quite a strong set of earnings, partly because of low base last year and also improving residential sales in China," said an analyst who declined to be named.

The property developer will report its second-quarter earnings later in the day after the market closes.

Developers in China are benefitting from an improvement in China's home market. CapitaLand said earlier this month it expects residential sales in the world's second largest economy to continue improving for the rest of the year, while the average home price in China's 100 major cities edged up in July for the second straight month.

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1121 (0321 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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10:52 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; charmian.kok@thomsonreuters.com)

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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; charmian.kok@thomsonreuters.com)

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