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Portfolio sees mixed results over recent reporting season

Benjamin Cher Published on Fri, Dec 08, 2017 / 5:29 AM GMT+8

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SINGAPORE (Dec 11): The recent results season has seen mostly positive numbers from the 16 companies in our portfolio that reported results in the quarter ending Sept 30. Nine reported earnings growth in the recent quarter, while five saw their earnings decline and two reported losses.

The biggest increase in earnings came from property developer UOL Group, which reported a 609% y-o-y increase in earnings for 3QFY2017 ended Sept 30. The better-than-expected performance was due mainly to the recognition of negative goodwill on an acquisition.

On Aug 31, UOL acquired 60 million shares in United Industrial Corp from Haw Par Corp. Following this acquisition, UIC is now a subsidiary of UOL. Acquisition accounting was applied, resulting in a fair value uplift of $421.1 million for property, plant and equipment. An uplift of $82.3 million was recorded for development property. Further adjustments to fair value may be made until end-August next year.