UOB fancies UE as takeover rumours swirl

SINGAPORE (Nov 4): UOB Kay Hian is maintaining its “buy” call on United Engineers with a higher target price of $3.06 as the property group gears up for a possible sale.

In a Monday report, analyst Edison Chen notes that 3Q16 results were within expectations, with net gearing falling to 27.8% after disposals of MFlex and its environmental engineering business.

For UE’s continuing operations, Chen expects outlook to remain lumpy, as the property business now forms the bulk of the business moving forward.

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