OUE Ltd. (LJ3) AI Stock Analysis

• Market Cap: €810.27M
• Dividend Yield: 1.71%
• Average Volume (3M): 170.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -1.32%
• EPS Growth: -211.26%
• Country: SG
• Employees: 1,133
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.05
• Shares Outstanding: 775,799,440
• 10 Day Avg. Volume: 220,180
• 30 Day Avg. Volume: 170,030
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €1.50
• Price Target Upside: 27.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: S$1.50 ▲(28.21% Upside)

OUE Ltd. receives a moderate overall stock score, driven primarily by mixed financial performance. Strong cash flow and operational efficiencies are offset by significant profitability challenges and moderate leverage. Positive technical momentum supports the score but is tempered by valuation concerns due to a negative P/E ratio. Investors should consider the risk of potential pullbacks and focus on strategic improvements for better profitability.

OUE Ltd. Business Overview & Revenue Model

Company Description

OUE Ltd. is a diversified real estate owner, developer, and operator headquartered in Singapore. The company operates in multiple sectors, including commercial, hospitality, retail, and residential properties, with a focus on creating high-quality and iconic developments. OUE Ltd. manages a diverse portfolio of assets in key locations across Asia, including Singapore, China, and Indonesia, offering a wide range of real estate solutions to meet the needs of its clients and stakeholders.

How the Company Makes Money

OUE Ltd. generates revenue primarily through its real estate operations, which include leasing and selling commercial, hospitality, and residential properties. The company's key revenue streams include rental income from its portfolio of office and retail spaces, as well as income from hotel operations and residential sales. OUE Ltd. also engages in property development projects that contribute to its earnings. Additionally, strategic partnerships and joint ventures with other real estate firms and investment entities play a significant role in driving growth and expanding its market reach. The company's diverse asset mix and strategic locations enable it to capitalize on market opportunities and optimize returns on its investments.

OUE Ltd. Financial Statement Overview

Summary

OUE Ltd. exhibits mixed financial performance. Strong operational efficiencies are evident with a robust EBIT margin, but the company faces profitability challenges with a significant net loss. The balance sheet shows moderate leverage and declining equity ratios, which may pose future risks. Cash flow generation is strong, albeit heavily reliant on operating activities amidst net losses.

Income Statement

OUE Ltd. shows a mixed performance in its income statement. The revenue growth from 2023 to 2024 is modest at 3.75%. Gross profit margin is strong at 100% for 2024, suggesting effective cost management. However, the net profit margin is negative due to a considerable net loss, indicating profitability challenges. EBIT margin is robust at 84.62%, highlighting operational efficiency, but the negative EBITDA margin in 2024 raises concerns about cash generation from operations.

Balance Sheet

The balance sheet of OUE Ltd. reflects moderate financial health. The debt-to-equity ratio is approximately 0.97, indicating a balanced leverage position. However, the declining equity ratio from 39.64% in 2023 to 36.47% in 2024 suggests a decrease in financial stability. Return on equity is negative due to the net loss, which is a significant drawback.

Cash Flow

OUE Ltd.'s cash flow statement is relatively strong, with a significant free cash flow increase in 2024 and a solid operating cash flow to net income ratio despite the net loss. The free cash flow to net income ratio is also positive, underscoring effective cash management. However, the reliance on operating activities for cash flow amidst net losses could be a potential risk.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	646.50M	623.10M	491.12M	300.81M	530.46M
Gross Profit	365.61M	360.42M	286.30M	156.30M	234.37M
EBITDA	103.98M	303.42M	416.31M	55.92M	-391.96M
Net Income	-285.10M	81.08M	189.86M	80.94M	-343.38M
Balance Sheet
Total Assets	8.87B	9.27B	9.49B	9.03B	9.62B
Cash, Cash Equivalents and Short-Term Investments	603.31M	186.53M	380.51M	599.95M	620.50M
Total Debt	3.15B	2.91B	3.01B	2.87B	3.50B
Total Liabilities	3.52B	3.39B	3.51B	3.31B	3.97B
Stockholders Equity	3.23B	3.67B	3.72B	3.85B	3.74B
Cash Flow
Free Cash Flow	236.02M	134.06M	141.84M	56.43M	168.06M
Operating Cash Flow	265.74M	183.87M	196.69M	130.84M	180.74M
Investing Cash Flow	298.46M	-105.73M	103.01M	714.13M	686.56M
Financing Cash Flow	-143.57M	-220.58M	-450.05M	-879.76M	-785.09M

OUE Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:LJ3, the sentiment is Neutral. The current price of 1.17 is below the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.14, and above the 200-day MA of 1.02, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:LJ3.

OUE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
U06	75 Outperform	S$4.38B	15.01	3.38%	1.47%	8.44%	41.63%
CRPU	74 Outperform	S$863.24M	13.56	5.40%	8.74%	5.89%	1.81%
OYY	74 Outperform	S$1.69B	26.41	33.16%	4.59%	26.47%	43.31%
LJ3	69 Neutral	€810.27M	―	-4.81%	1.71%	-1.32%	-211.26%
TQ5	68 Neutral	S$4.00B	15.22	2.08%	4.41%	19.82%	―
F17	63 Neutral	S$2.21B	23.61	2.37%	3.02%	4.58%	-14.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

OUE Ltd. Corporate Events

OUE and Tokyo Century Break Ground on Zero-Energy Hotel at Changi Airport

OUE Limited, in partnership with Tokyo Century Corporation, has commenced the groundbreaking of Hotel Indigo Changi Airport, a 255-room hotel expected to be fully operational by 2028. This development is set to become Singapore’s first zero-energy hotel, strategically located next to Terminal 2 of Changi Airport, enhancing the airport’s offerings with sustainable design and hospitality, and potentially strengthening OUE’s position in the hospitality sector.