UOL’s 2Q18 core PATMI of S$94.1m (-6% YoY) came in slightly below projections/consensus, which is attributed to the uneven recognition of profits from development property. We estimate that sold residential units surged 5x QoQ, to 145 units, helped by solid sales at 62%-sold Amber 45. Despite cooling measures, UOL has not changed its launch schedule for the three upcoming projects, which we believe is due to their competitive cost. While the contribution from OneKM fell, the proposed AEI should reposition it as one of the beneficiaries of the rejuvenation of Paya Lebar Regional Centre, spearheaded by the upcoming Paya Lebar Quarter project. UOL has declined 21.1% YTD, underperforming both Developers (-10.1%) and FSSTI (-4.0%), but an overweight stance is maintained view of: (1) undemanding valuations, with a P/B of 0.62x and an RNAV discount of 43% vs. the mean of 0.76x and a 30% discount; (2) competitively priced landbank; and ......