Margins seemed to have improved over 1Q. Stock is trading at only 1.13x book and still offers an attractive dividend yield of 5%.

2Q08 net profit dipped 70%. Ho Bee reported 2Q08 results with net profit decline of 70.4% to S$37.0m on the back of a 27.0% drop in revenue to S$116.8m, compared to the previous corresponding quarter.

No further provisions were made in 2Q08 for its ABS CDO exposure, ie only 90% provided for compared to 100% for both UOB and OCBC.

Transview has benefited from a stronger S$ against the Yen but this improved margin has been offset by increased competition on the golf club market especially from brands such as Taylor Made which has put some downward pressure on the selling prices of their brands.

High materials costs continue to pose a challenge, but IRL appears to be controlling this with gross profit margin of 42% in 1Q08 as compared to 36% in 1Q07. However we remain cautious on the impact of higher materials costs, in particular steel and copper.

As Brilliant Time Limited (BTL) had became the Group’s 80% owned subsidiary with effect from 19 January 2008, 1Q08 revenue growth surged 151.6% yoy to HK$19.72m due to line by line consolidation of BTL’s revenue.

CDL achieved core earnings growth of 30.8% to S$165.0m on the back of revenue dip of 1.3% to S$758.8m in 1QFY08, compared to 1QFY07. All three business segments contributed to the earnings growth but the key contributor was the property development division.

The sharp 22bp rise in NIM and continued strong loan-related fee income came as positive surprises. We remain positive on UOB – it’s best bet against any further deterioration in the US subprime crisis.

SYNOPSIS: Growth from proactive capital management, accretive acquisitions and positive rental reversion. Trading at 9.2% below book value. Target price of S$0.88. Maintain BUY.

SYNOPSIS : UOB’s earnings growth in 2008 is projected to be the highest of the three banks. With 12.4% projected 2008 ROE, UOB is worth S$22, offering another 7% upside from the current level.