OUE Limited: FY2025 Profit Guidance and Financial Performance Update
OUE Limited has issued a profit guidance for the financial year ended 31 December 2025. The company expects to post a loss attributable to shareholders, driven by several significant non-cash items, primarily related to its investment in Gemdale Properties and Investment Corporation Limited (GPI) and the prevailing economic challenges in the People’s Republic of China (PRC).
Key Financial Highlights and Metrics
- Expected Loss Attributable to Shareholders: The Group is expected to record a loss for FY2025.
- Share of Results from Equity-Accounted Investees: OUE’s share of loss from GPI and other equity-accounted investees reached S\$46.0 million for H1 2025, with full-year losses expected between S\$220.0 million and S\$240.0 million.
- Impairment Loss: An additional impairment loss on the Group’s investment in GPI is expected, subject to finalization.
- Reversal of Negative Goodwill: The provisional negative goodwill of S\$94.9 million recognized in H1 2025 was reversed in H2 2025.
Exceptional Items and Non-Cash Adjustments
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The major components impacting FY2025 results are largely non-cash in nature (share of losses, impairment, goodwill reversal), with no material impact on operational cash flows or corporate funding requirements.
Macroeconomic Impact
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The reported losses are primarily due to the adverse property market conditions and broader economic slowdown in the PRC, which have significantly affected GPI’s business and, consequently, OUE’s investment performance.
Table: Summary of Key Metrics and Exceptional Items
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Loss Attributable to Shareholders |
Expected Loss |
Not Disclosed |
N/A |
| Share of Loss from GPI (Full Year) |
S\$220-240M Loss |
Not Disclosed |
N/A |
| Impairment Loss on GPI |
Expected |
Not Disclosed |
N/A |
| Reversal of Provisional Negative Goodwill |
S\$94.9M Reversed |
Not Disclosed |
N/A |
Outlook and Forward Guidance
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The company will finalize and release its unaudited FY2025 results by 27 February 2026.
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Investors are cautioned to be prudent when dealing in OUE shares due to the expected losses and ongoing macroeconomic headwinds in the PRC.
Conclusion & Investment Recommendations
Overall Financial Performance and Outlook: OUE Limited’s FY2025 performance appears weak, with significant losses expected due to its exposure to the Chinese property market through GPI. These losses are predominantly non-cash but highlight the risks of the current external environment and the Group’s investment concentration.
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If you currently hold OUE stock: Consider reviewing your position in light of the expected losses and uncertain outlook. The company’s operational cash flows are not materially impacted, but persistent losses from equity-accounted investments could weigh on future performance and share price.
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If you are not holding OUE stock: Exercise caution before initiating a new position. Await the release of full FY2025 results and monitor for resolution of the Chinese property market downturn and its impact on GPI, which remains a key risk factor for OUE.
Disclaimer: This analysis is based strictly on the information contained in the company’s latest financial report and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions.
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