CGS International

April 22, 2025

UOL Group Ltd: Uptrend Remains Intact Amidst Market Turmoil

Market Overview: US Selloff and Safe-Haven Demand

• A significant selloff in US assets occurred following President Trump’s criticism of Jerome Powell, impacting stocks, the dollar, and Treasuries [[1]].
• The S&P 500 and other major US stock indexes each fell by more than 2.5%, while the dollar index weakened to a 15-month low [[1]].
• The benchmark 10-year Treasury yield approached 4.4% [[1]].
• Investors shifted towards safe-haven assets, causing gold to jump above \$3,400 an ounce and the Swiss franc to gain over 1% against the dollar [[1]].
• The US credit market also experienced weakness, with the cost of protecting high-grade credit securities against default rising to a one-week high [[1]].
• Several investment-grade companies postponed bond sales due to unfavorable market conditions, with only American Express Co. proceeding [[1]].

Wilmar International: Growth Prospects in Limbo

• First quarter 2025 net profit is estimated to be between US\$360m-380m, showing both quarter-over-quarter and year-over-year growth, driven by improved soybean crushing and palm oil refining margins [[1], [2]].
• Despite expected earnings growth in 2025F, the recommendation for Wilmar International has been downgraded to Hold, considering uncertainties from Indonesia [[1], [2]].
• Coverage of Wilmar International has been transferred to Jacquelyn Yow [[1], [2]].

UOL Group Ltd – Technical Buy

• Last Price: 5.73 [[2]]
• Analyst(s): CHUA Wei Ren, CMT [[2]]
  • T (65) 6210 8612 [[2]]
  • E weiren.chua@cgsi.com [[2]]

Technical Analysis: Back to the Upside

• Entry Price(s): 5.73, 5.56, 5.38 [[2]]
• Support 1: 5.45 [[2]]
• Support 2: 5.35 [[2]]
• Stop Loss: 5.18 [[2]]
• Resistance 1: 5.94 [[2]]
• Resistance 2: 6.42 [[2]]
• Target price 1: 6.05 [[2]]
• Target price 2: 6.62 [[2]]
• Target price 3: 7.14 [[2]]
• Target price 4: 7.58 [[2]]

Company Overview

• UOL Group Limited is a real estate company with a diversified portfolio, including development and investment properties, hotels, and serviced suites, serving customers worldwide [[2]].

Key Technical Pointers

• UOL has reached the first target price (TP) at S\$5.82 based on the Trendspotter report dated February 25, 2025 [[2]].
• Positive price action indicates a continuation of the uptrend, leading to an addition to the technical buy position [[2]].

Detailed Technical Observations

1. UOL rebounded strongly above the key Fibonacci retracement levels of 50.0% and 61.8% of the swing low S\$5.01 to swing high S\$5.94 [[2]].
2. A strong bullish closure occurred above the bearish gap [[2]].
3. Prices are trending above all Ichimoku cloud elements, including the Kumo, conversion line, and base line [[2]].
4. The MACD histogram is positive, and the MACD/signal line continues to rise above the zero line [[2]].
5. Despite being overbought, the stock shows strong bullish pressure, suggesting that sell-offs are mere corrections [[2]].
6. The 23-period Rate of Change (ROC) remains elevated above the zero line with bullish divergence [[2]].
7. Volume remains in a healthy expansion [[2]].

Disclaimer

• The report is prepared by CGS International and contains their views and opinions [[3]].
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• The information is believed to be correct and reliable at the time of issue, but CGS International is not obligated to update the report [[3]].
• CGS International does not guarantee the accuracy, completeness, or fairness of the information and disclaims liability for any consequences of reliance on the report [[3]].
• Unless specified, market data is from main stock exchanges, and company information is based on published statements and regulatory information services [[3]].
• Estimates and forecasts are based on reasonable assumptions as of the report date and should not be construed as a representation of future events [[3]].
• Past performance is not indicative of future results, and investments may lose value [[3]].
• The report is not an offer to buy or sell investments [[3]].
• CGS International, its affiliates, and related parties may have positions in the securities covered in the report and may perform services for the covered companies [[3]].
• The analyst certifies that the views expressed accurately reflect their personal opinions and were prepared independently [[3]].
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Additional Disclosures

• As of April 21, 2025, CGS International does not have a proprietary position in the securities covered in the report [[4]].
• As of April 22, 2025, the analyst who prepared the report does not have an interest in the securities covered in the report [[4]].
• The report is for information purposes only and does not consider the specific investment objectives or financial situation of any individual [[4]].
• Investors should make their own independent evaluation and consult professional advisors before making any investment decisions [[4]].

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• Australia: Distributed by CGS International Securities Singapore Pte. Ltd. and CGS International Securities Hong Kong Limited to “wholesale clients” only [[4]].
• Canada: CIBC conflict of interest disclosures can be found at provided link [[4]].
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Recommendation Framework

• Add: Total return is expected to exceed 10% over the next 12 months [[7]].
• Hold: Total return is expected to be between 0% and positive 10% over the next 12 months [[7]].
• Reduce: Total return is expected to fall below 0% or more over the next 12 months [[7]].

Sector Ratings Definition:

• Overweight: Stocks in the sector have a positive absolute recommendation [[7]].
• Neutral: Stocks in the sector have a neutral absolute recommendation [[7]].
• Underweight: Stocks in the sector have a negative absolute recommendation [[7]].

Country Ratings Definition:

• Overweight: Investors should be positioned with an above-market weight in this country relative to benchmark [[7]].
• Neutral: Investors should be positioned with a neutral weight in this country relative to benchmark [[7]].
• Underweight: Investors should be positioned with a below-market weight in this country relative to benchmark [[7]].

Rating Distribution (%)

• Add: 71.0% [[7]]
• Hold: 20.9% [[7]]
• Reduce: 8.2% [[7]]

Investment Banking Clients (%)

• Add: 1.3% [[7]]
• Hold: 0.7% [[7]]
• Reduce: 0.4% [[7]]

Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2025 [[7]]

551 companies under coverage for quarter ended on 31 March 2025 [[7]]