Excerpt from CGS International report.
Report Summary:
- UOL Group’s FY25 results outperformed expectations, driven by robust residential sales, a strong development pipeline, high recurring income underpinned by near-full occupancy, and disciplined portfolio management.
- The broker has raised its target price to S\$12.83 (from S\$8.20), citing improved RNAV due to mark-to-market revaluation of hotel assets, ongoing asset redevelopment (notably Marina Square and Clifford Centre), and a healthy balance sheet with low net debt-to-equity.
- Key growth drivers include upcoming launches like Thomson View, and redevelopment projects, while risks include potential cost overruns and rising construction costs.
- UOL’s ESG efforts are recognized, with improved emissions, certification achievements, and increased employee training, but no valuation premium is currently applied for ESG factors.
- The report reiterates an “Add” rating, viewing UOL as well diversified with strong recurring income and upside from value unlocking in its property portfolio.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
