Broker Name: Lim & Tan Securities

Date of Report: 27 February 2026

Excerpt from Lim & Tan Securities report.

• UOL Group Limited reported strong FY25 results, with operating profit up 49% and net profit up 34%, driven by robust property development and investment performance. A special dividend was declared, bringing the total dividend to S\$0.25 per share.
• The Group’s revenue rose 16% to S\$3.23bn, with property development revenue up 26% and property investment revenue up 13%. Singapore residential sector remains healthy and acquisitions provide a quality pipeline.
• Share of profits from joint ventures improved, and recurring income is strengthened by asset enhancements and hotel refurbishments. Management expects steady rental growth and stable demand across segments, but sees uncertainties ahead in 2026.
• UOL trades at 20x PE and 0.8x PB with a 2.3% dividend yield. Despite solid fundamentals, the upside is limited after recent share price gains; UOL is downgraded to HOLD.
• InnoTek Limited proposed a final dividend after its tenth consecutive profitable year. The company is expanding into GPU server products for the AI sector, but overall FY25 revenue declined 12% due to weaker traditional segments and trade tariffs.
• InnoTek’s net profit dropped, but it remains confident about the GPU server business. Investments in advanced equipment and Southeast Asian expansion are underway, with a new factory in Thailand opening in 2Q’26.
• Macroeconomic news highlights cautious optimism about consumer recovery in China, ongoing price wars, and regulatory efforts to boost consumption. US markets show mixed signals with potential for sticky inflation and neutral outlook on equities.
• Institutional investors were net buyers in Singapore equities for the week of 16 Feb 2026, while retail investors were net sellers. Sector fund flows and upcoming dividend dates are listed.

Report Summary:

• UOL Group delivered strong earnings in FY25, but future uncertainties and limited upside led to a downgrade to HOLD.
• InnoTek remains profitable, is expanding in AI-related manufacturing, and investing in Southeast Asia despite revenue headwinds.

Above is an excerpt from a report by Lim & Tan Securities. Clients of Lim & Tan Securities can be the first to access the full report from the Lim & Tan Securities website: https://www.limtan.com.sg