CGS-CIMB analyst Lock Mun Yee reiterated a Buy rating on UOL Group on August 13 and set a price target of S$8.20.
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Lock Mun Yee’s rating is based on UOL Group’s strong financial performance and strategic initiatives. The company reported a significant increase in revenue and profit for the first half of 2025, driven by robust residential development and rental income. The residential segment saw impressive sales from projects like Pinetree Hill, Watten House, and MEYER BLUE, with new launches also performing well, indicating strong demand and income visibility.
Additionally, UOL’s rental income benefited from asset enhancement initiatives and positive rental reversions, contributing to overall revenue growth. The company’s strategic divestment of Parkroyal Yangon at a premium further strengthened its financial position. UOL’s diversified business model, strong balance sheet, and recurring income streams make it an attractive investment, with potential catalysts including further value-unlocking from its investment properties and successful residential project sales. However, potential risks such as cost over-runs and rising construction costs are noted.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a S$8.35 price target.
UOLGF’s price has also changed dramatically for the past six months – from $3.785 to $5.340, which is a 41.08% increase.