From the perspective of the analysts, there are several tailwinds in UOL’s favour. The Singapore residential property market remains underpinned by stable demand and UOL has acquired some plum sites. On Jan 14, UOL, along with CapitaLand Development (CLD) and CapitaLand Integrated Commercial Trust, was awarded the tender for the Hougang Central Government Land Sales (GLS) site at approximately $1.5 billion, or $1,179 psf per plot ratio.
Property stocks have been making decent gains amid prospects of further rate cuts, buoyed by a strong Singapore market. UOL Group, a component of the Straits Times Index, stands out for its gain of more than a quarter in the past month alone, reaching a record of $11.18 on Jan 27, following a call by JP Morgan, which has established itself as among the cheeriest bulls. In the past year, UOL has more than doubled.
From a previous target price of $10.15, JP Morgan analysts Terence Khi and Mervin Song, in their Jan 26 report, estimate this stock is worth $12.05, based on an 18% discount to its RNAV, implying a 0.84 times price-to-book ratio.
