Updated: Apr 13, 2021
UOL operates property development, property investment and hotel operations. It is majorly owned by the Wee family of UOB.
Since 2009, UOL's P/B valuation had been trading within the range of 0.5x to 0.8x. It last hit 0.5x in Nov 2020 and is currently trading at 0.67x P/B valuation. Investors wanting an exposure to the property sector can consider UOL.
Based on current Book Value level, a P/B of 0.8x will imply that UOL has the potential of reaching $9.50. Factoring the historical growth rate of 5.65% on its book value, the target will then be raised to $10. The support is at $6 based on 0.5x P/B valuation.
On its daily chart, we are seeing some momentum in the price move, with KST indicator crossing up. Short-term support of $7.20 can be set as cut-loss level for traders who are unwilling to average in again should the momentum fail to build up and the valuation drop back to 0.5x level.
This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
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