UOL Group

(Sept 11: $7.53)

BUY. UOL Group’s Avenue South Residences sold 276 units, representing 92% of 300 units that were launched and 26% of total units. This is possibly the best-selling project during any launch weekend year to date. UOL’s strategy of phasing out and segmenting the project has proven to be successful. We understand that buyers were mostly Singaporeans with small units (one- to two-bedroom units) as the most popular, implying that investment demand has returned for selected properties with strong growth potential in the long-term led by the Greater Southern Waterfront development. UOL will be marketing the project overseas soon as it has received enquiries from foreign buyers, potentially taking advantage of any spillover demand from HK/China investors looking at overseas properties given the chaos in HK. Price target of $8.53 (14% upside).