UOL Group （UTOS.SI）：1H24 slightly below，Executing on divestment and asset enhancement initiatives despite weaker resi； Buy

Investment Rating - The report maintains a "Buy" rating for UOL Group with a 12-month target price of S$7.75, slightly adjusted from the previous S$7.84 [2][12][13]. Core Insights - UOL reported a 1H24 core Patmi of S$143 million, reflecting an 8% year-over-year increase, but slightly below consensus estimates [2][3]. - Revenue decreased by 7% year-over-year to S$1.3 billion, primarily due to lower residential sales, although this was partially offset by increased investment and hotel revenue [2][3]. - The commercial portfolio showed strong rental reversions, and hotel RevPAR increased by 41% year-over-year, indicating a recovery in the hotel segment [2][7]. Financial Performance - The property development revenue was S$522 million, down 23% year-over-year, attributed to lower progressive recognition from Clavon and the absence of contributions from Avenue South Residence [4]. - The property investment revenue increased by 8% year-over-year to S$271 million, with a stable EBITDA margin of 32.1% [5][7]. - Hotel operations revenue rose by 11% year-over-year to S$378 million, with EBITDA increasing by 24% [7]. Strategic Initiatives - UOL is actively pursuing capital recycling, with the proposed divestment of Stamford Court at 21% above book valuation as part of its long-term portfolio optimization strategy [8][12]. - Upcoming project launches include Meyer Blue in September 2024 and additional sites in 2025 [4][8]. - The company is focusing on asset enhancement initiatives, with several projects expected to complete in the coming years [7]. Market Outlook - The report suggests that UOL's diversified portfolio across development and investment properties, hotels, and serviced suites positions it well for future growth [12]. - The valuation appears attractive, trading below -1 standard deviation discount to RNAV, indicating potential upside [12].