UE E&C

lotustpsll
Offline
Elite Member

10 years 2 months ago #19212 by lotustpsll

Replied by lotustpsll on topic UE E&C

The investing thesis well delivered. It is abundantly clear that this small cap has the credential to move higher - good business model, strong financials, progressive dividend payout, established parentage, strong order books etc.

A core stock for the long term. Enjoy the ride!

Please Log in or Create an account to join the conversation.

StewardLittle
Topic Author
Offline
Junior Member

10 years 2 months ago #19253 by StewardLittle

Replied by StewardLittle on topic UE E&C

Full year results out.

As per what I previously wrote, it is fully within expectations. Congrats to all those that are vested.

Profit increased by 26%.

Dividends increased by 40% from 5cents to 7cents.

Dividend yield at current price 6.7%

Please Log in or Create an account to join the conversation.

StewardLittle
Topic Author
Offline
Junior Member

10 years 2 months ago #19400 by StewardLittle

Replied by StewardLittle on topic UE E&C

StewardLittle wrote: Full year results out on 27th Feb according to SGX calendar.

Expect good results with at least 5-7c dividend which translates to a yield of 4.7%-6.6%.

Which other blue chip stock can compare with UE E& C which has such an amazing yield? Furthermore, this is a growth company so capital appreciation is in the cards as well.

Just for easy reference:

Currect project book value of $750 million

30% stake in Austville Residences EC. Fully sold and will receive TOP by 1Q2014.

30% stake in Watercolours EC. Fully sold and will receive TOP in 2015.

30% stake in Waterwoods. Appointed main contractor (Great Earth) for the project.

20% stake in a residential development on Prince Charles Crescent(named The Crest). JV with Wing Tai and Metro. Appointed main contractor for the project.

High synergy with parent company United Engineers. Assured of future jobs from them.

UE E& C is trading at 5.4x historical P/E which is obviously very cheap. Zero debts. High ROE, ROA and profit margins. Coupled with the constant generation of free cash flow, the company is in a very strong position to grow.

UE E&C share price went up to $1.195 today. My posts since last year has been as clear as the day and spot on accurate. Both expected dividends paid and share price has come true. As a value investor, I advocate holding on to the shares and wait for more financial news of the company before further action and let your winners run. This is after all still a fundamentally strong company with a project book order of $750 million.

The following user(s) said Thank You: lotustpsll

Please Log in or Create an account to join the conversation.

lotustpsll
Offline
Elite Member

10 years 2 months ago #19401 by lotustpsll

Replied by lotustpsll on topic UE E&C

Your analysis was spot on.

Strong balance sheet and supported by visible earning growth for FY14/15. Potential book order wins may propel price further.

A lovely small cap value stock. One of my core holding.

Please Log in or Create an account to join the conversation.

StewardLittle
Topic Author
Offline
Junior Member

10 years 1 month ago - 10 years 1 month ago #19461 by StewardLittle

Replied by StewardLittle on topic UE E&C

This GEM is being sold and may receive a General Offer.

The Company wishes to announce that it has been informed that its controlling shareholder, United Engineers Limited, is currently in discussions with a third party in connection with the sale of its shareholding in the Company, which may or may not lead to a general offer for the shares of the Company. The Company understands that these discussions remain ongoing and no binding agreement has been reached. As such there is no assurance that the transaction will actually proceed.

At current prices, the yield is still a respectable amount of 5.5% so it seems strange to be selling at this price. The offer price must be attractive enough for UE to sell off it's 60%++ stake. Calculating the risk and reward, one should be buying instead.

Last edit: 10 years 1 month ago by StewardLittle.

Please Log in or Create an account to join the conversation.

lotustpsll
Offline
Elite Member

10 years 1 month ago #19462 by lotustpsll

Replied by lotustpsll on topic UE E&C

Interesting developments. Am hopeful for a good offer given the quality of this company.

Where did you get the news from?. I checked SGX but there is no such announcement.

Please Log in or Create an account to join the conversation.

Time to create page: 0.252 seconds