UE E&C

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Hopefully they decide to announce half year dividends!

Two developments to be launched in 2H13 With the Ascentia Sky project almost completed.
Plus Austville Residences and Watercolours, which are almost fully sold.

UE E& C expected to launch its Prince Charles and Punggol EC projects in 2H13. The Prince Charles project is likely to feature a high-end development and estimated break-even price to be around S$1,450 psf. As a comparison, the nearly Echelon condominium is already > 90% sold with median price of ~S$1,650 psf (for Apr-13).

For the Punggol EC, estimated average selling price of S$740 psf versus an estimated break-even of S$650 psf.

Thanks for info..

UE E&C Target Price is approx $1.20

This stock has been one of my best picks so far. Here are some additional information that I am sure will help UE E&C to prosper.

UE E& C has a contract value on hand at $650m. Increase of 30% compared to last year.

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 (The Crest). JV with Wing Tai and Metro. Appointed main contractor for the project.

High synergy with parent company United Engineers, which bought over WBL as well. Assured of future jobs from them.

Full Year ended on 31/12/13 and can expect at least 5-7cent dividends (5-7% yield).

UE E&C has also been managing and maintaining power requirements for Singapore’s National Day Parade and Singapore Grand Prix Formula 1 Night Race. These will be on-going for a long time. F1 has also renewed contract for another 5years.

UE E& C is trading at 5.4x historical P/E which is obviously very cheap. Key factors:
Zero debts.
High ROE, ROA and profit margins.
Constant generation of free cash flow.
Very high dividend yield for blue chip company.
Guaranteed profits recognition upon TOP of property developments till 2016

Thanks for the update on their projects - very useful.

This stock is in my portfolio too and has enjoyed a strong run last year.

Financial position is strong and with the expected earnings growth for this and next FY, this stock should continue to do well in 2014.