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Investors who have looked over Uni-Asia Group in the past few years have often remarked on the attractive discount its stock trades to its net asset value (NAV).
Even currently, Uni-Asia at $1.43 a share goes for about 62% discount to its US$2.89/share NAV.
Full-year net profit amounted to US$8.9 million (attributable to shareholders: US$6.2 million), reversing a loss of US$12.2 million in 2016. And the cashflow trend is encouraging:
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From the table it can be seen that the star segment was "property & hotels" while the shipping segment grew steadily.
@FY17 results briefing: Michio Tanamoto, executive chairman of Uni-Asia Group.
Photo by Leong Chan TeikWithin the property & hotel segment, the bright spot was investment returns which surged 296% to US$8.5 million in 2017:
♦ Realised gains on investment properties of US$4.35 million,
♦ Fair value gain from investment properties of US$1.2 million, and
♦ Net fair value gain from a Hong Kong property project (commercial office building) of US$6.8 million.
CFO Lim Kai Ching. Photo by Leong Chan TeikShip charter income increased by 10% to US$37.8 million in FY2017 attributable to:
♦ Better spot charter rates for the Group’s portfolio of ships under short-term charter, and
♦ More charter-hire days for the ships due to an addition to the ship portfolio in 2017.
The Group’s shipping business -- largely made up of dry bulkers -- is expected to continue to recover from the doldrums of the past five or so years.
The oversupply situation in the dry-bulker segment is easing, and demand picking up from infrastructure projects in ‘Belt and Road’ countries.
Looking further out, Uni-Asia is expected to see a profit boost from its hotel management operations from 2019 when it attains about 3,000 rooms under management.
KGI Securities has forecast US$2 - 2.5 million in recurring net profit a year.
For more on the 2017 results, see presentation materials here.
