# UOS - United Overseas Australia



## tnargak (23 June 2008)

$10,000,000.00 worth of shares bought by both directors on the 11th of June.

($5m packets each)

What are your thoughts on this company?


*United Overseas Australia Limited (UOS)* is a property development and management company involved in residential and commercial property development, both for resale and to be retained by the group to derive rental income. Most of the properties being developed and managed are located in Kuala Lumpur (KL), Malaysia.


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## robert toms (24 June 2008)

I looked at these about six months ago...I only wish that they had a website so that we could see exactly what the range of their projects were,
All the major shareholders look to be Malaysian companies...not surprising as they know them better than we do.
From comsec research they consistently pay a dividend,the last one only twelve percent payout,as needed cash for land purchases in KL it seemed.
Whether KL has better prospects for apartments than Australia at the moment I am not sure...but probably has.
An interesting company,wish that I had more info.
I will keep watching...I didn't like to see your post go unanswered !


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## alex keaton (10 September 2009)

robert toms said:


> An interesting company,wish that I had more info.
> I will keep watching...I didn't like to see your post go unanswered !




UOS have released some info on their projects in today's company presentation.

Good LT hold IMHO

http://www.stocknessmonster.com/news-item?S=UOS&E=ASX&N=459725


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## prawn_86 (10 September 2009)

alex keaton said:


> Good LT hold IMHO




And why is that your opinion Alex? What specifically makes them such a good long term hold? More details are required as to reasons, rather than just stating opinions.

Thanks

Prawn


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## Klogg (28 August 2013)

It's been a while since the last post, but this company is still going strong.

Notifications of a 50% profit increase (unaudited), and the main subsidiary (UOADB) now holding 808m MYR (240m AUD @ 0.34 MYRAUD rate). Additionally, the subsidiary has maintained an approx 30% margin on their revenue (NPAT/revenue)

Include the cash held in UOS itself and half the market cap is in cash...


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## robusta (14 February 2014)

I took a small position in this business on my portfolio thread the other day anyway here are a couple of interesting posts relating to UOS




Ves said:


> Interesting company.   Would you believe I've been watching it since May last year?   It intrigues me,  because on the surface it looks very cheap... but something so far has kept me out of it.   Very illiquid and tightly held,  so just be careful if you need to get out in a hurry. The clearest revaluation catalyst for this company would appear to be it being taken private by the parties who have majority interests in it.
> 
> The related company structure is a nice little web in itself.   Entities entwined together, so lots to think about.
> 
> ...






Ves said:


> I believe this is the article.
> 
> http://www.eternalgrowthpartners.com/node/168
> 
> All credit to eternalgrowth who posts a lot on this company over at Hotcopper.


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## robusta (14 February 2014)

Thanks for the link Ves a very interesting read.
Seems I missed this post among others to copy.



Klogg said:


> I know there was talk of a breakdown of the assets attributable to each of the subsidiaries and ultimately to the shareholders of UOS, but management deemed it too complex from memory.
> 
> On talks of a property bubble - I honestly think this company would love a pop in property. Labour would be cheaper and they have mountains of cash to start land banking.
> 
> ...


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## Klogg (27 February 2014)

Wow... not a bad full-year. 4th quarter earnings weren't great, but they are a property developer, so 'lumpy' earnings are expected.

That said, NTA per ordinary share (after NCI) are 75cps... UOS also have no debts and are swimming in cash.
How is this trading closer to NTA? Surely liquidity constraints would just mean more volatility rather than a lack of interest...


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## robusta (27 February 2014)

Hmmmmm and they reckon cash flow per share of $0.15


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## galumay (29 August 2019)

Another great half for UOS, this thing is just gushing cash now. I have held for about 5 years and its a big part of my SMSF. One day it will be rerated, in the mean time plenty of opportunity to accumulate.


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## chiff (30 August 2019)

galumay said:


> Another great half for UOS, this thing is just gushing cash now. I have held for about 5 years and its a big part of my SMSF. One day it will be rerated, in the mean time plenty of opportunity to accumulate.



Looked at these when they were under 20 cents,never paid a decent dividend so I have just kept watching.Always notice residential high rise when in KL and wonder whether it is theirs.


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## galumay (30 August 2019)

Hey chiff, quite likely some of it is, you can see in their annual reports etc what they own in KL. 
I think this is one of those businesses where you have to consider what the best use of capital is, they have always been able to reinvest at a rate of return that means its much better they don't pay out profits as dividends. I am reminded of the Buffett (i think?), quote about the best option being if the company can reinvest profits for a higher return than the investor can earn elsewhere, second best being stock buybacks if the company is trading below a fair valuation, and if they cant do either of them, distribute dividends.


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## brerwallabi (31 December 2019)

Seeing I have to post something about UOS to enter the January monthly competition I have to add some words..
UOS is one of the unnoticed it’s been gradually creeping up over the years in the last five years 50cents to 88cents paying 2.5cents yearly unfranked.
It’s no market darling, volume not high.
I just noticed looking at its chart it seems to decline regularly in January, so this year going to go against that trend on the back on very strong year it’s enjoyed.


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## Smurf1976 (2 October 2020)

brerwallabi said:


> Seeing I have to post something about UOS to enter the January monthly competition I have to add some words..
> UOS is one of the unnoticed it’s been gradually creeping up over the years in the last five years 50cents to 88cents paying 2.5cents yearly unfranked.



Looking at it recently, despite the major fall earlier this year along with practically everything else it has diverged from the overall market during the past month noticeably.

UOS has been trending up whilst the index has trended slightly down which could be a positive sign for those holding.


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## galumay (2 October 2020)

My biggest position. I suspect its one of the most unloved and misunderstood businesses listed on the ASX.


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## finicky (2 October 2020)

Heard this mentioned a few times and a glance at comsec financial measures makes me wonder why. Best I could say is consistent and maybe one place to park cash if worried about the trend of the general market.
Seems mediocre, the eps doesn't rise, nor the modest dividend which is unfranked. It's trading below book value which seems cheap. Rising book value is the only brightness I can see from a casual look. Still hasn't got back to pre-Wuhan level


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## galumay (2 October 2020)

It takes some unpacking, @finicky and I think that is why its gone unloved and misunderstood for so long. There are few writeups over the years that help explain, https://www.raskmedia.com.au/2018/1...tralia-limited-an-asx-hidden-gem-in-property/ 
Tony Hansen has been a long term holder and has written many articles about UOS, this one is old but detailed,






						Update No. 165 – 31/05/14 - EGP Capital
					

I attended the AGM in Kuala Lumpur this week of one of our largest and most important shareholdings. I will fly home tomorrow to make sure your dividend is processed and for those not taking the cash (all of you – thanks for your ongoing belief in me), your new EGP shares issued.




					egpcapital.com.au


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## finicky (2 October 2020)

Thanks for the links @galumay. I note that the analyst being credited for the bump in interest recommended a buy up to 70c
So it has undervalued property assets on its books but that doesn't command higher rents I guess as earnings and ROE are pretty stagnant. Admittedly one major building that is undervalued is partly occupied  by themselves. Sure if they sold these properties we're told they'd make a big non ordinary profit for that year. It does seem to assume that Kuala Lumpur commercial r/e will remain buoyant. Not my field - what is?


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## over9k (2 October 2020)

Just had a look into this. I think you might be right galumay. I might open a position up next week.


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## galumay (2 October 2020)

I am rarely right, just more or less wrong! Its definitely a long term hold though, it could be many more years before that pent up value is reflected. I dont mind because of the discount to a very conservative book value - thats a rare margin of safety in this day and age.


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## brerwallabi (2 October 2020)

Proposed acquisition of adding  UOA tower in Bangsar south to the UOAREIT is on the cards big cost at RM700million which is 38 storey site approximately four years old, it has an occupancy rate of 93% with a diverse range of tenants so it will be income generating.
Purchase is made of 10% down which is part of a 5 year revolving debt facility of RM422million and a private placement of RM278million will make up the 700million.
For a period of eighteen months the stock battled to break 70 cents and June 2019 it finally did hitting 90cents pre Covid
Post Covid saw a decline to 59 cents it’s put on 20% since that April low, made a post Covid high today of 75cents before falling back with the general market to close at 73cents.
I see this as also a long term hold as previously mentioned with little risk, each to their own.


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