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UOS - United Overseas Australia

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tnargak

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$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.
 
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 !
 
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...
 
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.

Agree that it looks well managed, management looks pretty open to questions from what I've read. The problem with this is that the company is so tightly held that no one asks them questions!

edit: I won't claim to have found this one on my own, someone asked me to have a look at the time.
Click to expand...

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.
Click to expand...
 
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.

There's one risk that no-one really mentions though - the founder and CEO is in his early 70s, so he's getting on in years... and I'm yet to hear of a succession plan.



Same for me - I found it as a result of the Eternal Growth fund also - started buying about 6 months ago.
Click to expand...
 
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...
 
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.
 
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.
Click to expand...
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.
 
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.
 
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.
 
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.
Click to expand...
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. :2twocents
 
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
 
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 egpcapital.com.au
 
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?
 
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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