UOS - United Overseas Australia

[brerwallabi]

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.

 

[The Triangle]

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

If the directors were white with names like "Jake Wison, Mitch Sanders, Anna Anderson" and the business was in Australia would that change how people felt about it? I'd say so...

I always come back to this company every few months and especially keen now given they have a lot of cash on hand while the rest of the world has a lot of debt on hand which is getting more and more expensive.

 

[galumay]

If its not an outright fraud, (and I have seen absolutely nothing to suggest anything untoward), its the best value business on the ASX by a country mile, its awash in cash, massive assets, almost no debt, trades for a fraction of book, EV multiples in single digits, 25% FCF yield, etc etc.

The question is, how does that value get unlocked? I think that holds back to the price too, as well as the tacit racism you touch on. The company is not run to please retail shareholders, hence the low dividend, (payout ratio between 30-40% usually.), they run it to do its business, RE developments in Malaysia & Vietnam. I wish I held more businesses that focussed less on shareholders and more on the business. You will never read about bull**** like EBITDA in their reports!

 

[over9k]

You shouldn't be anyway - FCF is really the only thing you should be looking at

 

[galumay]

Now with the way SBP & capitalised software are treated, and the madness of IFRS-16 and accounting for right of use leases, FCF is much harder to work out.
Most places you see it quoted its just OCF less PP&E, and it will be wrong due to the distortions above. I used to use data sources for FCF on my spreadsheet, but I have to manually calculate now.

 

[galumay]

Half year results out for UOS, the monster just keeps growing! NTA is now twice the share price at $1.07, nearly $1b in cash, (it's just throwing off insane amounts of cash now.), EPS for the half of a bit over 2c. $3b in assets, $0.5b liabilities! The Cash Flow Statement is a thing of beauty,

I would increase my position further than its already significant size were it not for the lack of clarity about how the value gets unlocked and the silly DRP.

 

[The Triangle]

I would increase my position further than its already significant size were it not for the lack of clarity about how the value gets unlocked and the silly DRP.

Exactly. That's the most disturbing thing..... Where's all the value going? In to a bank account gathering dust?

They can afford to wait things out for a while. I expect some good deals at some stage.