United Overseas Australia

United Overseas Australia

Postby winston » Tue Sep 18, 2012 5:39 pm

not vested

Valuation and Recommendation.

We value UOA’s 46% interest in UOAR and the 67.4% interest in UOAD at 9x PER (FY12F), as previously, and arrive at a fair value of S$0.94 (previously $1.08).

The lower valuation is largely due to our lowered FY12 earnings estimate of -10.9% (previously +3.5%) when we stretch the recognition of development profits forward as well as reduced cash holding following the capital reduction of 8 Acts paid in Jan 2012.

We further lowered the discount to valuation to 35% (previously 40%), in anticipation of improved property development sales, and arrived at a target price of 61Scts (previously 65Scts).

We favour UOA’s strong balance sheet with gearing of 0.14x as at 30 June 2012 and believe UOA will continue to offer shareholder value.

Maintain overweight. Forecast yield is also an attractive 5.1%.

Source: NRA Capital
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Re: United Overseas Australia

Postby stilicon » Tue Sep 18, 2012 7:17 pm

I looked at this co. today. At first sight, doesn't seem a bad case.

I just wonder what is the tax treatment of the dividend when given out from the Singapore place. Does the pretty high australian tax on dividend regime apply ? I just don't find any info. When they announce dividend via SGX, they don't even care to mention the tax treatment...

More generally, the financial info is poor and evidently not a high priority for those people. On their site, one cannot (as of today) download any financial report (the function exists, but doesn't work). On SGX, for the AR downloads, only the AR 2009 is supplied ...
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