Aiyoyo, cooku and Sardin fish very happy on the result wor!!! I also very happy lo, hope next week drop kaw kaw lo. Still waiting at the right price to add lo. 😁😋
From a fundamental perspective the ROE of the company has been up-trending for many years. The issue is not whether this is a fundamentally sound company. It is. The more important question is whether the stock price is trading higher than its intrinsic value. If it is then it is not an investment opportunity. Of course it boils down to valuation but this is a another story.
The REWARD - Strong Balance sheet; cash rich - Very High Margins; albeit little less now because cannot escape tax any longer - Dividend aristocrat FY23E RM0.25 at least
The RISK - Mgmt very stubborn and old fashioned, does not want to put better use of profits (and cash) to grow operations but prefer to pay themselves (and minority share holders) great dividends - This could be dangerous longer term as today almost 80% of revenue is from 1 customer (Jura); albeit Uchi is sole source - If there is a problem to Jura's business, Uchi's revenue will be wiped out
Prospect EPS and Revenue has normalize; many other coffee players are eating into Jura's market share (just look at their website). Recent spike in profits (past few quarters) is mainly due to weakening RM against USD.
Value At RM3.60 is definitely fully valued. While no one can predict Mr Market, the "fair" value to me is around RM2.80 (with MOS)....personally I will start to accumulate when below RM3.1 if nothing else changes.
Sometimes I wonder why they continue to be listed when do not want to attract any investors nor need any money as they do not want to grow. Better to just go private.
My analysis for 2.8 uses an arbitrary discount factor and a mos which is ultra conservative. But based on what I see I think can start buying below 3.1 Buy slowly..
This Madanon govt needs money..so will be very careful and selective in only awarding tax breaks to genuine advancements in technology. Uchi ultra stingy and stubborn management has not and are not going to spend enough in R&D that will get them there. They seem very comfortable and are busy trying to fulfil orders.
R&D is there, if orders are high for a particular new product, the engineers have to supervise and monitor the progress and ensure the product are manufactured according to the specifications so as to fulfil orders on time. So R&D job will be slower and swing when orders are lower.
Investing means managing you risk. Of course I have a small position here and will continue to reap the dividends…but this is not a place to “all in” and sleep in peace.
Uchi is very stable company with good track record. We have to be patient with the management. They will become competitive. This is a good-dividend stock, not for speculation though.
because they didnt manage the cash wisely. ended up with too much cash which violates Bursa regulation that they company cannot have X% of it's NTA in cash.....that is why I also very baffled with Uchi.....companies must reinvest their profits to grow and scale. But this buggers are so conservative.
Uchi have managed very well in their business, to me I have confident in them, the management might not want to put in too much risks for the shareholders, I supported it. Just let time to proof its course of action.
Atleast Uchi gave back as div to shareholders, let shareholders invest on their own. If management were to reinvest and any wrong moves, shareholders will be pointing their fingers and blaming them only.
Shines Bro 1eo, I lost count when, I bot after the last BI around rm3, and as it drop I bought and bought my ave is around 1.60. Wah...almost #20%DY. My average is @2.50. Hold...since Jan. 21. Still okay DY... average above...#7.2% is okay...safety is above...#10/12%... average 10-Yr. Dividend around #0.20/share...bonus issue not included. 🤔
there is no change, except enjoying the weaker RM factor. no growth or diversification in earnings. read their quarterly report. it is cut and paste for past many quaters (if not years). so, at this price it is over valued. beware. fair price is RM2.80
Uchi Technologies Bhd https://www.instagram.com/p/C0IxMpRBBw-/?img_index=, an original design manufacturer, reported a 3% rise in net profit to RM33.42 million in the third quarter of 2023, compared to RM32.51 million in the same period last year. The increase is attributed to increased demand for the company's products and services, resulting in stronger revenue.
I think you guys do get the point. This is a good business with solid financials….but in order to ensure it is a good investment, you need to ensure you buy at the right price. Currently it is overpriced, driven probably by CD.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Value Investor Coo1eo
738 posts
Posted by Value Investor Coo1eo > 2023-08-13 00:11 |
Post removed.Why?