Posted by Amit Khindriya > 2015-09-25 14:25 | Report Abuse

RM2 by Dec'15

Posted by tcsjohnson > 2015-10-02 13:04 | Report Abuse

1.6 still can buy in??

Posted by sron97g > 2015-10-21 13:44 | Report Abuse

3rd qr announcement got div lo

Posted by jm3525 > 2015-10-25 19:48 | Report Abuse

sron97g.. when..

Posted by Amit Khindriya > 2015-10-26 15:13 | Report Abuse

in Dec

Posted by jm3525 > 2015-10-26 22:35 | Report Abuse

tq... Amit

Posted by pinko4988 > 2015-11-02 08:54 |

Post removed.Why?

Posted by duitkwspkita > 2015-11-02 22:22 | Report Abuse

.

Posted by investor4333 > 2015-11-02 22:25 | Report Abuse

uchitech is a good company. but seldom up..

Posted by johnnytensai > 2015-11-05 02:27 | Report Abuse

http://gainvestor10sai.blogspot.my/2015/11/uchitec-u-see-that.html
U See That UCHITEC coming???

Posted by redpeople > 2015-11-05 09:53 | Report Abuse

can buy ady.. today T3.. go go go.. give me 165.. kiki

Posted by redpeople > 2015-11-05 10:33 | Report Abuse

UCHITEC is a company which manufactures mixed signal microprocessor-based application and system integration products, and trading of complete electronic module[1]. UCHITEC had their subsidiaries in Malaysia (Uchi Optoelectronic (M) Sdn. Bhd & Uchi Electronic (M) Sdn. Bhd.) and another subsidiary in China (Uchi Technologies (Dongguan) Co., Ltd). UCHITEC is majoring in services and products.

Their services such as product design (transforming product ideas through innovative solutions), construction and tooling design (provide customers the optimized construction and tooling designs), software + micro controller + ASIC solutions (integrating software; with UCHITEC gained their reputation through fully automatic coffee machine or a precision weighing scale), display modules solutions (specialized in LED Dot Matrix Displays and TFT Display Modules Solutions) and manufacturing services (OEM and ODM services)[2]. OEM aka Original Equipment Manufacturing whereby a company is designing and building a product based on its own specifications and then selling the product whereby ODM (Original Design Manufacturing) is designing and building a product as per another company's specifications. UCHITEC is an ODM and OEM company which can fit into the needs of their customers.

UCHITEC's products can be divided to 2 portions, which are Art of Living Group and Bio-Tech groups. UCHITEC is using IT to build a ubiquitous information society, such as a coffee machine. Next will be the Bio-Tech group, whereby commercializing health care services and biotechnology to enrich people's lives. The products of electrical and electronic appliances such as weighing scales, high end household appliances, coffee machine etc. Basically, UCHITEC draws on the wealth of experience and technology to contribute to corporate innovation.


UCHITEC serves a wide base of multi national companies, located primarily in Europe with Switzerland and Germany as major. I think their business model is quite attractive because of the ODM whereby they can fit into the needs of the customers with their expertise and experience that they have.

1) Fundamental Analysis:

The revenue and net profit is healthy, with averagely 45% net profit margin. The revenue and net profit stays stagnant for the time being, due to not much surprises to its business model. UCHITEC is a net cash company with RM157,758k in their bank. The net cash per share is around RM0.42. Again to stress out, net cash is important during economy downtime.

UCHITEC budgeted 7% of revenue in R&D in enhancing software and hardware. They are also continuously enhancing their existing products, developing lead-edge products and adopting new processes and applications in line with industry demands. According to Mr Chairman, Charlie Ong, the products will be exempted from income tax for a period of 5 years, beginning from the day of production, which in return will lift up the net profit. According to Managing Director, Mr Ted Kao, UCHITEC is more concentrated in Europe with nearly 100% of revenue derived from there. They had been exhibiting and promoting their products at international level, such as Taiwan, Hong Kong and Germany. Since their revenue is 100% billed in USD, foreign currency fluctuation poses a risk factor. But, they counter back the exposure by entering into foreign currency forward contracts[3]. Their revenue from major products is touch screen, which increased 22% from 2013. As for geographical site, Europe and Asia Pacific increased 4% and 39% respectively while US market dropped 8%.

The thing that really caught my attention is when i read through their quarterly results, which mention that the demand for the products in the normal course of event is seasonal with demand peaking during the third quarter of the year. On future prospect, the management expects revenue in USD to remain flat. Okay, fair enough. The revenue in USD to remain flat around RM 26 mil. Compared to Q2 2014, net profit increased by 17.43% due to increase in demand for their products and services and the appreciation of USD against RM[4].

Let's do a simple calculation. We assume that the net profit for Q3 and Q4 will be the same as Q1 and Q2, totaling up will be RM45,066k. When we annualised the EPS, it will be 01206. In order to find the Target Price, we use the current PE to multiply with the EPS.

Current PE = 15.50
Annualized EPS = 0.1206
Target Price (TP) = 15.50 x 0.1206 = 1.87 (let's round it off to 1.90)

Next, we track the movements in director's interest and also those with the intention to deal during closed period from July to November 2015. And please forgive me as my report of this is not comprehensive, but i manage to gather important points. Most of the directors/shareholders acquire their shares through ESOS (Employee Share Option Scheme), and they sell some portion[5].

Posted by redpeople > 2015-11-05 10:34 | Report Abuse

2) Technical Analysis:

Let's look at the chart. There is a big drop from June to July due to Amanah Saham selling their shares. Now their percentage only left 5.21% which is equals to 20 million shares. Then followed by the downfall of economy during August, which again melts the chart to around 1.40. Soon after that, it slowly climbs up and complete the double bottom, a reversal signal to go up. Lately on 2 November, there is a huge volume which straight shoot up, bring the candle to a bit overbought situation (RSI >70% and BB overheated). Therefore, now the price is retraced. For me, it is normal as long as it did not break the support at 1.64. Let's hope for the T+3 and it straight raises over its resistance of 1.73 and continue to march to new high.

Posted by redpeople > 2015-11-05 10:34 | Report Abuse

UCHITEC definitely had a solid foundation and lately there are so many buyers...
- Net cash company with business being promoted and exhibited in Germany, Hong Kong and Taiwan.
- Healthy results which EPS annualized to be 0.1206 with Target Price around 1.90.
- Management mentions that the revenue will be flat. But once converted to RM, it will produce firecrackers as the company benefits from strengthening USD.
- Seasonal or cyclical factors with higher demands in Q3.
- Q3 result to be announced in this month, November expecting good results.
- Insiders buying the shares between 1.60 to 1.70 lately, announcements from Bursa Malaysia.
- Retraced now after a high spike indicated by Bollinger Band and RSI.

Posted by redpeople > 2015-11-05 10:38 | Report Abuse

come come come .. i waiting u 163 164 165 166

Posted by hng33 > 2015-11-05 16:26 | Report Abuse

Bought Uchitech at 1.64

Posted by hng33 > 2015-11-05 19:06 | Report Abuse

Net cash, Stronger usd vs rm.....appreciate more than 20% to 4.30...... seasonal higher sale in q3, potential double up eps compared to corresponding previous q result....eps should record more than 4sen.....better dividend....likely increase 1 sen more in upcoming q result from 5sen to 6 sen at least......implying recuring 6 sen interim dividend + 6 sen final dividend....12sen annualized dividend will give rise stock to more than 7% nett yield.

Posted by looyee > 2015-11-05 23:46 | Report Abuse

Hi redpeople and hng33
Uchitec definitely has high margin and healthy balance sheet, definitely a good stock
However, I would like to highlight that:
I noticed from the quarterly reporting that the mgt actually has USD forward contract outstanding as at 30 Jun 15 amounting to USD14.3M at RM3.5991
With the increase in USD against RM now to approximately RM4.30, the company will have higher unrealised loss of about RM10m (RM3.2m already accounted for)
Something, no doubt not a big issue, that need to be taken into account?
I am not trying to be negative, just wanna add a point

Posted by hng33 > 2015-11-06 08:52 | Report Abuse

looyee

Uchitech adopt hedging to mitigate currency fluctuation due to it export business nature, therefore, it normal course of risk to record realize loss or realize gain every quarter depending on currency exchange. Uchitech have gradually reduce hedging amount by realize some of the loss in every quarter and have reflected under its current assess in balance sheet.

No doubt strengthening USD against RM have cost Uchitech some forex loss, but it is well absorb by its every quarter earning that is oriented in USD as well. Therefore, Uchitech USD earning will record stronger profit in RM and will only offset a little by loss in USD forex, and can expect much higher earning increment in next quarter result.

Posted by hng33 > 2015-11-06 09:08 | Report Abuse

Bought more Uchitech at 1.64

Posted by hng33 > 2015-11-06 09:31 | Report Abuse

Accumulate more Uchitech at 1.65

Posted by hng33 > 2015-11-06 09:45 | Report Abuse

Ready, GOOOOOOOOOOOOOO

Posted by hng33 > 2015-11-06 15:13 | Report Abuse

Sold off all at 1.71, realize quick handsome contra gain

Posted by johnnytensai > 2015-11-06 23:35 | Report Abuse

hi, looyee, can you teach me how to read those parts? actually i do not quite understand the foreign currency contract de pros and cons...

Posted by mason > 2015-11-10 13:56 | Report Abuse

i am been waiting uchitec to reach 2.00 since 2009. I believe the days will comes... i think ini kali la.

Posted by hsong > 2015-11-10 17:49 | Report Abuse

The must be a flaw in the hedging strategy.

Posted by mason > 2015-11-18 11:32 | Report Abuse

wah, 52 wks high now!

Posted by matrix6050 > 2015-11-19 11:28 | Report Abuse

:) continue to stay invested with the company

Posted by donttalkcock > 2015-11-20 14:42 | Report Abuse

buy more!!!hehe

Posted by davors > 2015-11-21 18:07 | Report Abuse

wait for dividend~

Posted by donttalkcock > 2015-11-24 11:09 | Report Abuse

time to collect more and more.

Posted by FairTalk > 2015-11-24 14:33 | Report Abuse

Appearing in a prominent business daily today - Uchi driven by strong US dollar. ... Another beneficiary of the strong US Dollar, Uchi reported a strong 9 month ended September 2015 ......

In a nutshell it is a very solid counter. Dividend yield is expected to be 6% which is more than FD !

Is it time to collect more ?

Posted by Abudance > 2015-12-04 12:10 | Report Abuse

Dropping ..

Posted by FairTalk > 2015-12-04 17:07 | Report Abuse

Today closing ok.

Posted by Amit Khindriya > 2015-12-08 20:58 | Report Abuse

Sad and surprised. No more analyst is covering this company.

Posted by davors > 2015-12-10 21:33 | Report Abuse

5c dividend ada~

Posted by FairTalk > 2015-12-14 17:16 | Report Abuse

This counter is very resilient as proven today.

Posted by Nihar Mynihar > 2015-12-17 11:35 | Report Abuse

sell at 1.73

Posted by hissyu2 > 2015-12-17 13:00 | Report Abuse

a few of more than 10k units shares were transacted recently, price around 1.75-1.78...

Posted by Beza > 2016-01-05 16:19 | Report Abuse

Strong position at RM1.69-1.74 even after Ex-date.

Posted by shortinvestor77 > 2016-01-18 20:54 | Report Abuse

Rm1.67. Value buy now.

Posted by grace123 > 2016-01-21 11:56 | Report Abuse

Bonus issue bila, baru boleh naik kuat kuat mah

Posted by grace123 > 2016-01-22 16:01 | Report Abuse

Worst counter, hardly up

Posted by grace123 > 2016-01-31 11:02 | Report Abuse

Related industry all up, this counter terrible, hold almost 3 years.

Posted by shortinvestor77 > 2016-02-01 21:13 | Report Abuse

RM 1.57 now. More value buy for 10 cents div a year.

Posted by D7zul > 2016-02-03 19:46 |

Post removed.Why?

Posted by grace123 > 2016-02-10 22:02 | Report Abuse

Waste of money in this counter

Posted by shortinvestor77 > 2016-02-13 17:54 | Report Abuse

Pray for bonus shares or share split like Fiamma. It will go up like rocket.

Posted by grace123 > 2016-02-15 15:29 | Report Abuse

No bonus since listed. Very kedukut.

Posted by shortinvestor77 > 2016-02-15 20:58 | Report Abuse

With div 10-11 cents a year, very good already. How to be stingy?