interest rate hike, property sales under more pressure. DRP price no discount to current price at 1.63. might as well take the cash and look for better bargain. e.g. Maybank, also high div & will benefit from interest rate hike.
Premium valuation becos of 1. Reputable management 2. Their product quality good, rarely hear their housebuyers complain kao kao 3. Steady+generous dividend yield/policy
Yes, RM0.10 / share just paid out. If they are paying interim of RM0.20, it seems they are expecting better times ahead. However, UOADEV has about RM0.92 in net cash / share, payment of extra dividends is not an issue... ;)
As a dividend investor who owns both UOADEV and UOAREIT, I am extremely happy that UOADEV will now pay for the first time, a 20 sen Interim Dividend in addition to its annual once a year "First and Final Dividend" which will no longer be a "First and Final". I cannot imagine how they can pay 20 sen + 10 sen Final = 30 sen Dividend when my cost price is only 1.59 excluding past dividends received. The dividend yield is unheard of! Wow, wow, wow!!!
Most impatient investors don't like stocks that pays once a year dividend, but I love it when I own 40+ diversified stocks! Now, looks like it's wanting to change to 2x per year dividend payments, which is also okay with me. Nice!!
With hindsight, this is a stock one should have loaded up during uncertain times. This company has almost no debt and is in very nice Net Cash position. When revenue declined, because its Finance costs is negligible, it continues to be able to keep its PAT a very nice positive. It has a war chest that it is now utilizing to reward shareholders to make itself leaner and more agile. This is the right way.
Many people don't realize and think all property developers are identical. They are not. Those that has the highest gearing also has the highest risk. This company is very well managed financially and deserves the spike in price. The brand name is well recognized, when foreigners come back, they will gravitate towards recognized names like UOADEV and UOAREIT.
When it was trading at RM1.6 just a few days ago, people don't realize that the Net Cash position is at least 91.5 sen (= 2.204B - 0.245M borrowings = 2.204B Net Cash / 2.409B ~ 91.5 sen)!! Which means net of cash, the entire business was on sale for only 1.6-0.915 = 68.5 sen! This is a company with NAV of RM2.4! Less cash = 1.485!.
In other words, excluding cash, the company was available for sale at 0.685 / 1.485 = 46 sen for every RM1 of Net Asset Value!
For the past 8 years, the company has been paying dividends equal to 15 / 15 / 15 / 14 / 14 / 15 and past 2 years cut that down to 10 / 10 sen. Anyone who looked at UOADEV dividend history for past 8 years will never predict that this year, it decides to pay 20 sen as First Interim Dividend! Not only is this higher than the past 8 year dividend payments, it suggests that if the Final Year Dividend is going to be another 10 sen, then, total dividend could look like 30 sen, which is super incredible when a few days ago it was RM1.60 and those who elected to have recent dividends as shares was able to own it at RM1.49 i.e. the dividend yield is easy 20%!!!
yo dividendguy67, i give u something even better! Insas Net Cash is about RM1.10 but the share price only 85sen! Which means net of cash, the entire Insas business is ZERO value! ZERO!
Satu satu property counter gives surprise from eco, UEM to oua like bank MBSB and RCE giving special dividend pushing up the share price for entire banking sector
speakup, my handle is DividendGuy, not NetCashGuy. To me, there is massive difference between having NetCash vs Paying dividends. Insas has extremely poor history of paying dividends, hence, not meet my criteria. Sure, on paper, there's value there, but 2 concerns: 1. When will Insas ever share that wealth with shareholders? Clearly not over the past 10 years. Next 10 years??? 2. I couldn't quite follow easily the 11 July announcement about providing financial assistance to its money lending subsidiary - if something is too difficult, then, I pass.
While the company's willing to be generous with dividends is good, could such generosity be interpreted as Management seeing limited growth opportunities, hence choosing to reward shareholders such?
Doesn’t matter really, Money given out is real money. Can save it, reinvest it or spend it in whatever way u like. To give out more money signals company is confident of paying and they have the cash to pay.
Another way to look at this from shareholder perspective is that I am happy they choose to pay additional 20 sen in dividend, after 8 years of prudent dividend paying.
For me I have always chosen scrip all this while. This saves lots of brokerage fees and I am able to get more shares at lower prices. Fortune created automatically
UOADEV is still cheap at 1.87. Historically, it pays dividends around 14-15 sen. Only over past 2 years, during Covid pandemic, that the dividend was cut prudently to 10 sen. Now it starts to pay 20 sen interim dividend, which looks like a one-time thing. But going forward, if it goes back to 14 sen annual dividend (very achievable, since large net cash), that's 14 / 1.87 = 7.5% dividend yield, which is very, very nice. Sure beats EPF. Hence, despite the rise in price, I am still doing nothing and just holding as I think UOADEV is now rerated very differently from the old days when it didn't pay the 20 sen interim dividend. Going forward, if it pays dividends twice a year, 5 sen and 10 sen, I can hold on to this stock for an extremely long time.
Someone told me that they avoided UOADEV because it keep holding to its massive cash pile for so many years without sharing. It is true. UOADEV kept its cash pile up and up until it is nearly 92 sen. This is actually unfair to different generations of shareholders in 2 ways:
1. The old shareholders who stood by UOADEV during the times in the past when it made large profits and grow the cash-pile. These shareholders, if they left prior to the 20 sen special dividend, loses out. Poor them.
2. The new shareholders who just bought UOADEV, when current year earnings is only 9-10 sen, but UOADEV looks set to declare 30 sen (=10 + 20). How fair is it that they got a windfall gain so quickly??
Should the first group of shareholders initiate a class action suit against UOADEV Board of Directors for being unfair in its dividend declarations?
Should the dividend policy of UOADEV be amended to avoid this sort of unfair situation from arising in the future?
Could the Board of Directors, over the past 5-10 years, declared a more equitable dividend sharing?
Investors should ask these questions to all Board of Directors in the AGMs, so that they don't forget the minority shareholders.
Notwitstanding the above concerns to the Board of Directors, what should investors do today, given that even after distributing 20 sen special dividend, there is still a massive 72 sen net cash ...
What will the Board of Directors and Senior Management do with this 72 sen?
Your guess is as good as mine. I think it is not impossible for them to distribute another special dividend again next year or two. For many years in the future, if they earn 10 sen earnings, and pay 15 sen dividends, this can be sustained for at least 14 consecutive years. If they do this every other year, that's 28 consecutive years.
The size of cash pile they hold is ridiculously high. Some of us might no longer be alive 28 years from now.
Shareholders should demand UOADEV to distribute the remaining 72 sen dividend. Don't be like LCTITAN. From 5 billion net cash down to net debt and losing money. Total destroyer of wealth. Hence, the biggest fear shareholders have for UOADEV is that Management, with that massive cash pile, go on to take silly risks with negative returns, only to benefit themselves. Hence, shareholders should demand that the excess cash be distributed as additional special dividends to shareholders!
For those who thinks that 72 sen net cash is small, consider that if UOADEV enhances its yearly dividend by 4 sen a year, and does this every consecutive years, it can afford to do this for the next 18 consecutive years to keep enhancing its dividends.
18 years is a VERY long time.
Market should get excited, because unlike old farts that never shares, UOADEV finally developed a conscience and start sharing 20 sen. The question now is - what next? What about the other 72 sen? Either way, speculators will bid this stock up because either way, whether special dividends or permanent additions of 4-5 sen, the period of enhanced dividends is very long i.e. there is now a potential catalysts ...
I am a fundamental investor so I don't trade. But I know many traders use technical to gauge market sentiments. Let me give the traders another data point.
I blog about value investing and I do case studies where I analyse and value companies. I think that there must be some interest in a particular company when it becomes one of the top searched case studies for the past month or so. So for those trading on sentiments, the UOA Ltd group came up in my top in my blog. I will leave you to decide whether this has any use from a technical trading perspective.
But if you want insights into Bursa listed companies go to my blog and read "Are these outstanding stocks - what to consider? (Bursa Malaysia)"
Thanks to UOADEV (and LIIHEN and 12 other stocks in green for me today), my portfolio made a NEW HIGH today. This week is the 2nd time, yesterday was a NEW HIGH then and today edges up a bit higher. Thank-you Mr Market.
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Posted by Trade in Peace > 2021-12-19 17:39 | Report Abuse
Short term dont touch
6pm有影片 https://www.youtube.com/watch?v=eVrCWUSJ97g