UCHITEC – Fundamental Analysis (8 Jul 2014)

UCHITEC Analysis:-

Excel – http://1drv.ms/1zke3SH

My View:-

– Fair value:
  – Absolute EY%
    – FY13 (EPS: 0.106): Buy below 0.94, sell above 1.29
    – R4Q (EPS: 0.11): Buy below 0.98, sell above 1.34
    – FY14 (EPS: 0.116): Buy below 1.04, sell above 1.42
    – UCHITEC is fully valued.
– UCHITEC has low earning visibility/predictability.
– Although its dividend payout maintains above 80%, its Dividend Yield has been declining from 10% to 7%.
  – On one hand, at 1.41, you are still able to enjoy 7% dividend yield
  – On the other hand, is it possible for UCHITEC maintain high dividend payout while its net profit and free cash flow has been declining since 2008?
– I will consider UCHITEC as a turnaround stock, and place it in my Study List.

Latest Financial – Q1 2014 Financial Report (22 May 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1630161

At the time of writing, I did not own shares of UCHITEC, and categorized this stock in the Study List.


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