Optimistic outlook. Strong Financial position. Prudent mgmt. black n white report. Only cover page color. Never waste 10-20 pages doing photos and portraits of mgmt team. Straight to the point and crisp clear on the business. No bull shit.
Warrent Buffett only have 4 rules: 1) A stock must be stable and understandable. 2) A stock must have long term prospects. 3) A stock must be managed by vigilant leaders. 4) A stock must be undervalued.
AGM was very insightful....of course there were shareholders who were complaining to mgmt for being too conservative. But overall, i like the mgmt for being very transparent and direct.
@Mark Goh - your analysis is very comprehensive......however I cannot agree that we capitalize the R&D. Also, why did you make the tax assumptions as 14%......26% I was told if the pioneer status is not granted, tax rate of 26% will kick in immediately.
@Mark Goh - Uchitech is a dividend stock, if it maintains the same dividend of 13 sen in FY17, dividend yield will be 6.4% based on Rm1.90. At Rm1.51, dividend yield will go up to 8.6%. I believe trust funds will provide very good support at 7% yield (price at Rm1.86), so not likely it will go down to Rm1.51 unless there is a major correction on Bursa or its business goes down badly.
Uchi is a net net company (its cash and deposit can already pay off its liability). In term of growth, its growing but not at a fast pace. With current market trend, its better to buy for defensive stock with 6% dividend yield (double the money we put in bank).
The tax expense has been negligible for years. When tax incentives cease and normal tax rate kicks in in the future, profit and dividend per share should come down by around 26%. All other things being equal, dividend per share may drop to 10sen and dividend yield at the current market share price of RM1.87 will drop to 5.3%.
"Because of its pioneer status, UOM is currently not being taxed for income generated from the research & development and manufacture of pioneer products. However, this pioneer status will be expiring on December 31, 2017. With the Group being at the forefront of new and innovative technology, UOM will endeavour to obtain approval from the relevant authorities to extend its pioneer status and consequently further facilitate our efforts in applying new technologies in our designs, processes and products. Nevertheless, this extension is subject to the approval of the relevant authorities."
another set of steady results. strong fundamentals, strong cash position and no borrowings. dividend yields consistent y-o-y. Dividend company for sure. What's there not to like about this company? If you want steady fixed income and good sleep at night, this is the counter for you. If you want action, look elsewhere.
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....
Apollo Ang
3,181 posts
Posted by Apollo Ang > 2017-04-19 23:30 | Report Abuse
this tortoise stock