Uchi Technologies - Profits and DPS Above Expectations Author: kltrader | Publish date: Thu, 25 Feb 2021, 8:59 AM
Another Record Quarter as Both Revenue and Earnings Surge FY20 results grossly above expectations on stronger-than-expected revenue and margins Maintain BUY with a higher TP of RM3.88. Yields at ~5-6% are attractive Revenue and Earnings Surged Further in 4Q20 4Q20 revenue and core profit surged by 33% and 41% qoq respectively, even after the strong previous quarter, which had recovered from order backlogs due to production halts during the Movement Control Order (MCO) in 2Q20. With the strong revenue and hence better operating leverage coupled with favourable revenue mix, EBITDA margin further improved by 2.9ppts qoq. Overall, this has been the strongest quarter ever reported by Uchi, both in terms of revenue and profit, which we believe is being underpinned by strong demand for household appliances spurred by the work-fromhome trend.
2020 Results Above Expectations, DPS Ahead of Expectations Cumulatively, Uchi’s 2020 core profit of RM85m (+10% yoy) came in above expectations, accounting for 120% and 124% of our and the street’s full-year estimates respectively. Revenue in US$ terms had contracted by 1.8% yoy and we believe this was also better than management’s earlier revenue guidance of a single-digit decline. The earnings surprise was largely due to a combination of better-than-expected revenue and EBITDA margin. DPS for the full year amounted to 17 sen (FY19: 16 sen), which was also a positive surprise.
Maintain BUY With a Higher 12-month TP of RM3.88 We update our 2021-22E EPS to incorporate the FY20 financial results and also introduce our 2023E EPS of 21.2sen (+6% yoy). We lift our target price to RM3.88 based on a higher target PE of 21x or +2SD its 5-year historical mean, on 2021E EPS (from RM2.92 based on a PE of 18x or +1SD). While valuations are high relative to historical average, the stock continues to trade at a significant discount to sector PE mean. Given the ample market liquidity and stock’s attractiveness as a high-quality dividend play, we think that stock PE multiples can continue to re-rate. We also like Uchi for its strong relationship with its key customer and how it remains the sole supplier of its coffee modules. Its customer, which manufactures deep freezers used within the vaccine logistics supply chain, could provide a near-term earnings catalysts. Key risks include weaker demand, weaker RM against the US$ and gain/loss of customers.
Biotech could serve as future catalyst in this pandemic era ........................................................
HLIB said one of the products in Uchi’s pioneer status list is the ultra-low temperature and mass sensing control system.
It said this device is designed for the storage of biological materials (such as virus, bacteria, eukaryotic cells, stem cell and blood) mainly used in blood banks, hospitals, epidemic prevention services, research institutes and biomedical facilities.
The Mastercycler® nexus X2 is Eppendorf's solution for busy PCR labs. Two totally independent protocols can be run on the two blocks, so two PCR users can independently start and end their PCR reactions whenever they want. One of the assays can even have up to 64 samples. With less than 40 dB[a] noise emission, the nexus PCR cycler is whisper quiet and also very energy efficient
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. Prob, dont miss, cash rich rm280mil and well prepared Frontkn via 84% Taiwanese subsidiary- Ares Green, proven as best local proxy to TSMC, who announced US100B ultra supercycle expansion on Thursday, Good Friday Taiwan and US holiday. Monday Taiwan holiday.... So Monday should be last fr the best......
Prob, dont miss, cash rich rm280mil and well prepared Frontkn via 84% Taiwanese subsidiary- Ares Green, proven multiple times as best local proxy to TSMC, who announced US100B ultra supercycle expansion on Thursday, Good Friday Taiwan and US holiday. Monday Taiwan holiday.... So Monday should be last fr the best......
Uchitec PE 17.23 ,Margin over 53.99%, ROE 46.73%, DY 5.03% are considered one of the best in market. Its a matter of time for price to move up . I collect more .
U see this counter mostly are Institutional investors. Then you know you cannot be wrong. Mostly almost all fund manager and Insurance companies are buying this counter. so where could you go wrong buying this counter
The current trend and new normal is to work from home. Good coffee is almost basic life standard for high income people in the EU. How could they miss this in their home office? They need to buy one in order to enjoy good coffee at home as they no longer have the access to the one in their office building anymore for at least another year.
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....
chshzhd
1,908 posts
Posted by chshzhd > 2021-03-12 12:37 | Report Abuse
sit tight ..