Because Uchitec is a slow-growth company, not to say that the fundamental is not strong enough but the near-term drivers are not sufficient to justify a sudden rally in SP.
Malaysia ringgit is at 26 year weakness level against US$. While Malaysia economy grew 3.7% in 2024 vs Singapore at 1.1%, there is a silver lining.
Makes our export oriented machine economy more competitive. Semiconductors sector will benefit tremendously . Not to mention our Palm Oil, Oil & Gas, Tourism sectors all stand to gain very well.
Imports are costly but it discourages durable goods like EV cars, Overseas holidays and luxury goods. However, our imports primarily consists of Machineries needed to produce goods for exports like Semiconductor are one off painful purchases.
Weak ringgit are good for exporters like Inari, Uchitech (99% exports), MPI.
Be greedy when others are fearful. (Warren Buffett)
NOte: currencies cannot fall forever.
Source: Nikkei Asia, 2023, Malaysian ringgit wobbles in face of political uncertainty, China woes, visited site on 22 Feb 2024.
FPI has strong leadership is speakers technology Uchitec has scientific skills in developing chips for coffee and dominating the high end coffee machine brewer.
UCHITEC can easily sell to other clients but Moulinex , no. 1 consumer foods in Europe, made PARTNERSHIP to have exclusive acces to UCHI unique technology.
Proven past >20 years win win collaboration
Disclosure: happily owns wonderful businesses FPI , UCHI , INSAS + Warrants amongst my portfolio. May continue to buy aforementioned in next 72 hours of trading
How is UCHI similar to Berkshire’s subsidiary See’s Candy [SC]?
SC is major favourite sweet candies with major pricing powers. When you receive visitors in USA who brings a bag of SC, you are delighted.
SC couldn’t do much with its retained cash pile. so it pays dividends to Berkshire.
Similarly, UCHI couldn’t find high ROE projects and thus pays out >90% of its retained earnings while it is growing single digit percentage over 9 years.
Cash generating business. you receive cash and use it to invest elsewhere - compounding effect.
SKS, why明天会更好? Below are prospect from QR, why no one care to mention le?
From QR Based on the forecast and orders received, barring any unforeseen impacts, the Group anticipates a mid-single digitdecline in USD revenue for FY2024.
If sales drop, the only way to maintain or increase profit is by selling more pioneer status product than 2023. Hope sales will pick up just like 2023 when they forecasted flat sales in Feb but actual sales increase in Q3 n Q4 2023.
5 cents stated as interim div, no need agm approval, and 7.5 cents as final div, then, payment wait after agm la. usually around june or july loh. i did ask them y ini macam, they said they pratice ini macam woh, i dont know y loh. so funny
2 years ago, pay divy only twice. Final div only received in July. Now dividend being split up so we can get majority of them early. We should be grateful n happy la. 😁
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....
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