UOADEV: An Attractive Property Developer

Background

UOA Development BHD (‘UOADEV’) is involved in property development of residential, commercial and industrial properties. It has developed a few large projects, the most famous being the Bangsar South development.  


via, Company's website

Historical Financial Performance

The company's top-line and bottom-line show steady growth over the past 5 years.

 
Chart 1: UOADEV's last 10 Half-yearly result

Recent Financial Result

In QE30/6/2016, UOADEV's net profit rose 29% q-o-q but dropped marginally y-o-y to RM124 million while revenue rose 47% q-o-q but dropped 25% y-o-y to RM295 million. Net profit rose q-o-q due to the contribution from Desa Green serviced Apartments which were completed during the quarter.


Table: UOADEV's last 8 quarter's result


Chart 2: UOADEV's last 10 quarter's result

Financial Position

As at 30/6/2016, UOADEV's financial position is deemed satisfactory. Its current ratio stood at 2.4x while gearing ratio stood at 0.38x.

Valuation

UOADEV (closed at RM2.57 yesterday) is now trading at a trailing PER of 8.6 times (based on last 4 quarterly EPS of 30 sen). At that PER, UOADEV is deemed fairly attractive. Its dividend payment rose to 15 sen for FY2015 from 13 sen in FY2014. If dividend payable remains unchanged, the Dividend yield for the stock is at a commendable 5.8%.

Technical Outlook

UOADEV appears to have broken above the line connecting the previous 2 peaks at RM2.50. This upside breakout could lead to an acceleration in its uptrend.


Chart 3: UOADEV's weekly chart as at Sep 8, 2016 (Source: Chartnexus)

Conclusion

Based on good financial performance, satisfactory financial position, attractive valuation & bullish technical outlook, UOADEV could be a good stock for a TRADING BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.