Uchitec, High Dividend Yield Stock & Fair Value/Target Price (Update)



Uchitec

Uchi Technologies Berhad (Uchitec-7100) was incorporated on 18th February 1998. It was converted to a public limited company and transferred to the Main Board of the Bursa Malaysia on 9th May, 2002.

The main activities of Uchi Technologies are principally involved in manufacturing of mixed signal microprocessor-based application and system integration products, and trading of complete electronic module and saturated paper for printed circuit board (PCB) lamination.

Among the largest shareholders are Tabung Haji, EPF, PNB, KWAP and a few unit trust funds.

Uchitec is known to have solid management, and they are paying a very attractive dividend to shareholders. For the past 7 years except for 2009, the dividend yield for Uchitec stays above 6% which is about 2 times of the current fixed deposit rate. For the year 2011, the dividend yield was 11%.

Unfortunately, there is not much coverage by a research house on Uchitec for the latest Fair Value/Target Price. The last done was from CIMB in August 2012 whose make a neutral recommendation with a target price of RM1.13.

CIMB also believed that Uchitec will be able to pay 12 sen dividend for financial year end 2012 due to strong net cash position. Based on current share price of RM1.16, the dividend yield is 10.34%.

CIMB forecasted that Uchitec will be able to maintain 12 sen yearly dividend for the year of 2013 & 2014.

The table below is the financial summary of Uchitec for the past 7 years.

2005 2006 2007 2008 2009 2010 2011
Revenue (RM’000) 131,884 153,197 156,875 122,898 83,139 100,883 103,306
Net Profit (RM’000) 73,578 83,888 78,228 58,748 26,953 52,578 48,943
PE Ratio (x) 15.02 13.88 12.83 5.82 18.44 9.58 8.39
EPS (sen) 19.97 22.47 20.89 15.81 7.27 14.18 13.00
Dividend (sen) 20 27 20 12 6 12 12
Dividend Yield (%) * 6.67 8.65 7.46 13.04 4.48 9.23 11.01

*Based on price on last trading day of the year

What you think about Uchitec?


Leave a Comment

  • kokhoe 7th November, 2012, 8:08 am

    Hi,
    I have been looking at this counter for the past 6 months and there really wasnt much activity, neither heavy gains or loss, i am still undecided on the status if i should hold on. but the cash is quite strong with the company although revenue have dropped a bit, the profit margin is still impressive for me.

    Reply
    • 1mdb.com 7th November, 2012, 2:22 pm

      hi, this counter is good for dividend play, not much for capital appreciation. I been holding for a few years now & enjoy the dividend.

      Reply
  • nmsupri 12th November, 2012, 12:04 am

    What more could i ask? My margin financing is at BLR-2% and this stock give me at least 5% differential. It is good really good to hold.

    Reply
  • Low Hong Sheng 12th November, 2012, 3:41 pm

    So far, the company has been able to pay good dividends to shareholders mainly due to subsidiaries’ profits being dividend up to the company. The pioneer status of one of its subsidiaries is expiring this year. No one, not even the directors, has ever commented on the impact this will have on the future profits and dividends. I find this rather odd, don’t you all think so.

    Reply