UOS is a very tightly held residential and commercial property developer in Malaysia. Current mcap at 14 cents is A$115m. Dual listed on the Singapore Stock Exchange.
Currently so underpriced, and so cashed up, that there is an on-market buyback in Australia and Singapore.
Yesterday UOS announced a profit upgrade, to A$44m (after tax and minority interests). This means they are trading on a pe of less than 3. They are also trading at a fraction of their book value. (see below) (Also note that none of this profit is 'fair value adjustments' upwards. It is all trading profit.)
UOS is conservative, with what some who invest in the property sector may call a "lazy balance sheet" - meaning they are not highly leveraged, and fund their expansion through internal cash flow, rather than through leveraged borrowings.
Just review UOS book value per share over the last 10 years:
1998 - $0.05 1999 - $0.05 2000 - $0.07 2001 - $0.09 2002 - $0.08 2003 - $0.15 2004 - $0.17 2005 - $0.22 2006 - $0.23 2007 - $0.29 2008 - will be announced shortly, which will include the benefit of the A$44m NPAT.
Their profit, which is 'lumpy' due to the timing issues of selling large developments, is balanced by a large rental component, where developed properties are not sold but keep for their rental income. This also balances the risk.
Review UOS's divdend history, NPAT, ROI.... You name it. All measures point to UOS being a great investment for those who invest for the long term, particularly at current prices.
The pullback in the price in the last 12 months is, IMO, a unique buying opportunity. But they are tightly held, so buy what is available, and hold.
Happy researching.
UOS Price at posting:
14.0¢ Sentiment: ST Buy Disclosure: Held
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