SGX:U04

Stock Analysis Report

Executive Summary

As of January 20, 2020, United Engineers Limited was acquired by Yanlord Investment (Singapore) Pte.

Rewards


Snowflake Analysis

Share Price & News

How has United Engineers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: U04 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

U04

3.2%

SG Real Estate

4.9%

SG Market


1 Year Return

5.5%

U04

-29.9%

SG Real Estate

-23.8%

SG Market

Return vs Industry: U04 exceeded the SG Real Estate industry which returned 1.1% over the past year.

Return vs Market: U04 exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

U04IndustryMarket
7 Day-0.4%3.2%4.9%
30 Day-0.7%-20.5%-20.2%
90 Day0.8%-25.6%-23.5%
1 Year6.8%5.5%-27.3%-29.9%-20.5%-23.8%
3 Year1.1%-5.6%-30.3%-36.2%-17.1%-25.9%
5 Year-2.9%-15.7%-27.9%-37.7%-15.3%-29.8%

Price Volatility Vs. Market

How volatile is United Engineers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United Engineers undervalued compared to its fair value and its price relative to the market?

13.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: U04 (SGD2.69) is trading above our estimate of fair value (SGD0.4)

Significantly Below Fair Value: U04 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: U04 is poor value based on its PE Ratio (13.3x) compared to the Real Estate industry average (10.3x).

PE vs Market: U04 is good value based on its PE Ratio (13.3x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate U04's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: U04 is overvalued based on its PB Ratio (0.8x) compared to the SG Real Estate industry average (0.5x).

Future Growth

How is United Engineers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.0%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as United Engineers has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has United Engineers performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: U04 has a large one-off gain of SGD79.3M impacting its September 30 2019 financial results.

Growing Profit Margin: U04's current net profit margins (34.1%) are higher than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: U04's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: U04's earnings growth over the past year (149.7%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: U04 earnings growth over the past year (149.7%) exceeded the Real Estate industry -7.2%.


Return on Equity

High ROE: U04's Return on Equity (5.5%) is considered low.

Financial Health

How is United Engineers's financial position?


Financial Position Analysis

Short Term Liabilities: U04's short term assets (SGD1.3B) exceed its short term liabilities (SGD292.5M).

Long Term Liabilities: U04's short term assets (SGD1.3B) exceed its long term liabilities (SGD1.1B).


Debt to Equity History and Analysis

Debt Level: U04's debt to equity ratio (44.3%) is considered high.

Reducing Debt: U04's debt to equity ratio has reduced from 92% to 44.3% over the past 5 years.

Debt Coverage: U04's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: U04's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: U04 has a high level of physical assets or inventory.

Debt Coverage by Assets: U04's debt is covered by short term assets (assets are 1.3x debt).

Dividend

What is United Engineers's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: U04's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: U04's dividend (1.12%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: U04 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: U04 is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: U04 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of U04's dividend in 3 years as they are not forecast to pay a notable one for the SG market.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Roy Tan (47yo)

2.25s

Tenure

S$1,077,441

Compensation

Mr. Chee Keong Tan, also known as Roy, has been Group Managing Director and Non-Independent & Executive Director at United Engineers Limited since October 19, 2017 and served as its Group Chief Financial O ...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD0.00) is below average for companies of similar size in the SG market ($USD1.50M).

Compensation vs Earnings: Insufficient data to compare Roy's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sheng Jian Zhong
Executive Chairman2.33yrsS$16.63kno data
Chee Tan
Group MD and Non-Independent & Executive Director2.25yrsS$1.08mno data
Ka Cheung Ip
Senior Advisor2.25yrsS$658.67kno data
Sonny Tan
Group Financial Controller10yrsno datano data
Allan Chen
Managing Director of China Division4.25yrsno datano data
Hong Chan
Managing Director of Engineering3.67yrsno datano data
Jong Gn
Company Secretary2.25yrsno datano data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: U04's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sheng Jian Zhong
Executive Chairman2.33yrsS$16.63kno data
Chee Tan
Group MD and Non-Independent & Executive Director2.25yrsS$1.08mno data
Cheong Fook Wong
Independent & Non Executive Director9yrsS$109.23kno data
Suan Hiang Lee
Independent & Non Executive Director2.33yrsS$22.08kno data
Ser-Luck Teo
Lead Independent & Non-Executive Director2.33yrsS$26.36kno data
Seck Guan Pua
Non-Independent & Non-Executive Director2.33yrsS$16.63kno data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: U04's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: U04 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Engineers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Engineers Limited
  • Ticker: U04
  • Exchange: SGX
  • Founded: 1912
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: S$1.709b
  • Shares outstanding: 637.52m
  • Website: https://www.uel.sg

Location

  • United Engineers Limited
  • UE BizHub CENTRAL
  • No. 03A-01
  • Singapore
  • 569088
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
U04SGX (Singapore Exchange)YesOrdinary Stock UnitsSGSGDJan 1992

Biography

As of January 20, 2020, United Engineers Limited was acquired by Yanlord Investment (Singapore) Pte. Ltd. United Engineers Limited engages in the property, engineering and distribution, and manufacturing businesses in Singapore and internationally. The company develops residential, commercial, industrial, mixed-use, and build-to-suit projects; provides project management and asset management services for shopping malls, office buildings, and mixed-use developments; and manages hotels, serviced apartments and offices, and convention centers. It also offers systems integration services for broadcasting and multimedia, communications, information technology, and security and surveillance sectors; operates as a system integrator and value-added reseller of security, telecommunication, scientific, and medical systems; and distributes construction materials, laundry and boiler equipment, and automotive parts, as well as engages in sand mining activities. In addition, the company manufactures die-cast precision parts and components; and provides turnkey manufacturing solutions. Further, it operates as a civil, electrical, and mechanical engineers and contractors. Additionally, the company supplies, delivers, tests, and commissions telecommunication, stage rigging, audio-visual, studio projection and lighting equipment, data communication, and card access and security systems, as well as provides after sales services; produces bio-electronic products, and electronic components and connectors; and offers investment management services. United Engineers Limited was founded in 1912 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 12:35
End of Day Share Price2020/01/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.