SGX:U06

Stock Analysis Report

Executive Summary

United Industrial Corporation Limited, an investment holding company, develops properties for investment and trading purposes in Singapore and internationally.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: U06 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

U06

-1.8%

SG Real Estate

-1.2%

SG Market


1 Year Return

-3.8%

U06

-9.2%

SG Real Estate

-4.4%

SG Market

Return vs Industry: U06 exceeded the SG Real Estate industry which returned -9.2% over the past year.

Return vs Market: U06 matched the SG Market which returned -4.4% over the past year.


Shareholder returns

U06IndustryMarket
7 Day-1.1%-1.8%-1.2%
30 Day-3.8%-4.9%-3.1%
90 Day-4.8%-2.4%-2.3%
1 Year-2.7%-3.8%-6.5%-9.2%-0.5%-4.4%
3 Year-0.2%-3.1%-5.3%-12.7%8.0%-3.4%
5 Year-17.5%-21.4%-9.4%-20.9%7.6%-10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: U06 (SGD2.79) is trading above our estimate of fair value (SGD2.11)

Significantly Below Fair Value: U06 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: U06 is good value based on its PE Ratio (6.4x) compared to the Real Estate industry average (11.3x).

PE vs Market: U06 is good value based on its PE Ratio (6.4x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate U06's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: U06 is overvalued based on its PB Ratio (0.6x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

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

4.7%

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 Industrial 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.


Next Steps

Past Performance

How has United Industrial performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: U06 has a large one-off gain of SGD420.1M impacting its December 31 2019 financial results.

Growing Profit Margin: U06's current net profit margins (76.6%) are higher than last year (42.7%).


Past Earnings Growth Analysis

Earnings Trend: U06's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: U06's earnings growth over the past year (93.1%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: U06 earnings growth over the past year (93.1%) exceeded the Real Estate industry -36.7%.


Return on Equity

High ROE: U06's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is United Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: U06's short term assets (SGD430.6M) do not cover its short term liabilities (SGD678.5M).

Long Term Liabilities: U06's short term assets (SGD430.6M) exceed its long term liabilities (SGD373.3M).


Debt to Equity History and Analysis

Debt Level: U06's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: U06's debt to equity ratio has reduced from 25.6% to 7.3% over the past 5 years.

Debt Coverage: U06's debt is well covered by operating cash flow (74.9%).

Interest Coverage: U06's interest payments on its debt are well covered by EBIT (77x coverage).


Balance Sheet

Inventory Level: U06 has a low level of unsold assets or inventory.

Debt Coverage by Assets: U06's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: U06's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.57%).

High Dividend: U06's dividend (1.25%) is low compared to the top 25% of dividend payers in the SG market (5.66%).


Stability and Growth of Payments

Stable Dividend: U06 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: U06 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: U06 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of U06's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Hock San Lim (72yo)

S$1,398,000

Compensation

Mr. Hock San Lim serves as Chief Executive Officer and President at United Industrial Corporation Limited. Mr. Lim has been Chief Executive Officer and President at Singapore Land Limited since 1992. Mr. L ...


CEO Compensation Analysis

Compensation vs Market: Hock San's total compensation ($USD999.87K) is below average for companies of similar size in the SG market ($USD1.85M).

Compensation vs Earnings: Hock San's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hock San Lim
President0yrsS$1.40m0.026% SGD1.1m
Ngai Hon Lee
Senior Financial Controller4.6yrsno datano data
Zai Jie Eu
Chief Operating Officer0.08yrsno datano data
Iris Gan
Executive Assistant to the CEO0yrsno datano data
Poh Goh
Senior General Manager of Marketing10.1yrsno datano data
Hwee Ping Teo
Company Secretary2.2yrsno datano data

3.4yrs

Average Tenure

49yo

Average Age

Experienced Management: U06's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hock San Lim
President0yrsS$1.40m0.026% SGD1.1m
Cho-Yaw Wee
Non-Executive Chairman of the Board27.7yrsS$89.00kno data
Soo Jin Hwang
Non-Executive & Independent Director17.1yrsS$61.00kno data
Soo Suan Yang
Non-Executive & Independent Director7.8yrsS$54.00kno data
Ee Lim Wee
Non-Executive Director20.8yrsS$27.00kno data
Lance Gokongwei
Non-Executive Director20.8yrsS$27.00kno data
Antonio Go
Non-Executive & Independent Director12.8yrsS$41.00kno data
James Go
Non-Executive Director20.8yrsS$69.00kno data
Khirn Hai Yeo
Non-Executive & Independent Director17.4yrsS$54.00kno data
Seng Lee
Non-Executive Independent Director1.9yrsS$27.00kno data

19.1yrs

Average Tenure

75yo

Average Age

Experienced Board: U06's board of directors are seasoned and experienced ( 19.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 Industrial Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Industrial Corporation Limited
  • Ticker: U06
  • Exchange: SGX
  • Founded: 1963
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: S$4.011b
  • Shares outstanding: 1.43b
  • Website: https://www.uic.com.sg

Location

  • United Industrial Corporation Limited
  • Clifford Centre
  • No. 22-01/06, 24 Raffles Place
  • Singapore
  • 48621
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UILC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
U06SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
UILC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

United Industrial Corporation Limited, an investment holding company, develops properties for investment and trading purposes in Singapore and internationally. The company operates through four segments: Property Investment, Property Trading, Hotel Operations, and Technology Operations. It develops commercial office, commercial retail, and residential properties. The company also offers property management, project management, and marketing services; invests in and operates hotels; invests in retail centers; trades in computers and related products; retails computer hardware and software; and provides information technology, systems integration, and networking infrastructure services. United Industrial Corporation Limited was incorporated in 1963 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:40
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.