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United Industrial

SGX:U06
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
U06
SGX
SGD4B
Market Cap
  1. Home
  2. SG
  3. Real Estate
Company description

United Industrial Corporation Limited, an investment holding company, develops properties for investment and trading purposes in Singapore and internationally. The last earnings update was 16 days ago. More info.


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U06 Share Price and Events
7 Day Returns
6.2%
SGX:U06
0.9%
SG Real Estate
0.4%
SG Market
1 Year Returns
-6.1%
SGX:U06
-6.7%
SG Real Estate
-5.9%
SG Market
U06 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Industrial (U06) 6.2% 7.6% 8.4% -6.1% 3.7% -10.4%
SG Real Estate 0.9% 2.4% 7.2% -6.7% 6.6% -3.6%
SG Market 0.4% 3.3% 4.1% -5.9% 8.8% -2.5%
1 Year Return vs Industry and Market
Price Volatility
U06
Industry
5yr Volatility vs Market

Value

 Is United Industrial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of United Industrial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for United Industrial.

SGX:U06 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year SG Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:U06
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.096 (1 + (1- 17%) (10.26%))
1.127
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (1.127 * 5.96%)
9.02%

Discounted Cash Flow Calculation for SGX:U06 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for United Industrial is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:U06 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 9.02%)
2019 167.05 Est @ -54.75% 153.23
2020 104.19 Est @ -37.63% 87.66
2021 77.46 Est @ -25.65% 59.79
2022 64.09 Est @ -17.26% 45.37
2023 56.79 Est @ -11.39% 36.88
2024 52.65 Est @ -7.29% 31.36
2025 50.33 Est @ -4.41% 27.50
2026 49.12 Est @ -2.4% 24.62
2027 48.64 Est @ -0.99% 22.36
2028 48.64 Est @ 0% 20.51
Present value of next 10 years cash flows SGD509.28
SGX:U06 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SGD48.64 × (1 + 2.3%) ÷ (9.02% – 2.3%)
SGD740.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD740.95 ÷ (1 + 9.02%)10
SGD312.45
SGX:U06 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD509.28 + SGD312.45
SGD821.73
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD821.73 / 1,432.53
SGD0.57
SGX:U06 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD0.57
Current discount Discount to share price of SGD3.10
= -1 x (SGD3.10 - SGD0.57) / SGD0.57
-440.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of United Industrial is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for United Industrial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Industrial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:U06 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SGD SGD0.22
SGX:U06 Share Price ** SGX (2019-04-18) in SGD SGD3.1
Singapore Real Estate Industry PE Ratio Median Figure of 38 Publicly-Listed Real Estate Companies 9.5x
Singapore Market PE Ratio Median Figure of 328 Publicly-Listed Companies 13.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of United Industrial.

SGX:U06 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:U06 Share Price ÷ EPS (both in SGD)

= 3.1 ÷ 0.22

14.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Industrial is overvalued based on earnings compared to the SG Real Estate industry average.
  • United Industrial is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does United Industrial's expected growth come at a high price?
Raw Data
SGX:U06 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
11.6%per year
Singapore Real Estate Industry PEG Ratio Median Figure of 14 Publicly-Listed Real Estate Companies -0.16x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for United Industrial, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on United Industrial's assets?
Raw Data
SGX:U06 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SGD SGD4.74
SGX:U06 Share Price * SGX (2019-04-18) in SGD SGD3.1
Singapore Real Estate Industry PB Ratio Median Figure of 46 Publicly-Listed Real Estate Companies 0.58x
Singapore Market PB Ratio Median Figure of 432 Publicly-Listed Companies 0.75x
SGX:U06 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:U06 Share Price ÷ Book Value per Share (both in SGD)

= 3.1 ÷ 4.74

0.65x

* Primary Listing of United Industrial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Industrial is overvalued based on assets compared to the SG Real Estate industry average.
X
Value checks
We assess United Industrial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. United Industrial has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover United Industrial, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Industrial expected to grow at an attractive rate?
  • United Industrial's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • United Industrial's earnings growth is expected to exceed the Singapore market average.
  • Unable to compare United Industrial's revenue growth to the Singapore market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SGX:U06 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:U06 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 11.6%
Singapore Real Estate Industry Earnings Growth Rate Market Cap Weighted Average -10.4%
Singapore Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 3%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.6%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:U06 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:U06 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2018-12-31 735 369 313
2018-09-30 842 728 303
2018-06-30 1,093 868 337
2018-03-31 1,266 878 302
2017-12-31 1,359 853 297
2017-09-30 1,405 474 277
2017-06-30 1,251 333 248
2017-03-31 1,127 245 286
2016-12-31 1,064 242 286
2016-09-30 971 246 311
2016-06-30 912 258 312
2016-03-31 868 210 259

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Industrial's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if United Industrial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:U06 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from United Industrial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:U06 Past Financials Data
Date (Data in SGD Millions) EPS *
2018-12-31 0.22
2018-09-30 0.21
2018-06-30 0.24
2018-03-31 0.21
2017-12-31 0.21
2017-09-30 0.19
2017-06-30 0.18
2017-03-31 0.20
2016-12-31 0.20
2016-09-30 0.22
2016-06-30 0.22
2016-03-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if United Industrial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess United Industrial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Singapore market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Singapore market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
United Industrial has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has United Industrial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare United Industrial's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • United Industrial's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • United Industrial's 1-year earnings growth exceeds its 5-year average (5.4% vs -3.8%)
  • United Industrial's earnings growth has not exceeded the SG Real Estate industry average in the past year (5.4% vs 5.7%).
Earnings and Revenue History
United Industrial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from United Industrial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:U06 Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 734.55 313.37 54.99
2018-09-30 841.78 302.93 64.54
2018-06-30 1,093.31 336.79 73.87
2018-03-31 1,266.48 302.25 79.50
2017-12-31 1,358.90 297.32 88.89
2017-09-30 1,405.37 277.00 78.09
2017-06-30 1,251.28 247.85 69.40
2017-03-31 1,127.31 285.84 60.77
2016-12-31 1,063.75 286.05 54.94
2016-09-30 970.52 311.20 46.82
2016-06-30 912.34 312.46 44.94
2016-03-31 867.72 259.41 46.29
2015-12-31 863.29 260.55 47.71
2015-09-30 826.23 308.08 48.02
2015-06-30 813.35 302.50 49.07
2015-03-31 794.87 415.14 50.76
2014-12-31 759.86 397.99 51.87
2014-09-30 690.89 372.37 60.71
2014-06-30 660.92 356.09 61.39
2014-03-31 640.38 319.88 59.97
2013-12-31 661.10 316.06 58.15
2013-09-30 722.70 443.38 52.85
2013-06-30 749.49 440.20 55.63
2013-03-31 731.73 387.11 54.21
2012-12-31 780.26 391.56 53.33
2012-09-30 762.10 114.81 45.90
2012-06-30 785.50 122.25 40.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • United Industrial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • United Industrial used its assets more efficiently than the SG Real Estate industry average last year based on Return on Assets.
  • United Industrial has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess United Industrial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
United Industrial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is United Industrial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up United Industrial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • United Industrial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • United Industrial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of United Industrial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from United Industrial Company Filings, last reported 3 months ago.

SGX:U06 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,633.41 449.77 247.94
2018-09-30 7,549.10 520.60 221.26
2018-06-30 7,490.14 520.79 219.33
2018-03-31 7,421.16 509.95 198.61
2017-12-31 7,346.64 530.92 177.38
2017-09-30 7,261.70 911.39 121.41
2017-06-30 7,160.76 1,127.74 119.23
2017-03-31 7,097.48 1,226.29 96.63
2016-12-31 7,035.06 1,241.63 86.51
2016-09-30 6,979.25 1,311.36 84.00
2016-06-30 6,911.16 1,380.94 83.95
2016-03-31 6,837.13 1,406.36 76.15
2015-12-31 6,781.02 1,407.15 82.05
2015-09-30 6,706.08 1,522.68 72.47
2015-06-30 6,630.41 1,561.91 61.50
2015-03-31 6,578.11 1,573.20 81.87
2014-12-31 6,498.07 1,666.29 80.95
2014-09-30 6,359.75 1,690.76 88.70
2014-06-30 6,309.89 1,696.66 108.81
2014-03-31 6,826.47 1,056.76 160.81
2013-12-31 6,795.11 1,071.38 112.03
2013-09-30 6,659.50 1,120.44 111.95
2013-06-30 6,606.37 1,151.28 102.53
2013-03-31 6,445.96 1,164.61 115.90
2012-12-31 6,388.64 856.67 108.47
2012-09-30 6,089.07 929.19 112.52
2012-06-30 6,070.45 818.85 121.13
  • United Industrial's level of debt (5.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (15.8% vs 5.9% today).
  • Debt is well covered by operating cash flow (82.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 1229.1x coverage).
X
Financial health checks
We assess United Industrial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. United Industrial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.13%
Current annual income from United Industrial dividends.
If you bought SGD2,000 of United Industrial shares you are expected to receive SGD23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • United Industrial's pays a lower dividend yield than the bottom 25% of dividend payers in Singapore (2.51%).
  • United Industrial's dividend is below the markets top 25% of dividend payers in Singapore (5.43%).
Upcoming dividend payment

Purchase United Industrial before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:U06 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Singapore Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.9%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.6%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.5%
Singapore Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:U06 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-04-02 0.035 1.195
2019-02-22 0.035 1.207
2018-04-06 0.030 0.992
2018-02-23 0.030 0.912
2017-04-07 0.030 0.922
2017-02-17 0.030 0.999
2016-03-31 0.030 1.075
2016-02-19 0.030 1.025
2015-03-24 0.030 0.944
2014-04-09 0.030 0.886
2014-02-24 0.030 0.955
2013-02-08 0.030 0.994
2012-08-03 0.030 1.085
2012-02-17 0.030 1.122
2011-03-25 0.030 1.086
2011-02-18 0.030 1.068
2010-02-17 0.030 1.339
2009-04-20 0.030 1.707

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Industrial is not paying a notable dividend for Singapore, therefore no need to check if the payments are stable.
  • United Industrial is not paying a notable dividend for Singapore, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of United Industrial's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of United Industrial's dividends as it is not paying a notable one for Singapore.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess United Industrial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can United Industrial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Industrial has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of United Industrial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hock San Lim
COMPENSATION SGD1,315,000
AGE 71
CEO Bio

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. Lim started his career in 1966 as an Assistant Tax Examiner with the then Inland Revenue Department of Singapore. He served as an Accountant of Mobil Oil Malaya Sdn Bhd since 1967 before joining the Port of Singapore Authority in 1968, working his way up to the position of Assistant Director. From 1975 to 1992 he was with the Civil Aviation Authority of Singapore finally becoming the Director-General of Civil Aviation. He has been the Non-Executive Chairman of Gallant Venture Ltd. since February 1, 2006. He worked at China-Singapore Suzhou Industrial Park Development Co., Ltd, UIC Jin Travel (Tianjin) Co. Ltd, Singland Chengdu Development Co Ltd and Peak Venture Pte Ltd. He serves as Chairman of the Advance Materials Technologies Pte Ltd. Mr. Lim has been the Vice Chairman of Indofood Agri Resources Ltd. since May 2010. He served as the Chairman of Ascendas Pte, Ltd. He served as Deputy Chairman at Keppel Corporation Limited from July 1, 2009 to April 20, 2012. He has been a Director of Singapore Land Limited and United Industrial Corporation Limited since April 1, 1992. He has been a Non Executive Independent Director of Interra Resources Limited since September 8, 2012. He has been an Independent Director at Indofood Agri Resources Ltd. since January 23, 2007 and Hsu Fu Chi International Ltd. since October 25, 2006. Mr. Lim has been an Independent Director of Gallant Venture Ltd. since February 1, 2006. He serves as Director of Aquamarina Hotel Private Limited, Avondale Properties Ltd., Beijing Landmark Towers Company Ltd., Brendale Pte Ltd., Crown Million Enterprises Ltd., Hanon Resources Ltd., Hotel Marina City Private Limited, Kogan Investments Ltd., Marina Bay Hotel Private Limited, Marina Centre Holdings Private Limited, Marina Management Services Pte Ltd., Novena Square Development Ltd., Novena Square Investments Ltd., Realty Management Services (Pte) Ltd., Singapore Institute Of Directors, Singapore-Suzhou Township Development Pte Ltd., Singland China Holdings Pte Ltd., UIC China Realty Pte Ltd., UIC JinTravel (Tianjin) Co. Ltd., UIC Technologies Pte Ltd., UIC Investments (Properties) Pte Ltd., Union Charm Development Ltd. and United Regency Pte Ltd. Mr. Lim serves as a Director of Keppel Land Ltd. and Jatidiri Gigih Sdn. Bhd. He serves as Director of the National Council on Problem Gambling. He has been Independent Director at Ascendas Real Estate Investment Trust since July 1, 2016. Mr. Lim has been an Independent Director of Ascendas Funds Management (S) Limited since July 1, 2016. He served as Director of Ascendas Pte, Ltd. He served as Independent Director of Ascendas Property Fund Trustee Pte LtdIndependent Director of Ascendas Property Fund Trustee Pte Ltd. He served as Independent Director of Keppel Corporation Limited from 1989 to April 20, 2012 and served as its Lead Independent Director from 1989 to May 1, 2006. He served as Independent Director of Ascendas India Trust from June 11, 2007 to December 24, 2009. He served as a Director of United Test and Assembly Center Ltd. from September 2003 to October 2007. He served as a Director of Interra Resources Limited from July 3, 2004 to December 31, 2009. He served as a Director of Keppel TatLee Finance Ltd. and Yongnam Holdings Ltd. He served as an Independent Director of United Test & Assembly Center Ltd. from September 2003 to October 2007. He served as an Independent Director of Van Der Horst Ltd. since July 2004. He served as Director of Civil Aviation Authority of Singapore, Active Building & Civil Construction (1985) Pte Ltd., Advanced Materials Technologies Pte Ltd., Air Transport Training College Pte Ltd., Alprop Pte Ltd., Alshine Pte Ltd., Changi Airports International Pte Ltd., Chinese Development Assistance Council, CITIC-UIC Investment Pte Ltd., Gateway Land Limited, Health Sciences Authority, Ideal Homes Pte Limited, Marina Centre Properties Pte Ltd., Marina Centre Realty Pte Ltd., Marina Food Court Pte Ltd., Marina Laundry Private Limited., Midway Holding (Pte) Ltd., MPC Holdings Ltd., Pasir Ris Resort Pte Ltd., Pothonier Singapore Pte Ltd., RMA-Land Development Private Ltd., S L Prime Development Pte Ltd., S L Prime Properties Pte Ltd., S L Prime Realty Pte Ltd., S. L. Development Management Pte Limited, S. L. Development Pte Limited, S. L. Management Services Pte Limited, S. L. Properties Limited, Shing Kwan Realty (Pte) Limited, Silkroute E-Commerce Fund I Ltd., Singapore Changi Airport Enterprise Pte Ltd., Singapore Pacific Management Services Pte Ltd., Singapore Soviet Shipping Co. Private Ltd.(1), Sino-America Tours Corporation Pte Ltd., UIC China Resources Pte Ltd., UIC Development (Private) Limited, UIC Enterprise Pte Ltd., UIC Investment Pte Ltd., UIC Land Pte Ltd., UIC Printing & Packaging Pte Ltd., Universal Integrated Corporation Consumer Products Pte Ltd., UOB Venture Investments I Limited. Mr. Lim served as the President of the Institute of Certified Public Accountants of Singapore. He serves as the Chairman of Singapore-MIT Alliance Governing Board, Mount Alvernia Hospital Board and the National Council Against Drug Abuse. He is a Fellow of the Chartered Institute of Management Accountants (UK), as well as a Member of the Institute of Certified Public Accountants of Singapore. He is also a recipient of the Singapore Government Meritorious Service Medal, Public Administration Medal (Gold) and the Public Service Medal. Mr. Lim holds a Bachelor of Accountancy from the University of Singapore, a Master of Science in Management from the Alfred P Sloan School of Management, Massachusetts Institute of Technology in 1973 and attended the Advanced Management Program at Harvard Business School and the Senior Executive Program of the London Business School.

CEO Compensation
  • Hock San's compensation has been consistent with company performance over the past year.
  • Hock San's remuneration is about average for companies of similar size in Singapore.
Management Team Tenure

Average tenure of the United Industrial management team in years:

3.8
Average Tenure
  • The tenure for the United Industrial management team is about average.
Management Team

Hock San Lim

TITLE
President
COMPENSATION
SGD1M
AGE
71

Kenneth Lee

TITLE
Senior Financial Controller
AGE
48
TENURE
3.8 yrs

Iris Gan

TITLE
Executive Assistant to the CEO

Poh Goh

TITLE
Senior General Manager of Marketing
TENURE
9.3 yrs

Hwee Teo

TITLE
Acting Company Secretary
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the United Industrial board of directors in years:

19.9
Average Tenure
77.5
Average Age
  • The average tenure for the United Industrial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Cho-Yaw Wee

TITLE
Non-Executive Chairman of the Board
COMPENSATION
SGD64K
AGE
89
TENURE
26.8 yrs

Hock San Lim

TITLE
President
COMPENSATION
SGD1M
AGE
71
TENURE
27 yrs

Soo Jin Hwang

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD41K
AGE
82
TENURE
16.3 yrs

Alvin Yeo

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD36K
AGE
55
TENURE
16.6 yrs

Soo Suan Yang

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD36K
AGE
81
TENURE
7 yrs

Ee Lim Wee

TITLE
Non-Executive Director
COMPENSATION
SGD18K
AGE
57
TENURE
19.9 yrs

Lance Gokongwei

TITLE
Non-Executive Director
COMPENSATION
SGD18K
AGE
51
TENURE
19.9 yrs

James Go

TITLE
Non-Executive Director
COMPENSATION
SGD51K
AGE
78
TENURE
19.9 yrs

Lian Kheng Gwee

TITLE
Non-Executive Director
COMPENSATION
SGD33K
AGE
78
TENURE
19.9 yrs

Antonio Go

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD27K
AGE
77
TENURE
12 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
04. Dec 18 Buy UOL Group Limited Company 03. Dec 18 03. Dec 18 40,900 SGD2.80 SGD114,712
17. Sep 18 Buy UOL Group Limited Company 14. Sep 18 14. Sep 18 218,700 SGD2.95 SGD645,777
04. Sep 18 Buy UOL Group Limited Company 03. Sep 18 03. Sep 18 50,300 SGD3.10 SGD155,915
28. Aug 18 Buy UOL Group Limited Company 27. Aug 18 27. Aug 18 83,700 SGD3.12 SGD261,286
15. Aug 18 Buy UOL Group Limited Company 14. Aug 18 14. Aug 18 52,500 SGD3.11 SGD163,039
12. Jul 18 Buy UOL Group Limited Company 11. Jul 18 11. Jul 18 106,000 SGD3.11 SGD330,095
02. Jul 18 Buy UOL Group Limited Company 29. Jun 18 29. Jun 18 70,000 SGD3.23 SGD226,030
20. Jun 18 Buy UOL Group Limited Company 19. Jun 18 19. Jun 18 400,000 SGD3.27 SGD1,308,520
13. Jun 18 Buy UOL Group Limited Company 13. Jun 18 13. Jun 18 300,000 SGD3.29 SGD988,320
13. Jun 18 Buy UOL Group Limited Company 12. Jun 18 12. Jun 18 319,000 SGD3.26 SGD1,040,291
12. Jun 18 Buy UOL Group Limited Company 11. Jun 18 11. Jun 18 310,000 SGD3.26 SGD1,010,228
11. Jun 18 Buy UOL Group Limited Company 08. Jun 18 08. Jun 18 220,000 SGD3.25 SGD716,056
08. Jun 18 Buy UOL Group Limited Company 07. Jun 18 07. Jun 18 166,100 SGD3.25 SGD539,277
05. Jun 18 Buy UOL Group Limited Company 04. Jun 18 04. Jun 18 414,200 SGD3.22 SGD1,334,801
07. Jun 18 Buy UOL Group Limited Company 06. Jun 18 06. Jun 18 124,900 SGD3.24 SGD404,614
06. Jun 18 Buy UOL Group Limited Company 05. Jun 18 05. Jun 18 270,000 SGD3.23 SGD873,045
28. May 18 Buy UOL Group Limited Company 25. May 18 25. May 18 80,000 SGD3.25 SGD260,376
14. May 18 Buy UOL Group Limited Company 11. May 18 11. May 18 60,300 SGD3.25 SGD196,144
08. May 18 Buy UOL Group Limited Company 07. May 18 07. May 18 51,500 SGD3.27 SGD168,317
07. May 18 Buy UOL Group Limited Company 04. May 18 04. May 18 50,100 SGD3.24 SGD162,294
X
Management checks
We assess United Industrial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. United Industrial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Has United Industrial Corporation Limited (SGX:U06) Got Enough Cash?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as United Industrial Corporation Limited (SGX:U06) with a market-capitalization of S$4.53b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

United Industrial Corporation Limited (SGX:U06): Can It Deliver A Superior ROE To The Industry?

I am writing today to help inform people who are new to the stock market. … With an ROE of 4.40%, United Industrial Corporation Limited (SGX:U06) returned in-line to its own industry which delivered 6.56% over the past year. … Check out our latest analysis for United Industrial

Simply Wall St -

How Does United Industrial Corporation Limited's (SGX:U06) Earnings Growth Stack Up Against The Industry?

Today I will examine United Industrial Corporation Limited's (SGX:U06) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of U06's industry performed. … See our latest analysis for United Industrial? … U06's trailing twelve-month earnings (from 31 March 2018) of S$302.25m has

Simply Wall St -

Is United Industrial Corporation Limited (SGX:U06) A Sell At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in United Industrial Corporation Limited (SGX:U06). … United Industrial Corporation Limited (SGX:U06) is trading with a trailing P/E of 15.6x, which is higher than the industry average of 9.5x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Is United Industrial Corporation Limited's (SGX:U06) PE Ratio A Signal To Sell For Investors?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for U06 Price per share = SGD3.26 Earnings per share = SGD0.211 ∴ Price-Earnings Ratio = SGD3.26 ÷ SGD0.211 = 15.4x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … U06’s P/E of 15.4x is higher than its industry peers (10.3x), which implies that each dollar of U06’s earnings is being overvalued by investors. … For example, if you accidentally compared lower growth firms with U06, then U06’s P/E would naturally be higher since investors would reward U06’s higher growth with a higher price.

Simply Wall St -

What You Must Know About United Industrial Corporation Limited's (SGX:U06) Major Investors

In this article, I'm going to take a look at United Industrial Corporation Limited’s (SGX:U06) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Insider Ownership Another important group of shareholders are company insiders. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: Institutional ownership level and composition in U06 is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

United Industrial Corporation Limited (SGX:U06): How Does It Impact Your Portfolio?

Generally, an investor should consider two types of risk that impact the market value of U06. … United Industrial's beta of 0.23 indicates that the stock value will be less variable compared to the whole stock market. … U06’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.

Simply Wall St -

Why United Industrial Corporation Limited's (SGX:U06) ROE Of 4.42% Does Not Tell The Whole Story

Check out our latest analysis for United Industrial What you must know about ROE Return on Equity (ROE) weighs United Industrial’s profit against the level of its shareholders’ equity. … This means United Industrial’s returns actually do not cover its own cost of equity, with a discrepancy of -3.95%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity SGX:U06 Last Perf Mar 9th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

What does United Industrial Corporation Limited's (SGX:U06) Balance Sheet Tell Us About Its Future?

On top of this, U06 has generated cash from operations of S$852.60M over the same time period, leading to an operating cash to total debt ratio of 160.59%, meaning that U06’s current level of operating cash is high enough to cover debt. … For U06, the ratio of 49.51x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as U06’s high interest coverage is seen as responsible and safe practice. … Next Steps: U06’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

Should You Be Tempted To Sell United Industrial Corporation Limited (SGX:U06) Because Of Its PE Ratio?

Since U06's P/E of 17x is higher than its industry peers (11.6x), it means that investors are paying more than they should for each dollar of U06's earnings. … For example, if you are inadvertently comparing riskier firms with U06, then U06’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price. … In this case, U06’s P/E would be higher since investors would also reward U06’s higher growth with a higher price.

Simply Wall St -

Company Info

Description

United Industrial Corporation Limited, an investment holding company, develops properties for investment and trading purposes in Singapore and internationally. The company operates in four segments: Property Investment, Property Trading, Hotel Operations, and Technologies. It develops commercial, retail, and residential properties. The company also offers property management, and 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.

Details
Name: United Industrial Corporation Limited
U06
Exchange: SGX
Founded: 1963
SGD4,383,545,967
1,432,531,362
Website: http://www.uic.com.sg
Address: United Industrial Corporation Limited
Clifford Centre,
No. 22-01/06, 24 Raffles Place,
Singapore,
048621,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX U06 Ordinary Shares Singapore Exchange SG SGD 02. Jan 1992
OTCPK UILC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
United Industrial employees.
Industry
Diversified Real Estate Activities
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:35
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/04/02
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.