Catalist:1F2

Stock Analysis Report

Executive Summary

Union Gas Holdings Limited, an investment holding company, provides fuel products in Singapore.

Rewards

PE ratio (7.4x) is below the SG market (13.2x)

Earnings grew by 40.6% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Latest financial reports are more than 6 months old

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Union Gas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1F2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1F2

-0.4%

SG Gas Utilities

0.6%

SG Market


1 Year Return

-7.8%

1F2

-4.8%

SG Gas Utilities

-2.7%

SG Market

Return vs Industry: 1F2 underperformed the SG Gas Utilities industry which returned -4.6% over the past year.

Return vs Market: 1F2 underperformed the SG Market which returned -2.4% over the past year.


Shareholder returns

1F2IndustryMarket
7 Day0%-0.4%0.6%
30 Day-4.1%-5.5%-3.3%
90 Day-6.0%-3.7%-1.4%
1 Year-2.0%-7.8%-2.4%-4.8%1.2%-2.7%
3 Yearn/a26.1%17.6%9.3%-2.3%
5 Yearn/a21.0%8.0%8.6%-9.7%

Price Volatility Vs. Market

How volatile is Union Gas Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Union Gas Holdings undervalued compared to its fair value and its price relative to the market?

7.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1F2 (SGD0.24) is trading above our estimate of fair value (SGD0.16)

Significantly Below Fair Value: 1F2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1F2 is good value based on its PE Ratio (7.4x) compared to the Gas Utilities industry average (15.8x).

PE vs Market: 1F2 is good value based on its PE Ratio (7.4x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1F2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1F2 is overvalued based on its PB Ratio (2x) compared to the XA Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Union Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.8%

Forecasted Utilities 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 Union Gas Holdings 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 Union Gas Holdings performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1F2 has a high level of non-cash earnings.

Growing Profit Margin: 1F2's current net profit margins (10.8%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: 1F2's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: 1F2's earnings growth over the past year (40.6%) exceeds its 5-year average (24% per year).

Earnings vs Industry: 1F2 earnings growth over the past year (40.6%) exceeded the Gas Utilities industry 11.9%.


Return on Equity

High ROE: 1F2's Return on Equity (26.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Union Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1F2's short term assets (SGD21.9M) exceed its short term liabilities (SGD12.8M).

Long Term Liabilities: 1F2's short term assets (SGD21.9M) exceed its long term liabilities (SGD2.4M).


Debt to Equity History and Analysis

Debt Level: 1F2 is debt free.

Reducing Debt: 1F2 had no debt 5 years ago.

Debt Coverage: 1F2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1F2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1F2 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1F2's debt is covered by short term assets.


Next Steps

Dividend

What is Union Gas Holdings's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.6%markettop25%5.7%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1F2's dividend (2.55%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: 1F2's dividend (2.55%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

Stable Dividend: 1F2 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1F2 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), 1F2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Hark Piang Teo (41yo)

0.8yrs

Tenure

S$34,545

Compensation

Mr. Teo Hark Piang has been Chief Executive Officer of Union Gas Holdings Ltd. since April 25, 2019 and has been its Executive Director since November 1, 2018. He served as Director of Sales (Commercial a ...


CEO Compensation Analysis

Compensation vs Market: Hark Piang's total compensation ($USD24.86K) is below average for companies of similar size in the SG market ($USD338.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kiang Ang Teo
Founder & Non-Executive Chairman0yrsS$50.00k36.92% SGD19.9m
Hark Piang Teo
CEO & Executive Director0.8yrsS$34.55k11.05% SGD5.9m
Pay Leng Hong
Chief Financial Officer0.08yrsno datano data
Sylvia Lio
Chief Accounting Officer2.4yrsno datano data
Sin Tan
Human Resource Manager1.8yrsno datano data
Yong Ng
Deputy Chief Executive Officer0.8yrsno datano data
Yoen Har Wong
Company Secretary1.3yrsno datano data

1.1yrs

Average Tenure

43yo

Average Age

Experienced Management: 1F2's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kiang Ang Teo
Founder & Non-Executive Chairman0yrsS$50.00k36.92% SGD19.9m
Hark Piang Teo
CEO & Executive Director0.8yrsS$34.55k11.05% SGD5.9m
Chye Kiou Heng
Independent Director2.7yrsS$30.00kno data
Chwee Kim Lim
Independent Director2.7yrsS$30.00k0.17% SGD94.0k
Hock Leong Loo
Lead Independent Director2.7yrsS$35.00kno data

2.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 1F2's board of directors are not considered experienced ( 2.7 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: 1F2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Top Shareholders

Company Information

Union Gas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Union Gas Holdings Limited
  • Ticker: 1F2
  • Exchange: Catalist
  • Founded: 1974
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: S$53.792m
  • Shares outstanding: 228.90m
  • Website: https://www.uniongas.com.sg

Number of Employees


Location

  • Union Gas Holdings Limited
  • No. 07-04 Union Industrial Center
  • 3 Lorong Bakar Batu
  • Singapore
  • 348741
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1F2Catalist (Singapore Exchange Catalist Market)YesOrdinary SharesSGSGDJul 2017

Biography

Union Gas Holdings Limited, an investment holding company, provides fuel products in Singapore. It operates through three segments: Retail LPG (Domestic) Business, Retail LPG (Commercial) Business, and Retail Station Business. The company engages in the retail distribution of bottled LPG cylinders under the Union brand; and sale of LPG-related accessories, such as stoves, hoods, rubber hoses, and regulators to domestic households. It also sells small cylinders to dormitories and various industrial customers, as well as for corporate and private events and functions; and distributes household and health products. In addition, the company operates a fuel station under the Cnergy brand, which produces, sells, and distributes compressed natural gas primarily to natural gas vehicles and industrial customers for their commercial use. Further, it engages in the sale and distribution of diesel to retail customers at its fuel station; and transport, distribution, and bulk sale of diesel to commercial customers. The company was founded in 1974 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 Analysis2020/02/18 17:13
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
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.