Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported revenues/profits down 11%/15% YoY due to the USD's depreciation against the MYR in Q3 and weak demand. FY24 revenue guidance was unchanged (high-single digit negative). </li>
<li>The group announced a solid eight-sen dividend and is on track to distribute at least 26-28 sen dividends for FY24 (vs. 30 sen in FY23), implying a 7.2% yield.</li>
<li>The company is net cash (~9%), trades at a 14x PE and has an ROCE&gt;35% across the last 10 years (74% for 2023).</li>
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Uchi Technologies (UCHI MK) reported revenues/profits down 11%/15% YoY due to the USD's depreciation against the MYR in Q3 and weak demand. FY24 revenue guidance was unchanged (high-single digit negative). 
The group announced a solid eight-sen dividend and is on track to distribute at least 26-28 sen dividends for FY24 (vs. 30 sen in FY23), implying a 7.2% yield.
The company is net cash (~9%), trades at a 14x PE and has an ROCE&gt;35% across the last 10 years (74% for 2023).


Uchi Technologies (UCHI MK): Resilient Profitability (64% OP) And >50% ROE Despite Weak Demand

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported Q2 2024 revenue/profit up 2.2%/13.4% YoY. In USD terms, revenue declined 3% YoY. </li>
<li>Aided by the strengthening of the USD/MYR in Q2 (which has reversed slightly), EBITDA margins improved by 250 bps to 65.7% and net margins by 540 bps to 54.5%.</li>
<li>The company maintained guidance of a high single-digit revenue decline (in USD). The stock trades at 13x PE with a 7.8% dividend yield. </li>
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Uchi Technologies (UCHI MK) reported Q2 2024 revenue/profit up 2.2%/13.4% YoY. In USD terms, revenue declined 3% YoY. 
Aided by the strengthening of the USD/MYR in Q2 (which has reversed slightly), EBITDA margins improved by 250 bps to 65.7% and net margins by 540 bps to 54.5%.
The company maintained guidance of a high single-digit revenue decline (in USD). The stock trades at 13x PE with a 7.8% dividend yield. 


Uchi Technologies (UCHI MK): Q2 2024 Profitability Resilient, Guidance Weak

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported a solid Q4FY23/FY23 result, with revenue up 18%/13.2% YoY, operating profit up 28%/21% YoY, but profits up 9%/8.3% YoY (due to increased taxation).</li>
<li>For FY24, the company conservatively guided a mid-single-digit decline in revenue growth. In FY23, the company guided flat USD revenue growth (but delivered 9.2% YoY).</li>
<li>Assuming the current currency and guidance, the stock trades at 14x FY24e with a yield of 7% (assuming a 100% payout similar to last two years) and ROCE above 60%. </li>
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Uchi Technologies (UCHI MK) reported a solid Q4FY23/FY23 result, with revenue up 18%/13.2% YoY, operating profit up 28%/21% YoY, but profits up 9%/8.3% YoY (due to increased taxation).
For FY24, the company conservatively guided a mid-single-digit decline in revenue growth. In FY23, the company guided flat USD revenue growth (but delivered 9.2% YoY).
Assuming the current currency and guidance, the stock trades at 14x FY24e with a yield of 7% (assuming a 100% payout similar to last two years) and ROCE above 60%. 


Uchi Tech (UCHI MK): Solid FY23 Results, Solid Dividend, FY24 Guidance Conservative

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported a 15% YoY revenue growth/ 27% YoY operating profit growth led by constant USD revenue growth of 10% YoY and 4.5% MYR depreciation. </li>
<li>Profit grew only 3.5% YoY due to an increase in the effective tax rate from 2.8% to 21.0% as the company's tax holidays lapsed earlier this year.</li>
<li>Trading 12x PE, 7.5% dividend yield (based on a 90% payout), &gt;30% ROE, and more than 10% of the market cap in cash; this a stock to explore. </li>
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Uchi Technologies (UCHI MK) reported a 15% YoY revenue growth/ 27% YoY operating profit growth led by constant USD revenue growth of 10% YoY and 4.5% MYR depreciation. 
Profit grew only 3.5% YoY due to an increase in the effective tax rate from 2.8% to 21.0% as the company's tax holidays lapsed earlier this year.
Trading 12x PE, 7.5% dividend yield (based on a 90% payout), &gt;30% ROE, and more than 10% of the market cap in cash; this a stock to explore. 


Uchi Technologies (UCHI MK): Solid Q3 2023,ROE >30%/Div Yield >7%

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<li>We compile our gleanings from the last 23 years of <a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> annual reports. The company has never had a lower than 40% operating margin. </li>
<li>ROCE has averaged 35% over the last twenty years and 40% for the last ten years. There has never been a year with less than 20% ROCE.</li>
<li>Trading at 13x FY23 PE with a 7.3% dividend yield, this is an outstanding stock to explore in the small-cap space.</li>
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We compile our gleanings from the last 23 years of Uchi Technologies (UCHI MK) annual reports. The company has never had a lower than 40% operating margin. 
ROCE has averaged 35% over the last twenty years and 40% for the last ten years. There has never been a year with less than 20% ROCE.
Trading at 13x FY23 PE with a 7.3% dividend yield, this is an outstanding stock to explore in the small-cap space.


Uchi Technologies (UCHI MK): Trends for Last 23 Years, Gleanings From the Annual Report, Q1 Steady

Malaysia

Uchi Technologies Berhad is an investment holding company. The Company, through its subsidiaries, designs, researches, develops, and manufactures miniature data terminals, fuzzy logic controllers, and control modules.  Uchi Technologies also assembles electrical components onto printed circuit boards and trades complete electric module and saturated paper of PCB lamination.

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Uchi Technologies (UCHI MK)