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

<ul>
<li>
<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 YoY decline of 8.4%/15.9% in revenue/profits for FY24 and a 30%/41% decline in revenue/profits for Q4 2024 due to lower global demand.</li>
<li>Management anticipates a low-teens percentage revenue decline for FY2025, influenced by geopolitical factors and tariffs, but the company maintains a robust balance sheet and high dividend potential.</li>
<li>A projected revenue decline of 13-14% with consistent margins suggests the company is trading at a forward PE ratio of 17x. </li>
</ul>



Uchi Technologies (UCHI MK)  reported a YoY decline of 8.4%/15.9% in revenue/profits for FY24 and a 30%/41% decline in revenue/profits for Q4 2024 due to lower global demand.
Management anticipates a low-teens percentage revenue decline for FY2025, influenced by geopolitical factors and tariffs, but the company maintains a robust balance sheet and high dividend potential.
A projected revenue decline of 13-14% with consistent margins suggests the company is trading at a forward PE ratio of 17x. 


Uchi Technologies (UCHI MK): Weak Q4, Tepid 2025 Guidance, Dividend Payment Intact

<ul>
<li>
<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>
</ul>



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

<ul>
<li>
<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>
</ul>



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

<ul>
<li>
<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>
</ul>



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%

<ul>
<li>
<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> results significant highlight was an upgrade in USD revenue for FY23 from "flat"  in Q1 2023 to "high single-digit growth" in Q2 2023.</li>
<li>Operating margins expanded owing to the depreciating ringgit YoY/QoQ by 350/480 bps to 61.6%. Unfortunately, the increasing effective tax rate (3.5% to 23.7%) resulted in a 13.7% YoY PAT decline. </li>
<li>With &gt;60% ROCEs, 12x FY23e PE multiple, and a 7.2% dividend yield, this is a stock to keep on your watchlist.</li>
</ul>



Uchi Technologies (UCHI MK) results significant highlight was an upgrade in USD revenue for FY23 from "flat"  in Q1 2023 to "high single-digit growth" in Q2 2023.
Operating margins expanded owing to the depreciating ringgit YoY/QoQ by 350/480 bps to 61.6%. Unfortunately, the increasing effective tax rate (3.5% to 23.7%) resulted in a 13.7% YoY PAT decline. 
With &gt;60% ROCEs, 12x FY23e PE multiple, and a 7.2% dividend yield, this is a stock to keep on your watchlist.


Uchi Technologies: Q2 2023 Upgrade of Guidance a Positive

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Uchi Technologies (UCHI MK)