United Overseas Australia Ltd

With the recent spike in property counters in Singapore and Hong Kong, let's take a look at UOA ltd.

UOA Ltd is the holding company for UOA Reit and UOA Development Berhad listed in Malaysia.

UOA owns 46.22% of UOA Reit and 67.40% of UOA Development.

It is a bit complicated here. UOA Reit's is incorporated into UOA financials.

Let me do a simple analysis here.

UOA has A$217 million cash in hand, and a net asset of A$968 million.

UOA owns 67.40% of UOA Dev. As of 19th Dec 2012, UOA Dev has a market cap of RM$2198 million.
Its value in UOA Dev is 67.40% x RM$2198 million / 2.5 ( exchange rate S$1 : RM$2.5 ) = S$590 million.

Per Share worth in UOA = S$590 million / 1057 million shares = $0.558

Cash in hand = (A$217 million x A$1.25 ) / 1057 million shares = S$0.256.

Net Asset Per Share = (A$968 million x A$1.25) / 1057 million = S$1.14

Based on the share price of UOA on 19th Dec 2012 of S$0.515,
UOA is trading at 0.45x of Net Asset Value.

I am calling for a BUY for UOA with a fair value of 0.7x book value of S$0.80.


Comments

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1:07 PM
Unknown said…
Hi..i have been buying UOA for a while now but the one listed in the ASX...its one of the best counters ive seen and is not followed much because its basically a malaysian counter listed on asx and sgx...in malaysia however it is a household name..owners of the share have been buying back heavily even at these levels..my question is if you buy the one listed on sgx how are you taxed on dividends?

Thanks
7:59 PM
Leaver said…
As a Singaporean, we buy shares from SGX, dividend is not taxed.
7:45 AM
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