United Engineers

[Jon-san]

Hi all, UE just released their 3rd qtr results. Anyone has any comments? Am still learning how to read the statements. Discussions appreciated!

UE 3rd Quarter Results

Thanks in advance!

[Jon-san]

Have just received UE's Circular regarding the proposed offering and listing of UE E&C Ltd. Any other forumers here vested in this company and sees any reason why we should vote for/against this proposed listing?

[Nick]

Usually spinning of a subsidiary is a good way to raise cash while retaining some control over the company's direction ?

[SLC81]

Have just received UE's Circular regarding the proposed offering and listing of UE E&C Ltd. Any other forumers here vested in this company and sees any reason why we should vote for/against this proposed listing?

This happens to be a right move and at the right time to my believe and the market has responded to that quite positively.

E&C (mainly construction business under Great Earth ) has been major revenue but minor net profit contributing business.

The reason i think it is good timing as the division has now turned profitable due to healthy up cycle in construction business after struggling past

After E&C following the disposal of the commodity trading and a power generating business in China. UE will be focus on their most profitable IFM (including property development). With quite some good asset and development properties, at NAV of $ 3.62 and quite predictable earning in the next two years (Revenue/profit recognition from properties sold after TOP) at the share price $ 2.73, UE is still very much undervalued

[LionFlyer]

Why is UE at the current price given the low P/B values and NAV?

[SLC81]

LOL, good question, it depends on who is going to give the answer.

Stake holders may say, the market has not seen value of the company asset.
Outsiders may say, there could be something we don't know, and btw, is that the case for majority of listed property counters ?
Naysayers, say, well the asset is not what its worth

[LionFlyer]

It just seems like a long wait. I know, I have my reasons for selecting this counter and my event horizon was about 3 yrs (bought back in 2009). But assuming the market is efficient, then there should not be a discrepancy in pricing for a long time. This would imply something is holding it back?

[Blackjack]

Hi LionFlyer, its good if you have clear and good reasons for buying this counter. Sometimes intrinsic values may take a long time to be realised, so I would suggest you need not worry too much about unknown reasons detering this. In any case, it is pretty common for property counters to trade at a discount to book.

UE is launching a new EC condo at Sengkang on top of its recent intention to list its engineering & construction business. This will release some cash back. It may still take quite some time for value to be unlocked, so I guess the only thing to do is to be patient, if there is no change to your original view when you purchased it.

[jake12]

I'm trying to get as much as possible offer shares for UE E&C Ltd.

At $0.48 cents I feel that it's very undervalued and cheap.

I think that it's a perfect time to buy.

Hopefully I'll get most of my allocation for this IPO! Wish me luck

- A financian analyst

[pianist]

the ipos seems like a good deal based on its pe ratio and increased cash holding..
however dont u think for a construction & engineering company, isnt it risky to buy at a price above its nav?