[Updated on 17-June-2021, added Hong Leong Investment Bank Analyst Report]
7100 UCHITEC, or Uchi Technologies Berhad, had release its Q1 2021 quarterly report on 24-May-2021. For record, I've purchase UCHITEC fairly recently in May 2021, you can find out why I bought UCHITEC here:
Ok let's look into their QR.
7100 UCHITEC Q1 2021 report
Full announcement here:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=214053&name=EA_FR_ATTACHMENTS
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=214054&name=EA_FR_ATTACHMENTS
Snapshot:
UCHITEC Q1 2021 report was pretty ok, as they recorded their best Q1 results, which is normally their weaker Q. Net profit margin maintained at above 50%. Don't be too bothered by the -37.61% QoQ in their net profit, as there were some backlog order from Q3 spilled over to Q4 due to MCO in 2020.
As of Q1 2021, UCHITEC has about RM 149 mil cash in hand, -4.46% compared to previous year. Inventories maintain at same level, with trade and receivables reduced slightly. No borrowings.
As of Q1 2021, UCHITEC recorded a negative RM 6.8 mil cash flow, mainly due to dividend paid. Operating cash flow was at similar level.
Company's review on Q1 performance and update on the current prospect:
My personal takeaways on UCHITEC's Q1 2021 report:
1. Best Q1 recorded amid this global pandemic situation. This may be a hint of a pretty good year for UCHITEC. Management expects a high single digit revenue growth in USD for FY2021. This is inline with my estimation of 9% revenue growth for FY2021.
2. Net profit margin maintain at above 50%. This shows that UCHITEC's operations maintained very efficient and not affected much by the SOP implemented due to the COVID-19 pandemic. ROE for the quarter was almost 10%, another good sign.
3. Europe remains the biggest contributor to UCHITEC with almost 98% of the total revenue for Q1 2021. No surprise as UCHITEC has been working closely with Jura Elektroapparate AG for a very long time.
4. There is no significant growth from the Biotechnology segment yet. Hopefully we can expect something in the coming quarters in FY2021.
5. No dividend declared for the quarter, as UCHITEC normally declares dividend on Q3 and Q4. FY2020 final dividend of 9.5 cent is ex-date on 29-Jun-2021, which translates to 3% dividend yield.
News report:
The Edge
Analyst report:
Hong Leong Investment Bank; BUY - TP RM 3.83; 19x FY2022F EPS:
25-May-2021
17-June-2021
Disclaimer: This is a personal opinion recorded for my personal record. Nothing on this Blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. The author shall not be held accountable for any investment decision made by the reader. Invest at your own risk.
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