Univision Engineering Share Discussion Threads

[bernieboy] 29/4/2015 13:24

Own up! Who sold 68000 shares 4 minutes before the rns!

[bernieboy] 29/4/2015 13:19

Strangely quiet on here! Noirua what are your thoughts? Still topping up or just holding at this level? Good to see the New contracts!

[bernieboy] 29/4/2015 13:01

No news for ages and then it all comes at once! ;-)

[bernieboy] 29/4/2015 12:58

Here we go! ;-)

[noirua] 28/4/2015 11:46

Below is the full legal agreement on the Zhongshan Mall [translated from Mandarin].

2012 agreement: ex10-8.htm

[noirua] 22/4/2015 13:21

CHINA INTERNATIONAL ECONOMIC AND TRADE ARBITRATION COMMISSION


Confidentiality
Arbitration proceedings are not open to the public. Thus, business secrets and the reputation of the parties can be effectively protected.

[lazygun] 21/4/2015 15:24

I found this site, but couldn't get anything useful out of it:



L.

[zangdook] 21/4/2015 13:12

no. no-one knows.

[lazygun] 21/4/2015 11:20

is there anywhere you can go to find out what the latest timescale is for completion of the arbitration?

[noirua] 21/4/2015 09:52

Increased holding to 6.09 million (5.86% of Free Float) - target is 10 million shares and hopefully will have time.
Value of 51% of the Mall
April 21 2015 is 9.21 RMB to £ sterling, so 129mRMB = £14.06m (3.65p per UVEL share).

[noirua] 21/4/2015 00:45

Basic resources shares were the strongest performing after China's central bank over the weekend cut the amount of reserves commercial banks must hold, a move that frees up about $200 billion for lending. China has been struggling with slowing growth, including in its key property market.
Market news detail - ASX

[noirua] 02/4/2015 11:10

The valuation of 51% of the Zhongshan Mall was 129m Renbie Yuan in 2011; the present exchange rate is 9.2RY to the pound sterling making the mall valuation at £14.02m.
As stated by Allenby Capital in March 2012, fair value is 50% with the Arbitration decision outstanding etc at 1.827p per Univision share.

[noirua] 01/4/2015 17:06

March 2012 - [Link now broken]

Univision is a Hong Kong based company predominantly operating in the design, installation and maintenance of CCTV systems.
The share price has been savaged over the last 3-4 years as the company has had to deal with i) litigation, ii) rising debt levels and associated interest charges and iii) cash tied up in illiquid assets.
We believe the first two issues have now been resolved and that significant steps have been made to resolve the third.
The progress has largely been ignored by the market and we believe a share price re-rating is due. We see fair value around 1.9p, some 300% above the current price.

CCTV business generates c. 80% of group revenues Univision operates through two divisions.
The Security and Surveillance (“S&S”) business is predominantly focused on the Hong Kong CCTV market and counts government agencies and blue chip corporates as its customers.
The Electrical and Mechanical (“E&M”) business is involved in the interior design and installation of electrical works etc. within buildings and operates primarily in mainland China.
The S&S business provides the majority of group income and has a substantial element of recurring revenues.
The E&M business is less predictable yet provides large upside potential. The company made an underlying Pre Tax Loss of £175k in the year ending March 2011 which we forecast will have turned into a Pre Tax profit of £380k for the year ending March 2013.

Earning held back by interest charges – debt issue now mainly resolved

Until recently the company had around $8m of debt (principal and accrued interest) outstanding to a former shareholder.
The debt was accruing interest of 15% thus materially impacting net earnings. In January 2012 the debt was renegotiated and the balance now stands at just under $4m and accrues no interest.
We expect the net finance charge to fall from £619k in 2011 to just £50k in 2013.
[ loan of $3.95m forgiven in 2014 ]

Material value locked in value of Zhongshan shopping Mall In 2008 Univision’s E&M business initiated work on the Zhongshan shopping mall in mainland China. In return for the Univision’s contribution the company now has a right to a 51% interest in the development.
Univision’s stake was independently valued in May 2011 at RMB129m (£13m, HK$164m) or 3.4p per share.
The shopping mall is unfinished and hence realisation of this value is not straightforward.
Nevertheless realisation of some or part of this would clearly have a material impact on UNV’s net asset value.

Fair value close to 2p can be justified With the debt reorganised the Univision balance sheet has been significantly strengthened and the P&L will benefit from the removal of an annual interest charge of around £0.5m.
The core business is profitable and the company has a right to a property asset potentially worth around £13m.
Under a conservative approach where we value the shopping Mall asset at 50% of its book value we can still justify a sum of the parts valuation for Univision of around 1.9p per share, some 300% above the current price.

[noirua] 01/4/2015 17:00

Information from Allenby Capital about 3 years ago. Interesting, though interest and $3.95m loan has since been forgiven and Univision hope to hive off Leader Smart. [Allenby link is now broken]


Can be read from the header or post #27, on above link.

[noirua] 31/3/2015 23:26

Hi encarter, usually a broker will allow the holding to sit in the account for an extended period unless it is in an ISA. Then it will be transferred out to a trading account.
I have one company with no market quote, for 18 months, and it still sits in my TDD (TDW) trading list.
No need for concern unless you are with Barclays who do not do trades in Hong Kong - or a Building Society who are all not up to the task.
Arrangements are to be made for off-market trading which works OK if there is a party who is a willing buyer - hopefully Hua Xin will bid.
An Australian Company, Felix Resources Limited, hived off a subsidiary, Southern Coal Limited, that was bid for and we all did very well out of it. It's a matter of trust and patience.

It will be a BVI company in Hong Kong, see post #86.

[encarter] 31/3/2015 23:01

what happens if you hold in a nominee account?

[noirua] 31/3/2015 22:37

EDEN - Shows comparisons between BVI Companies in Hong Kong and China:


Reasons for a BVI Company:

[noirua] 31/3/2015 16:56

UniVision Engineering Ltd Update re: Demerger of Leader Smart Engineering
Following the announcement regarding the Proposed Demerger on 2(nd) December, 2014, the Group has set up a BVI incorporated company as the new holding company for Leader Smart, Leader Smart Holdings Limited which is wholly-owned by the UniVision.
To restructure the Group, a Sales and Purchase Agreement (the "Transfer Agreement") for all issued shares in Leader Smart Engineering Limited has been made between UniVision and Leader Smart Holdings Limited. The Board approved all the terms of the Transfer Agreement on 31(st) March, 2015.

The demerger will be effected by the way through an 'in-specie' distribution of shares to Univision's shareholders.
To facilitate the distribution, Leader Smart Holdings Limited will issue and allot new shares up to the appropriate number of shares that each qualifying shareholder who holds one share of UniVision will be entitled to receive one share of Leader Smart Holdings Limited.

Should all regulatory and tax clearances be obtained further details of the management, strategy and off-market dealing facilities in Leader Smart Holdings Limited's shares will be announced to the shareholders.

[the stigologist] 31/3/2015 16:17

hxxp://www.moneyweek.com/investment-advice/penny-shares/penny-sleuth-why-i-dont-buy-chinese-stocks-on-aim-60618

Why I don’t buy Chinese stocks on AIM

By Tom Bulford

Sep 18, 2012


Greg Rudd, the brother of the former Australian prime minister, once met a Chinese businessman who gave him some prudent advice.

"You tend to see the good in people, Mr Rudd", he started. "People like you. You laugh a lot. But you’ll never make money in China with that attitude. You’ll only be taken advantage of. People will trade off you. They won’t pay you. The number one rule of doing business in China is this; never trust a Chinaman. Why would you as a foreigner trust a Chinese businessman when we as Chinese don’t trust each other?"

Now that advice is pretty close to the bone. But I’ve said it before in Penny Sleuth – you have to be very careful when you invest in a Chinese company. The record of AIM-listed Chinese companies is simply awful. And with so many still coming to market, there is a real chance that many private investors will end up making some very expensive mistakes…

[noirua] 31/3/2015 16:15

Increased holding to 6 million shares; reached my target at last. Only my opinion, but this stock has been badly missed, except by a few.

[noirua] 31/3/2015 15:55

There is an amount of time allowed which a stock can be retained in a ISA without a quote; this happenned with IMIC's takeover of Afferro. Some brokers, including HL and TDD (TDW) allowed them to stay in but Barclays were very poor and failed to get the necessary authorities; this concerned the loan part of the offer that obtained a late quote in Ireland (Eire).
However, no need for concern as these matters are sorted in time.

[zangdook] 31/3/2015 14:21

I suppose we won't be able to keep them in ISAs...

[noirua] 31/3/2015 13:15

Important news on hiving off of Leader Smart to shareholders in UVEL:

[noirua] 30/3/2015 12:55

Increased holding to 5.885 million shares (5.68% of free float).
Weight of selling is slightly stronger than buying and offering at 0.899p.

Year End is tomorrow 31st March and some help in £ terms this year will make up for negativity the year before.
Mall value has been helped by £ weakness +13%, as will profits +12% - on conversion that is. Asset values in sterling will be higher due to HK$s strength, +12%.