Univision Engineering Share Discussion Threads

[noirua] 01/9/2018 23:26

Section of Hong Kong’s new train station will effectively become Chinese territory next Tuesday



From midnight on September 4, the mainland will begin to exercise jurisdiction – except in several legal areas – as defined in the Ordinance. Mainland officials will begin preparatory work for the opening of the station, though they will not be able to enforce the law in any area beyond the Mainland Port Area.

[noirua] 18/8/2018 11:35

The historic day on May 12th 2017. The highest price was 626,906 at 5.9p a share:

[saint in exile] 17/8/2018 13:42

Whats not to like here.A guaranteed profit every month for years to come with more contracts very likely.Sitting tight and accumulating when possible

[loadsamonay] 17/8/2018 12:03

£180k profit per month is excellent. It is transformational. Am sitting tight and will top up when i can. With such a small market cap companh, you can actually get a decent chunk of the company relative to the FTSE companies! even with small purchases.

[mustafa15a] 16/8/2018 19:44

Order to buy @1.5 will inevitably be filled within a month or two!!!

[noirua] 16/8/2018 16:47

No guys, currently Univision are receiving monthly payments averaging HK$5.65 million or GB£565,000. Not all profit but adds about £180,000 profit on average each month. There is also ongoing work on other projects. The dividend is important as few companies pay dividends on AIM other than those in the AIM 100 and not all of them.

Everything in the garden looks red rosy and as always we have to wait for the flowers to come out.

As announced on 12 May 2017, the Company won a major contract of value HK$389.4m (GBP38.1m) with MTRC following a tender process. With further, already agreed add-ons HK$17.9m to this contract, the total value of this contract is now HK$407.3m. The contract provides for the replacement works of the Closed Circuit Television (CCTV) systems for numerous MTRC railway lines. The Company is responsible to replacing the existing analogue CCTV system installed in the stations along the specified lines with a unified IP-based, digital CCTV system.

HK$407.3 million currently GB£41 million.

Sadly the market read it wrong today, not the first time. Analysts so far in the UK do not have that much of a clue. We really need an analyst in Hong Kong or even main land China to give their views on the company.
A bit sad that no financially sound company has joined Univision so far. Perhaps one of the original bidders that were forced to drop out might be interested again - mind you, they seem to operate at snails pace in China.

The Leader Smart situation needs resolving in Guangzhou, or rather, the owners of 49% of the shopping mall need to reach some agreement. Then maybe confidence will rise..

[loadsamonay] 16/8/2018 15:59

Agree on the divi. And I agree on this working capital thing. They've already got a monster contract throwing off cash, so it wont take long to sort out. Its a boring cash generative business - perfect.

When I crunched the numbers again, even at the most conservative basis, I get a share price of 4/5p, and likely much more, - taking into account incoming cash in 18/19.

[zangdook] 16/8/2018 15:46

I do hate lazy journalists. This one has grasped the only negative sounding thing and assumed, for the sake of writing a story, that this is why the share price fell back a bit. The share price fell back because it had been getting a little ahead of itself over the last few days, that's all. You can see how lazy she is because she reckons HK$ 0.043 is 0.3p. She's taken the 0.389p quoted in the report, already out of date, and hasn't even bothered to round it properly, let alone check whatit is at current exchange rates.



referring to
"The Major Contract with MTRC led to a significant annualised outstanding workload value which requires the Company to have additional working capital in the financial assessment by the Hong Kong Government. Works Branch. A shortfall in working capital of GBP 0.62m (HK$6m) existed in the 2017 financial test. This meant that the Company is suspended, by this customer, from tendering for additional public works contracts for up to six months from 27 July 2018 until the shortfall has rectified. The Board regard the effect of this temporary suspension as insignificant given the current state of the business. The Company currently concentrates its resources on the Major Contract with MTRC, the main driver for the business which means that, with our other construction and maintenance contracts we are currently operating close to full capacity. Nevertheless, the Company will apply to uplift the suspension as soon as possible."


I hope they get this sorted out soon, although, as they say, it's probably not significant - they must be working flat out already. I would have supported a dividend cut to fund the gap. Even if Mr Koo again doesn't take his dividend, they're still paying the rest of us over HK$4.5m. I love the fact that we get a dividend but at this stage of its development I'd rather go all out to grow the company. If Mr K judges that it's better to leave his share of the money in the company I think we all could manage to do the same, just for a year or two.

[loadsamonay] 16/8/2018 13:18

And, incidentally the accounts also note "several major infrastructure projects due to be completed in the coming years, including High Speed Railway extension, HK airport, and extension of MTR lines. A sniff of additional contracts from these could also put a rocket under the sp

[loadsamonay] 16/8/2018 13:16

Value always comes out in the end.

And this spike in the share price will have woken quite a few sleepy old investors like me to the opportunity. If it really does start looking like its heading to even £1.75 - £2 million profit, then the share price will start to move. Its a low risk company in the sense that its a very boring business, which the 75% owner knows well. The bank has confidence in them, having loaned quite a chunk of money. The new contract and income is nailed on.

I think a doubling to 4p in share price and beyond to 6p is quite achievable on the substance of the business underpinning the company. And there may be more quick spikes along the way especially as the shares are so tightly held.

Given the market cap, if there were a significant drop in sp, I'd definitely top up with all the spare cash i had.

[wi1l] 16/8/2018 12:46

Same here. But it might be awhile before the market adjusts?

[loadsamonay] 16/8/2018 12:44

in fact, if the share price dips I'll top up. Should get more trading updates along the way and slowly the figures will be revealed and the bigger picture more obvious, and that will be reflected in significant share price rises i hope.

[loadsamonay] 16/8/2018 12:28

Yes, you are right. I got my division wrong by a factor of 10 haha.

Even if all they earned this year was what was already invoiced, their profits would considerably y/e March 2018 figures.

Even if you are over optimistic, (i'm always a pessimist life being what it is ;-)), lets half your net profit to £1.75m there is at least a doubling of share price available...

Its a no brainer, this is a keeper....am sitting tight.

[wi1l] 16/8/2018 12:11

Loadsamoney you are saying the right things but need to adjust the numbers (I think). I had worked out that the profit for ye 31.3.18 would be about 700K but was more interested too in what they've invoiced on the MTR contract since then. HK$33.4M comes out at about £3.5M and therefore reckon their total turnover for ye 31.3.19 will be about £12M-£13M, gross profit £4M, selling & admin costs £1.5M, Net profit £2.5M with a positive exchange rate adding to this. THis should continue for the next 3 to 4 years. I think that's similar to you & Noirua. Market cap then on a pe of 15 say £37.5M? Share price should be closer to 9p than where it is now.

[loadsamonay] 16/8/2018 11:03

These results are pretty good for me.

Sell off is understandable as people see the absolute numbers of profit £735k. It doesnt look big. BUT selling is a mistake IMO as these accounts only take account of trading up until year end 31st March 2018.

I dont think UVEL sells itself very well. If you check carefully on the bottom of page 3 of the accounts it says "Up to the date of this statment (i.e. today), the Group has invoiced HK$33.4m (thats £335,000) to MTRC".

In the para preceding this it says that as at y/e they had invoiced only $5.1m (thats £50k) under the new contract.

So in other words, even although these accounts show a doubling almost of profit before tax that ONLY takes account of ONE single measly £50k payment under the mega contract.

In the 5 months since then, the company has billed almost 7 times!! that amount.

If this continues lets say by y/e 2019 they will have billed (fag packet stuff) 14 TIMES that amount. I make that about £700k. Which is a significant increase in turnover, and will no doubt push the profit by y/e to way more than the current £735k. So market cap should rise accordingly. Ball park I know...but its good enough for me...

[noirua] 16/8/2018 10:36

A guesstimate of profits for full year to March 31 2019: Profit margin if maintained at 32% allows for, at current exchange rates, £6.9m x 32% = £2.2m against £812K in the current year. Based on the MTR contract alone.

[noirua] 16/8/2018 10:23

-- Proposed final dividend HK0.43 cents (approx. 0.0389 pence) per share.
On present exchange rates = 0.043p per share.

-- Profit before income tax from continuing operations was GBP735K (2017: GBP452K);
On present exchange rates = £812K.

-- Earnings per share from continuing operations were to 0.19p (2017: 0.11p);
On present exchange rates = 0.21p

-- Turnover from continuing operations increased by 18.5%* to GBP5.6m (2017: GBP4.8m);
On present exchange rates = £6.19m increased by 28.9%.

[noirua] 16/8/2018 09:36

Some are looking at the picture of results quite naively. Firstly, the US$ and HK$ fell in the year to March 31st and therefore the HK$ results were good but shown less so in £sterling - since then the reverse has occurred. Only one month of the expected annual sum of £6.3m from MTR has been received and that in March. UVEL had set up costs in the year to 31 March 2018 that will not occur in the next 5.5 years. UVEL are constricted from bidding for new contracts until January 2019.
-



The above chart shows a 9.0% improvement in the HK$ versus GB£ since March 31st. Such have been the gyrations. The chart above is live so you can adjust the current figure.

On March 31st the exchange rate was HK$11 to GB£. Now it is HK$9.95 to GB£.

[mustafa15a] 16/8/2018 09:33

Today's buyers will live to regret this purchase!! Enjoy holding for 12 months only to break even!

[zangdook] 16/8/2018 08:20

Dividend up looks good on a quick glance

[zangdook] 15/8/2018 19:59

But back to UVEL, it's good to see it recovering steadily like this back closer to its real value. Will it be tomorrow? Will it be Friday? That dam'd elusive results announcement!