Univision Engineering Share Discussion Threads

[noirua] 05/12/2018 12:31

We know the money going into UVEL will rise about 180% to 220% - this from the four month report in September by the company. They have contracts with MTR, the Government Railway in Hong Kong, worth about £41 million.

[bozzy_s] 05/12/2018 09:36

It's a good place to be on a bad day for the market. Online quote is just above mid price 2.151p to sell. Hoping that these anticipated strong results bring in buyers and force the price up. The ingredients are there for a 20% rise in a day (small free float + bidding above mid price already). Let the action begin!

[noirua] 05/12/2018 08:16

THE HK$ is now about 9.91 to the £sterling. The highest for some time and augers well for profits quoted in £s. The rate was HK$10.18 at the end of September against HK$10.80 at March 31 2018.
This looks like the place to be. What is there not to like at Univision - Half Year Results out any time this week.

[noirua] 04/12/2018 16:55

The efforts of Chairman Stephen Koo and fellow directors has been quite remarkable since 2009. It is a company presently having all interests in Hong Kong. It has taken a lot of effort to get Government contracts that have raised the company's reputation to the highest in the sector. Some obstacles have been legal and the company has shown its resilience in completely overcoming them.
The trading update for the first four months of the current year shows what has been achieved:

[noirua] 02/12/2018 12:01

China's #railway freight volume, a measurement of real economy activity, reached 355 million tonnes in October, a rise of 10.1 percent year-on-year, according to data released by the National Development and Reform Commission.


A China-Europe freight train that links Handan City of Hebei Province with Moscow departed from a station in Handan on Wednesday. The train carrying 41 carriages of goods will arrive in the Russian capital in about 15 days.


"China looks forward to working with Spain to share opportunities and jointly meet challenges" -- Read the full text of President Xi Jinping's signed article in a Spanish newspaper ahead of his state visit to the European country.


Xi'an, capital of NW China's Shaanxi Province, launched a total of 1,036 China-Europe freight trains in the first 10 months of 2018, 5.3 times the number last year, the city's government announced Thursday


Global temperatures in 2018 are set to be the fourth highest on record, the UN said Thursday, stressing the urgent need for actions to rein in global warming (Photo/AFP)

[noirua] 30/11/2018 14:47

Just a reminder of the update for new visitors.

Trading Update 12 September 2018

[bozzy_s] 29/11/2018 12:36

* week commencing 3rd December

I'd guess as they've had to delay from this week, they're not likely to be released as soon as Monday.

[noirua] 29/11/2018 11:56

Results out on week commencing 3rd December:

[noirua] 28/11/2018 11:14

Shares still looking fair value with Half year Results coming up soon, very soon indeed.

[noirua] 26/11/2018 14:19

Very sensitive indeed are the shares in Univision Limited. As many know already the sales revenue should be in the £6.25 million ball park in the first half years results, hopefully out this week. This is compared to about £2.25 million last year.

[noirua] 20/11/2018 12:09

The next announcement will give some guide to likely profitability over the full six years of the MTR contract. The Chairman has mentioned more than once that the company plans to obtain more profitable contracts in the future. New directors appointed does show that these plans are in hand.

Why UVEL shares are so low has been pointed out by many here. Probably all correct though the market does not seem to fully appreciate the six year contract and growth in the company. Trading is light and AIM moves sharply with quite low trades.

[bozzy_s] 15/11/2018 21:24

My mistake, no interim dividend expected, hoping for increased final divi.

[zangdook] 15/11/2018 18:52

Perhaps it has already. People are paying over 2p. I'm not sure there'll be anything about dividends in the next announcement though - we've only just had one.

[saint in exile] 15/11/2018 18:38

Will thst be enough to raise the share price though

[bozzy_s] 15/11/2018 13:17

We know from the trading statement that revenue will be circa £6.75m for H1, with an increase in profit and cashflow. Hopefully an increased dividend too.

[noirua] 15/11/2018 11:25

Times that the Half Year Results were out:
2017 - 11:58 - Thursday
2016 - 10:01 - Thursday
2015 - 11:03 - Friday
2014 - 10:53 - Friday
2013 - 07:00 - Wednesday
2012 - 07:00 - Tuesday

[saint in exile] 15/11/2018 00:02

Not at all Noirua..not long to wait now!

[noirua] 14/11/2018 22:02

Apologies to saint in exile, as is shown in the last post: The Directors look forward to reporting further on the Group’s progress in our interim results, which we anticipate releasing in November 2018.

[noirua] 14/11/2018 17:21

Last Years Imterim Report:

For the Six Months Ended 30 September 2017:
 Profit attributable to the equity holders increased 133% to HK$2.1m (H1 2016: HK$0.9m);
 Revenue increased by 8.3% to HK$23.2m for continuing operations (H1 2016 HK$21.4m);
 Major long term contract win with MTR Corporation Limited (“MTRC”) announced in
May 2017 will transform the Group’s revenue and profitability over the coming years;
 Additional MTRC work has been won in the period and after the period end.

Mr. Stephen Sin Mo KOO, Executive Chairman, commented: “The winning of the MTR contract is transformational for the Group and as the invoicing start to flow through the Financial Statements we expect to be able to report significantly higher levels of profitability that are currently being reported.
The fact that this contract was won in the face of tough international competition, we believe
positions the Group to be competitive for subsequent large-scale projects both inside and outside
HK in the future”

The Group’s turnover for continuing operations has increased by 8.3% in the first six months. This increase was mainly due to the 22.7% growth in construction contracts.

[ Due to a volatile HK$ about 2% can be taken away versus the £ to profits to the half year to 30 September 2018. However, 9% should be added compared to the year ending 31 March 2018. ] - *checked now OK.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


12/9/2018-Trading Update:

Trading in the first four months of the current financial year, is significantly ahead of the corresponding period last year.
Unaudited revenue for the Group, for the four months ended 31 July 2018 is approximately £4.5m (4 months to 31 July 2017: £1.5m). There was no contribution from MTRC in the comparable period last year. The Directors expect this revenue run rate to continue for the rest of the financial year ending 31 March 2019. Unaudited profit before tax has also increased significantly over the same period.

The Directors look forward to reporting further on the Group’s progress in our interim results, which we anticipate releasing in November 2018.

+++++++++

From the above for Half Year to 30 September 2018

(  Revenue increased by 8.3% to HK$23.2m for continuing operations (H1 2016 HK$21.4m); in Half Year to 30 September 2017 )

First 4 months revenue = £4.5 million. So half year to 30 September 2018 should be £6.75 million.
Half year to 30 September 2017 was - HK$23.2 million - at an exchange rate of HK$10.18 to £1 = £2.28 million.
Thus income to 30 September 2018 should rise to £6.75 million from £2.28 million. A rise of 196%.

Profit was HK$2.1 million ( £206K ) to September 30 2017. Hard to guess for the half year to 30 September 2018.

[zangdook] 13/11/2018 15:46

I disagree about "Chinese AIM listed company. As risky as it gets".Hong Kong is culturally and legally very different from Mainland China. UVEL can't be compared to TAIH, NBU etc. Perhaps some people don't appreciate that distinction, so we can pick up shares cheap.

[bozzy_s] 13/11/2018 14:19

I've been buying over the past week or two. I like the risk/reward of this. I'm sure everyone's done the same analysis, but here are a couple of my views.

Negatives

Chinese AIM listed company. As risky as it gets. Will get zero institutional support due to past actions of others.

Will always be valued below peers due to above.

Risk of controlling stake being transferred from the shareholder-friendly Chairman (Stephen Koo) to private investors in China. Risk of delisting with minimal / no return for shareholders.

Reliant on single large contract / single customer and unable to bid for more work at the moment.

Risk that there's some sort of fabrication, or exaggeration in the books.


Positives

Excellent informative thread on ADVFN (thanks Noirua). This mirrors my main investment in AAZ (the Mattjos thread).

Long-standing AIM listing, having arrived in 2005.

Long-standing company, trading since at least 1991 (the longest-serving director joined in that year).

Little dilution of shareholders. 313 million shares upon listing vs ~383 million today (183,736,000 shares is 47.9% as per latest results). This also echoes AAZ. Both are very very rare on AIM.

Consistently profitable company (same as AAZ).

Dividend payer for many years, unlike most AIM companies.

Underpinned by huge contract with MTRC. Next results will show the first full contribution from this contract. When in the public domain this ought to lift the share price.

Small enough market cap and free float to see quick upwards movement when strong results are published.



On balance a buy for me. It's AIM, it's Chinese/Hong Kong, but it's a company that's been trading for at least 27 years, listed for 13 years, paying dividends for at least 6 years, and profitable for most of its existence.

Have I missed anything obvious? Made any glaring mistakes above?

[noirua] 13/11/2018 12:36

Around May 2017 one investor paid 5.9p a share. My guess is they are still holding and may well see a comfortable profit in time. Fair value at a guess is 4p to 10p. A wide spread as future contracts in mainland China and other parts of the world are not yet certain.
I've no idea what is happening with former subsidiary Leader Smart Holding Limited. However, it remains a possible good idea to take them back into UVEL.

[noirua] 13/11/2018 12:28

These are difficult markets all round. Advantage has been the weakness of sterling and HK$ strength at 30 September 2018. Also the MTR 6 monthly payments.

The market failed to understand the weaker HK$ at 31 March 2018 and the fact that only one MTR payment had been received.

[noirua] 13/11/2018 08:18

Interim was 14th December last year.

[saint in exile] 13/11/2018 06:21

Thought interims were November Noirua?