Uchi Technologies Berhad

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)
Research Report by HLIB

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)
Research by CGSI

Top 10 RoE Companies in Bursa Malaysia.

Here are the top 10 companies with the highest RoE (Return on Equity). This ranking is based solely on RoE, a financial metric that measures a company's profitability relative to its shareholders' equity. RoE indicates how efficiently a company is using its equity to generate profits and is often used to benchmark companies within the same industry. However, it's important to be cautious, as RoE alone doesn’t provide a full picture of a company’s financial health and Stockbitors must remember to analyze companies from a variety of angles to get a better understanding of your investments!

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD) $HEIM / 3255 (HEINEKEN MALAYSIA BERHAD) $NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD) $SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD) $UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)
Research by HLIB
HOLD – TP RM3.41

"Broadly within estimates”

Uchi’s recorded 2Q24 results with revenue of RM59.1m (-5% QoQ; +2% YoY) and core PAT of RM32.3m (10% QoQ; +33% YoY). This brought 1H24’s sum to RM61.7m (+22% YoY). Overall the demand for its products remained on a declining trend and management guided for a high-single digit percentage decline in sales in FY24. Margin saw improvement from favourable product mix coupled with the benefit from USD appreciation. We raise our TP marginally to RM3.41 (from RM3.35 earlier), as we roll forward our valuation year to FY25 (from FY24) pegged to unchanged 15x PE multiple. We upgrade our rating to HOLD (from Sell), as valuation has become more palatable following recent share price underperformance. Additionally, the decent dividend yield of >5% with tendency To tilt to the high side, will act as a support to downside risk.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

Continuing the list here (part 2):

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD) (MC: RM1.7bil) - Consistently delivered in its commitment to distribute at least 70% of net profit as dividend since 2003
$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD) (MC: RM 3.6bil) - Dividend policy is to maintain a minimum dividend payout ratio at 30%.
$UOADEV / 5200 (UOA DEVELOPMENT BHD) (MC: RM4.96bil) - Dividend policy of paying 30% - 50% of realised PATAMI
$SCIENTX / 4731 (SCIENTEX BERHAD) (MC: 6.2bil) - maintaining its commitment to distribute at least 30% of annual net profit
$TIMECOM / 5031 (TIME DOTCOM BERHAD) (MC: RM9.24bil) - Dividend payout policy of up to 50% of Normalised PAT

MC: Approximate Market Cap

**Note: the dividend payout is subjected to cash flow, valuation gain/loss of properties, etc. (for details please read their respective annual reports)

OTHERSUchi Technologies Berhad ("UTB" or "the Company")
- Offer of Options Under Uchi Technologies Berhad's Employees' Share Option Scheme 2016 ("ESOS 2016")

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Additional Listing Announcement /Subdivision of Shares

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)
Research by CGS
Add – TP of MYR 4.71

“Let it continue to brew; upgrade to Add”

We believe the premiumisation of coffee consumption is a secular trend that will continue to shape consumer behaviour, thus benefitting Uchi going ahead. According to International Coffee Organization (ICO), there has been a shift in consumer behaviour towards specialty and high-quality coffees. This trend has pushed coffee machine makers, including Uchi’s main customer, to introduce new SKUs with more specialty features, including the ability to make cold brew coffee, flavoured options, as well as drinks with functional ingredients, said ICO. According to Research & Markets, the global automated coffee machine market is expected to post CAGR of 4.3% between 2022 and 2030F

Analyst(s):
Shafiq KADIR
shafiq.abkadir@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR TAN BOON HOE

Changes in Director's Interest (Section 219 of CA 2016) - MR CHARLIE ONG CHYE LEE

Changes in Director's Interest (Section 219 of CA 2016) - MISS HAN CHIN LING

Changes in Director's Interest (Section 219 of CA 2016) - MR CHIN YAU MENG

Changes in Director's Interest (Section 219 of CA 2016) - MR HUANG, YEN-CHANG ALSO KNOWN AS STANLEY HUANG

Changes in Director's Interest (Section 219 of CA 2016) - MR KAO DE-TSAN ALSO KNOWN AS TED KAO

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR KAO, DE-TSAN ALSO KNOWN AS TED KAO

Additional Listing Announcement /Subdivision of Shares

Changes in Director's Interest (Section 219 of CA 2016) - MR LIM TIAN HOW

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD) ‘s Q1FY24 Quarterly Report Summary:

# Comparing current quarter (Q1FY24) with corresponding quarter (Q1FY23):

- Rev rose by 8% to RM 62.22 mil mainly due to higher USD against MYR.
- Operating profit improved by 17% to RM 38.15 mil.
- Other Income dropped by 64% to RM 4.86 mil due to absence of one-off gain from disposal of assets.
- A RM 2.94 mil loss on financial assets was recorded.
- PBT decreased by 13% to RM 40.07 mil due to absence of gains from disposal of assets, in contrast to the RM 11.3 mil gain recognized from such disposal in the previous quarter.
- PAT also decreased by 15% to RM 32.05 mil.
- Net profit margin deteriorated from 65.8% to 51.5%.
- EPS dropped from 8.22 sen to 6.89 sen.
- Net cash.
- NOCF remains steady at RM 35.65 mil.

# Comparing current quarter (Q1FY24) with immediate preceding quarter (Q4FY23):

- Rev dropped by 3% to RM 62.22 mil.
- Operating profit decreased by 9% to RM 38.15 mil.
- PBT declined by 8% to RM 40.07 mil due to decrease in demand, depreciation of USD against MYR and equity-settled share-based payments of RM 0.96 mil recognized in the current quarter.
- PAT also declined by 10% to RM 32.05 mil.
- Net profit margin deteriorated from 55.4% to 51.5%.

# Prospects:

- Based on the forecast and orders received, the Group anticipates a mid-single digit decline in USD rev for FY2024.

General Meetings: Outcome of Meeting

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)
Research by HLIB
Sell (Maintain) – TP RM3.35

“Results within estimates"

Uchi’s results met estimates with 1Q24 core PAT of RM29.3m (-21% QoQ; +11% YoY). Overall top-line in USD remained flat YoY, while QoQ registered a decline. This mirrors the group pessimism with guidance of single digit revenue decline in FY24 on the back of the volatile market with geopolitical conflicts, interest rate hike and rise of global inflation. Additionally, Uchi expects just a minority of 1/6th of the group's revenue will be generated from the new products categorized under the approved technology by MIDA for pioneer status and the profit from the remaining revenue will be taxable at the statutory tax rate of 24%. Maintain SELL, TP RM3.35 based on unchanged 15x PE multiple of FY24 EPS.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

OTHERSUchi Technologies Berhad ("UTB" or "the Company")
- Offer of Options Under Uchi Technologies Berhad's Employees' Share Option Scheme 2016 ("ESOS 2016")

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period