UOL - United Overseas Land

[greengiraffe]

Vested a little in UOL recently as I thought it would be a good time to to pick up during this downturn.

- P/B is ard 0.6 (based on Tangible book value). Probably one of the lowest compared to the likes to FCl, CPL and CDL.
- Dividends (2.5%) is comparatively low compared to STI and property FCL though payout ratio is low.
- ROE decreased from 14.8% to 7.7% but a comparison across the bigger boys shows that its still acceptable, with FCL at 9.4, CPL at 7.2 and CDL at 8.5.
- As for Financial leverage (debt/equity), it has probably the lowest against the aforementioned big boys.

Competitive moat

- Diversified portfolio comprises residential, offices, retail malls, hotels,etc. Their crown jewel is probably "Pan Pacific" and PARKROYAL hotel, which brings in recurring income/cashflow. Brand name counts for little - just take a look at Shangri-La .

Concerns:-

- Concentration risk - Majority of assets/revenue in Singapore though they have moved into Tianjin, China, etc. 
- As pointed out in the earlier post, UOL has been consistently buying UIC shares - currently holding 44.172%.

Just writing my thoughts on a lazy and hazy morning...

 (P.S.: I'm vested in FCL too.)

I like UOL as GODfather Wee is United behind UOL.

There are no worries whatsoever with Dr Wee's empire.

However, if one is looking for quick returns on UOL, I think will be disappointed. 

UOL is worth monitoring for strategic change in directions especially for Singapore asset markets...

Vested
Odd Lots 
GG