Apr[3] - United Engineers (BUY<$2.8; waiting for next Buyer?)

COUNTER: United Engineers

BUSINESS: 

Founded in 1912, the company was honored as the 11th oldest company in Singapore. It developed numerous iconic buildings, such as UE BizHub CITY, UE BizHub EAST. Besides property, its business used to span over sectors such as Engineering, Technology and Manufacturing.

OVERVIEW:
2nd half of 2014 marked a happening period for United Engineers. Its controlling shareholders, OCBC and Great Eastern Holding entered into exclusive agreement with TCC group from Thailand (Owner of Thai Beverage) for possible offer of their combined shares. Following with the news of potential buy over, the counter price surged from normal trading range ~2.3 to 3.3 at its peak. In the beginning of 2015, involved parties couldn't reach agreement so the plan was blown. Throughout the period, the company has divested non-core business (electronics engineering, etc) and focus on property sectors. Holding hefty cash from divestment, the counter has reduced its debt ratio to 0.45x from 0.78x in 2013. It is now more focus on property sector which consists of investment and residential properties in the regions.

REASONS TO BUY:
OCBC never hide its intention to divest its shares from the counter. Based on estimation from CIMB, the counter is currently trading with 21% discount to revalued net asset valuation. It offer the big margin of gain should any new buyer come to the picture again. OUE has previously disclosed its interest.

From the chart, it has been lingering within price range from 2.66 to 2.85. MACD is intending to break up from zero line which suggests bullish run could be forming.

Meanwhile the counter is under dividend entitlement period with $0.1 per shares.

ENTRY PRICE:
Buy <2.8.for high dividend as well as potential price gain.