Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK) </a>Q3FY25 saw a massive recovery, with revenues/profits down only 10% YoY (vs. H1FY25 revenues/profits down 26%/32 % YoY). QoQ revenues were up 13% (USD terms). </li>
<li>The group changed its commentary and is now cautiously optimistic about a sequentially improving outlook in H2FY25 (vs H1FY25), despite the challenging environment.</li>
<li>The stock trades at 14.3x FY26e, with a dividend yield of 6.8%. We believe there is a likelihood that the earnings outlook improves and the dividend yield goes higher. </li>
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Uchi Technologies (UCHI MK) Q3FY25 saw a massive recovery, with revenues/profits down only 10% YoY (vs. H1FY25 revenues/profits down 26%/32 % YoY). QoQ revenues were up 13% (USD terms). 
The group changed its commentary and is now cautiously optimistic about a sequentially improving outlook in H2FY25 (vs H1FY25), despite the challenging environment.
The stock trades at 14.3x FY26e, with a dividend yield of 6.8%. We believe there is a likelihood that the earnings outlook improves and the dividend yield goes higher. 


Uchi Technologies (UCHI MK) Q3FY25: I Get Knocked Down, But I Get Up Again

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported another weak quarter, with revenues/profits down 24%/30%YoY, respectively. In Q1, they scrapped their guidance for FY25 (Vs a low-teens revenue decline earlier).</li>
<li>Profit margins were 50.1% (down 440 bps YoY) for Q2 FY25, and we expect a slight decline in future quarters due to a strong MYR (the company has USD-denominated revenue).</li>
<li>With revenues stabilizing and the company generating healthy cash flows, we believe it will weather the storm. Stock trades at 18x FY25 with a 6% yield. </li>
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Uchi Technologies (UCHI MK) reported another weak quarter, with revenues/profits down 24%/30%YoY, respectively. In Q1, they scrapped their guidance for FY25 (Vs a low-teens revenue decline earlier).
Profit margins were 50.1% (down 440 bps YoY) for Q2 FY25, and we expect a slight decline in future quarters due to a strong MYR (the company has USD-denominated revenue).
With revenues stabilizing and the company generating healthy cash flows, we believe it will weather the storm. Stock trades at 18x FY25 with a 6% yield. 


Uchi Technologies (UCHI MK) Q2 2025: Revenue and Margin Stabilized, Dividend Sustained

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported a solid Q4FY23/FY23 result, with revenue up 18%/13.2% YoY, operating profit up 28%/21% YoY, but profits up 9%/8.3% YoY (due to increased taxation).</li>
<li>For FY24, the company conservatively guided a mid-single-digit decline in revenue growth. In FY23, the company guided flat USD revenue growth (but delivered 9.2% YoY).</li>
<li>Assuming the current currency and guidance, the stock trades at 14x FY24e with a yield of 7% (assuming a 100% payout similar to last two years) and ROCE above 60%. </li>
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Uchi Technologies (UCHI MK) reported a solid Q4FY23/FY23 result, with revenue up 18%/13.2% YoY, operating profit up 28%/21% YoY, but profits up 9%/8.3% YoY (due to increased taxation).
For FY24, the company conservatively guided a mid-single-digit decline in revenue growth. In FY23, the company guided flat USD revenue growth (but delivered 9.2% YoY).
Assuming the current currency and guidance, the stock trades at 14x FY24e with a yield of 7% (assuming a 100% payout similar to last two years) and ROCE above 60%. 


Uchi Tech (UCHI MK): Solid FY23 Results, Solid Dividend, FY24 Guidance Conservative

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> reported a 15% YoY revenue growth/ 27% YoY operating profit growth led by constant USD revenue growth of 10% YoY and 4.5% MYR depreciation. </li>
<li>Profit grew only 3.5% YoY due to an increase in the effective tax rate from 2.8% to 21.0% as the company's tax holidays lapsed earlier this year.</li>
<li>Trading 12x PE, 7.5% dividend yield (based on a 90% payout), &gt;30% ROE, and more than 10% of the market cap in cash; this a stock to explore. </li>
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Uchi Technologies (UCHI MK) reported a 15% YoY revenue growth/ 27% YoY operating profit growth led by constant USD revenue growth of 10% YoY and 4.5% MYR depreciation. 
Profit grew only 3.5% YoY due to an increase in the effective tax rate from 2.8% to 21.0% as the company's tax holidays lapsed earlier this year.
Trading 12x PE, 7.5% dividend yield (based on a 90% payout), &gt;30% ROE, and more than 10% of the market cap in cash; this a stock to explore. 


Uchi Technologies (UCHI MK): Solid Q3 2023,ROE >30%/Div Yield >7%

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<a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a> results significant highlight was an upgrade in USD revenue for FY23 from "flat"  in Q1 2023 to "high single-digit growth" in Q2 2023.</li>
<li>Operating margins expanded owing to the depreciating ringgit YoY/QoQ by 350/480 bps to 61.6%. Unfortunately, the increasing effective tax rate (3.5% to 23.7%) resulted in a 13.7% YoY PAT decline. </li>
<li>With &gt;60% ROCEs, 12x FY23e PE multiple, and a 7.2% dividend yield, this is a stock to keep on your watchlist.</li>
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Uchi Technologies (UCHI MK) results significant highlight was an upgrade in USD revenue for FY23 from "flat"  in Q1 2023 to "high single-digit growth" in Q2 2023.
Operating margins expanded owing to the depreciating ringgit YoY/QoQ by 350/480 bps to 61.6%. Unfortunately, the increasing effective tax rate (3.5% to 23.7%) resulted in a 13.7% YoY PAT decline. 
With &gt;60% ROCEs, 12x FY23e PE multiple, and a 7.2% dividend yield, this is a stock to keep on your watchlist.


Uchi Technologies: Q2 2023 Upgrade of Guidance a Positive

Malaysia

Uchi Technologies Berhad is an investment holding company. The Company, through its subsidiaries, designs, researches, develops, and manufactures miniature data terminals, fuzzy logic controllers, and control modules.  Uchi Technologies also assembles electrical components onto printed circuit boards and trades complete electric module and saturated paper of PCB lamination.

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Uchi Technologies (UCHI MK)