United Engineers   

UE building up!

My MFT friend say UE might move up soon....

 

That's show how good is our brokers' call. Their call are as good as ours. That is the problem. Regulate them and see if they would keep their mouth shut!

 

Previously some MFT give TP at $ 6.24 ?? god ??

 

From the recent The Edge: Broker's Digest

United Engineers (Nov 15: $3.88) TP: $6.24
MAINTAIN BUY. United Engineers reported 3Q2007 results with 764% growth in net profit to $7.4 million compared to $900,000 in 3Q2006. UE has two development projects on-hand. The Rochester, which was launched in July 2007 is about 90% sold todate. The other project is a freehold high-end residential project at Balmoral Crescent, which is jointly developed with Kajima and will be launched early next year. Both projects are expected to yield profit margins of at least 50%. To-date, United Engineers has a healthy order book of $0.9 billion for the engineering and construction business. United Engineers recently embarked on a US$50 million medial waste treatment to provide longer-term growth. At $3.90, United Engineers is trading at a steep discount of 37% to sum-of-parts valuation of $6.24 per share. - NRA Capital (Nov 14)

 

This stock is definitely looking good but for medium term... with the recent news about Rochester, Vista exhange and a possible waste water treatment contract in China, this counter is healthy to keep in the portfolio... but not for very short term gains.... 4-6 months time will defintely cheong around $4.8 to $5....

 

Just last mth, Phillip Securities recommended BUY on UE with TP of $5.10 when it was trading around $4.18 but price had since fallen by almost $1 to $3.26 now.

Here is their new report (BUY). Any comments? Not vested but on my watchlist.

http://www.remisiers.org/research//UE%20-%201H07%20Results%20(14%20Aug%2007).pdf

 

 

 

From Philips this morning!!!!!!

Building Asia?s tomorrow

18 July 2007

A well-diversified Asian play. United Engineers Ltd (UEL) is the largest homegrown builder with a market capitalization of over S$900 million. The Company has a strong historical presence in Singapore since its establishment in 1912. With a staff strength of approximately 5,000 employees, UEL currently operates in 12 countries in Asia, i.e. Brunei, China, Hong Kong, India, Indonesia, Middle East, Malaysia, Myanmar, Singapore, Taiwan, Thailand and Vietnam. Over the years, it has built up a strong foothold across many industries, such as the environmental engineering, ground engineering, building construction, building services, civil engineering, chemicals solution and manufacturing, property development, project management, property management and etc. UEL?s competitive edge is its capabilities to oversee an entire project value chain, from design, build to manage and operate (DBO), particularly in the property and environmental-related projects.

Near term catalyst ? Mixed development @ Vista Xchange. UEL is currently developing a mixed development project at Buona Vista, Singapore, which was awarded by JTC in 2005. The much-anticipated development in One-North area will comprise a 250-room hotel, a 120-room serviced apartment, 60-unit SOHO, a 110,000 sq ft retail mall, and a condominium tower, named The Rochester. The whole mixed development designed by famous architect Paul Tange, will create an iconic landmark in the area. We understand that The Rochester will be launched for sale very soon, within this month.

Initiate coverage with a buy at fair value of S$5.10. We are optimistic on the company?s growth in the future, particularly on the Vista Xchange mixed development and its expansion plan into the PRC?s wastewater treatment business. Based on RNAV valuation, we arrive at a fair value of S$5.10 per share, which represents an upside of 22% from its previous close. Our estimates show that its forward P/E is respectively 23.8x and 16.6x for FY07 and FY08.

 

Time to watch this one.... building momentum...