United Engineers made significant changes to its asset base in 2013 that included: 1) the divestment of business park UE BizHub East; 2) the acquisition of freehold office/industrial 450, 452 Alexandra Road; and 3) the acquisition of WBL and a 1-for-1 rights issue.

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A relative of mine suggested United Engineers to me when I went around asking for investing ideas. I did a bit of homework to find out more about the company. It certainly looks attractive from the valuation perspective. The PER is less than 10, P/BV less than 0.7 and dividend yield of more than 5%. The net gearing is high at 78.4% but it could be reduced with the divestment of non-core assets from the acquisition of WBL. Stocks are usually cheap for a reason. Beyond the key fundamental ratios, the company has undergone significant changes in the past year (Read more...)