A Quick Review Of Uchi's Earnings

Time to give out credit. :D

First Uchi Tec.

The last posting I made on Uchi Tec was in Aug 2009: A Quick Look At Uchi's Earnings.

Uchi announced its earnings last night.


As can be seen from the table above, as again, the broader picture still does not look good for the earning still pales in comparison with what Uchi did last fiscal year.

However, when you compared it what Uchi did last quarter, the sign of the turnaround is there. (you can see the second quarter screen shot here and the first quarter screen shot here )

Some notes from the company:

• 14. PERFORMANCE REVIEW
  
  Revenue in Ringgit Malaysia for the period ended September 30, 2009 (RM62.862 million which equivalent to USD17.753 million), decreased by 35% as compared to September 30, 2008 (RM97.078 million which equivalent to USD29.829 million), mainly due to lower sales volume in consequence of customer’s logistic planning restructuring and unfavourable global economic condition.
  
  15. COMPARISON WITH THE IMMEDIATE PRECEDING QUARTER’S RESULTS
  
  There was no significant change in operating profit as compared to the immediate preceding quarter ended June 30, 2009.
  
  Profit before taxation for the current quarter increased by 89% because profit before taxation for the six months period ended June 30, 2009 was affected by the recognition of realized foreign exchange losses of RM8.9million upon termination of certain open contract with a bank.
  
  The recognition of such exchange losses shall not recur in the subsequent period of the year.

One more note. The dividend issue. Back in Feb 2009, I wrote Would You Buy Uchi For Its Dividends? (Uchi then was 75 sen)

The last few lines of the posting:

• 3. Cash balances is also clearly declining and one of the main reason is that Uchi's pays great dividends.
  
  Now common sense would suggest that if the earnings keep on declining, one day Uchi's dividends payout would surely decline too.
  
  Counter argument is that in the long run, Uchi's earnings should recover and given the fact that Uchi's current cash balances is still quite sizeable, why worry? Buy and enjoy the dividends for the long term.
  
  How?
  
  Would you buy Uchi for its dividends?

Have a look at this screen shot from Uchi's earnings notes.

And as usual... how?

Oh.. this again is not a tipsy. Please lah. The only way I know how to make anyone tipsy is to whip out my bottle of whisky or perhaps a bottle of wine. :)

So if you like to ass-u-me, go ahead, your ass not mine. :D