Stock Name: UE E&C
Company Name: UE E&C LTD.
OCBC Investment Research in an Aug 22 research report says: "UE E&C is a medium-sized construction and engineering group with three main divisions: (i) construction (FY10: 85% of total revenue), (ii) mechanical and electrical (M&E) engineering (8%) and (iii) others (7%), including property development and rental/supply of tiles and industrial equipment.
"In our view, UE E&C is a well-managed company with an established track record in construction and M&E engineering industries. However, it appears to suffer from a lack of market attention, presumably because of its small market size and concerns whether a slowdown in Singapore's property market would spill over to the construction sector.
"We value UE E&C at 3x its forward EPS (33% discount to the industry average PER of 4.5x) to obtain a fair value estimate is 41 cents. HOLD (initiating coverage)."
Company Name: UE E&C LTD.
| Research House: OCBC | Price Call: HOLD | Target Price: 0.41 |
OCBC Investment Research in an Aug 22 research report says: "UE E&C is a medium-sized construction and engineering group with three main divisions: (i) construction (FY10: 85% of total revenue), (ii) mechanical and electrical (M&E) engineering (8%) and (iii) others (7%), including property development and rental/supply of tiles and industrial equipment.
"In our view, UE E&C is a well-managed company with an established track record in construction and M&E engineering industries. However, it appears to suffer from a lack of market attention, presumably because of its small market size and concerns whether a slowdown in Singapore's property market would spill over to the construction sector.
"We value UE E&C at 3x its forward EPS (33% discount to the industry average PER of 4.5x) to obtain a fair value estimate is 41 cents. HOLD (initiating coverage)."
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