UPA (7757) - a good earning and low profile company

Company Profile
UPA Corporation Berhad had its early history since 1975 with its humble beginning in general printing. Today it has since diversified into various activities with all the divisions involved being placed under the parent company – UPA Corporation Berhad. 

The three main subsidiaries
1)UPA PRESS SDN.BHD
The Press division is involved in the manufacturing of diaries and paper related products. Under the guidance of our executive director, Mr. Chua Ngeun Lok, UPA Press has grown to be the biggest diary manufacturer in Malaysia, and one of the leading diary and paper products manufacturers in Asia.

2) UPA Machinery SDN.BHD
The Machinery division is the sole agent of Komori, an undisputable leading brand of printing machine in Japan. The division is also involved in reconditioning and refurbishment of Web printing machinery, Sheet fed printing machinery and book binding machinery. The division has grown to be one of the biggest printing equipment rebuilding factory in South East Asia.

3) Macro Plastic SDN. BHD

Macro Plastic Sdn. Bhd., a wholly owned subsidiary of UPA Corporation Bhd., is involved in the manufacturing of rigid films for food, pharmaceutical, electrical and electronics and semiconductor packing applications. The modern manufacturing plant is equipped with state-of-the-art machines, and adopts the ISO 9000 quality system management to ensure consistent quality and service.

 Now lets see the company past performance,

 





    In the past 5 years, the company posted an excellent result and the result is keep improving since 2011 from EPS 11sen to 2013 EPS 16sen. The company also declare 8sen dividend in the past few years.




The above is the latest 4 quarter result in 2014 for UPA, we can see that the full year earning for 2014 is 18.13sen and also pay out total dividend of 8sen in year 2014.

From the latest quarterly result which announce on 27 February 2015, the company posted a nearly double profit compare to last year same quarter result. The NTA of the company also increased from Rm2.33 per share to Rm2.43 per share in the latest quarterly report.

The company also recommend a 8sen dividend  for shareholders approval at the forthcoming Annual General Meeting which normally the entitlement date of the dividend will announce around on May and ex date on July as per previous record.

Now lets take a look on the Chart Movement for the company

From the chart we can see that the company is on a up trending line since October 2013 after break the MA69 and the price all the way go up until June 2014. After the dividend ex on 07 July 2014 the share price side way and fall down when KLCI index drop to 1673.50 last year. The share price break through the moving average price during the time and quickly went up back above the line in January 2015 and look like the up trending line going to continue in the up trending line again.


Based on the Company performance and charting movement also showing that the company still in growth and share price more to go if can break the recent high level Rm1.75.




At the current price of Rm1.60, the company trading at PE8.69 and dividend yield of 5%.


Medium Target Price: Rm1.83 (base on PE 10) potential return 15% !

Happy Trading

Regards,
Nick