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QuestionsCategory: Valuation QuadrantUOL Marketable securities
Michael Lim asked 6 years ago

Hi Victor/Rusmin,
I refer to an old article of UOL written 2 years ago.

Is UOL Group an Undervalued Asset Play Right Now?

I find the valuation method direct, useful and wanted to apply them.
Under the financial part, i can easily get the following from the  UOL’s latest balance sheet (1Q2014)

  • Real estate
    Development properties: $776.8 million
    Investment properties: $3,823.6 million
  • Cash and bank balance: $433.4 million

However, i have problem getting the Marketable securities from the balance sheet.

  • Marketable securities
    43.67% stake in United Industrial Corp Limited: $2,018.3 million
    Available for sale financial assets: $852.8 million

Would appreciate if you could guide me to derive the value of $2,018.3 Mil and 852.8 Mil respectively.
Best Regards
Michael Lim

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3 Answers
Victor Chng answered 6 years ago

Hi Michael,
The available for sale financial assets is derived from the balance sheet while the 43.67% is derived from the market capitalisation of Untied Industrial Corp (UIC). For example, now UIC’s market cap is $3916.7 million so 43.67% of it is worth $1710.4 ($3916.7 * 0.4367).

Michael Lim answered 6 years ago

Hi Victor,
Thanks for answering.
I believe the 43.67% of UIC is parked under Investments in associated companies  under non-current asset? It did not gave details under the footnote about the 43.67% of UIC. I believe you took the figures from FY2013 annual report?

Victor Chng answered 6 years ago

Hi Michael,
You can get it from the latest FY2015 ( Page 12 where they show their interest in UIC which increase to 44.3%