I’ll leave the analysis of this report to Tony from EGC as I’ll just be exposing myself as knowing very little about this company in comparison. However I would like to highlight the strong cash generation for this HY from operating activities - $114M compared to a profit of $82M.

According to the UOA DB HY report:

The total new property sales for the period ended 30 June 2019 was approximately RM318.80 million ($112M AUD). The property sales for the year were derived, mainly, from South Link Lifestyle Apartments, Sentul Point Suite Apartments, Desa Green and United Point Residence.

The total unbilled sales (sales which are already locked in but not yet captured in the books) as at 30 June 2019 amounted to approx. RM 1.17 billion (410M AUD).

The UOS HY report details the projects underway in Malaysia through the UOA DB controlled entity:

• Southlink – Completing in 2022 – GDV upon completion 190M AUD
• Bandar Tun Razak – Completing in 2022 - GDV upon completion 101M AUD
• Goodwin Residence – launching in 2019 – GDV upon completion 207M AUD
• Sentul Point – completing 2020 – GDV upon completion 515M AUD
• United Point residence – completing 2020 – GDV upon completion 518M AUD

That’s $1.5 Billion AUD worth of projects completing in the next 3 years. Some of the development projects have already been pre-sold (if someone who knows the amount please shout out!), but with $410M AUD worth of unbilled sales not yet in the books it suggests a good few years of cash generation is to come for existing projects.

And that doesn’t include projects in the UOS parent in Perth and Vietnam, nor the income generated from the REIT, nor the reoccurring income generated from the parking / hotels…