Uni-Asia reports record earnings, cautiously optimistic despite softening shipping market

The Edge Singapore
2-min read

Uni-Asia last traded at 99 cents, vs NAV of US$1.92 per share.

Uni-Asia has reported record earnings for FY2022, buoyed by higher charter rates and other related fee income.

For the year ended Dec 2022, earnings increased by 53% to US$27.8 million. Revenue in the same period was up 24% to US$86.1 million.

Uni-Asia plans to pay a dividend of 8 cents, bringing total payout for FY2022 to 14.5 cents.

"FY2022 has been a stellar year for the group, as we benefitted from a robust bulk carrier market," says CEO Kenji Fukuyado.

"The positive performance has strengthened our financial position and fundamentals, providing the group with reserves to capture new growth opportunities and allowing us to reward our loyal investors with the highest dividend in the group’s history," he adds.

Uni-Asia acknowleges that with the pandemic easing the shipping market has eased in tandem, especially in 2HFY2022. However, China's reopening might lend support to an improvement in the bulk carrier market this year.

Besides shipping, Uni-Asia's other key business is in real estate. It owns stakes in a string of Hong Kong commercial development projects, as well as a portfolio of boutique projects estates in Japan.

Uni-Asia says that while Hong Kong’s property market has been affected by the COVID-19 pandemic, the city remains a major financial hub in Asia and is home to a large number of multinational corporations.

Uni-Asia also notes that the Tokyo property market has been "robust", driven by a combination of factors including a strong economy and low interest rates.

Uni-Asia closed March 1 at 99 cents, up 1.02%. As at Dec 31 2022, its NAV was US$1.92 per share.

 

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