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Union Gas Holdings
On July 12, Union Gas Holdings $ Union Gas: 1F2 +1.72% independent director Lim Chwee Kim disposed of 100,000 shares of the Catalist-listed company at S$1.11 per share.
This reduced his direct interest in the established provider of fuel products in Singapore, from 0.13 per cent to 0.09 per cent.
The transaction followed Mr Lim' s disposal of 100,000 shares at 53 cents per share on Feb 5.
Mr Lim was the founder and CEO of RichLand Group where he formulated business strategies to chart the future growth of the group, and a director of Catalist-listed REVEZ Corporation $ Revez: RCU 0% .
July 19 is the scheduled effective date for the company transferring from Catalist to the Mainboard.
On June 10, Union Gas Holdings announced that it had received in-principal approval for a transfer to the SGX Mainboard, and this was subsequently approved by shareholders in the Extraordinary General Meeting on July 13.
For its FY20 (ended Dec 31) the company reported 64.7 per cent growth in net profit from FY19, on the back of revenue growth of 9.4 per cent, led by the LPG segment.
Next Monday join in main board of sgx should have more first class investors buying union gas will see more breaking new high coming.🤑
Today touching 1.18 👍
Long-term shareholder of union gas (bought in at $0.237), first time commenting.
To those who are looking to trade union gas based upon the information about lockdown or not, please note that Union also has a big presence in the commercial gas space. The revenue contribution from this is almost as large as that of the domestic space, and it even grew at a higher rate, based on 2020 annual report. For them, their foray into this segment is carried under the blue brands " Union" and brown brands " Ugas" , and they own a majority of the market. What we have to realize is that in terms of ability to provide a commodity such as natural gas, the importance lies in keeping costs down so as to gain market share. Here, you can try asking coffeeshop owners about the options for gas provision out there. I know from my survey 2 years ago that they sold a single commercial canister for $7, whereas the next nearest competitor sold it at $12. This is despite them being able to reap a 25% profit margin then. To add to this, they have purchase the manifold and gas production facilities from the privately-owned parent company of UEC, allowing them to keep production costs down as they no longer have to pay fees to the parent.
So, in terms of valuation, where is Union to go next? I think it is fairly priced as it is. It could continue to expand into the residential market, sure. But to be conservative, we might place this at a 3.6% growth as a base case estimate. Or, alternatively, we can look at the changing composition of households by housing types (since Singaporean households are moving towards more private properties, and these are more likely to use LPG as opposed to piped gas). (Stats obtained from Singstat). We could also try to peek into the commercial segment to get a sense, but as they say, there is no asian food without wok hey and business is likely to track with the general F& B trend in Singapore.
What' s the potential catalyst on the horizon is the venture into Cambodia, and the potential conversion of Cnergy at Toh Tuck Road into a clean energy enabler. (If they prove their ability to provide multiple energy alternatives, they may replicate the model to open more such stations). But that remains to be seen.
To those who are looking to trade union gas based upon the information about lockdown or not, please note that Union also has a big presence in the commercial gas space. The revenue contribution from this is almost as large as that of the domestic space, and it even grew at a higher rate, based on 2020 annual report. For them, their foray into this segment is carried under the blue brands " Union" and brown brands " Ugas" , and they own a majority of the market. What we have to realize is that in terms of ability to provide a commodity such as natural gas, the importance lies in keeping costs down so as to gain market share. Here, you can try asking coffeeshop owners about the options for gas provision out there. I know from my survey 2 years ago that they sold a single commercial canister for $7, whereas the next nearest competitor sold it at $12. This is despite them being able to reap a 25% profit margin then. To add to this, they have purchase the manifold and gas production facilities from the privately-owned parent company of UEC, allowing them to keep production costs down as they no longer have to pay fees to the parent.
So, in terms of valuation, where is Union to go next? I think it is fairly priced as it is. It could continue to expand into the residential market, sure. But to be conservative, we might place this at a 3.6% growth as a base case estimate. Or, alternatively, we can look at the changing composition of households by housing types (since Singaporean households are moving towards more private properties, and these are more likely to use LPG as opposed to piped gas). (Stats obtained from Singstat). We could also try to peek into the commercial segment to get a sense, but as they say, there is no asian food without wok hey and business is likely to track with the general F& B trend in Singapore.
What' s the potential catalyst on the horizon is the venture into Cambodia, and the potential conversion of Cnergy at Toh Tuck Road into a clean energy enabler. (If they prove their ability to provide multiple energy alternatives, they may replicate the model to open more such stations). But that remains to be seen.
Knn, 1 joker sold 100shares to - 0.01 the price, obviously trying to create fear and bring price down...
sibei sad... we have to get into a lockdown soonest
Remember last time open never drop this time open
Don't know yet but got buy got hope no buy no hope 😜
Don't know yet but got buy got hope no buy no hope 😜
with the lousy decision of relaxation rules, revenue will fall for this counter.... what so great about reopening..... food is still now being prepared outside the delta is same cos mass cooking, but when everyone is home, coffeeshop still cook and household cooks... now gonna be coffeeshop cook, and less home cooked food
pcxiao2008 ( Date: 08-Jul-2021 09:37) Posted:
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watch this closely...think can move to 1.20 quietly soon
raykee ( Date: 08-Jul-2021 01:13) Posted:
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Waaaa still a Long way sia..... stupid white go and announcement loosen restriction..... else once lock down this counter will fly!
Last year, half year results came out on 13 August.
raykee ( Date: 06-Jul-2021 23:14) Posted:
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when is the announcement of half year?
ahberngh ( Date: 06-Jul-2021 11:04) Posted:
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Making a comeback, up 5c.
Waiting for the half year report to confirm profit is still growing.
Waiting for the half year report to confirm profit is still growing.
Engine on again let's go 🤑
Haix... With the announcement of new normal today, it fell 0.2....... Basically a person no matter what has to order a tank for their house, they just need to order, use or not is secondary, start off with everyone have a tank, sure 1 tank be it hawker or resident will be depleted then next order comes...
I wonder why uniongas dun makan UGS and Tan Brother... No mention of market share right?
Union Gas is both a growth stock for long term investing and a momentum stock for short term trading.
It is a non cyclical stock. It benefits both ways, whether the economy has a stagnant outlook or a vibrant outlook.
It' s profit has been steadily increasing from the last 3 years and counting. It has very low debt against its very high net cash.
This company has a great economic moat with no other compettitive companies in sight.
From a micro perspective, Union Gas provides LPG such as :
9kg cylinders- suitable for outdoor BBQs
12.7kg cylinders- suitable for residential
14kg- suitable for outdoor events
50 kg- suitable for commercial restaurants usage.
From that perspective, even if residential cylinders is slowly reduced as covid recovers, this will be taken up by hawkers using the 12.7 kg cylinders( and they normally stock up 2 max as per SCDF regulation),
not only that, the take up of 9kg, 14kg( outdoors) and best of all 50 kg for commercial restaurants will all be increased.
Their commercial based CNG and Diesel will be increased too.
From a macro perspective, their growth potential in terms of profits will still be on the steady upside for the next few years whichever way the economy goes.. While having Singapore as their only market, sooner or later they will have to look to neighbouring countries to look for potential growth and opportunities. Hence for them to be listed on mainboard listing will create excellent exposure to bigger investors or institutional investors looking for opportunities.
Anyway, whichever way everyone invest, good luck to all.
Remember to DYODD. Cheers! :)
It is a non cyclical stock. It benefits both ways, whether the economy has a stagnant outlook or a vibrant outlook.
It' s profit has been steadily increasing from the last 3 years and counting. It has very low debt against its very high net cash.
This company has a great economic moat with no other compettitive companies in sight.
From a micro perspective, Union Gas provides LPG such as :
9kg cylinders- suitable for outdoor BBQs
12.7kg cylinders- suitable for residential
14kg- suitable for outdoor events
50 kg- suitable for commercial restaurants usage.
From that perspective, even if residential cylinders is slowly reduced as covid recovers, this will be taken up by hawkers using the 12.7 kg cylinders( and they normally stock up 2 max as per SCDF regulation),
not only that, the take up of 9kg, 14kg( outdoors) and best of all 50 kg for commercial restaurants will all be increased.
Their commercial based CNG and Diesel will be increased too.
From a macro perspective, their growth potential in terms of profits will still be on the steady upside for the next few years whichever way the economy goes.. While having Singapore as their only market, sooner or later they will have to look to neighbouring countries to look for potential growth and opportunities. Hence for them to be listed on mainboard listing will create excellent exposure to bigger investors or institutional investors looking for opportunities.
Anyway, whichever way everyone invest, good luck to all.
Remember to DYODD. Cheers! :)
Hawker centre and coffee shop also using union gas that is the added bonus of union gas 😁
I beg to differ.... When there is a lockdown, then everyone will start to order gas... Now back to eat out people will not order individual gas and coffee take bulk pricing.... Not very good...
Foresight77 ( Date: 18-Jun-2021 15:47) Posted:
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Fill interest within 3 days looks like trend very good 😉
Singapore CNA:
Just in.Good News for Union Gas.
After mid July, even more potential upside.
This company never fails to impress. Low key, steady rise, Still good potential down the road. Mainboard listing will give it even greater exposure. Ignore the FUD and buy cheap while you still can.
This is one Long u cant afford not to have in your portfolio for 2021.
DYODD. Cheers:)
Dining-in to resume from Jun 21 but in groups of two, not five.
GROUP SIZES MAY GO UP TO 5 IN MID-JULY.Just in.Good News for Union Gas.
After mid July, even more potential upside.
This company never fails to impress. Low key, steady rise, Still good potential down the road. Mainboard listing will give it even greater exposure. Ignore the FUD and buy cheap while you still can.
This is one Long u cant afford not to have in your portfolio for 2021.
DYODD. Cheers:)