+ Surge in charter rates. Charter revenue rose 70% YoY to US$34mn, driven by a 78% jump in average daily charter hire rates to US$19.4k. Vessel operating days were 5% YoY lower due to a containership that was disposed of in 1Q21. Margins expanded as vessel operating expenses rose only 14% YoY to US$10.6mn. Higher cost was from crew salary, crew logistics and other expenses. Fuel cost is borne by the shipping company, not Uni-Asia.
+ Returning spike in cash flow to shareholders. FCF in 1H22 tripled to US$20.9mn (1H21: US$7.2mn). There are no current plans to order vessels. Net debt has halved to US$31mn (1H22: US$61mn) from a year ago. Uni-Asia announced an interim dividend of 6.5 SGD cents per share, a payout ratio of 23% (or S$5mn).
– Lower pipeline of properties in Japan. In 1H22, Uni-Asia sold 2 units of its residential projects (i.e. Alero) located in Tokyo. The pipeline or ongoing projects is down to 8 from 13 a year ago. This implies fewer available projects to lease or for sale in the coming quarters.
Phillip Securities Research has received monetary compensation for the production of the report from the entity mentioned in the report.