NAME : DEVAN A/L MOROGAN

IC NUMBER : 021230-10-1003

MATRICS NUMBER : BB22110638

COURSE : INTERNATIONAL BUSINESS (UH6345002)

SUBJECT : FINANCE MANAGEMENT SECTION 4

(BT12503)

FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTING

 Never spend your money before you have it ⁓ Thomas

Jefferson.
1.0 INTRODUCTION

One of the essential requirements for starting any business is financing. Furthermore, during
a company's existence and even after it is sold or wound up, a sufficient corpus of funds and
effective financial management are needed. Therefore, at every stage of the business
lifecycle, finances must be managed, regulated in accordance with regulations, and
monitored.

Businesses with stronger financial management experience exponential growth, whereas

those with poorer financial management typically suffer losses or produce lesser earnings.
Let's explore the world of money management in more detail.

Financial management, to put it simply, is the area of business that deals with allocating the
available financial resources so as to maximise business profitability and return on
investment (ROI). Professionals in financial management arrange, plan, and manage all
corporate transactions. They concentrate on finding the funds, whether it comes from the
entrepreneur's initial investment, loan financing, venture capital, public offering, or any other
sources. Professionals in financial management are also in charge of allocating funds in an
efficient manner to support the organization's overall financial stability and expansion.

This course is an introduction course in the field of finance. It covers the main idea in finance
that starts with a general background, conceptual framework and techniques to assist in
managing financial decision. The main focuses are towards fundamental principal, exercises
and modern financial management procedures. This subject will provide student the guidance
in making personal, corporate, financial and investment decisions, as well as giving them the
basic understanding in the field of finance.

This course requires students to choose one Malaysian public listed company on Bursa
Malaysia Securities Berhad (www.bursamalaysia.com) and conduct a thorough financial
analysis on the company for five recent consecutive years.

The company that I have chosen is UOA DEVELOPMENT BHD which falls under main
market and property sector. According to their webpage https://uoa.com.my/about-us/group-
profile/ UOA Group (“UOA”) is one of the leading property groups in Malaysia. Founded
and listed on the Australian Stock Exchange (ASX) as United Overseas Australia Ltd in
1987, UOA has focused on property development, construction, property investment, and
property management. Since 1989, the Group has based its headquarters and business
operations in Kuala Lumpur, the capital state of Malaysia.

UOA’s fundamental objective is to develop and invest in quality properties. Over time, UOA
has become one of Kuala Lumpur’s most respected and reputable property investment and
development groups, successfully developing many prime commercial and residential
properties in prevailing economic conditions, and with an outstanding track record of quality
properties completed ahead of schedule.

On 8 June 2011, UOA successfully listed its construction and development division, UOA
Development Bhd on the main market of Bursa Malaysia (Malaysian Stock Exchange) which
placed UOA Development Bhd as one of the largest listed property development companies
by market capitalisation in Malaysia.

UOA’s investment strategy is to invest in good investment grade commercial and residential
assets in prime, high return growth areas. The Group is also a majority unit holder and a
committed, long-term strategic partner and investor of the UOA REIT (Real Estate
Investment Trust) which is listed on Bursa Malaysia (Malaysian Stock Exchange).

The UOA Construction team is qualified and registered with the Construction & Industry
Board (CIDB) with high grades for building and civil engineering works. Many of our
projects have been satisfactorily completed ahead of schedule without compromising quality.
Under the stewardship of the group’s directors and the support of our loyal team of
management and staff, UOA will scale to greater heights as we continue to deliver distinctive
and prestigious commercial and residential projects with the best quality.

As at 31 December 2021 The Group has successfully completed and delivered projects
comprising commercial, retail and residential properties with GDV (Gross Development
Value) in excess of an estimated RM20.0 billion. The Group has a total land bank of over 80
acres to be developed over the next 10 years and its investment portfolio has grown to a value
in excess of RM3.8 billion. The UOA REIT investment portfolio includes six key UOA
commercial properties – namely UOA Centre and UOA II, UOA Damansara, UOA
Damansara II, Menara UOA Bangsar and UOA Corporate Tower – valued at approximately
RM1.72 billion. The Group has a workforce of more than to 1,500 personnel moving forward
together to achieve our goal of developing and investing in high quality properties.
2.0 FINANCIAL RATIO ANALYSIS

To obtain useful data about a company, financial ratios are constructed using numerical
values collected from financial statements. Quantitative analysis is used to evaluate a
company's liquidity, leverage, growth, margins, profitability, rates of return, valuation, and
other factors using the data on its financial statements, which include the balance sheet,
income statement, and cash flow statement.

1. Liquidity ratios
Liquidity ratios are an important class of financial metrics used to determine a
debtor's ability to pay off current debt obligations without raising external capital.
Liquidity ratios measure a company's ability to pay debt obligations and its
margin of safety through the calculation of metrics including the current ratio,
acid test (quick ratio), average collection period, accounts receivable turnover
ratio and inventory turnover.

I. Current Ratio
Current Ratio compares a firm’s current (liquid) assets to its current (short
term) liabilities.

Current Ratio = Current Assets / Current Liabilities

YEAR CURRENT RATIOS

2017 2965107 / 835102 = 3.55 times

2018 3059624 / 744918 = 4.11 times

2019 2989385 / 605838 = 4.93 times

2020 3627872 / 534503 = 6.78 times

2021 3726195 / 56841 = 6.64 times

UOA Development Bhd had RM 3.55 in current assets for every RM 1 it owed in
current liability in year 2017. In year 2018, the current assets for every RM 1 it owed
in current liability increased as much as RM 0.56, where the value is RM 4.11. The
next year, the company had RM 4.93 in current assets for every RM 1 it owed in
current liability. In year 2020, the current assets for every RM 1 it owed in current
liability increases as much as 37.53% compare to the last year which is RM 6.78. In
year 2021, the current assets that the company had decreases as much as RM 0.14,
which is RM 6.64 for every RM 1 it owed in current liability. In conclusion, it is so
obvious that UOA Development Bhd has more assets than liabilities. This company
could technically pay off its current liabilities. But, the current ratio shows that it too
high, which is more than three, this indicates that the company is not using its assets
efficiently. Instead of maintaining a lot of liquid assets, UOA Development may
invest that money or use it for R&D, fostering longer-term growth.
 II. Acid Test (Quick Ratio)
Acid-Test (Quick) Ratio excludes the inventory from current assets as
inventory may not be very liquid.

Acid Test = (Current Assets-Inventory) / Current Liabilities

YEAR Quick Ratio

2017 (2965107-969167) / 835102 = 2.39 times

2018 (3059624-1636526)/ 744918 = 1.91 times

2019 (2989385-1451349) / 605838 = 2.54 times

2020 (3627872-1333950) / 534503 = 4.29 times

2021
(3726195-1315994) / 56841 = 4.3 times

Less inventory, UOA Development Bhd has RM 2.39 in current assets to cover RM 1
in current liability in year 2017. The next year, the company had RM 1.91 in current
assets to cover RM 1 in current liabilities. In year 2019, the current assets to cover
RM 1 in current liability increases as much as RM 0.63, which is RM 2.54. The next
year, the company had RM 4.29 in current assets to cover RM 1 in current liability. In
year 2021, the current assets to cover RM 1 in current liability was RM 4.30. Ideally,
UOA Development Bhd had a good ratio from year 2017 to 2021, meaning the
company had enough liquid assets to cover all short-term debt obligations or bills.
Moreover, the quick ratio higher than the average ratio, which shows that the
company’s liquidity and overall financial health is getting better year by year. On the
other hand, a very high ratio could indicate that accumulated cash is not being
invested, distributed to shareholders, or used in any other way that would be
beneficial.
III. Average Collection Period
Average Collection Period measures the number of days it takes the firm
to collects its receivables.
Average Collection Period = Accounts Receivable / Daily Credit Sales

YEAR Average Collection Period

2017 (392220+1+364) / (1081602/365) = 132.5 days

2018 (369129+117755+4) / (1263677/365) = 140.6 days

2019 (150995+92659+258) / (1104457/365) = 80.6 days

2020 (235308+67247+189) / (844597/365) = 130.8 days

2021
(227304+216797+2+1571) / (547484/365) = 297.12 days

The Average Collection Period of UOA Development Bhd on year 2017

shows 132.5 days. The next year, the average collection period is 140.6 days.
On year 2019, the average collection period decreases as much as 60 days,
which is 80.6 days and it increases as much as 50.2 days on year 2020. On
year 2021, the average collection period showed a drastic hike, which is
297.12 days. In conclusion, it is so obvious that UOA Development Bhd has a
high average collection period. A high collection period could mean customers
are taking their time to pay their bills, they had trouble in collecting their
accounts or collecting payments at a slower rate. It could indicate trouble with
their cash flows.
IV. Accounts Receivable Turnover Ratio
Accounts Receivable Turnover Ratio measures how many times
receivables are “rolled over” during a year. Lower number showing higher
efficiency.

Accounts Receivable Turnover Ratio = Annual Credit Sales / Accounts

Receivable

YEAR Accounts Receivable Turnover Ratio

2017 1081602 / (392220+10+364) = 2.76 times

2018 1263677 / (369129+117755+4) = 2.6 times

2019 1104457 / (150995+92659+258) = 4.53 times

2020 844597 / (235308+67247+189) = 2.79 times

2021
547484 / (227304+216797+2+1571) = 1.23 times

The Accounts Receivable Turnover Ratio of UOA Development Bhd in year

2017 is 2.76 times. In year 2018, the Accounts Receivable Turnover Ratio
decreases to 2.6 times. The next year, the Accounts Receivable Turnover Ratio
showed a drastic hike as much as 74.23 %, which is 4.53 times and decreases
again to 2.79 times in year 2020. In year 2021, the Accounts Receivable
Turnover Ratio decreases more to 1.23 times. UOA Development Bhd shows
that it has low accounts receivable turnover ratio, which is a sign of bad debt
collecting methods, unfavourable credit policies, or untrustworthy or unviable
clients. The company should take a severe action to solve this problem.
V. Inventory Turnover
Inventory turnover ratio measures how many times the company turns over
its inventory during the year. A relatively low inventory turnover ratio may
be a sign of weak sales or excess inventory, while a higher ratio signal
strong sales but may also indicate inadequate inventory stocking.

Inventory Turnover = Cost Of Goods Sold / Inventories

YEAR Inventory Turnover

2017 496260 / 969167 = 0.51 times

2018 761119 / 1636526 = 0.46 times

2019 691209 / 1451349 = 0.48 times

2020 485011 / 1333950 = 0.36 times

2021
298917 / 1315994 = 0.23 times

UOA Development Bhd turned over its inventory 0.51 times per year in year
2017. In year 2018, the Inventory Turnover per year is 0.46 times. The next
year, the company turned over its inventory 0.48 times per year. In year 2020,
the inventory turnover decreases as much as 25%, to 0.36 times. In year 2021,
the inventory turnover of the company is 0.23 times per year. According to the
data above, it is so obvious that the inventory turnover ratio is too low. Low
inventory turnover ratios, commonly known as overstocking, may indicate
 sluggish sales or an abundance of goods. It can be a sign of an issue with a
retail chain's merchandising plan or insufficient marketing.

2. Capital Structure Ratios

I. Debt Ratio
Debt ratio measures the proportion of the firm’s assets that were
financed using current plus long term liabilities.

Debt Ratio = Total Liabilities / Total Assets

YEAR Debt Ratio

2017 991041 / 5535470 = 17.9%

2018 845566 / 5791404 = 14.6%

2019 691011 / 5962879 = 11.59%

2020 577053 / 6172310 = 9.35%

2021
604624 / 6409418 = 9.43%

UOA Development Bhd financed 17.9% of its assets with debt in year 2017.
In year 2018, the firm financed 14.6% of its assets with debt. The next year,
the debt ratio decreases to 11.59%. In year 2020, the debt ratio decreases more
to 9.35% and slightly increases to 9.43% in year 2021. UOA Development
Bhd has low debt ratio according to the data above, which is a good thing
lenders and investors typically favour organisations with lower debt ratios
since debt is inherently hazardous. It shows that this company has more assets
than debt.
II. Times Interest Earned Ratio
Times Interest Earned Ratio measures the ability of the firm to service
its debt or repay the interest on debt. A low ratio means the company
struggles to pay debts and may face bankruptcy if they fail to meet its
obligation. A high ratio means the company can cover its debts
expenses which trait lenders or bondholders like to see.

Times Interest Earned Ratio = Net Operating Income / Interest Expense

YEAR Times Interest Earned Ratio

2017 656061 / 129283 = 5.07 times

2018 505850 / 94252 = 5.37 times

2019 510097 / 101675 = 5.02 times

2020 479956 / 80223 = 5.98 times

2021
316692 / 88348 = 3.58 times

UOA Development Bhd pay its interest expense 5.07 times or 19.7% of its
operating income in year 2017. In year 2018, the company pays its interest
expense 5.37 times or 18.63% of its operating income. The next year, the
company pay its interest expense 5.02 times or 19.9% of its operating income.
 In year 2020, the times interest earned ratio is 5.98 times or 16.7%. The firm
pay its interest expense 3.58 times or 27.9% of its operating income in year
2021. According to the data above, its clear that UOA Development Bhd has a
high times interest earned ratio which is a good thing because a higher times
interest earned ratio is advantageous since it indicates that the company's
solvency risk to creditors and investors is lower.

3. Asset Management Efficiency Ratios

Asset management efficiency ratios measure a firm’s effectiveness in utilizing its
assets to generate sales. These ratios are commonly referred to as turnover ratios
as they reflect the number of times a particular asset account balance turns over
during the year.

I. Total Asset Turnover Ratio

Total Asset Turnover Ratio represents the amount of sales generated per
dollar invested in the firm’s assets.

Total Assets Turnover Ratio = Sales / Total Assets

YEAR Total Asset Turnover Ratio

2017 1081602 / 5535470 = 0.19 times

2018 1263677 / 2418612 = 0.22 times

2019 1104457 / 5962879 = 0.19 times

2020 844597 / 6172310 = 0.14 times

2021
547484 / 6409418 = 0.08 times
 The Total Asset Turnover Ratio of UOA Development Bhd in year 2017 is
0.19 times. In year 2018, the Total Asset Turnover Ratio the company is 0.22
times. The next year, the Total Asset Turnover Ratio was 0.19 times and it
decreases as much as 26.3%, to 0.14 times in year 2020. In year 2021, the
Total Asset Turnover Ratio was 0.08 times. It shows that UOA Development
Bhd has a very low total asset turnover ratio which is not good for the
company. A greater asset turnover ratio is preferable in general. A business
that makes better use of its capital and operates more efficiently than its rivals
will produce more income from its assets. The low asset turnover ratio of
UOA Development Bhd suggests problems with surplus production capacity,
poor inventory management and bad tax collection methods.

II. Fixed Asset Turnover Ratio

Fixed asset turnover ratio measures firm’s efficiency in utilizing its fixed
assets (such as property, plant and equipment).

Fixed Asset Turnover Ratio = Sales / Net Plant and Equipment

YEAR Fixed Asset Turnover Ratio

2017 1081602 / 297020 = 3.64 times

2018 1263677 / 401609 = 3.15 times

2019 1104457 / 439132 = 2.52 times

2020 844597 / 420013 = 2.01 times

2021
547484 / 351108 = 1.56 times

The Fixed Asset Turnover Ratio of UOA Development Bhd in year 2017 is
3.64 times. In year 2018, the Fixed Asset Turnover Ratio the company is 3.15
times. The next year, the Fixed Asset Turnover Ratio was 2.52 times and it
decreases as much as 20.23%, to 2.01 times in year 2020. In year 2021, the
 Fixed Asset Turnover Ratio was 1.56 times. According to the data, UOA
Development Bhd shows a high Fixed Asset Turnover Ratio from year 2017 to
2019. It shows that the company is effective at using its fixed asset base to
generate sales or revenues from year 2017 to 2019. But, the ratio becomes low
in year 2020 and 2021 which shows that the company has over invested in
fixed assets and not using the assets efficiently and may had internal problems.

4. Profitability Ratios
Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating costs,
balance sheet assets, or shareholders' equity over time, using data from a specific
point in time. Profitability ratios can be compared with efficiency ratios, which
consider how well a company uses its assets internally to generate income (as
opposed to after-cost profits).

I. Gross Profit Margin

Gross profit margin shows how well the firm’s management controls its
expenses to generate profits.

Gross Profit Margin = Gross Profit / Sales

YEAR Gross Profit Margin

2017 585342 / 1081602 = 54.1%

2018 502588 / 1263677 = 39.7%

2019 413248 / 1104457 = 37.4%

 2020 359586 / 844597 = 42.6%

2021
248567 / 547484 = 45.4%

UOA Development Bhd spent RM45.90 for cost of goods sold and thus RM54.10
out of each ringgit of sales went towards gross profits in year 2017. In year 2018,
the company’s gross profit margin is 39.7%. The next year, the company spent
RM60.30 for cost of goods sold and thus RM39.70 out of each ringgit of sales
went towards gross profits. In year 2020, the company’s gross profit margin
increases as much as 5.20%, which is 42.6% and increases more to 45.4% in year
2021. According to the data, UOA Development Bhd is maintaining their gross
profit in a good level even though its unstable. They still able to make good
margin in gross profits and generating profits for every ringgit of cost involved.

II. Operating Profit Margin

Operating Profit Margin measures how much profit is generated from each
dollar of sales after accounting for both costs of goods sold and operating
expenses. It also indicates how well the firm is managing its income statement

Operating Profit Margin = Earnings Before Interest and Tax / Sales

YEAR Operating Profit Margin

2017 656061 / 1081602 = 60.66%

2018 505850 / 1263677 = 40.03%

2019 510097 / 1104457 = 46.19%

2020 479956 / 844597 = 56.83%

2021
316692 / 547484 = 57.84%

UOA Development Bhd has an operating profit margin of 60.66% in year

2017. In year 2018, the operating profit margin of the company is 40.03%.
 The next year, the operating profit margin of the company is 46.19%. In year
2020, the operating profit margin increases to 56.83% and increases again to
57.84% in year 2021. According to the data above, the operating profit margin
of UOA Development Bhd is high which is considered good. When the
company’s operating profit margin is high, it indicates that there is a
significant operating profit margin for every ringgit of revenue. This is a
reliable sign of a company with high-quality earnings. It is also a good
indicator that UOA Development Bhd with a higher operating margin is likely
to be better managed and pose less of a risk.

III. Net Profit Margin

Net Profit Margin measures how much income is generated from each dollar
of sales after adjusting for all expenses (including income taxes)

Net Profit Margin = Net Income / Sales

YEAR Net Profit Margin

2017 526778 / 1081602 = 48.7%

2018 411598 / 1263677 = 32.6%

2019 408422 / 1104457 = 37%

2020 399733 / 844597 = 47.33%

2021
228344 / 547484 = 41.7%

UOA Development Bhd has generated RM0.49 of profit for each ringgit of
sales after paying all of the company’s expenses in year 2017. In year 2018,
the company has generated RM0.33 of profit for each ringgit of sales after
 paying all of the company’s expenses. The next year, the company has
generated RM0.37 of profit for each ringgit of sales after paying all the
company’s expenses and it increases more to RM0.47 in year 2020. In year
2021, RM0.42 was generated for every ringgit of sales by the company after
all costs were covered. UOA Development Bhd had a high net profit margin
for these past five years which shows that this company was able to control
costs and sell products at prices higher than costs. Also, the company charges
the right price for its goods and practises effective cost management it
drastically increases their profitability.

IV. Operating Return on Assets

Operating Return on Assets ratio is the summary measure of operating
profitability. It takes into account both management’s success in controlling
expenses and its efficient use of assets.

Operating Return on Assets = Net Operating Income / Total Assets

YEAR Operating Return on Assets

2017 656061 / 5535470 = 11.85%

2018 505850 / 2418612 = 20.91%

2019 510097 / 5962879 = 8.55%

2020 479956 / 6172310 = 7.78%

2021
316692 / 6409418 = 4.94%
 UOA Development Bhd generated RM0.12 of operating profits for RM1 of its
invested assets in year 2017. In year 2018, the company has generated
RM0.21 of operating profits of RM1 of its invested assets. For every RM1 of
its invested assets, the company made an operational profit of RM0.08 in year
2019 and 2020. The next year, the operating return on assets decreases more to
4.94% which is RM0.05. The operating return on assets of UOA Development
Bhd for these past five years is considered low except for year 2018. In year
2018, the company has reached an excellent ROA. It shows UOA
Development Bhd has used their assets efficiently to generate profits in year
2018.

V. Return on Equity
Return on Equity (ROE) ratio measures the accounting return on the common
stockholders’ investment.

Return on Equity = Net Income / Common Equity

YEAR Return on Equity

2017 526778 / 4544429 = 11.59%

2018 411958 / 2369931 = 17.38%

2019 408422 / 5271868 = 7.75%

2020 399733 / 5595257 = 7.14%

2021
228344 / 5804794 = 3.93%
 UOA Development Bhd shareholders earned 11.59% on their investments in
year 2017. In year 2018, the shareholders earned 17.38% on their investments.
The next year, the shareholders earning decreases as much as 55.4%, which is
7.75% and decreases more to 7.14% in year 2020. In year 2021, the
shareholders earned 3.93% on their investments. According to the data above,
except year 2018, the ROE ratio of UOA Development Bhd is considered as
low. This shows that the company is not being good in converting its equity
financing into profits and compared to its shareholder equity, the company's
earnings are quite meagre. The company may be less effective at generating
profits and raising shareholder value if ROE is declining.

5. Market Value Ratios

Market value ratios are used to evaluate the current share price of a publicly-held
company's stock. These ratios are employed by current and potential investors to
determine whether a company's shares are over-priced or under-priced.

I. Price-Earnings Ratio
Price-Earnings (PE) Ratio indicates how much investors have been willing
to pay for $1 of reported earnings.

Price-Earnings Ratio = Market Price Per Share / Earnings Per Ratio

YEAR Price-Earnings Ratio

 2017 2.49 / 0.29 = 8.59 times

2018 2.49 / 0.21 = 11.86 times

2019 2.1 / 0.21 = 10 times

2020 2.04 / 0.19 = 10.74 times

2021
1.66 / 0.10 = 16.6 times

The price-earnings ratio of UOA Development Bhd in year 2017 is 8.59 times.
In year 2018, the price-earnings ratio of the company is 11.86 times. Next, the
PE ratio in year 2019 is 10 times and increases a bit to 10.74 times in year
2020. In year 2021, the PE ratio increases as much as 54.56%, which is 16.6
times. According to the data above, the PE ratio of UOA Development Bhd
for the past five years is quite low. UOA Development Bhd stock are often
considered to be value stocks. Stock prices trade below their fundamentals,
which indicates that they are undervalued. Investors will purchase the stock as
a result of this mispricing before the market corrects it because they will get a
great deal.

II. Market to Book Ratio

The book-to-market ratio compares a company's book value to its market
value

Market to Book Ratio = Market Price per Share / Book Value per Share

YEAR Market to Book Ratio

2017 2.49 / 3.27 = 0.76 times

2018 2.49 / 3.50 = 0.71 times

 2019 2.1 / 2.83 = 0.74 times

2020 2.04 / 2.92 = 0.7 times

2021
1.66 / 2.65 =0.63 times

UOA Development Bhd market to book ratio in year 2017 is 0.76 times. In
year 2018, the market book ratio is 0.71 times. The next year, the market to
book ratio is 0.74 times and it decreases slightly to 0.7 times in year 2020. In
year 2021, the market to book ratio is 0.63 times. According to the data, the
company can be bought for less than the value of its assets and it indicates that
the company’s stock is undervalued.

3.0 SUMMARY OF ANALYSIS AND RECOMMENDATION

According to all the financial analysis, UOA Development has been running its company
successfully for these past five years. The liquidity ratio of UOA Development Bhd is great,
which indicates that this company is in good financial health and is less likely to face
financial hardships. current ratio is too high, which indicates the assets are more than the
liabilities and the quick ratio is high where the company has enough liquid assets to cover all
short-term obligations or bills. But some ratios are not good. For example, average collection
period is also high and accounts receivable turnover ratio is low which is a bad thing because
collecting payments at a slower rate. Next, the inventory turnover is too low which indicates
overstocking.

The capital structure ratio of UOA Development Bhd is great which shows that the method
which the company finances its assets by combining debt and equity effectively. The debt
ratio of UOA Development Bhd is low, where the assets of the company are more than the
debt. Next, the times interest earned ratio is high too.

The Asset Management Efficiency Ratios of UOA Development Bhd for these past five years
are quite low. The total asset turnover ratio is very low which is not good for the company. It
indicates that UOA Development Bhd has a very poor inventory management. Secondly, the
fixed asset turnover ratio is high except for year 2020 and 2021.

The profitability ratio of UOA Development Bhd is good for these past five years. The gross
profit margin, operating profit margin and net profit margin of UOA Development Bhd is
high which shows that their profit is in good level, they have sign of high-quality earnings
and they able to control costs and sell products at prices higher than costs. But, the operating
return on assets is low except year 2018 and the return on equity is low which indicates that
the company is not good in converting its equity financing into profits.

The price-earnings ratio of UOA Development Bhd is low where the stock prices trade below
their fundamentals, which is considered as undervalued. The market to book ratio shows that
the company stocks can be bought for less than the value of its assets.

According to all the financial analysis, UOA Development Bhd is only lacking in handling
their assets. They have to use their assets efficiently by identifying the assets, record their
business assets, understand their assets and taxes and more.

4.0 APPENDIX AND REFERENCES

1. Balance Sheet 2017

2. Balance Sheet 2018
3. Balance Sheet 2019
4. Balance Sheet 2020
5. Balance Sheet 2021
6. Income Statement 2017
7. Income Statement 2018
8. Income Statement 2019
9. Income Statement 2020
10. Income Statement 2021
REFERENCES

1. UOA Development Bhd - Annual Report 2017.pdf

2. UOADEV - Annual Report 2018.pdf
3. UOADEV - Annual Report 2019.pdf
4. UOA Dev AR 2020.pdf
5. UOADEV - Annual Report 2021.pdf
6. https://smartv3.ums.edu.my/pluginfile.php/1489969/mod_resource/content/1/
Titman_PPT_CH04%20-%20All.pdf
7. https://smartv3.ums.edu.my/pluginfile.php/1476796/mod_resource/content/1/
Titman_PPT_CH031.pdf
8. https://uoa.com.my/about-us/group-profile/
9. www.bursamalaysia.com