UE EC delivers dividend 13.3% ROC

UE E&C released its full year results with dividend rate of 6.0 cents (ordinary 2.0 cents + special 4.0 cents).  Its last done price was $0.45 and this dividend gives a ROC of 13.3%!

With the good dividend declared, its price is likely to go up again.  Will it test its 52 weeks high price of $0.51?    The 52 weeks high price was achieved post IPO to stabilise its share price so as to prevent it from going below $0.40.

Looking at its segmental revenue, most of its sales are from Singapore (80%); core gross sales is in Construction (79%) and this segment commands the lowest gross profit margin of 19% but an improvement over 2010 of 13% which was driven by cost saving, lower material prices and improved productivity.  Smallest segment is Building Materials and Equipment (8%) which has highest gross profit margin at 43% versus 48% in 2010 due to higher load testing services cost.  

It did not offer explanation on the increase in Other receivable provision by $3.2 million.

Current ratio is at parity and this is quite dangerous.

Though it has a high ROC but I will not be considering an investment into UE E&C.