Tuesday, 17 October 2017

Good Time to BUY M1 Ltd

  • Met 73% of our 9M17 estimate
  • NB-IoT network takes time to ramp up
  • Maintain HOLD

9M17 Revenue Growth Driven Mainly by Fixed Services

Good Time to BUY M1 Ltd www.mmfsolutions.sg

 

M1 Ltd’s (M1) 3Q17 revenue grew 1.0% YoY to S$251.6m driven mainly by fixed services (+19.9%) and mobile post-paid (+3.4%) revenues but partly offset by weaker handset sales (-13.6%) and international call services (- 7.0%). Fixed services revenue growth was driven by a 20.0% YoY increase in customer base despite recording 6.1% decline in ARPU, while mobile revenue growth was mainly driven by higher post-paid customer base and flat YoY ARPU.

3Q17 operating expenses rose at a slower pace of 0.6% YoY to S$209.1m due to a 21.8% decline in advertising and promotion expenses, offset by higher depreciation. Consequently, EBITDA increased 1.3% YoY to S$75.5m. However, NPAT fell 4.8% YoY to S$32.7m as taxation increased 13.1% to S$7.2m. For 9M17, revenue rose 2.3% YoY to S$763.9m driven mainly by fixed services and handset sales.

However, operating expenses grew 4.8% to S$633.3m due to higher handset costs and higher wholesale costs of fixed services. Consequently, 9M17 NPAT declined 13.9% YoY to S$68.6m and EBITDA fell 5.0% to S$228.0m, which formed 72% and 73% of our FY17 forecasts, respectively.

No Change in FY17 Outlook Guidance

For FY17, M1 keeps its guidance unchanged:

  1. capex to be around S$150m,
  2. expects NPAT to decline YoY for FY17, and 3) intends to maintain 80% dividend payout ratio for FY17.
Looking ahead, we believe competition within the mobile segment will continue to put pressure on ARPU with the impending entry of TPG as well as the announced intention of MyRepublic to launch mobile services as a Mobile Virtual Network Operator (MVNO). While M1 has recently launched nationwide NB-IoT network, it expects mass adoption to take time as a new technology and with the eco-system still evolving.

Separately, we do not expect M1’s ICT business to contribute materially in the near-term as it needs time to ramp up as well.


Look once- Keep Eye on These Singapore Stocks

Supported by 6.8% Forward Dividend Yield

With a set of in-line 9M17 results, we keep our forecasts unchanged and note the lack of any near-term catalysts driving earnings. Hence, we maintain our HOLD rating and the same FV of S$1.65.

Get Perfect Plan for Blue Chip stocks , Intraday Trading Signals & Positional stocks Signals for SGX market

Monday, 16 October 2017

Singapore Market review of the day

SINGAPORE - After two weeks of solid gains in the stock market that sent the benchmark Straits Times Index (STI) up by nearly 100 points or 3.1 per cent to breach through the 3,300 level, what are the odds of a third week of gain?

Pretty good, analysts reckon, citing Singapore's strong economic footing and the relative underperformance of its Singapore Stock market against regional peers.

The Trade and Industry Ministry's advance estimates last Friday showed that the economy expanded 4.6 per cent - its fastest pace in more than three years - in the third quarter, buoyed by the surging manufacturing sector.

This beat economist forecasts of 3.8 per cent growth, and was also the fastest quarterly expansion since 2014.

The better-than-expected performance was lifted by a stellar showing in manufacturing, which surged 15.5 per cent year on year.

The sector makes up a fifth of the economy.

Services - which makes up two-thirds of the gross domestic product (GDP) and employs the bulk of workers - grew 2.6 per cent.

Bolstering the good share Investment news on the same day was a decision by the central bank to keep its exchange rate policy stance unchanged.

This means keeping the Singapore dollar band on a path of zero appreciation against the currencies of key trading partners.

This will be welcomed by local exporters who see a dearer Singapore dollar as being unhelpful in pricing their products competitively in the global market.

The Monetary Authority of Singapore uses the exchange rate as its main monetary policy tool to strike a balance between inflation from overseas and economic growth.

"Upbeat GDP readings and MAS policy decision sent the STI to its highest level in more than two months... STI has finished its two-month consolidation and is gaining upward momentum ahead of third-quarter earnings season," said CMC Markets Singapore analyst Margaret Yang.

She noted that the local index had underperformed regional peers over the last two months, with its performance lagging behind major indices S&P and Hang Seng.

The STI ended last week up 0.8 per cent at 3,319.11, a key level that Ms Yang has noted.

"3,300 point is a psychological and technical resistance level for the STI. Breaking out above this critical point will pave way for more upside towards the previous highs of 3,354 points."

With the results season kicking in, good corporate earnings will help to boost confidence and attract more liquidity into Singapore, she added.

DBS Group Research noted that corporate earnings growth in Singapore is recovering after two years of negative growth in 2015 and 2016.

It believes earnings growth should continue to be healthy, driven by a decent economic recovery with upside risk.

"We believe STI could attempt to hit 3,500 by end-2018, representing around 10 per cent total return inclusive of dividends."

The Keppel group of companies will report their third quarter results this week, starting with Keppel DC Reit and Keppel Infrastructure Trust on Monday and ending with Keppel Corporation on Thursday.

This week and next appear to be a popular reporting period among the Reits, with no fewer than 19 indicating that they will release their results.

Singapore Property stocks, which have enjoyed a surge of price and volume, are likely to remain in play.

The release on Oct 16 of new private home sales for September may give further fillip to the share price of developers if the sales figures are as strong as the spate of collective sales that have hit the market.

Last Friday, City Developments closed at $12.66, its highest level in nearly five years while UOL ended at a record $8.89.

Both companies snared a residential site each in the sought after East Coast area through collective sales recently.

Singapore Stocks To Watch

  • AEM
  • ALLIANCE MINERAL
  • COMPACT METAL
  • ROWSLEY
  • THAIBEV
So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy ALLIANCE MINERAL || Level 0.360|| Cut Profit @ 0.395 || Return 9.72%
KLSE:Buy DNONCE || Level 0.405 || Cut Profit @ 0.440 || Return 8.64% 


Saturday, 14 October 2017

How to Pick best dividend stocks Singapore

As investors, we all love dividends. Other than the thrill of seeing a stock you own rise higher and higher in the Malaysia / Singapore stock market, receiving passive dividend income from your investments every year is something we all look forward to.



How to Pick best dividend stocks Singapore www.mmfsolutions.sg
So if you’re more of an income investor and looking to invest for dividends, your stock portfolio will be markedly different from someone who’s investing for high growth and capital gain. The stocks that will give good, consistent dividends may not necessarily be the kind that will grow by 20-50% a year and vice versa.

So if you investing for dividends, you have to invest accordingly and only pick the best stocks that will give the passive dividend income you want. The question is: How?

So if you’re slightly lost and looking for some direction, here are 7 quick steps to help you pick the best dividend stocks around: 


1 .Look for Mid-Large Cap Stocks


The best dividend stocks are usually large, mature companies with stable revenue, profits and cash flow. These companies have little growth left in them. Because these companies are no longer expanding aggressively, the majority of their earnings can be returned to shareholders as dividends.

On the other hand, a smaller, high-growth company needs more cash and resources to grow and expand its business, leaving less money to pay shareholders dividends (if any).

2 .Dividend Payout Ratio is 50% or More


If a company is large, stable and isn’t seeking to grow aggressively any more, then the majority of the profits it makes should be returned to shareholders. So look for a company with a dividend payout ratio of at least 50% or more. For example, Nestlé (Malaysia) returns over 90% of its earnings to shareholders as dividends.

If a company has a low payout ratio, ask yourself why the company is holding on to the cash. Unless they have a good reason to do so or have a way to generate exceptional returns for shareholders, the majority of profits should be paid out as dividends.


3 .Track Record of Paying Consistent Dividends


The company should have a long and stable track record of paying consistent/growing dividends to shareholders. No point if a company is large and successful and has profits to distribute as dividends, but chooses to pay them out inconsistently.

Check to see a company pay a consistently growing dividend over the last 5-10 years. This shows that as the company grows more and more successful, the management is also willing to share the fruits of its labour with its shareholders.

4 .Company’s Fundamentals Must Be Sustainable


Many dividend investors tend to ignore the overall aspects of a company’s fundamentals. They choose to focus primarily on the amount of dividends they can receive. This is wrong. While dividend yield is obviously important for someone seeking dividends, it is also important to consider the overall health of the company.

A company with deteriorating fundamentals (e.g. falling revenue, profits, cash flow, fading economic moat, etc.) cannot sustain its dividend payout in the long term. The less revenue and profit it makes, the less dividends it can pay.

Over time, a company with falling revenues and profits will see its stock price fall when investors realize that the company is no longer performing. This fall in value will eat into any dividend gains you might have had at the start – leaving you back at square one.

So always make sure the dividend company you want to invest in will remain fundamentally strong and robust for many years to come.

5 .Company has Low CAPEX


As a dividend investor, you prefer to invest in a company with low capital expenditure (CAPEX). A company with high CAPEX means that it has to continually reinvest its profits in maintaining its business operations, leaving less to distribute as dividends.

For example, airlines have very high CAPEX as they need to continually maintain their aircraft and upgrade them to newer models after a certain amount of years.

So look for a company that’s able to maintain/grow its business with minimal CAPEX.

If you want help, you can always kick start the idea by downloading our watchlist of dividend paying stocks below:

6 .Company has Stable Free Cash Flow


Ultimately, a company must have real cash (not just profits) to be able to pay dividends to its shareholders. Even if a company is profitable but has negative or inconsistent free cash flow, it will have trouble paying stable dividends.

A smaller company that is seeking to grow might have negative free cash flow as it expands its business. But a large, stable company that dominates its industry should be producing high amounts of free cash flow year after year.

7 .Yield Must Beat Risk-Free Rate


The dividend yield you receive should beat the risk-free rate of the country you reside in. The risk-free rate is the lowest return you can theoretically get “risk-free”over a period of time.

In the US, if you plan to invest your money for ten years, then the risk-free rate is usually based on the return of the 10-year US Treasury note which is currently around 2.30%. In Singapore, the risk-free rate is usually based on the interest your CPF special account gives you, which is 4%.

If your dividend yield can’t beat your risk-free rate, you might as well put your money with your CPF since you face less risk growing your money there compared to investing in stocks.




Get Perfect Plan for Blue Chip stocks , Intraday Trading Signals & Positional stocks Signals for SGX market

Source - fifthperson

Friday, 13 October 2017

China Evergrande Group Statement for SGX Market

According to the South China Morning Post, home buying was notably subdued in China’s top-tier cities during the eight-day “Golden Week” public holiday, which is a traditionally popular season for home sales.
 
China Evergrande Group Statement for SGX Market www.mmfsolutions.sg
 

Data from real estate brokers 5I5J Group and Centaline Property Agency indicate that new home sales fell as much as 78% and 64% in Shanghai and Beijing, respectively, during the holidays compared with a year ago.
 
Catch More - Good Time to Buy Keppel Corp

Given the 19th Communist Party Congress starting October 18, it is highly likely that potential buyers are adopting a wait-andsee approach. Further, the slew of cooling measures introduced by the local authorities, ranging from heightened mortgage down payments to resale restrictions, appears to be taking effect.

While Evergrande’s latest operating statistics for Sep’17 indicate that contracted sales remains healthy till date, a prolonged period of market softness will be a cause for concern.

Thursday, 12 October 2017

Investing Alert: Malaysia, Singapore stocks fall ahead of Fed meeting minutes

Mobile phone companies drag KLCI index down, DBS, ComfortDelGro decline in STI

[SINGAPORE ] [KUALA LUMPUR ] Malaysia shares fell for a second consecutive day, weighed by a decline in mobile phone operators. Singapore stocks ended lower ahead of the U.S. Federal Reserve's meeting minutes.

Investing Alert: Malaysia, Singapore stocks fall ahead of Fed meeting minutes

Investors shrugged off the positive cues from Wall Street overnight with the Dow Jones Industrial Average logging another all-time high. U.S. stocks have repeatedly reached record levels in recent sessions, buoyed by expectations of a cut in corporate taxes and upbeat manufacturing and services data.

The lackluster performance of equity markets in Malaysia and Singapore on Wednesday came ahead of the Fed releasing the minutes of its September meeting. Investors are looking for more cues on the outlook for the economy and on inflation from the document.

The FTSE Bursa Malaysia KLCI declined 0.2% to 1,757.21. DiGi.Com dropped 2%, Telekom Malaysia lost 1.1%, and Axiata Group and Maxis declined by at least 0.6% each.

The Malaysian telecommunications regulator Wednesday invited bids from carriers to buy blocks of 700 Mhz spectrum for high-speed mobile phone services. The move comes as consumers in Southeast Asia's third-largest economy, where many own more than one mobile phone, are increasingly shifting to data-heavy offerings.

Operators are expected to vie aggressively for a slice of the spectrum that could push up bid prices and subsequently pressure cash flows, said AmInvestment Bank's analyst Alex Goh. While successfully securing 700 Mhz airwaves would not increase revenue directly, "it's a race that all players have to run, so that they can provide the best service quality to users," he said.


AWC, a provider of integrated facilities management, dropped 2.5% after it agreed to mutually terminate a contract worth 130 million ringgit ($30.8 million) with the Malaysian government.

Cuscapi, a software developer, declined 3% to 0.325 ringgit after saying it planned to raise 79.80 million ringgit selling 300 million shares and 60 million warrants.

Muhibbah Engineering (M) advanced 0.7% after it won an infrastructure works order worth 168 million ringgit. Hubline, engaged in shipping services, climbed 7.1% amid speculation the company will receive new government orders from the oil & gas sector in coming months.

Oil and gas services company KNM Group advanced 1.8%. Maybank Investment Bank said in a note that the company's Peterborough, U.K. power plant project is "finally" moving along after financing had been a major stumbling block in the past.

Venture Corp Share Investment Singapore

  1. 2H historically stronger than 1H
  2. Revising upwards our estimates
  3. Reiterate BUY on higher FV

Earnings Driven by Revenue Growth and Margins Expansion

Venture Corp Share Investment Singapore www.mmfsolutions.sg

 

Singapore Stock Venture Corporation Ltd (VMS) has consecutively posted strong double-digit YoY revenue growth over the past three quarters, driven by higher demand in its Test & Measurement/Medical & Life Science/Others (TMO) segment, especially medical and life sciences related equipment, as well as its Networking & Communications (N&C) segment given the world’s increasing need for wider network connectivity at higher speeds. More impressively, VMS’s PATMI has over the past eight quarters recorded double-digit YoY growth, with the most recent 2Q17 PATMI surged 61.0%, driven by margins expansion in addition to higher sales.

And since FY12, VMS has consistently posted stronger 2H results compared to 1H, as its customers increase spending nearer to end of each calendar year, and we expect this trend to continue in FY17. Hence, based on above, we are raising our FY17–FY21 PATMI forecasts by 10%–15%.

Share Buybacks by CEO a Positive Signal

VMS’s CEO, Mr. Wong Ngit Liong, has been exercising his employee share options and making open market share purchases on numerous occasions. More specifically, Mr. Wong spent:

~S$2.1m to purchase 166,300 shares at an average cost of S$12.51/share on 14 July, ~$1.3m to purchase 105,300 shares at an average cost of S$12.52/share on 17 July, and ~S$6.1m to purchase 400,000 shares at an average cost of S$15.26/share on 12 Sep.
Over these three occasions, Mr. Wong spent a total of S$9.5m in open market purchases of VMS’s shares. In our view, these transactions provide a very clear positive signal of his confidence over where he believes the company is heading towards.

Potential Upside to Dividend Yield

Consequently, as we factor in for a stronger 2H in FY17 on the back of continued margins expansion, our DCF-derived FV increases from S$14.80 to S$20.33. Reiterate BUY on VMS.

Given its outstanding results for the past few quarters, solid balance sheet and sanguine outlook, we believe there is much scope for VMS to potentially increase its dividend, which has ranged between S$0.50 to S$0.55/share since FY08.


More Update:Share trading tips, SGX Stock Picks, Share Market signals for Singapore stock Market
 
Venture Corp Share Investment Singapore www.mmfsolutions.sg

Wednesday, 11 October 2017

Share Investment of Yoma Strategic Holdings

In the World Bank Group’s East Asia and Pacific Economic Update for October 2017, Myanmar was noted to have seen economic growth slowing to 5.9% in 2016/17 compared to 7% in 2015/16. However, economic growth is projected to recover to 6.4% in 2017/18 and average 6.9% over the medium-term.
 
Share Investment of Yoma Strategic Holdings www.mmfsolutions.sg


The report also noted that an expected bounce in agriculture activity is likely to support stronger growth in rural incomes moving forward, though productivity bottlenecks remain.
In our view, these set of forecasts should continue to support Yoma’s distribution and after-sales services for New Holland tractors. The World Bank Group also notes that consumer purchasing power in the country has also been rising. This also bodes well for Yoma’s KFC business, as the group is looking to increase its store count from 13 as of 30 Jun 2017 to 22 by the end of FY18.

Maintain HOLD with an unchanged fair value estimate of SS$0.58.

 

Tuesday, 10 October 2017

SPH REIT Share Investment update

  1. 4QFY17 DPU +0.7% YoY
  2. FY17 portfolio rental reversion of 1.2%
  3. Full committed occupancy

4QFY17 Results Within Expectations

SPH REIT reported an in-line set of 4QFY17 results, with gross revenue and NPI growing by 1.3% and 3.9% YoY to S$52.9m and S$41.8m, respectively. This was driven by higher rental income from both Paragon and The Clementi Mall (TCM), coupled with higher NPI margins (+2 ppt YoY to 79.0%) due to proactive management of utility contracts, lower property tax and maintenance expenses.
SPH REIT Share Investment update - www.mmfsolutions.sg


DPU for the quarter came in at 1.42 S cents, representing YoY growth of 0.7% as management released S$4.5m of taxable income available for distribution retained in 9MFY17, versus S$1.6m released in 4QFY16.

For its full-year performance, SPH REIT reported a 1.5% increase in gross revenue to S$212.8m and a 4.5% jump in NPI to S$168.1m. The latter formed 101.5% of our FY17 forecast. DPU of 5.53 S cents translated into growth of 0.5% and constituted 99.0% of our FY17 projection.

Negative Rental Reversion for Paragon a Surprise

Both Paragon and TCM maintained their 100% committed occupancy, as at end-FY17. However, a downside surprise came from Paragon’s negative rental reversion figure of 0.8% for expiries in FY17. As rental reversions for the mall were positive in 9MFY17 at 3.6%, this implies a weak 4QFY17 showing.

The softness came largely from the retail space, as reversions for the office/medical leases were flat. TCM fared better, with positive rental uplifts of 3.7% for the full-year, thus resulting in an overall portfolio rental reversion of 1.2% in FY17. Shopper traffic for both malls was stable.

While Paragon achieved higher tenant sales of 2.1% in FY17, TCM saw a 5.8% decline. Nevertheless, the occupancy cost for Paragon (19.6%; unchanged) and TCM (15.8%; +0.8 ppt) remains healthy, in our view.

There were also positives from SPH REIT’s portfolio valuation, underpinned by a compression in cap rates adopted by the valuers, as rental assumptions held steady. Paragon’s valuation rose 1.5% to S$2,695m, while that of TCM inched up 1.6% to S$583m.

Maintain BUY

Taking into account this full-set of results, we trim our FY18 and FY19 DPU forecasts by 1.1% and 1.8%, respectively. But as we also roll forward our valuations, our DDM-derived fair value estimate remains unchanged at S$1.08. Maintain BUY.

Market update: AirAsia X to increase flights to South Korea on strong demand

AirAsia X, the long-haul arm of Malaysia's budget carrier AirAsia, plans to increase flight frequencies to South Korea as it sharpens focus on North Asian markets to meet an anticipated robust demand, top company executives said Monday.




"We are targeting 80% load factor in the first 12 months of operations," Chief Executive Benyamin Ismail said at a news conference after announcing four-times-a-week flight from Kuala Lumpur to popular tourist destination Jeju island.

The new route will add more than 150,000 in annual capacity, he added.




Read more - Things Most People Don't Know About Singapore Stock Market
 

"South Korea is an important market and we have seen tremendous growth from our existing routes to Seoul and Busan, which will now be complemented by our new service to Jeju, saving our guests the hassle of domestic transit to the island province," he said.

The airline, which carried two million passengers in the Malaysia-South Korea route, is expecting demand to remain strong in the months ahead, Benyamin said.

AirAsia X plans to increase from December its weekly flights to Seoul from Kuala Lumpur to 18 from the current 14 and also raise the frequency of weekly flights to Busan to five from four in the same period, he added.

Meanwhile, the company will cut flights to Australia next year to focus more on North Asian markets, Group Chief Executive Kamarudin Meranun said. "We have scarcity of resources and therefore we need to be selective," he said.

The company's load factor - a measure of how full the planes are - rose by five percentage points on year to 80% in April-June period. Its seat capacity increased 26% from a year earlier to 1,722,513 and it carried 1,387,257 passengers, 34% more than a year earlier.


Read More- These Share investment Mistakes You're Making With Singapore Stock Market
 

While analysts favour AirAsia X's move to reduce Australian exposure, they expect its North Asia expansion strategy to boost profitability if it can generate an "attractive" yield.

AirAsia X has been facing strong competition in its Australian routes from Middle Eastern Airlines such as Emirates, MIDF Amanah Investment Bank's analyst Tay Yow Ken said. "Only 50% of AirAsia X's Australia routes were profitable," he said.

Monday, 9 October 2017

Stock Market analysis of City Developments Limited

  • Price translates to S$1,515 psf ppr
  • FV increases to S$12.90
  • Maintain BUY

Acquires Amber Park for S$906.7m Via Collective Sale


An 80:20 JV between City Developments (CDL) and Hong Leong group has successfully tendered S$906.7m for the collective sale of Amber Park. The 200-unit development at Amber Garden is one of the largest sites in the locality with a land area of 213,675 square feet. With a plot ratio of 2.8, the allowable GFA of the project is 598,290 sq ft. Development charges are not payable for the proposed development. This translates to a price of S$1,515 per square foot per plot ratio, which we believe is a reasonable price given a competitive land market currently.

We expect sale prices of between S$2.3k – S$2.4k when the new project is launched. Subject to approval, the JV plans to redevelop the site into a condominium project comprising four 25-storey blocks with close to 800 units and a basement carpark. Most apartments will have a NorthSouth orientation with many units commanding sea views. We note that CDL was also the original developer of Amber Park three decades ago, and management has indicated that they are intimately familiar with the location.

Near New Tanjong Katong MRT Station to be Completed in 2023

The site is located in a private residential area in the Katong and East Coast area and is accessible via the East Coast Parkway. It is also within 1km to Tanjong Katong Primary School and 2km to CHIJ (Katong) Primary, Haig Girl’s School, Kong Hwa School and Tao Nan School. The new Tanjong Katong MRT station will also be located 200m from the site when it is completed in 2023. W

e update our model for the site acquisition and firmer residential ASP assumptions, given recovering home prices and stronger market conditions, and our fair value estimate increases from S$12.39 to S$12.90. Maintain BUY.
 

Saturday, 7 October 2017

Market Update: Singapore stocks log best week in nine months, Malaysian shares rise

Singapore shares posted their best weekly advance since January, helped by a rally in property developers and lenders, while Malaysian equities also rose over the last five days to snap a two-week losing run.

Market Update: Singapore stocks log best week in nine months, Malaysian shares rise


Singapore's FTSE Straits Times index rose 0.9% to 3,291.29 on Friday, taking its rally this week to 2.2%. UOL Group added 5.3% since last Friday, pacing gains for real estate developers. DBS Group Holdings led banking stocks higher, climbing 3.2% this week. On Friday, UOL Group was up 4.3% and DBS by 0.8%.

Property Singapore stocks in the city-state gained this week after City Developments bought a residential site worth more than S$900 million ($660 million), reigniting optimism for Singapore's real estate market, according to at least two brokerages. Shares of City Developments rose 2.3% this week.

Lenders climbed for a third consecutive week, tracking a rise in U.S. bond yields amid optimism over tax reforms in the world's largest economy. Singapore rates are heavily influenced by the U.S. and a rising interest rate scenario helps the net interest rate margin outlook for banks. The benchmark 10-year U.S. bond yield is trading near a four-month high.

Gains in Singapore stocks this week were also helped by a record run on Wall Street that saw all three major U.S. equity benchmarks repeatedly scale record highs.

The FTSE Bursa Malaysia KLCI ended up 0.3% to 1,764 on Friday, rising 0.5% this week. AMMB Holdings and RHB Bank were the week's top performers, adding at least 2.4% each, rebounding from last week's losses. On Friday, AMMB rose 0.2% and RHB ended little changed.

The market is expected to trade sideways in the coming week as investors await fresh catalysts which include Malaysia's upcoming 2018 fiscal budget, said Pong Teng Siew, head of research at Inter-Pacific Securities in Kuala Lumpur. "It looks like it's going to be a very quiet week ahead," with funds seen holding back positioning ahead of the budget announcement expected in the final week of this month, said Pong. His forecast model indicates a "very narrow" 14-point upside and downside for the KLCI for the whole week.

Foreign outflows from Malaysia's stock market dwindled to 29 million ringgit ($6.8 million) this week through Thursday, after last week's outflow of nearly 1 billion ringgit.

Construction and property developer WCT Holdings advanced 2.3% on Friday after is subsidiary won a contract for completion of Light Rail Transit Line 3 (LRT3) and other associated works for 640 million ringgit.

Gabungan AQRS climbed 6.4% after securing LRT3 contract worth 1.21 billion ringgit.
Source - nikkei.com

Have you heard about these Stock Trading Tips?

“Be willing to be a beginner every single morning.” ― Meister Eckhart

The above quote aptly describes the stock market. You might be experienced with trading or may have just started. Uncertainty is the only identity of the stock market and therefore if you see someone asking “how to begin trading in the Singapore stock market?” it is quite natural!

This is also one of the foremost queries trading aspirants ask. Whether they are tempted with the success of other traders or are excited after exploring the prospects of stock trading, this one question comes to the mind of almost every one.

Well, spending time earning in gaining knowledge about all that is required is better than failing in the stock market and then asking it! So if you too are bogged with the same question, you should read this post and gather some valuable advice as stock trading tips from experts.

Start with a virtual Demat Account

“Well begun is half done!” – Unknown

As a beginner, most experts suggest traders begin with a virtual “demat account”. Trading using this account helps you gain that initial knowhow about how trading is done, how money is invested and also what is the right time to target specific sectors.

There are numerous companies offering virtual trading accounts, but the best of all is with SGX Market. Start off with this account to gain that much desirable confidence.

Once you have the confidence and experienced necessary to start stock trading Singapore, you are up to go open a real Demat Account with some professional broker!.......

Read More

Friday, 6 October 2017

Singapore Stocks closing of the Today

MAGNUS ENERGY GROUP LTD


Recent Announcement: Disclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)

Descriptions -  This announcement has been prepared by the Company and its contents have been reviewed by the Company s sponsor, Stamford Corporate
Services Pte. Ltd. (the Sponsor), for compliance with the relevant rules of
the Singapore Exchange Securities Trading Limited (the SGX-ST). 


The Sponsor has not independently verified the contents of this announcement.
The announcem ent has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement. 


The contact person for the Sponsor is Mr Bernard Lui. Tel: 6389 3000
Email: bernard.lui@morganlewis.com


ARTIVISION TECHNOLOGIES LTD


Recent Announcement: Use of net proceeds from the allotment and issuance of 185,185,185 option shares

Thursday, 5 October 2017

Singapore REITs Performance

Singapore’s manufacturing and electronics Purchasing Managers’ Index (PMI) continued their robust momentum, coming in at 52.0 and 53.6 for the month of Sep, representing MoM increases of 0.2 and 0.4 points, respectively. 
 
Singapore REITs Performance www.mmfsolutions.sg
 
This also represented the 13th and 14th consecutive month of expansion, respectively.
 
Read More - Singapore Share Market Preview

Similarly, we saw last week another month of strong industrial production in Singapore for Aug, with YoY growth of 19.1% registered. This was higher than the street’s expectations for an increase of 16.0%. This trend has also been observed in the Eurozone, with the manufacturing PMI of 58.1 in Sep at the highest level since Feb 2011.

We believe these data points augur well for the sentiment of industrial REITs, although this would be partly offset by continued supply pressures in Singapore in the near-term which would weigh on rental reversion figures.

We like Suggest Frasers Logistics & Industrial Trust [BUY; FV: S$1.22] and Mapletree Logistics Trust [BUY; FV: S$1.35] within the industrial REITs space.

Singapore Penny Stocks To Watch

  1. FALCON ENERGY
  2. TAT HONG
  3. JAPFA
  4. CHINA AVIATION
  5. FRENCKEN
So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy TAT HONG || Level 0.480|| Cut Profit @ 0.515 || Return 7.29%

KLSE:Buy PALETTE || Level 0.300 || Cut Profit @ 0.370 || Return 23.33%

More Update:Share Market signals, Intraday trading signals &

share trading tips or Share Market Tips

Catch once REITs Share Investment

The price performance of Hospitality REITS during the past 1 year have been nothing short of incredible.

These REITS typically own and manage hotels, that are hand-picked for their prime location within major cities, in countries like Singapore, Melbourne and London. A good management helps to ensure a steady stream of repeat bookings from business and leisure travelers, and high occupancy rates allow for a steady stream of dividends that the REITs are able to distribute to unitholders.
SGX alone is home to 5 REIT listings that derive more than 60% of their rental income from hospitality real estate assets.

These 5 REITs have witnessed on average a 15% gain in share price alone. Coupled with average annual dividend yield of 5% to 6.6%, investors would have reaped a total of 20% gains on invested capital over the past 1 year.

Frasers Hospitality Trust


Frasers Hospitality Trust is one of the hospitality REITs contributing to the overall vibrancy of the Singapore REIT market. It is a pure play hospitality REIT with a service residence portfolio, and is globally diversified with 15 properties in 9 cities. Intercontinental Singapore is one of its local holdings, with Sofitel Sidney Wentworth and Park International London as part of its overseas hospitality assets. Its Q1 2017 DPS came 4.2% in lower as compared to previous corresponding quarter due to a rights issue which increased the number of units outstanding. Its growth engine is in full force from the recent acquisition of Novotel Melbourne and Maritim Hotel Dresden and investors can look to stronger performance recovery from its Singapore and Japan assets. It is currently offering the highest yield among all hospitality REITs at 6.6% per annum.
 

Ascendas Hospitality Trust

Ascendas Hospitality Trust is another global REIT with prime assets scattered over top cities such as Sydney, Melbourne, Beijing, Tokyo and Singapore. Most hotels owned by the REIT are located in Australia and are mid-grade hotels: Pullman and Mercure and Novotel Sydney. Diversification is the REITs key strategy to deliver strong unit-holder returns. Its share price has risen nearly 20% from the start of the year. Should its Australian hotel property suffer a drop in occupancy levels as a whole, the REIT could look to other regions such as its China and Singapore portfolio to deliver returns. Another attractive feature is that Ascendas Hospitality REIT owns 3 and 4 star hotel properties which give higher operating margins as compared to higher end hotels.
 
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Far East Hospitality Trust

Far East Hospitality Trust has been going strong as well for the past 1 year. Investors looking for a localised REIT can look to this Singapore focused REIT where all its hotel portfolios are primarily located in the major shopping district of Singapore, such as Orchard Parade, The Elizabeth Hotel and The Quincy Hotel. Its Q2 2017 financials were weak as DPS recorded a decrease of 4% but investors should look past quarter on quarter fluctuations and project expected returns beyond 5 years. Its 6.19% annual yield still gives investors decent returns on investment and Singapore’s resilience in attracting global tourists and business traveller should bode well for this REIT.
 

CDL Hospitality Trust


For investors looking for exposure in the global tourism sector, CDL Hospitality Trust is the REIT that should fall under the investors’ radar. Its property portfolios are scattered all over the world in major cities from Tokyo to Perth with huge tourist arrivals business travellers every single year. CDL HTrust provides excellent geographical diversification, backed by world class hotels run by solid management team. Its Singapore portfolio makes up 58% of total property portfolio, with the remaining 42% strategically located in other major cities. It is always on the hunt for quality hospitality assets with the latest being the acquisition of The Lowry Hotel in Manchester. Its track record is backed by an attractive dividend yield of 5.95% per annum, making it one of the best REITs in Singapore. Its performance over the past year has been good as well, delivering nearly 20% gains in unit price alone.
 

OUE Hospitality Trust


OUE Hospitality Trust would also make an interesting REIT investment should investors want a Singapore pure play hospitality REIT, similar to Far East Hospitality Trust. Its property portfolio comprises 5 star hotels namely Crowne Plaza and Mandarin Orchard. Its dividend yield is one of the highest offered at 6.2%. Singapore tourist arrivals had been on a steady uptrend over the many years up till 2016 with the Singapore government constantly seeking new inputs to attract tourist dollars. The hotels are upscale hotels catering to well-heeled tourist whom are less price sensitive and values great top notch hospitality hotel service. OUE Hospitality is well positioned to reap solid occupancy from these tourist segments.
Source - ZUU online SG

Wednesday, 4 October 2017

Singapore Stocks analysis of OUE Commercial REIT

  1. Redemption of 75m CPPUs
  2. Aggregate leverage to increase
  3. Fair value of S$0.67

CPPU Redemption as Part of Capital Management Strategy

Singapore Stocks analysis of OUE Commercial REIT 
 
OUECT announced that it will be carrying out a redemption of 75m convertible perpetual preferred units (CPPUs) at the issue price of S$1 for each CPPU. The issuance of these CPPUs to OUECT’s sponsor was for partial payment of the purchase consideration for OUECT’s stake in One Raffles Place. Following the redemption on 2 Nov 2017, 475m CPPUs will remain outstanding. The Manager notes that this move is part of its proactive capital management strategy and to mitigate dilution in DPU from potential conversion of CPPUs into units of OUECT in the future.

Higher Finance Costs Expected

We note that the CPPUs were issued at a coupon of 1.0% p.a. in 2015, at a conversion price of S$0.841 per unit with a restricted period of 4 years from the date of issuance. While CPPU distributions will drop, OUECT’s finance costs should creep up, given that the redemption will be largely funded by existing loan facilities.

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OUECT’s pro-forma aggregate leverage as of 30 Jun 2017 is expected to increase from 36.4% to ~38.7%. On balance, we expect DPUs to soften slightly by 0.2% and 0.8% in FY17 and FY18 against our last forecast, respectively. We also believe it is possible for more CPPUs to be redeemed ahead of the non-call period in 2019, though a full redemption of the outstanding 475m units is highly unlikely.

Maintain HOLD

We believe that the Investment Outlook 2017 for the office sector is improving, as demonstrated by the flat QoQ Grade A CBD Core monthly rents of S$8.95 in Q2’17, according to CBRE. The same sentiment can also be observed from CapitaLand Commercial Trust’s recent acquisition of Asia Square Tower 2 (excluding the hotel component), where the potential benefits from an expected uptick in Grade A office rents has been cited as one of the reasons for the transaction.
 
We will be waiting for further evidence to corroborate our view as we head into the earnings season. For now, based on our revised DPU forecasts, we maintain our HOLD rating but with a slightly lower fair value estimate of S$0.67 (previously S$0.68).

Tuesday, 3 October 2017

Singapore Stock to Consider of this Week

It is common belief that when key appointment holders or majority shareholders start to accumulate shares of their own companies, it is usually a strong indication that the company is doing well and its share price is likely to follow suit. Naturally, who else could be more familiar with the performance of the companies other than the people who are actually running the show themselves?
There may be plenty of reasons for one to sell his shares but when he does buy shares, it could only be for one particular reason. And that is – to make money. That said, let us look at three stocks which recently experienced significant insiders buying.

Yangzijiang Shipbuilding 


Yangzijiang Shipbuilding (Holdings) (YZJ) announced on 31 August 2017 a share placement of 137 million new shares at $1.53 per share to raise net proceeds of around $209 million. Upon the announcement, share price plunged by more than 13.8 percent from the close on 30 August 2017 at $1.625 to $1.40 as of 27 September 2017.

The group intends to use up to half of the net proceeds to fund new investments and business expansion through acquisitions, and the remaining for working capital and general corporate purposes including the repayment of bank loans and debts.
As YZJ’s finance strength was robust with a net cash of Rmb1.1 billion before the placement, doubts were raised with regard to the need to raise funds, and there were speculations that the group was preparing for major mergers and acquisitions activities. Other possible explanations include enhancing liquidity due to tightened capital controls arising from certain high-profile incidents in China.

Yangzi International Holdings lent out 137 million shares to facilitate in the share placement, which is beneficially owned by the YZJ Settlement in which Ren Yuanlin, chairman of YZJ, is deemed interested in. Pursuant to the full settlement of the loan of the shares, Ren’s deemed interest in YZJ has enlarged from 22.7 percent to 25.4 percent as of 25 September 2017.

 Health Management International


Health Management International (HMI) owns and operates two tertiary hospitals in Malaysia – namely Regency Specialist Hospital (Regency) in Johor as well as Mahkota Medical Centre (Mahkota) in Malacca.

Mahkota, one of the most comprehensive cancer centre South of Kuala Lumpur, has plans to increase its capacity by adding 34 beds to its existing 266 beds making it to 300 beds in FY18. In addition, the medical centre stands to benefit from more flight routes for the Malacca airport in October 2017, which currently only offers flights to Pekanbaru and Penang.

Meanwhile, following a successful turn-around in 2014, HMI has confirmed its plans to double Regency’s bed capacity from the current 218-beds to an eventual 500-beds hospital. Construction of the new extension block is expected to commence in FY18 and slated for completion by FY21 at an estimated cost of RM160 million.

Both hospitals continue to register healthy patient growth as patients volume grew 3.7 percent year-on-year in 4Q17 and the growth of foreign patients has outpaced local patients. With the acquisition of 100 percent stake in the two hospitals completed in March 2017, higher earnings contribution due to the full ownership structure can be expected.

Dr Gan See Khem, Executive Chairman of HMI, has accumulated about 829,000 HMI shares through Nam See Investment over the last two week between the range from $0.635 to $0.655. As at 22 September 2017, Dr Gan’s deemed interest in HMI has grown eight basis points to 39.8 percent.

According to a research report by Maybank Kim Eng on 25 August 2017, the brokerage house maintained a BUY rating on HMI with a price target of $0.80.

Mapletree Logistics Trust


Mapletree Logistics Trust (MLT)
recently entered into an agreement to acquire Mapletree Logistics Hub Tsing Yi in Hong Kong from its sponsor, Mapletree Investments, at a consideration of HK$4.8 billion.

The acquired building is an 11-storey ramp-up warehouse with a net lettable area of 148.1k square meter. The property has remaining leasehold of 46 years, located in a strategic location to the city centre, and will be 100 percent occupied by October 2017. The agreed acquisition price is attractive as it translated into a net property income (NPI) yield of 5.7 per annum and is about 2.4 percent below valuation.
The acquisition is estimated to lift MLT’s asset under management and NPI by 15 percent and 14 percent respectively. In addition, it is also expected to be distribution per unit accretive, although aggregate leverage will edge up marginally to 38 percent.

As a result of a purchase of 600,000 units by DBS Group Holdings via a market transaction, major shareholder Temasek Holdings (Temasek) deemed interests in MLT have inched up to 40 percent as at 14 September 2017. Temasek’s deemed interests in MLT arise from the aggregation of interests held by DBS Group Holdings and Mapletree Investments.

A research report by Maybank Kim Eng released on 29 August 2017 revealed that the broker maintained a HOLD rating on MLT, giving it a target price of $1.20.

Source -  Sharesinv.com