Stocks to watch: C&G, Soilbuild Business Space Reit, QAF

THE accompanying organizations saw new advancements that may influence exchanging of their offers on Friday: 

C&G Environmental Protection Holdings: The mainboard-recorded organization has gone into a S$400 million proposed manage Param Mitra Coal Resources that will bring about an invert takeover of the previous by India's Sainik-Aryan Group. The Sindhu family possesses driving India-based coal, coordinations and power player Sainik-Aryan Group that backs and oversee Param Mitra Coal Resources. 

In a post-showcase declaration on Thursday, C&G, now a money organization, said it "trusts that the proposed exchange will give a chance to the organization to stay recorded and to get another business that has potential for development". 

Soilbuild Business Space Reit: The trustee of the Reit has marked a put and call choice consent to strip to SB (Pioneer) Investment its Tuas property, normally known as KTL Offshore after its inhabitant, for S$55 million. The purchaser is an entirely possessed auxiliary of Soilbuild Group Holdings, which is the backer of Soilbuild Reit. 

QAF: Breadmaker QAF has chosen to stop its pastry kitchen operations in China as they keep on being misfortune making. The Chinese bread kitchen operations are embraced through a 55 for each penny held auxiliary of the gathering, with the rest of the 45 for every penny held by an organization in which controlling investor Lin Kejian has a premium. 

Independently, QAF reported that its gathering monetary controller, Derrick Lum, will leave with impact from Dec 29, 2017, "to take care of individual duties". Mr Goh Kiat Chiang, a previous budgetary controller at M&L Hospitality, will supplant Mr Lum.

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Singapore stocks enter evening session on higher ground; STI at 3,401.14

SINGAPORE shares continued exchanging on Thursday evening in a positive area with the Straits Times Index at 3,401.14, up 0.3 for each penny or 9.47 focuses on the day as at 1.01pm. 

Against the benchmark's level heading into the early afternoon break, the list was down imperceptibly, by 0.02 for every penny. 

Gainers simply beat out washouts 199 to 131, with 575 million offers worth S$281.4 million exchanged. 

Among the dynamic stocks, Jiutian Chemical Group entered the evening session up 3.1 for every penny, or 0.2 Singapore penny, at 6.7 Singapore pennies with 24.8 million offers exchanged. Rowsley increased 1.6 for each penny, or 0.2 Singapore penny, to 12.9 Singapore pennies with 31.2 million offers exchanged. 

Different actives included OCBC Bank, up 0.65 for every penny or eight Singapore pennies, at S$12.39; and DBS Group Holdings, up 0.48 for each penny or 12 Singapore pennies, at S$25. UOB was down 0.15 for every penny, or four Singapore pennies to S$26.16.

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Stocks to watch: Oxley Holdings, Oceanus, SingHaiyi, Food Empire

THE accompanying organizations saw new improvements that may influence exchanging of their offers on Wednesday: 

Oxley Holdings: The property designer's backup has taken a 25.5 for every penny stake in an Australian firm that has procured a site in the focal point of Broadbeach and Mermaid Beach on Gold Coast for private advancement purposes. The mainboard-recorded gathering on Wednesday said Oxley Australia Pty Ltd subscribed for more than 4.8 million completely paid offers in Pindan Capital Mermaid Beach Pty Ltd (PC Mermaid Beach), which has an issued share capital of A$19 million (S$19.7 million). 

In a different documenting, Oxley Amethyst, an entirely possessed backup of Oxley Holdings, has practiced the alternative to buy a freehold property along Balestier Road for S$38 million from Owen Pte Ltd, in which the previous' CEO is a huge investor. 

Oceanus Group: The abalone organization has finished its obligation rebuilding exercise, putting the gathering in an obligation free and "net money positive" position before the finish of its monetary year 2017. The obligation rebuilding proposition was declared not long ago, and was endorsed by its investors a week ago. 

SingHaiyi Group: Property designer SingHaiyi Group is hoping to raise net continues of up to about S$143.16 million for property speculations through a rights issue. It had declared on Monday that it is proposing a renounceable non-guaranteed rights issue of up to around 1.44 billion new offers at S$0.10 each, to be issued based on one rights share for each two existing offers to investors. 

Sustenance Empire: Its 51 for each penny possessed auxiliary has gone into an assention that extends it the choice to recover in real money the rest of the adjust of a 11.06 billion won (S$13.8 million) credit reached out to Caffe Bene Co (Caffebene). Sustenance Empire said that the assention dated Tuesday gives its auxiliary, Hallyu Ventures Pte Ltd, to recover - in entire or to a limited extent - the adjust of the advance in real money or transformation into new normal stocks in Caffebene. The credit has been incompletely reimbursed through a change of new normal stocks in the capital of Caffebene on June 30, 2017.

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Singapore shares start evening exchanging on positive ground; STI at 3,421.78

SINGAPORE shares continued exchanging on Tuesday evening in a positive area with the Straits Times Index at 3,421.78, up 0.2 for every penny, or 6.96 focuses, on the day as at 1.02pm.

Failures dwarfed gainers 173 to 148, or around seven down for each six up, with 845.9 million offers worth S$449.6 million exchanged.

Among the dynamic stocks, Rowsley entered the evening session down 0.74 for every penny, or S$0.001, at S$0.135 with 210.7 million offers exchanged. Asti was the second-most exchanged with somewhere in the range of 38.6 million offers changing hands at S$0.086 each, down 2.27 for every penny or S$0.002.

Dynamic file stocks included DBS Group Holdings, up 0.81 for each penny or S$0.2, at S$24.93; and Singtel, down 0.55 for every penny or S$0.02, at S$3.62.

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Singapore shares ascend at Monday's open; STI up 0.26% to 3,425.68

SINGAPORE stocks opened more grounded on Monday, with the Straits Times Index up 0.26 for each penny or 8.74 focuses to 3,425.68 as at 9.03am, after Wall Street stocks surged to crisp records on Friday. 

Gainers dwarfed washouts 83 to 39, or around two stocks up for each one down, after 41.6 million offers worth S$64.4 million changed hands. 

Among the most vigorously exchanged by volume, Noble increased 16.7 for every penny or S$0.04 to S$0.28 with six million offers exchanged. NetLink NBN Trust exchanged level at S$0.825 with five million offers exchanged. 

Dynamic file stocks included Clearbridge BioMedics which began exchanging out of the blue on Monday; and AsiaPhos, up 3.2 for each penny or S$0.002 to S$0.064.

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Singapore shares open level on Tuesday

SINGAPORE stocks opened level on Tuesday, with the Straits Times Index progressing 0.12 point to 3,460.57 as at 9.03 am. 

Around 51.2 million offers worth S$78.1 million altogether changed hands, which worked out to a normal unit cost of S$1.53 per share. 

The most effectively exchanged counter was Infinio, which was level at S$0.002 with 4.2 million offers evolving hands. Different actives included ComfortDelGro and Accrelist. 

Gainers dwarfed failures 83 to 41, or around two up for each one down. 

In US stocks overnight, the Dow and S&P 500 edged to new records on Monday drove by innovation shares, including Apple, which rose after its securing of melody acknowledgment application Shazam. 

US stocks were in a constructive area for practically the whole session, forgetting about worries over a blast at a young hour in the day close Times Square that harmed three individuals and stopped action in key New York transportation center points for a few hours, revealed AFP. 

The Dow Jones Industrial Average rose 0.2 for each penny to close at 24,386.03, progressing from Friday's record. The expansive based S&P 500 increased 0.3 for each penny to 2,659.99, likewise a moment straight record complete, while the tech-rich Nasdaq Composite Index won 0.5 for every penny to end at 6,875.08. 

Tokyo stocks opened level on Tuesday in wary exchange in front of significant national bank strategy choices this week.

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Singapore shares open level on Thursday

SINGAPORE stocks opened level on Thursday, with the Straits Times Index withdrawing 0.26 point to 3,396.95 as at 9.02 am. 

Around 49.8 million offers worth S$97.6 million altogether changed hands, which worked out to a normal unit cost of S$1.96 per share. 

The most effectively exchanged counter was Polaris, which was level at S$0.005 with 6.1 million offers evolving hands. Different actives included Sincap and ComfortDelGro. 

Gainers dwarfed washouts 66 to 53, or around five up for each four down.

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Stocks to watch: AsiaPhos, Natural Cool, Vard Holdings

THE accompanying organizations saw new improvements that may influence exchanging of their offers on Monday: 

AsiaPhos: In a refresh to progressing transactions with the Sichuan common government in China in regards to its mining operations, phosphate mining organization AsiaPhos said that it has met authorities from the Sichuan Provincial People's Government and authorities from different Deyang and Mianzhu divisions, and was searching for an agreeable settlement. This is in regards to the demand for undertaking and the "potential non-restoration" of Mine 1, situated outside Jiudingshan Nature Reserve in Sichuan territory in China. AsiaPhos said that the organization and the Sichuan commonplace government are planning to arrange terms which would furnish AsiaPhos with proceeded with access to adequate phosphate rocks, and additionally conceivable pay alternatives or the remuneration sums/terms because of the organization emptying three mines in Sichuan region - Mine 1, Mine 2 and the Feng Tai mine. 

Common Cool: Air-molding administrations organization Natural Cool Holdings Limited declared on Monday that the organization had gotten a notice of claim from Nitto Kogyo Corporation. Nitto, an electrical segments producer, is looking for installment from Natural Cool in regards to "specific guarantees under the deal and buy assention" went into between the two organizations in connection to Natural Cool's S$33.9 million offer of Gathergates Group Pte Ltd to Nitto Kogyo on Sept 16, 2015. No legitimate procedures have initiated at this stage, Natural Cool said in a pre-advertise open documenting to the Singapore Exchange. 

Vard Holdings: Mainboard-recorded Vard Holdings has secured contracts worth somewhere in the range of 700 million Norwegian krones (S$113.6 million) for the plan and development of seven stern trawlers for four Icelandic shipowners. The four shipowners are: Bergur-Huginn, Utgerdarfelag Akureyringa, Gjögur and Skinney-Thinganes, Vard said in a documenting with the Singapore Exchange on Sunday. The creator and shipbuilder of specific vessels said that together with the Icelandic gatherings, they have built up another idea for the trawlers for more proficient angling operations in Iceland.

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Singapore shares open 0.4% up on Friday

SINGAPORE stocks opened 0.4 for each penny higher on Friday, in accordance with US stocks overnight, with the Straits Times Index climbing 13.62 focuses to 3,447.16 as at 9.12am. 

Around 125.6 million offers worth S$280.6 million altogether changed hands, which worked out to a normal unit cost of S$2.23 per share. 

The most effectively exchanged counter was Singtel, which rose S$0.02 to S$3.75 with eight million offers evolving hands. Different actives included Allied Tech and No Signboard, which appeared on the Singapore Exchange on Nov 30. 

Gainers dwarfed failures 105 to 61, or around seven up for each four down. 

In US advertises, the S&P shut at a record high and the Dow Jones Industrial Average broke over the 24,000 check out of the blue on Thursday as speculators picked up certainty that the Republican party's push for a US impose upgrade would succeed, Reuters revealed.

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Singapore shares ascend at Wednesday's open; STI up 0.12% to 3,446.6

SINGAPORE stocks opened more grounded on Wednesday, with the Straits Times Index rising 0.12 for every penny or 4.25 focuses to 3,446.60 as at 9.04am after Wall Street stocks surged to new records overnight. 

Gainers dwarfed failures 111 to 34, or around three stocks up for each one down, after 64.2 million offers worth S$91.8 million changed hands. 

As at 9.08am, among the most intensely exchanged by volume, AusGroup increased 2.7 for each penny or S$0.001 to S$0.038 with 7.2 million offers exchanged. Worldwide Logistic Properties included 0.6 for each penny or S$0.02 to S$3.35 with 5.7 million offers exchanged. 

Dynamic record stocks included Singtel, level at S$3.73; and ComfortDelGro, down 0.5 for each penny or S$0.01 to S$2.04.

Singapore Stocks To Watch

• AusGroup
• Tuan Sing
• AsiaPhos
• CapitaCom Trust
• Noble Group

So Earn more With our Stock Recommendations.

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Singapore shares continue bring down on Monday evening; STI at 3,435.66, down 0.19%

SINGAPORE - Local stocks opened marginally bring down on Friday (Nov 24), with the Straits Times Index facilitating 0.2 for each penny or 6.85 focuses to 3,423.17 as at 9am.

Gainers dwarfed washouts 44 to 39, after 30.7 million offers worth S$28.6 million changed hands.

Among the dynamic stocks as at 9.02am was MindChamps PreSchool, which exchanged at S$0.85 on its posting debut, two pennies about its first sale of stock cost of S$0.83.

The administrator and franchiser of premium preschool fixates in Singapore said on Thursday that its underlying open offer was 21.4 times subscribed. Singapore Press Holdings, the parent of the Business Times, is an investor of MindChamps.

Singapore Stocks To Watch

• MINDCHAMPS
• ABUDANCE INTL
• KEPPEL CORP
• THAIBEV
• KOP

So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX: Buy MIDAS || Level 0.157 || Cut Profit @ 0.164 || Return 4.46%

KLSE: Buy MASTEEL || Level 1.51 || Cut Profit @ 1.60 || Return 5.96%

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[Singapore Stocks] Yoma Strategic Holdings Update

• Healthy margins
• Lingering uncertainties in real estate
• Maintain HOLD
  

Healthy 2QFY18 Scorecard

Yoma’s 2QFY18 revenue increased 32.9% YoY to S$33.1m, driven largely by growth in its Automotive & Heavy Equipment and Consumer businesses. Notably, the group’s Automotive & Heavy Equipment business grew 109.9% YoY to S$14.6m on the back of healthy sales of its New Holland tractors.

We note that the group has entered into an agreement to buy back the development of Galaxy Towers (Zone C) at cost, entitling it to the share of profits in relation to the sales of units made previously. We believe that this contributed, in part, to the 3.3%pts YoY increase in gross margins to 44.7%, as the group’s real estate business generally commands higher margins relative to the other business segments.

PATMI fell 56.8% YoY to S$3.7m due largely to the absence of a S$14.7m fair value gain on the telecommunications towers investment which was recognized in 2QFY17.

Non-real Estate Businesses Picking Up Momentum

Yoma has successfully grown its KFC store footprint from 12 in March 2017 to 16 in September 2017, and is also exploring the possibility of acquiring and developing new brands. We think it is also possible for Yoma to consider a domestic brand, given that this could unlock greater efficiencies as the business scales up.

In the Automotive & Heavy Equipment space, Yoma is expected to deliver another 651 tractors from sales that were organized by the government’s Agriculture Mechanisation Department. Potential retail tractor sales might also materialize as Myanmar heads into the peak dry season.

Guarded Optimism on Real Estate Sector

Looking ahead, while we believe that the real estate market is starting to stabilize, it still remains broadly slower than before, especially in relation to the mid-market segment. To that end, we note that management is looking at redesigning its units at StarCity to cater to the mass market segment, which we understand to still see relatively robust demand.

Separately, the uncertainties over the Condominium Law passed in 2016 have yet to be clarified, and this could continue to rein in further optimism in the local property market, in our opinion. We maintain our HOLD rating and our fair value estimate of S$0.58.

Read More - Singapore Stocks Market Growth outlook  of Suntec REIT

Singapore Stocks To Watch

• UMS
• GSS ENERGY
• HI-P
• TRENDLINES
• AEM

So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy UMS  ||  || Level 1.00 || Cut Profit @ 1.06 || Return 6%
KLSE:Buy KRONO || Level 1.10 || Cut Profit @ 1.17 || Return 6.36% 

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Singapore Stocks Market Overview

MARKET OVERVIEW
- The market could extend its blue-chip rally on positive momentum as the 3Q earnings season gets underway, with robust Sep industrial production data providing more ballast to the economy.
- Technically, STI is hovering at its 3,355 resistance level with the next objective at 3,380 and downside support seen at 3,320.

CORPORATE RESULTS
*Suntec REIT
- 3Q17 DPU of 2.483¢ (-2.1%) was in line despite dilution from an enlarged unit base (+4.6%) arising from its bond conversion.
- Revenue (+10.6%) and NPI (+11.6%) were lifted mainly by full-quarter contribution from 177 Pacific Highway office building in Sydney, which opened in Aug '16.
- Occupancy at its office (98.6%, -0.1ppt q/q) and retail (98.8%, -0.2ppt q/q) portfolios slipped slightly.
- Aggregate leverage dipped 0.7ppt q/q to 35.4%.
- Trades at annualised 3Q yield of 5.1% and 0.91x P/B.

*Viva Industrial Trust
- 3Q17 DPU rose 5% to 1.9¢ despite a larger unit base (+11.7%). This brought 9M17 distribution to 5.615¢ (+8%), coming in at the higher end of estimates.
- For the quarter, gross revenue and NPI leapt to $28.3m (+16.8%) and $20.6m (+18.3%) on contribution from recently-acquired 6 Chin Bee Avenue, as well as higher takings at two business parks.
- Portfolio occupancy ticked up by 0.3ppt q/q to 90.9%, while aggregate leverage crept 0.5ppt q/q higher to 39.6%.
- Last traded at annualized 3Q yield of 7.9% and 1.2x P/B.

*CDL Hospitality Trusts
- Post rights 3Q17 DPS of 2.29¢ (-3%) came in below expectations.
- Revenue and NPI jumped to $54.8m (+20.7%) and $40.4m (+15.9%), mainly from maiden contributions from recently-acquired The Lowry Hotel in UK and Pullman Hotel Munich in Germany.
- But domestic RevPAR of $166 (-1.4%) remained under pressure from the competitive environment.
- Aggregate leverage fell to 33.3% (-5.4ppt q/q).
- Trades at annualised 3Q yield of 5.6% and 1.12x P/B.

*Sheng Siong
- 3Q17 net profit jumped 25.7% to $19.7m on better operating leverage. Excluding an one-off tax impact, its results would have met expectations,
- Revenue rose 4.2% to $210.9m on higher same store sales growth (+1.7%) and contribution from new stores.
- Operating margin widened to 10% (+0.6ppt) on lower distribution (-2.9%) and admin (-0.5%) expenses.
- Bottom line benefitted from a tax refund of $2.2m (3Q16: nil).
- Last traded at 21.1x forward P/E.

*Indofood Agri
- 3Q17 core net profit slumped 25.3% to Rp97b, in line with estimates.
- Revenue inched 4.6% higher to Rp3.72t on improved sales volume of palm products but offset by lower average selling prices in CPO (-3%) and palm kernel (-16%).
- EBITDA margin declined 4.5ppt to 21.2% due to higher fertilizer application and increased operating expenses (+24.3%).
- Bottom line was dragged by a negative Rp61.7b swing into FX loss, although partly mitigated by a spike in JV income of Rp70.5b (+51.9%) and lower associate loss of Rp2.6b (3Q16: Rp18.5b loss).
- NAV/share at $0.875.

*Yoma
- 2QFY18 net profit tumbled 56.8% to $3.7m, bringing 1HFY18 earnings of $6.4m to just 23% of FY18 street estimate.
- Quarter revenue jumped 32.9% to $33.1m, lifted by a spike in automotive & heavy equipment sales (+109.9%) and the consumer segment (+20.1%), while sale of residences & land development rights (-0.6%) and real estate rental and services (+0.9%) remained flattish.
- Gross margin improved 3.3ppt to 44.7% due to higher profitability achieved in StarCity Zone C and Zone B.
- Bottom line was partly weighed by absence of fair value gain (2QFY17: $14.7m), although partly offset by lower JV/ associate loss of $0.9m (2QFY17: $1.9m loss).
- NAV/share at $0.3789.

*Japfa
- 3Q17 results came below estimates as core net profit dived 71% to US$12.1m.
- Revenue grinded 3% higher to US$814.3m, bolstered by Indonesia animal protein (+5.8%), dairy (+26.7%), and consumer food (+10.5%) segments, but was doused by the continued decline in swine selling prices in Vietnam.
- Operating margin collapsed 6.5ppt to 6.9% due to weaker margins from poultry and beef businesses, absence of one-off gain from disposal of beef cattle business, and Vietnam swine prices remained below costs.
- Bottom line was further impacted by a US$2.9m jump in finance cost.
- Net gearing jumped to 0.68x from 0.45x in Dec '16.
- NAV/share at US$0.44.

*Tuan Sing
- 3Q17 net profit declined 9% to $5.9m, partially due to a $3.6m spike in finance cost.
- Revenue rose 12% to $101m, underpinned by stronger property (+18%) and industrial services (+16.1%) segments.
- Gross margin shrank 6.8ppt to 16.7% amid a shift in sales mix.
- Bottom line was also hurt by higher distribution cost stemming from the launch of Kandis Residence.
- Last traded at 0.57x P/B.

*Samudera Shipping
- 3Q17 results turned around to net profit of US$0.5m (3Q16: US$3.8m loss).
- Revenue jumped 14.2% to US$69.7m as improvement from container shipping (+18%) led by higher volume handled was outweighed by weakness in bulk & tanker business (-13.8%) due to a shrinking fleet.
- Gross profit margin expanded to 5.8ppt from breakeven, amid higher container freight rates and tanker charter rates.
- Bottom line was also helped by absence of a US$2.4m provision.
- Net gearing was pared 0.11x from 0.12x in Dec '16.
- Last traded at 0.38x P/B.

POSITIVE NEWS
*Starburst
- Awarded a contract worth $6.6m in the Middle East to undertake ballistic protection works to a firearm training facility.
- Work is expected to begin in Jun '18 and be completed in Sep '19.
- Last traded at 3.2x P/B.

*Ley Choon
- Secured contracts worth $2.6m for closed-circuit television survey of sewers and resurfacing of roadworks.


- Trades at 2.1x trailing P/E and 1.46x P/B.

NEUTRAL NEWS
*Unusual
- Signed letters of intent with RINGLING Bros and Feld Entertainment to jointly present 48 "Disney On Ice" shows across South Korea and Taiwan.
- 12 "Disney on Ice "Let's Party" shows may take place in Oct 18, while 36 "Disney On Ice 'Frozen'" shows may take place in 3Q19.

*Spackman Entertainment
- Completed acquisition of South-Korean based motion picture production start-up Take Pictures, via the issue of 54.1m shares.

*Samudera Shipping
- Disposing two vessels for US$9.2m, and expected to result in a net gain of US$0.8m.
- Proceeds will be used for working capital and future business expansion.

*Yuuzoo
-Issued 10m drawdown shares at $0.058 each to GEM Global Yield Fund, which has committed $30m capital earlier.
- Proceeds earmarked for business development and growth.

_______________________________________________________________

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Keppel Corporation Active in China

• S$290m net gain from divestment
• Positive on asset recycling strategy
• Up valuation on Tianjin Eco-City

Divests stake in Keppel China Marina Holdings

Keppel Corporation announced yesterday that Keppel Land China has entered into an agreement with Delight Prime Ltd (unit of HKlisted Logan Property) to divest its 100% stake in Keppel China Marina Holdings Pte Ltd (KCMH) for approx. RMB2.9b (~S$597.4m), subject to completion adjustments.

KCMH indirectly owns an 80% effective interest in Sunsea Yacht Club (Zhongshan), a JV which owns and develops Keppel Cove, an integrated residential cum marina lifestyle development on Modao Island in Zhongshan city, China. Recall that Keppel China Marina Holdings entered into a JV with Sunsea Yacht Club (HK) to develop its first integrated residential cum marina lifestyle development in Zhongshan in 2008.

Expects Gain of S$290m

The consideration was arrived at after taking into account the unaudited NAV of KCMH Group and the market value of the unsold inventories and remaining undeveloped land. With this divestment, a gain of about S$290m is expected to be recognised. Completion is expected to take place by the end of this year.

Land Prices in Tianjin Eco-City Have Increased Significantly

We are positive on the group’s strategy to recycle assets to seek higher returns and rebalance its portfolio to focus on selected highgrowth cities in China. KEP’s Tianjin Eco-City project is also bearing fruit, with average selling prices of Eco-City residential land having increased significantly since 2016 – RMB1,700/sm in 2014, RMB1,900/sm in 2015, RMB6,300/sm in 2016 and finally RMB13,800/sm this year.

Do note that land sales from this project (to either KepLand or other property developers for development) are accounted for under the “Investments” segment of KEP.

Recall that KEP has a 45% effective stake in SinoSingapore Tianjin Eco-City Investment and Development, which acquires land from the Chinese government based on prices that were fixed earlier in 2008.

We take this into account in our sum-of-parts valuation, and after adjusting our estimates, our fair value rises from S$7.73 to S$8.31. Maintain BUY.

Read More - Singapore Banks Shares Update

Good time to BUY Wing Tai Holdings Ltd

• 1QFY18 results in line
• In net cash position
• FV estimate increased to S$2.77

1QFY18 PATMI up YoY From S$1.1m to S$8.2m

Wing Tai’s 1QFY18 PATMI increased from S$1.1m to S$8.2m YoY mainly due to contributions from Le Nouvel Ardmore, Le Nouvel KLCC as well as disposal gains on the Huai Hai project in Shanghai. In addition, we also saw the group’s share of profits of associated and joint venture companies increased 17% YoY to S$6.7m given higher contributions from Wing Tai Properties Ltd in Hong Kong.

In terms of the topline, however, 1QFY18 revenues decreased 4% YoY to S$67.1m as the group recorded lower homes sales over the quarter. Overall, we judge 1QFY18 results to be broadly within expectations.

Fair Value Estimate Increased to S$2.77; Maintain BUY

To recap, in Aug 2017, the group together with Keppel Land acquired through a government land sales tender a 99-year leasehold residential site in Serangoon North Ave 1. The site, which has a gross floor area of 462,561 square feet in the Serangoon Gardens area, will be redeveloped into a new condominium development with over 600 homes.

Read More - Investment Alert: MAS won’t control cryptographic forms of money
 

As at end Sep 2017, Wing Tai continues to sit on a strong balance sheet in a net cash position with over S$1,011m in cash and equivalents. We now forecast for Singapore home prices to appreciate 1% in 2017 and 3% to 8% in 2018 and, given the group’s ample dry powder, we believe that Wing Tai is well positioned to benefit from the turnaround in the domestic housing sector.

Notwithstanding a 46% share price appreciation over the year to date, we see the group’s current price to be relatively undemanding at 0.57x price-to-book. After updating our valuation model with our latest assumptions and firmer average selling prices, our fair value estimate increases from S$2.37 to S$2.77. Maintain BUY.

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Good time to BUY Mapletree Logistics Trust

• 2QFY18 DPU grew 1.5% YoY
• Rental reversion of 1.4%
• Slight uptick in portfolio occupancy

2QFY18 Results Met Our Expectations

 

Mapletree Logistics Trust (MLT) reported its 2QFY18 results which met our expectations. Gross revenue and NPI grew 2.3% and 2.5% YoY to S$93.7m and S$78.7m, respectively. DPU improved by 1.5% YoY to 1.887 S cents. This comprises an advanced distribution of 1.706 S cents (period from 1 Jul to 21 Sep 2017) which has already traded ex-dividend on 19 Sep and a remaining 0.181 S cents DPU (period from 22 Sep to 30 Sep 2017) which will be paid with the 3QFY18 distribution in Feb 2018.

On a 1HFY18 basis, MLT’s gross revenue rose 4.6% to S$189.5m and its NPI jumped 5.0% to S$159.6m, with the latter forming 47.0% of our FY18 forecast. DPU of 3.774 S cents represented growth of 1.7% and constituted 49.7% of our full-year projection.

Rental Reversions Moderated During the Quarter

Management delivered positive rental reversions of 1.4% in 2QFY18, mainly due to strength from Hong Kong and China. This was, however, a moderation from the 6% rental reversion achieved in 1QFY18. Overall portfolio occupancy inched up slightly from 95.5% (as at 30 Jun 2017) to 95.8%, with all its markets registering either improved or unchanged occupancy.

Looking ahead, MLT continues to see sustained leasing activities across its markets, although supply pressures in Singapore are likely to hamper the recovery process. Management has thus been diversifying its exposure into other geographies.

Rejuvenating Its Portfolio; Maintain BUY

During 2QFY18, MLT completed the divestments of three properties, namely Zama Centre and Shiroishi Centre in Japan and 4 Toh Tuck Link in Singapore. The combined divestment gains of ~S$5.4m will be distributed to unitholders over six to eight quarters, while the proceeds received will be redeployed into its asset enhancement initiatives and inorganic growth opportunities.

MLT’s ~HK$4.8b acquisition of Mapletree Logistics Hub Tsing Yi in Hong Kong at an initial NPI yield of 5.7% from its sponsor was completed on 12 Oct. Thereafter, its aggregate leverage ratio has increased from 33.7% (as at 30 Sep 2017) to ~38%. We retain our forecasts, BUY rating and S$1.35 fair value estimate on MLT.

More Update:Share trading tips, SGX Stock Picks, Share Market signals for Singapore stock Market 

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

 

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.

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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% 

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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.




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.

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Source - fifthperson