Stock Market Today:Sabana REIT's purchase of Changi South property from Vibrant draws scrutiny

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust is proposing to acquire a four-storey light industrial building at 47 Changi South Ave 2 from its sponsor, Vibrant Group, at a per-square-foot price that is well above recent transactions in the area. That raises questions about the independent valuations provided by the three big-name property consultancies in support of the transaction.

Sabana REIT said in December that it would acquire three properties costing $77 million. None of the those properties are likely to be immediately yield-accretive, even though two were purchased with income support packages. The property being acquired from Vibrant has been valued at $23 million by Savills and Knight Frank, which were engaged by Sabana REIT. A third property valuer, Colliers, which was engaged by Vibrant, also arrived at a valuation of $23 million.

The property received its Temporary Occupation Permit in 1998 and has a remaining lease of 10+30 years from JTC. Vibrant, which acquired the property in 2010 for $10.9 million, will lease back 74% of the gross floor area (GFA) for the property for 10 years. In those 10 years, Vibrant will pay a total rent of $17.1 million to Sabana REIT. The company has indicated that it would make a gain of $9.06 million from the sale of the asset to Sabana REIT. The company expects to receive JTC permission for transfer of ownership by April 10.

All in, the property at 47 Changi South Ave 2 will cost Sabana REIT $25.3 million, which includes a stamp duty of 3%, acquisition fee of 1% to the REIT's manager, fees to the valuers, and $1.1 million land premium for 10 years. The transaction requires the approval of Sabana REIT's unitholders at an extraordinary general meeting, which has yet to be scheduled. Vibrant owns 12% of Sabana REIT, some of which is held through the manager, in which Vibrant holds a controlling 51% interest. Vibrant will not be allowed these 41.24 million units in the manager at the EGM, as it is an interested party.

Even on just the $23 million valuation alone, Sabana REIT appears to be paying a relatively high price compared with recent transactions in the area. Taking account of just the land area, the $23 million valuation translates into $362 psf. A transaction in the same area was done on June 27 last year at a price that translates into just $210 psf on the same basis. Another transaction on June 6 last year was done at a price equivalent to only $269 psf. All the properties have the same plot ratio of 1.6 times. The 47 Changi South Ave 2 property has a GFA of 8,507 sq m (91,569 sq ft) on a land area of 5,453 sq m, suggesting that there is limited redevelopment potential.

According to filings by Sabana REIT, Savills used three valuation methods: income capitalisation, discounted cash flow and direct comparison. To arrive at its income capitalisation valuation, it used the rental commitment from Vibrant and applied a capitalisation rate of 6.25% and terminal cap rate of 6.5%. It used a discount rate of 8% to get the net present value estimate. It is unclear which transactions it used for the direct comparison method. The filings do not reveal how Knight Frank reached its valuation for the property.

On Feb 17, the Singapore Exchange queried Sabana REIT's manager on the acquisition price for 47 Changi South Ave 2. SGX asked the manager to disclose whether the increase in valuation since Vibrant acquired it reflects the trend of industrial properties, and whether the property can be easily disposed of by the REIT at the market price of $23 million on the open market. The REIT's manager replied that Vibrant "agreed to inject 47 Changi South into Sabana REIT on a sale-and-leaseback basis for a lease term of 10 years at the proposed rental terms... of approximately $17.1 million" for 10 years. "Based on such terms, the valuation of $23 million was arrived at by two independent property valuers, Savills and Knight Frank, the manager stated.

Hot Stocks for Intra & Contra Day Trader in SGX Market

Noble

CapitaLand

Venture

QAF

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:Why it will be tougher times ahead for Sheng Siong

The supermarket business is gonna get tougher for Sheng Siong, says Maybank Kim Eng Research and is telling investors to look elsewhere for cheaper growth plays. In a Monday report, analyst Gregory Yap says supermarket business growth is expected to slow sharply. Euromonitor has flagged a sharp slowdown in supermarket revenue CAGR to just 1.6% in 2016-2021 from 4.5% in 2011-2016 as online grocery retailing gains traction.

Even Sheng Siong's management has agreed that the online shopping model is better than brick and mortar and possible rivals Amazon and Tesco may enter the local market, warns Yap. Secondly, competition for new store locations is getting stiffer, with even convenience stores potentially entering the fray.

More importantly, Sheng Siong's growth so far has been achieved on large margin improvement which Yap says is nearing the limit and expects further margin uplift to slow. Asset-use efficiency has suffered since 2014 since it started buying assets and now even new store sales growth could be affected by increasing site competition, says Yap.

With margins close to peaking and store expansion challenges, growth will remain slow unless it is willing to gear up to acquire growth either locally or overseas. But that will certainly change its risk profile," adds the analyst.

In a recap, Sheng Siong's 4Q and FY16 came in line but were uninspiring. Net profit over the last five quarters has slowed from more than 20% growth a year to single-digit growth by 3Q16 and just 5.7% in 4Q16. 4Q16 and FY16 Same Store Sales Growth were also flat at 0.2% on year. New Store Sales Growth was up 8% y-o-y in 4Q16 and up 5% compared to 3Q16 as Yishun Junction 9 opened. Maintain 'sell' post-FY16 results. We find it hard to justify 23x P/E for single digit growth," says Maybank which is maintaining a "sell on the stock with 3% lower target price of 85 cents. Shares of Sheng Siong are down 1 cent at 94.5 cents.

Hot Stocks for Intra & Contra Day Trader in SGX Market

Noble

Sinarmas

Venture

Golden Agri

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Singapore stock Market outllok of the Day

Here are a few stocks that could move the market this Friday morning.

Sembcorp Industries announced 4Q income dramatically increased to $147.5 million from a year prior as its marine business swung back to benefit and its urban improvement business put in a superior execution. Income fell 16.3% to $2.03 billion. Sembcorp shut at $3.36.

Q&M Dental Group, one of Singapore's biggest dental human services supplier with more than 60 facilities, is leading a vital audit of its business. Shares of Q&M shut 2 pennies higher at 74 pennies before the declaration.

Global Premium Hotels is to be taken private by its executive Koh Wee Meng. JK Global Capital, a speculation holding organization controlled by Koh, is putting forth 36.5 pennies for every share for the shares he doesn't possess. The stock last exchanged at 32 pennies.

China Aviation Oil declared a 45.1% expansion in FY16 income to US$88.9 million ($125.7 million), upheld by higher gross benefit and expanded commitments from the gathering's related organizations. Income rose 30.2% to US$11.7 billion. Shares of China Aviation Oil shut 1 penny higher at $1.51.

Sheng Siong Group posted a 10.3% expansion in profit to $62.7 million for the entire year finished Dec 31, from $56.8 million a year prior. Entire year income grew 4.2% to $796.7 million, from $764.4 million a year prior. Sheng Siong shut a large portion of a penny higher at 95.5 pennies on Thursday.

Greetings P, the worldwide contract maker of advanced cells, tablets and other buyer electronic gadgets, swung back to benefit in both the 4Q and FY16 finished Dec. Shares of Hi-P shut 1 penny higher at 52 pennies.

Markets

Money Street finished in blended domain on Thursday yet the blue-chip Dow hit a tenth continuous record-breaking high, breaking a 30-year record. The Dow Jones Industrial Average rose 0.2% to end at 20,810.32. It was likewise the first run through since 2013 the record had shut higher on 10 back to back days. The S&P scratched into positive domain, rising not as much as a tenth of a rate indicate 2,363.81 while the Nasdaq fell 0.4% to 5,835.51.

The Straits Times Index (STI) completed at 3,137.57 for a net pick up of 15.37 focuses. Turnover was the most noteworthy in right around 10 days at 3.5 billion units worth $1.7 billion. There were 239 advancers to 208 decliners.

Some Volatile Stocks of the Day 

• HEALTHWAY MED
• NOBLE
• GSS NERGY
• REX INTL

So Earn more ........ If you need any kind of Help related to - Singapore stock Trading,Intraday trading signals,Stock trading tips,Stock investment Singapore & Singapore stock Market Without hesitation Visit us 

www.mmfsolutions.sg

Stock Market Today:Changi Airport reports 8.2% rise in Jan passenger movements from a year ago

Singapore Changi Airport handled 5.26 million passenger movements in January 2017, an increase of 8.2% from a year ago. Aircraft movements were 4.8% higher with 31,600 landings and takeoffs, while cargo shipments were steady at 158,690 tonnes, compared to the same period last year.

Passenger traffic growth for the month of January was boosted by air travel demand to and from Southeast Asia, Northeast Asia and South Asia. Among Changi Airport's top 10 country markets, China led the gainers with a strong 31% growth in passenger traffic; this coincided with the Lunar New Year holidays occurring at the tail end of January this year.

India, Indonesia and Malaysia also registered double-digit growth of 14%. 14% and 13% respectively. As for Changi's top 10 cities, travel to and from Denpasar increased 18% on year; while Kuala Lumpur and Jakarta also saw healthy growth.

As at Jan 1, more than 100 airlines operate at Changi Airport, connecting Singapore to some 380 cities in about 90 countries and territories worldwide. With more than 7,000 weekly scheduled flights, an aircraft takes off or lands at Changi roughly once every 90 seconds.


Hot Stocks for Intra & Contra Day Trader in SGX Market
SEMBCORP MARINE
ALLIANCE MINERAL
ASIAN PAY TV TR
EZION
NOBLE

So Earn more trade on These Stocks . . . . . .

Today Recommendations :
MMFS SG INTRADAY SIGNAL: BUY SEMBCORP MARINE AT 1.70 TARGET 1.76, 1.82 SL 1.69

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: This stock is set to ride capex recovery in oil & gas services

DBS is maintaining its buy call on PACC Offshore Services Holdings (POSH) as it sees green shoots appearing in the oil services sector. With no bonds outstanding, positive operating cash flows, and a proven ability to secure work for its vessels despite the downturn, DBS likes POSH as a beta play on capex recovery.

In addition, POSH is a potential privatisation candidate with 81.89% owned by shareholder Kuok (Singapore). In a Wednesday report, analyst Suvro Sarkar says sentiment for oil services stocks should improve with oil majors increasing their 2017 capex.

We have seen the offshore working rig count increase in February 2017 for the first time since July 2014, says Sarkar, Thus, despite a still-dismal 4Q16, we expect a gradual earnings recovery in 2018.To recap, POSH reported impairments of about US$310 million ($440 million) in 4Q16, mainly on its OSV assets and goodwill attributable to the Transportation & Installation segment.

Together with impairments of US$148 million taken in 4Q15, Sarkar estimates that POSH has written down close to 30% of its aggregate fleet value. We think major impairments going forward are unlikely," concludes the analyst. Shares of POSH are down 2 cents at 35 cents.

Hot Stocks for Intra & Contra Day Trader in SGX Market

HONG LEONG ASIA

DISA

NOBLE

HOCK LIAN SENG

SINO GRANDNESS

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY HONG LEONG ASIA AT 1.33 TARGET 1.38, 1.44 SL 1.26

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: Is this really the telco stock of tomorrow?

Research house NRA Capital likes 8Telecom International, calling the company a "potential telco of tomorrow" and giving it a fair value of 18.1-29.8 cents, representing an upside of 30.1-114.7% from its current share price of 14 cents.

The recommendation comes after 8Telecom's 51% owned subsidiary Arete M was granted a licence by the IMDA to use the 1.79-1.80 GHz radio frequency spectrum for the provision of communication solutions. With the spectrum, Arete M plans to offer dedicated private LTE networks to industrial users and public safety and emergency services.

A private LTE network offers a higher level of service quality in terms of reliability and availability unlike commercial and consumer-based shared networks. A dedicated LTE network also serves large amounts of data to multiple users over a wide range of up to 10km with low interference and latency.

This makes it suitable for communication within fleets of unmanned vehicles which are currently on trial by various government agencies, says analyst Liu Jinshu in an unrated Tuesday report. In addition, while existing telcos pay more than $1 million per year of 10MHz of spectrum, Arete M secured its spectrum for about $80,000 per year.

8Telecom currently has a market cap of $12.9 million backed by negative equity of $0.3 million and tangible assets of $0.5 million as of end 3Q16. But more advanced IoT companies have been valued at up to US$600 million ($853 million). As such, Liu has provided a rough valuation of $135 million to $387 million for 8Telecom.

Hot Stocks for Intra & Contra Day Trader in SGX Market

YONGMAN

NATURAL COOL

MAXI CASH FIN

HL GLOBAL ENT

NOBLE

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY HL GLOBAL ENT AT 0.430 TARGET 0.445, 0.460 SL 0.410

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: SGX seeks views on dual-class share structures

Singapore took another step towards making dual-class share structures a reality in the city-state, with the Singapore Exchange Ltd (SGX) kicking off a public consultation on the controversial market mechanism. SGX, which has seen a slump in initial public offerings (IPOs) in recent years, said yesterday the two-month long public consultation would look into admission criteria and safeguards against possible risks.

The structure of dual-class shares, which typically gives one set of shareholders greater voting rights than others, has been favoured by many owners of new age industries such as technology, with the extra voting power given to top executives seen as protection against pressure for short-term returns.

But the structure has also come in for criticism from corporate governance activists, who have warned of its potential abuse by company insiders. The criticism is a key reason why the structure is still not permitted in Hong Kong, despite a years-long debate sparked by Chinese e-commerce giant Alibaba Group’s decision more than two years ago to make its record US$25bil IPO not in Hong Kong but in New York where dual-class shares are allowed.

SGX also lost out on the IPO of Manchester United to New York in 2012 because it could not obtain approval for a dual-class share structure. Worried about its competitiveness as an IPO destination, Singapore has moved to re-examine its position on dual-class shares, and last year SGX’s Listings Advisory Committee gave the stock exchange the green light to allow companies to list with such structures.

Hot Stocks for Intra & Contra Day Trader in SGX Market

AA

SINO GRANDNESS

SINGMEDICAL

SAMKO TIMBER

ST ENGINEERING

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY YING LI INTL AT 0.173 TARGET 0.179, 0.185 SL 0.166

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: These 2 developer stocks are poised to ride potential property pick-up

The property market could be on the cusp of recovery. Residential property sales volume grew 9% in January despite a 26% lower number of new launches.

While secondary transactions remained flat, primary sales rose 18% y-o-y. Total sales volume for private homes and executive condominiums grew by 8% and 15%, respectively.

While there were no exceptionally large sales by any project (partially due to the absence of new property launches), the sales volume for each project was moderate, says DBS Group Research lead analyst Rachel Tan in a Wednesday report.

With a number of new launches expected in first half 2017, Tan says the "sales volume and take-up rates of these new launches would be a good gauge to see if the improvement in sales volume is sustainable. Meanwhile, all eyes are on the Singapore Budget 2017 announcement scheduled for Feb 20, which could potentially see the introduction of policies to stabilise the property market.

DBS's top picks as proxies to a potential pick-up in the Singapore property market are City Developments (CDL) and UOL Group. The recent newsflow on potential M&As has lifted the share prices of most property developers," says Tan, adding that CDL and UOL could see re-rating following any M&A.

DBS has buy calls on both CDL and UOL, with target prices of $9.90 and $7.20, respectively.As at 12.23pm, City Developments is trading 15 cents lower at $9.20, while UOL Group is down 10 cents at $6.57.

Hot Stocks for Intra & Contra Day Trader in SGX Market

SAMKO TIMBER

ALLIANCE MINERAL

QT VASCULAR

ASIAN PAY TV TR

AUS GROUP

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY QT VASCULAR AT 0.065, TARGET 0.067, 0.069 SL 0.062

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: USP Group's 3Q losses double to $2.7 mil on higher expenses

USP Group, the investment holding company mainly involved in oil blending and property development, saw 3Q17 losses widened to $2.7 million for 3Q17 from $1.4 million a year ago.

During the quarter, the group recognised revenue streams from its newly-acquired subsidiaries of Koon Cheng Development (KCD) and Supratechnic of $0.9 million and $6.9 million respectively, resulting in 3Q17 revenue that more than quadrupled to $8.6 million from $1.6 million in 3Q16.

Comparatively, the group's oil business contributed about 10% to the total revenue or about $0.7 million for the period. USP's revenue growth, however, was more than offset by a spike in operating expenses.

Particularly, selling and distribution expenses increased $0.2 mil, while general and administrative expenses increased by 155.6% to $3.6 mil after including overheads of KCD and Supra.

In a Wednesday filing to the SGX, USP says the Court of Appeal on Monday allowed its appeal against its major shareholder's winding up action of SG Support Services (SGSS), and is further seeking legal advice to evaluate its options with the intention of seeking recovery for its investment.

The group adds that it has taken a prudent approach and made a full provision on its remaining investment in SGSS.USP in Nov 2016 recognised a $3.6 million impairment of value of investment in SGSS, which its major shareholder is attempting to wind up but is currently being met by resistance from the group.

Hot Stocks for Intra & Contra Day Trader in SGX Market

BROADWAY IND

SUNMOONFOOD

SPURA FINANCE

THAIBEV

AUSGROUP

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY SPURA FINANCE AT 1.135 TARGET 1.175, 1.215 SL 1.08

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: Croesus Retail Trust's 2Q DPU rises 5.2% to 1.81 cents

Croesus Retail Trust (CRT) has announced a distribution per unit (DPU) of 1.81 cents for 2Q17 ended Dec 31. This represents a 5.2% increase from the restated DPU of 1.72 cents in 2Q16 to reflect the change in the number of issued shares due to the rights issue last Nov, and the preferential offering in Aug.

Gross revenue for the quarter stood at JPY 3,181 million ($39.8 million), which was 30.7% higher than the JPY2,434 million recorded in 2Q16, due mainly to a larger portfolio of income-producing properties, following the trust's acquisitions of Torius, Fuji Grand Natalie, Mallage Saga and Feeeal Asahikawa.

While higher variable rent which arose from stronger tenant sales at Mallage Shobu, a one-off compensation from an early lease termination also boded positively for CRT's gross revenue. Net property income (NPI) grew y-o-y by 23.2% in 2Q17 to JPY 1,685 million from JPY 1,368 million a year ago, on the back of contributions from recent acquisitions and outperformance from Mallage Shobu.

For the same factors which contributed to the increase in NPI, as well as due to cost savings amounting to JPY 88 million in the quarter following the successful internalisation of CRT's trustee-manager, income available for distribution grew 21.4% to JPY 1,181 million for 2Q17.

For 1H17, CRT posted DPU of 3.60 cents, 7.5% higher than a restated 1H16 DPU of 3.35 cents. CRT has committed to distribute 100% of its distributable income till June 30 and at least 90% of its distributable income thereafter. It will make distributions to unitholders on a semi-annual basis with the amounts calculated as at June 30 and Dec 31 each year for the six-month period ending on each of the said dates.

To mitigate against foreign exchange fluctuations, CRT has hedged close to 100% of its expected distributable income up to Dec 2018. Our financial performance for the first half is a good reflection of CRT's ongoing efforts in areas such as enhancement initiatives and tenant renewal exercises. We are also glad that cost savings from our internalisation of the trustee-manager are being realised, enhancing distributions to unitholders," comments Jim Chang, CEO of Croesus Retail Asset Management.

In the coming quarters, we remain committed towards growing CRT's portfolio and distributions steadily and sustainably, and will continue to explore viable organic and inorganic opportunities to enhance CRT's value. Barring any unforeseen circumstances, CRT's manager says the trust's properties are expected to continue generating robust and stable cash flows in the next 12 months. Units of CRT closed 0.6% higher at 87 cents on Monday.

Hot Stocks for Intra & Contra Day Trader in SGX Market

NOBLE

AUSGROUP

HONG LEONG ASIA

AA

SINGPOST

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY  SIGNAL: BUY HONG LEONG ASIA AT 1.32 TARGET 1.37, 1.42 SL 1.26

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:Manulife US REIT declares FY16 DPU of 3.55 US cents, beating forecast by 4.8%

The manager of Manulife US REIT reported a distribution per unit (DPU) of 3.55 US cents (5 cents) for FY16, which exceeded the forecast DPU of 3.39 US cents by 4.8% due to higher property performance and lower borrowing costs and trust expenses.

Based on the REIT's closing price of 86 US cents on Feb 10, the REIT has an annualised yield of 6.7%.The REIT recorded FY16 gross revenue of US$47.5 million, which was 1.5% below forecast due to lower recovery revenues.

Nevertheless, it generated net property income (NPI) of US$30 million, 1% higher than the REIT's initial public offering (IPO) forecast, mainly due to higher rental and other income, and lower property expenses.As such, distributable income for the full year stood at US$22.3 million, beating the REIT's forecast by 4.8% due to higher NPI, together with lower finance and other trust expenses.

For the fourth quarter ended Dec 31, Manulife US REIT recorded distributable income of US$9.7 million, which outperformed the REIT's forecast by 3.6%. A DPU of 1.54 US cents was recorded for the quarter.

In the SGX press release filed before the market opened on Monday, Jill Smith, CEO of the REIT's manager, noted that Manulife US REIT's portfolio valuation grew 7.2% in the reporting year, underpinned by the positive fundamentals of the US real estate market.

Moving forward, the U.S. commercial market is poised to benefit from the growth of the U.S. economy. We are excited by the year ahead and will drive the REIT forward in the best interests of unitholders," says Smith. According to its policy, the REIT will be distributing 100% of its distributable income from its listing date on May 20, 2016, to Dec 31 in the same year.

The manger will pay its first distribution on March 30.Units of Manulife US REIT closed flat at 86 US cents on Friday.

Hot Stocks for Intra & Contra Day Trader in SGX Market

ALLIANCE MINERALS

VALUETRONICS

HOCK LIAN SENG

HONG LEONG ASIA

NOBLE

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY ALLIANCE MINERALS AT 0.138 TARGET 0.143, 0.148 SL 0.132

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:Neo Group's profitability ahead hinges on food catering segment

RHB has downgraded its call on Neo Group from buy to neutral, lowering its target price on the stock to 61 cents from 80 cents previously on a weaker outlook for Singapore's food catering industry.

Neo Group, whose business is mainly in food catering, yesterday reported a 3Q17 earnings fall from $4.8 million in 3Q16 to just $0.1 million in the absence of a one-time gain.

In a report on Friday, RHB analyst Juliana Cai says she suspects the group's market share had declined during the quarter, based on the 6.5% fall in revenue reported in its latest set of results despite a y-o-y rebound in food catering sales in Oct and Nov 2016 of 5.8% and 7.4% respectively.

We note that topline for [the food catering segment] fell 3.6% for 9MFY17 (Mar) on the absence of SG50 celebrations. Going into 2017, we think the slowdown in Singapore's economy would result in further tightening of recreational budgets for both corporate and private social events," says the analyst.

Although Neo Group's food manufacturing arm has shown improvement by turning operationally profitable for the quarter thanks to the revival of the group's DoDo brand of fishballs, she believes some of the cost savings will be delayed in this segment as the transfer of operations to the group's new premise at 22 Senoko Way is expected to take place over the course of 2017.

As such, the research house as cut its FY17F-19F earnings estimates for the group by about 45% per annum, especially since it now expects muted growth and weaker margins in the food catering business.

We expect the growth of its other segments - with lower margins - to also pull down the group's overall profitability, Cai adds. As at 10.12am, shares of Neo Group are trading flat at 57.5 cents.

Hot Stocks for Intra & Contra Day Trader in SGX Market

GKE

QT VASCULAR

EQUATION

SINGPOST

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY  SIGNAL: BUY GKE AT 0.177 TARGET 0.182, 0.187 SL 0.171

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:F&N raised its stake in Vinamilk, what does that mean for investors?

Fraser & Neave announced on Wednesday that it had increased its stake in Vinamilk from 5.4% to 17.5% to date and added that it would continue to acquire more shares when the opportunity arises.

DBS Group Research estimates that the investment was at least $705 million and that its expected F&N to look for inorganic growth opportunities. So what does this mean for F&N investors?

DBS' analyst Andy Sim expects F&N to receive a higher dividend income from its increased stake in Vinamilk and has raised F&N's earnings forecast by 11% to $103 million for FY17, and by 10% to $106 million for FY18.

We believe [F&N] would continue to be on the prowl for acquisitions to add on to its current geographical and product or brand repertoire, says Sim in a note on Thursday. "While its available cash has been largely depleted by its investment in Vinamilk, we believe it will leverage on its balance sheet for debt, and possibly equity fund raising."

Meanwhile, the group's results for 1QFY17 were within expectation, with earnings falling 12% on higher raw material prices, the weaker ringgit and higher marketing and promotional expenses. Revenue remained stable, aided by the new contribution from its Warburg Vending acquisition, new products, a growing distribution in Myanmar, and the earlier Lunar New Year in 2017.

Hot Stocks for Intra & Contra Day Trader in SGX Market

NOBLE

IHC

DYNA-MAC

SUNPOWER

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY SUNPOWER AT 0.815 TARGET 0.845, 0.875 SL 0.780

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: SIA met earnings forecast so why aren't analysts more upbeat about the stock?

Singapore Airlines' core earnings for 3Q17 rose 12% y-o-y to $256 million, after excluding a $79 million impairment charge on the value of the Tigerair brand arising from the merger between Tigerair and Scoot.

The results were boosted by the outstanding performance at SIA Cargo, where operating profits rose by $50 million to $53 million during the quarter, on the back of higher air freight demand between Asia and Europe and on the transpacific routes. In fact, UOB Kay Hian pointed out that this was the cargo operations' highest quarterly earnings in nine years.

However, at least four brokerages -- UOB Kay Hian, DBS Vickers Securities, Maybank Kim Eng, and CIMB Securities -- are maintaining their "neutral" stance on SIA with Morgan Stanley maintaining an underweight rating with a price target of $8.96. UBS has a "buy" rating with a target price of $9.81.

Why is this so?

CIMB's analyst Raymond Yap points out that the increase in air freight demand coincided with an increase in ocean freight demand and could be due to the restocking for the early Lunar New Year in 2017. That demand, Yap said, may not last.

On the other hand, Mohshin Aziz, analyst at Maybank Kim Eng, noted that SIA Cargo's earnings jump merely masked over the underlying weakness in the airline's overall business where passenger yields had fallen in all of its business segments. Yields were distinctively weak owing to intense competition and overcapacity, [and] costs were in order thanks to lower fuel hedging losses and productivity gains," says Aziz, adding that SIA's 9 month core earnings of $457 million achieved just 69% of its full year estimates.

Maybank Kim Eng has a price target of $9.70 for SIA.DBS Group Research's analyst Paul Yong agreed, and is forecasting sluggish growth in operating profits over the coming quarters amid the weak demand environment and higher non-fuel related expenses.

While SIA has enjoyed lower fuel costs in the last few quarters, lower revenue as a result of lower yields (for both the core SIA passenger and cargo segments) and higher non-fuel costs such as maintenance, repair and overhaul (MRO) and staff costs have eaten into these savings, explains Yong in a note on Wednesday. DBS has a price target of $10.10 for the stock.

In fact, CIMB's Yap believes the low-cost carrier business is not without its own set of troubles. "Scoot has delivered stronger y-o-y earnings for at least the past two years, as the delivery of its B787s led to aggressive cost-efficient expansion, coinciding with low oil prices and the decommissioning of aged 777-200s," he says in his note on Wednesday.

However, for the first time ever, Scoot's 3Q revenue per available seat km (RASK) fell by more than its cost per available seat km (CASK), burdened as it were by 50% y-o-y available seat km (ASK) expansion over the past four quarters, by promotional fares necessitated by its recent entry into India and by the negative impact of demonetisation in India.

Yap concedes SIA has continued to invest in its longer term business, by refurbishing its lounges, installing premium economy seats on all of its 777-300ER planes, and launching a new premium product for five of its A380s that will be delivered over the next two years. The group is also expected to relaunch direct flights to the US and complete the brand merger between Scoot and Tigerair within the year.

However, Yap continues to be pessimistic about the airline's fortunes. "These far-sighted initiatives keep SIA competitive against its peers, but the road ahead is tough. Only a major global recovery can lift earnings from current depressed levels." CIMB has a price target of $10.50 for SIA.

Furthermore, UOB Kay Hian's K Ajith noted that the group has entered into a longer-dated Brent hedge, hedging 33% to 39% of its fuel requirements at between US$53 to US$59 per barrel until 2022. "These are attractive levels but will likely result in substantial forward commitments, which could affect dividend payout," says Ajith who has a target of $10.10.

Hot Stocks for Intra & Contra Day Trader in SGX Market

SERRANO

IHC

MERMAID MARITIME

OXLEY

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY PERENNIAL HLDGS AT 0.770 TARGET 0.800, 0.830 SL 0.735

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today: Singapore Exchange holds talks with Saudi Aramco on secondary listing

Singapore Exchange has held talks with Saudi Aramco on a secondary listing, two sources familiar with the matter said on Monday, after the oil and gas company suggested last week it would likely simultaneously list 

on more than one exchange.

The planned listing next year of up to 5 percent of Aramco is expected to be the world’s biggest initial public offer (IPO). Saudi Energy Minister Khalid al-Falih said last week the company was evaluating concurrent 

listings on more than one exchange.

The sources told Reuters that the SGX talks were still at an early stage as Saudi Aramco reviews several markets including New York, London, Hong Kong and Japan. This transaction is very open and in the public space. 

The key thing is there is quite a bit of time for due diligence and SGX is keen to play up its international appeal in this sector,said one source.

Aramco, which is slated to list in 2018, could also interest Singapore’s sovereign wealth fund GIC Pte Ltd, another source told Reuters, but a decision on the size of stake would depend on Aramco’s financial details and 

valuation.

Saudi Aramco and GIC declined comment, while SGX said in a statement that it was the world’s most international exchange and offered unique access to Southeast Asia’s markets. SGX has taken measures to boost 

market liquidity and attract large IPOs but it has mostly become a large Asian center for Real Estate Investment Trusts listings.

In pitching for Aramco, Singapore is playing up its emergence as one of the world’s leading oil trading centers, which is also home to 80 percent of the top 30 oil and gas companies. Last November, SGX and Japan’s 

TOCOM announced they would join forces in order to co-list Asian LNG and electricity futures.

Singapore has so far been seen to lack a big enough consumer base to warrant a real trading hub, although investors and market participants appreciate Singapore’s well established trading regulations, as well as the 

fact that English is its operating language.

Hot Stocks for Intra & Contra Day Trader in SGX Market

SERRANO

OCEANUS

EQUATION

GLOBAL LOGISTIC

EZRA

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY SERRANO AT 0.018 TARGET 0.020, 0.022 SL 0.015

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:Why investors should watch Singapore banks' 4Q results closely

The likely two or three interest rate increases expected in the US for 2017 will likely benefit Singapore banks given the positive impact on their net interest margins, agrees Lim & Tan Securities in its daily note this morning.

However, the higher interest rate environment has also hit asset quality badly with the percentage of exposures classified as doubtful and loss categories being currently at the highest level since the global financial crisis of 2008/2009, cautions the research team.

Hot Stocks for Intra & Contra Day Trader in SGX Market

EQUATION

NATURAL COOL

GKE

GEO ENERGY RES

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY NATURAL COOL AT 0.161 TARGET 0.166, 0.171 SL 0.155

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks

Stock Market Today:Equities performed within expectations in 2016, will it be the same in 2017?

Bank of Singapore had been successful in predicting the trends in the equity markets in 2016, but concedes that the uncertainties from Donald Trump's administration has made the job of making accurate market predictions far more difficult in 2017 than in past years.

According to BoS' investment strategist James Cheo, a good scenario would be where Trump's fiscal thrust and deregulation added to the US' current financial situation. On the other hand, a negative scenario would occur if Trump's fiscal policies led to inflation outpacing growth.

Hot Stocks for Intra & Contra Day Trader in SGX Market

ALLIANCE MINERAL

QT VASCULAR

GSS ENERGY

GENTING SING

GKE

So Earn more trade on These Stocks . . . . . .

Today Recommendations :

MMFS SG INTRADAY SIGNAL: BUY ALLIANCE MINERAL AT 0.130 TARGET 0.135, 0.140 SL 0.124

More Update Like - SGX Stock Picks, SGX Stock Update, SGX Stocks, SGX Stocks Picks