Lessons for Investors From Hyflux Ltd Saga

SINGAPORE - Hyflux Ltd organization was established in 1989 by Ms. Olivia Lum, Group CEO, President, and Managing Director. In 2006, the organization was given the 'Water Company of the Year' grant, at the 'Global Water Awards', by the Global Water Intelligence, UK.

Lately, the organization has been in the Singapore stock market news for its downfall. Let's take a look at its current highlights- 

Hyflux Downfall - 

On 21 May 2018, the organization suspended its shares investments and applied for court supervision to revamp liabilities and organizations the following day. The organization's income had been hit from "prolonged weakness" in the nearby power market because of the Tuaspring venture, the first integrated water, and power project in Asia, making losses in 2017 and first quarter of 2018, as an oversupply of gas in the Singapore market caused discouraged electricity costs.

Lessons for Investors From Hyflux Ltd Saga

One of the organization's non-critical payments that were said in the declaration is the conveyance on its S$500 million, 6% perpetual securities that was expected on 28 May 2018. The S$500 million number alludes to the span of the issue, while the 6% figure alludes to the yield that holders of Hyflux's interminable securities are qualified for on a yearly premise. 

On 23 May 2018, multi-day after Hyflux made its risk rearrangement declaration, it willfully suspended the exchanging of its shares. At that point, on Monday (11 June 2018), Hyflux uncovered that the trustee for its S$500 million, 6% perpetual securities has served up a notice of default after the organization neglected to pay the dispersion on the securities on 28 May 2018.


The Lessons for Investors-

As much as investors need to put trust in securities and equities that are supported by governments, political change and geopolitical dangers can undoubtedly overturn whatever presumptions financial specialists have and transform an easy win into a harsh one. One great case is the political tidal wave in Malaysia. Supplies of organizations that are agreeable to the past organizations are thumped down while organizations are believed to be related with the new government seen their offer costs take off.

The organization's perpetual securities were pursued by retail speculators who were looking for significant returns. So the stock investing tip is to never consider only on how a stock's yield ought to never be our solitary thought when investing money in stock market. 

At the point when Hyflux issued its perpetual securities, it as of now experienced immense difficulty creating income from its business, and its accounting report was weighed down with obligation; these are tremendous warnings for money speculators. Truth be told, these two qualities of Hyflux – a past filled with producing negative working income, and a high net-adapting proportion – are peril signs by and large with regards to putting resources into money markets.

Final Thought-

So from the lessons, we have learned from Hyflux Ltd that don't blindly trust in securities that are supported by governments,  never consider only stock's yields and leep updated with the organization's cash flow and other decisions. Keep this lesson in mind, the odds of you committing errors in the stock market, later on, could be significantly lessened.

Hope this article was helpful to you. Keep up to date with our Singapore stock blog for receiving best Singapore stocks investment and stock signals.

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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.

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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 

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?

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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.

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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.

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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

Stock Market Reseach of CapitaLand Commercial Trust

CapitaLand Commercial Trust - A prime Marina Bay office does not come cheap
■ Strategically compelling but still DPU dilutive, on our estimates
■ Even after rental correction, Marina Bay office prices are not cheap
■ We reiterate Sell (5) rating with an ex-rights TP of SGD1.39

What's new:

CCT announced the acquisition of Asia Square Tower 2 (AST2) on 21 September 2017 and held a briefing for analysts. We maintain our Sell (5) rating as we expect it to be mildly DPU dilutive.

Read more - Singapore Stocks CapitaLand Commercial Trust analysis

What's the impact:

CCT will acquire AST2 at an initial net-property income (NPI) yield of 3.6%, with a committed occupancy rate of 88.7% as at 30 June 2017 and finance the total deal cost of SGD2.15bn with SGD1.12bn of bank borrowings, SGD340m of recent divestment proceeds, and SGD690.4m of equity from a 166 for 1,000 rights issue (at an issue price of SGD1.363/unit). The pro-forma gearing, after all transactions, is 37.1%.

We expect the transaction to be mildly DPU-dilutive, but depending on the actual borrowing cost and the rate of cash-rent improvement in AST2, it might become DPU accretive eventually. Given the multi-funding strategy to optimize the DPU impact, AST2’s prominence in the heart of Marina Bay and how it would enhance and diversify CCT’s overall portfolio, we can see why management was willing to buy AST2 at a 3.6% initial yield, although there will be some minor tax leakage in buying it through its existing special purpose vehicle.

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The purchase price of SGD2,689/sq ft is about 8% lower than the average valuation of other equally new Marina Bay office properties, so CCT is not paying the highest price, but this is just relative, in our view, because even though office rents have corrected by about 20% from the recent peak in early 2015, capital values of Marina Bay properties have only appreciated over this period. We also suspect that some of its in-place rents are higher than the spot rents, so we see some short-term risk of negative rental reversions (about 10% of AST2 leases are due for renewal in 2018).

We do not regard the deal as clear winner (on DPU-accretion) like some of the recent Mapletree-related deals (Mapletree Business City and Mapletree Logistics Hub Tsing Yi), but it is not a totally bad 3rd -party deal either, in our opinion. Nonetheless, we hold CCT management to exacting standards.

What we recommend:

We maintain our Sell (5) rating and revise down our DPU forecasts for 2017-19E by 3% after incorporating AST2 into our forecasts along with the funding assumptions. We lower our DDM-derived 12-month target price to SGD1.39 (ex-rights) from SGD1.42. A risk to our call is an exuberant recovery in Singapore office rents.

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

Ultimate Stock Trading Tips for Active Trader

Stock exchanging is one of the trickiest and most hazardous organizations to be engaged with. To achieve the statures of accomplishment in this field, one must be super delicate and receptive to the moment changes that happen in the stock exchange. For each change that you overlook, one brilliant chance to amplify your benefits cruises you by.

Strategist is critical to thriving in Singapore stock Trading. You have to always think of new procedures to remain in the diversion. On the off chance that you don't adhere to a strategy, you may get yourself lost in the tremendous and erratic universe of stock exchanging. Here are 3 fundamental routes in which you can abstain from slipping into the hurricane of securities exchange disappointment.

1) Find perfect hours to Trading 

Effective stock dealers all make them thing in like manner, and that is impeccable planning. You have to know when to play your cards and when to crease. As you most likely, stock exchanging should be possible whenever of the day, however is there a specific time that is more favorable for exchanging than different hours? All things considered, the appropriate response is yes. The hours of 1 pm to 2:30 pm (US) are considered as a helpful time for exchanging stocks. There are two or three purposes behind this.

Right off the bat, it's the time when each person and association is engaged with work. At the end of the day, the share trading system operations are in full flight and the action is at a record-breaking high. Try not to take it easy amid these hours. Be as dynamic and connected with like the others

Furthermore, this is the time by which the impacts of any worldwide or nearby occasions would already be able to be seen on the money related market. In less difficult words, any occasion that may affect the share trading system, happens before the hours of early afternoon. Therefore, the dangers engaged with exchanging after 1 pm is moderately low.

2) Trade in season

There is a pinnacle season and an off season for everything. SGX Stock Trading  is no special case. As indicated by the specialists, the best time to make interests in stock is between the eighteenth and the 22nd. This is the point at which the costs are low, and the trade stream out the market is smooth.

On the off chance that you are anxious to offer stocks, at that point disregard the previously mentioned dates. Offering stocks is an entire diverse ball game from purchasing stocks. As a dealer, it's the initial two days or the most recent two days of the month that you ought to be going for.

It's additionally important that April and early May are the two months that turn out to be most ideal for offering stocks.

3) Keep an eye on $10 shares

$10 offers ought to be your speculation of decision. The main different offers that you should watch out for are shut end reserves. Shut end reserves are low valued (underneath $10 an offer) so little and medium financial specialists can buy them effortlessly. Nonetheless, it's imperative for you to not befuddle shut end stores with shoddy offers that are well underneath $10.

Stocks lower than $10 are typically cited at more noteworthy rate spreads between the purchasing and offering costs. Therefore, you will require a heftier cost to equal the initial investment. Notwithstanding that, organizations that are experiencing money related inconveniences, or the ones that are very nearly insolvency have truly low valued stocks. Whichever the case is, it is constantly desirable over Buying stocks that have an exchanging estimation of $10 or more.

Venturing into the universe of Share Trading without sufficient learning can be a deadly error. Neglecting to advance as you come in this business will likewise pull you down to the base end of the evolved way of life. Remember these 3 hints and you will give yourself a possibility of getting by in this unfriendly and unstable condition.

Singapore Market Update: HNA calls for shareholder meeting to vote on privatising-CWT offer

CIMB Research is keeping its “add” call on China Jinjiang Environment (CJE) with an unchanged target price of $1.10, despite lowering its earnings per share (EPS) forecasts.

The research house is trimming China Jinjiang’s FY17-FY19F EPS by 1.8%, 2.2%, and 2.0%, respectively.

CIMB Share Market analyst Keith Li says this is to adjust for its new project completion schedule.

The Hong Kong-listed unit pursuing the purchase, HNA Holding Group Co., has scheduled an extraordinary general meeting for Sept 6, according to the people.

It plans to announce the date of the extraordinary general meeting to the stock exchange soon, the people said, asking not to be identified discussing private information.

CWT shares closed Friday at $2.13, an 8.6% discount to the HNA offer of $2.33 per share, a sign some investors see risks that the takeover won’t be completed as the Chinese government ramps up scrutiny of serial dealmakers.

Banks working on financing the acquisition have been seeking more information from HNA and started scrutinising its debt levels more closely, people with knowledge of the matter said in July.

HNA Holding announced last month that it expects to hold a shareholder vote on the deal between the end of August and early September.

All the pre-conditions of the acquisition must be fulfilled or waived by Sept 9 for it to proceed. A representative for CWT declined to comment, while a representative for HNA Group didn’t immediately respond to requests for comment.

Chinese regulators have been assessing the risks that HNA Group and other acquisitive companies pose to the country’s financial system.

HNA Group has announced more than US$40 billion of purchases since the beginning of 2016, according to data compiled by Bloomberg.

Penny Singapore stock to Buy 

• Best World
• Jiutian Chemical
• Spackman
• Addvalue Tech 

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Share Investment Tips to Avoid Common Mistakes in Stocks Trading .

Making an investment in stock market requires planning and research on the part of an investor. However, there are some times when investors make some mistakes in the market during stockinvestment. Stock market is expanding from the recent few years and the interest in stock market investment is increasing. However, investing in stock market needs experience. Newbie investors make few mistakes in stock trading. So, if you are a newbie and want to invest in stock market then you should consider the share investment tips mention in this blog to avoid mistakes in investment.

Share Investment Tips to Avoid Mistakes:-

Bad Planning:-

Just after hearing stories about the stock market from the friends many new traders are lured into investingin shares.  Media news is also inspires new traders to invest in stock. Such type of initiate by the new traders results in huge amount of risk. That’s why it is important to spend time in studying and researching the stock market. For new investors, it is necessary to have a clear plan or strategy to gain profit in stock market. Traders should search for the previous records of the companies so that they can have a clear picture of whether to invest in particular company or not. By researching about the companies traders can get the previous records and decide the returns to be expected from them. 

Investing in Rumors:-

Traders should always be alert so that the rumors cannot spoil their investment. Because many times the rumors are not true and spending money according to the rumor can bring to  a huge amount of loss. Avoid investing in the stock in which everyone is investing. For selecting the stock or picking the stock, traders should use stock market investing tips so that the risk factor can be minimized. 

Panic Selling:-

Panic selling has triggered many stock market crashes in past, and numerous traders gone bankrupt due to panic selling. Panic selling happens when the share market falls drastically, and traders, to save you more losses start selling. Share investment Singapore market has demonstrated to advantage traders who invest for a long-time period, so in preference to selling, you ought to live invest, unless, of direction, the company is facing financial ruin. Through holding on to your stocks, you've got the possibility of protecting all your losses whilst the inventory rebounds and profits momentum. 

Excessive Diversification:-

There’s a modern trend amongst investors to diversify their budget so that if the traders loss money on an equity, the others stocks will cover up for that. it's far a good approach, however, it can be a disastrous in case if traders spread out their stocks too much, as then the portfolio becomes tough to manage and the investments end up too small to provide the favorable returns. So in an equity investmentSingapore market it is better to follow the trading discipline and clear strategy to gain profit.

Overconfidence:-

It’s essential before dealing in stock investment Singapore market to be assured about the selections, overconfidence can prove to be fatal for a trader. If the stock in which the trader is investing has already registered the 10% income as per the plan or strategy, it's better to sell that stock instead of expecting it to offer 20%. The vital factor is that investors permit emotions to get into their decisions, which could bring to terrible investments and losses.

Bottom Line:-

There is no any golden rule to invest in a stock market.  So, it is vital to look at the stock market as an organization which gives excellent returns to those who make excellent preparation before investing money in it. If the share investment tips are followed properly then the chances of gaining more profit increases. 

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• PESONA
• KANGER
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BUY SUNVIC CHEMICAL.SG ABOVE .119 TARGET .125/.135 STOPLOSS BELOW .112 

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BOOK PARTIAL PROFIT IN SUNVIC CHEMICAL.SG MADE HIGH OF .125 OUR 1ST TARGET .125 ACHIEVED

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SGX Market hot Stocks list of the Day .

 Here is today Singapore hot Stocks list  :

• Spackman
• Mermaid maritime
• Noble

Here is Our latest Recommendation of SGX Signals  :
BUY MERMAID MARTIME.SG ABOVE .121 TARGETS .128/ . . .  STOPLOSS BELOW .112

Feedback :
BOOK PARTIAL PROFIT IN MERMAID MARITIME.SG MADE HIGH OF .128 OUR 1ST TARGET .128 ACHIEVED

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Today Singapore SGX hot Stocks . . . . . . 

• Select
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BUY SINO GRANDNESS.SG ABOVE .635 TARGETS .67/.70 STOPLOSS BELOW .60 

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