SATS Ltd’s Latest Quarterly Results - Positives & Negatives

Singapore - SATS Ltd is an SGX listed company which is specialized in providing food solutions and gateway services solutions. SATS caters to the needs of the aviation sector and a host of other businesses in hospitality, food, healthcare, freight, and logistics industries besides the governments. With an experience over 70 years and a growing regional presence, SATS is poised for a new phase of growth, creating value for our customers, partners, and shareholders, in Singapore and beyond also a good share investment.

SATS Ltd’s Latest Quarterly Results - Positives & Negatives

Recently the company disclosed it's latest quarterly results for the year ending 31 March 2019. There are some positive and some negative of its quarterly results that investors should know, let's talk about the positive and negatives of the SATS Ltd.


The quarterly results of the SATS Ltd

Below image shows the consolidated income statement from SATS for the principal quarter of FY18/19- 

Source - SATS’ Results Presentation

In general, we see that the two sales and profit after tax and minority interest (PATMI) were superior to those of a similar period a year ago.

The positives of the SATS Ltd - 

Let's take a look at the revenue of the company the Food Solutions revenue increased 2.7% multi-year to S$239.5 million and the Gateway Services revenue increased by 3.4% multi-year to S$199.6 million.

The operating expenditure of this stock investment increased at a slower rate as compared to the revenue of the company which caused the expansion of the operating margin to 14.8% from 12.5% in this quarter.

The free cash flow for the quarter was S$72.3 million, up from S$27.7 million in the same period last year, mainly due to the higher operating cash flow.

The balance sheet of the SATS Ltd's remained strong with cash and short-term deposits of S$439.7 million and debt of S$106.1 million, as at 30 June 2018.


The negatives of the SATS Ltd -

There is just a single negative point that investors should know from the most recent quarterly results, which is the weaker execution in SATS' partners and joint ventures. Partners and joint ventures benefit after assessment commitment declined hardly by 1.3% to S$15.3 million. The fall was chiefly because of weaker execution from Gateway Services, where benefit after assessment descended by 8.3% to S$11.1 million.

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Questions to be asked when assessing dividend stocks!

SINGAPORE- The Singapore stock market is outstanding for its high dividend paying firms and REITs (real estate investment trusts) is one of such groups. As plenty of high dividend paying firms are present in the market and are so popular among the investors. What methods or How should assess such high dividend paying companies?

Generally, investors make mistakes while doing stock investment by and large too focused on the dividend yield of companies. This is frequently an issue in light of the fact that the yield just enlightens you concerning the past and not what's to come. While the profit installments may have been high before, it doesn't consequently bring about high-profit installments later on. 

Questions to be asked when assessing dividend stocks!

Let's we take a look at questions investors should ask of a dividend paying company when they assess it, which is a crucial SGX stock tip.

Do profit adequately cover the dividend amounts? 

For any company to pay dividends, it needs to profit; that is entirely self-evident. In this way, the principal check financial specialists should make is to guarantee that the organization's income are adequate to cover its dividend effortlessly. 

For REITs in Singapore, the payout rate is typically 90-100%. This implies the REIT is paying out near the entirety of its profit as profits. In such a circumstance, it turns out to be significantly more vital to assess the strength of the business or rental wage. 

For organizations other than REITs or any other stock recommendation, the payout proportion ought to be checked altogether. Organizations with a payout proportion of underneath 75% are generally esteemed to be moderately traditionalist in my view. Financial specialists should remember that organizations that compensation out at least 100% of their income as profits ought to be seen with some distrust except if they are only erratic instalments. 

Are the dividends stable? 

The following component investors should concern at is the strength of the profit. Most financial specialists who purchase profit stocks do as such for the chance to get repeating pay from these stocks. In such a case, isn't the strength of the profit vital? 

When taking a gander at the profit history, financial specialists should watch out for emotional cuts in profit or the most pessimistic scenario, a missed instalment. How about we have a snappy take a gander at what could cause these. 

For a REIT or equity picks a drop in the payout could be intelligent of the poor request from its properties, bringing about lower rents. This could imply that the property is not any more aggressive and along these lines, can't summon high rental pay pushing ahead except if the supervisor finds a way to enhance the property. 

Another purpose behind a drop could be because of the offer of a property. In such a case, financial specialists need to assess what the chief does with the business continues. On the off chance that it is reinvested into another property, the rental salary ought to have the capacity to make up for the lost pay. 

For organizations other than REITs, a drop in profit could be intelligent of testing business conditions. In such a case, financial specialists need to reconsider the income advancing. Another purpose behind a drop in instalment could be because of a modification of the organization's payout approach. On the off chance that this was the situation, the administration ought to have a reasonable clarification for the decrease. 

Daily trading tips

Final Thought-

The questions which are discussed above are only the beginning stages from which investors ought to assess high dividend paying stocks. The questions will guarantee that speculators give careful consideration to an organization's or REIT's capacity to pay a steady dividend, maintaining a strategic distance from any potential traps meanwhile.

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.


Leave a feedback in the comment section. Thank you for reading!

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.

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

China Evergrande Group Statement for SGX Market

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

 

 

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

 

Catch More - Good Time to Buy Keppel Corp

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

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

Stock Market analysis of City Developments Limited

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

Acquires Amber Park for S$906.7m Via Collective Sale

 

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

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

Near New Tanjong Katong MRT Station to be Completed in 2023

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

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

 

More update: Stock signals for Stock investment or share investment in Singapore stock Market

Singapore REITs Performance

Singapore’s manufacturing and electronics Purchasing Managers’ Index (PMI) continued their robust momentum, coming in at 52.0 and 53.6 for the month of Sep, representing MoM increases of 0.2 and 0.4 points, respectively. 

 

 

This also represented the 13th and 14th consecutive month of expansion, respectively.

 

Read More - Singapore Share Market Preview

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

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

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

Singapore Penny Stocks To Watch

1. FALCON ENERGY
2. TAT HONG
3. JAPFA
4. CHINA AVIATION
5. FRENCKEN

So Earn more With our Stock Recommendations

Recent Stock Recommendations

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

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

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share trading tips or Share Market Tips

Singapore Stock market Analysis fo Delfi Ltd

• Indonesia cuts key rate again
• Stable 2H sales expected vs. 1H
• Investments for the long term

Soft Consumption for Key Market Indonesia

 

Delfi Ltd’s key markets have been Indonesia and Philippines, with Indonesia typically accounting for about 70% of overall revenue. As of 1H17, Delfi saw lower sales in Indonesia YoY amid the weak retail sales environment and its own product rationalization exercise to focus on core brands. Last Friday, Indonesia’s central bank cut its interest rate for the second consecutive month, against the backdrop of soft domestic consumption growth. Overall, management expects operating environment to remain challenging amid uncertain economic conditions in its key markets.

Read more -HOW AFFECTED SINGAPORE AIRLINES SHARE PRICE

Bright Spots

Management has been making efforts to improve the quality of earnings. The product rationalization programme is an example, whereby the group had eliminated lower performing SKUs, with the bulk of elimination made in late FY16, so that they could focus on growing sales of their core brands. Particularly, in the last two months of 2Q17, sales for Own Brands products saw a double digit growth in Indonesia.

In addition, the group has been able to maintain a healthy level of gross profit margin at around 30%, with 1H17 at ~33% vs. a threeyear average of ~32%, backed by initiatives such as pricing and right-sizing adjustments, as well as pushing for higher sales of premium products.

Read More - Most movable SGX stocks of The day ?

But High Expenditures

With continuous investments being made in various aspects of the business such as brand building, capacity, distribution capabilities and supply chain integration, realizing benefits from these investments would be pertinent to sustaining growth for the long term. However, costs would likely remain high.

Read More  - The Secret of Successful Share Investment in Singapore Companies

On the expectation of stable sales in 2H vs. 1H, FY17 revenue would still be lower YoY, and with higher expenditure, management has also guided for lower profitability this year.

Notably, the group was in a net cash position of US$23.5m as of 30 Jun-17, and has paid 3.01 S-cents/share of dividends YTD. They have also formed strategic initiatives with Japan’s Yuraku Confectionery and South Korea’s Orion Corporation. With that said, due to an internal reallocation of resources, we are ceasing coverage on the stock..

More update:  Stocks To Watch, 2017 Stock Market Outlook, Stock Market Investing Outlook & Investment Outlook 2017

Singapore Airlines Share Price History

Singapore Airlines Limited (SGX: C6L) a synonym for great care with compassion and luxury with trust, is a renowned national airline of Singapore. It is registered in Singapore SGX as an air transporter to serve passengers and deliver cargos at their respective destination.

 

Aside from its namesake full-service airline it also owns a majority stake in SIA Engineering Company; a company well known for providing aircraft maintenance, repair, and overhaul (MRO) services in across nine countries, with a portfolio of 27 joint ventures, including with Boeing and Rolls-Royce.  

But in spite of such a recognizable name, this big player of aviation market also shows a decline of about 13% in its stock prices last year. The reason behind can many but to acquire the actual one is our duty, so as to stay protected and secure our valuable investment...Read More -How Affected Singapore Airlines Share Price

Why is small-cap value strategy

"Put just in little capitalization esteem stocks. Try not to put resources into blue chips. Try not to put resources into development stocks."

This exhortation may alert you. In any case, in the event that you need the best long haul returns, you need to put resources into esteem little tops. To manufacture your retirement fund rapidly, you have to resist tradition.

What are little top stocks? They are organizations with little market capitalisation. Market top is the market estimation of all the extraordinary offers. You get this by increasing every single exceptional offer with the offer cost. 

Read More -  How to buy shares of stock in Singapore 
 

What is an esteem stock? An esteem stock is one that offers at a marked down cost to its reasonable esteem. For instance, if a stock offers for 50 pennies and its reasonable esteem is $1, at that point that is a half rebate to its reasonable esteem. Esteem speculators attempt to pay 50 pennies to a dollar of benefits. The reasonable estimation of a stock is evaluated by understanding the matter of an organization and breaking down its budgetary explanations.

What's more, why is a stock that is worth $1 offering for 50 pennies? This happens on the grounds that stock costs are as a rule driven by the assessments of market members and are not founded on business basics.

Oblivious ages in 1930s, individuals regarded money markets as a club. Many still do today. Examiners don't think about the basics. At that point Benjamin Graham went along. A great many people don't know graham's identity, however they know his popular understudy: Warren Buffett. Graham presented a precise method for investigating stocks and is known as the father of significant worth contributing. 

Read More  - How to start investing Singapore  

He presented the idea of edge of security. It implies that if one somehow managed to buy a stock at well underneath its evaluated reasonable esteem, there is a cushion called the edge of security that will shield one from misfortune. Graham brought us from the dull periods of stock hypothesis to contributing.

Afterward, in the 1980s, Eugene Fama and Kenneth French, also called Fama and French, tagged along. They had leeway over Graham, as in the 1980s, there was suffi cient budgetary information accessible for investigation utilizing factual apparatuses and PCs. Graham did not have this advantage and needed to depend on concentrate little specimens of stocks utilizing pen and paper. Fama and French based upon Graham's work and took contributing to another level. They put the science into contributing. To put it plainly, Fama and French found that little top esteem stocks outflanked the general securities exchange. For the advantage of perusers, I have abridged a portion of the information from Fama and French in Table 1.

Table 1 demonstrates the execution of two procedures in the worldwide securities exchange. "Little less huge" (SMB) implies the normal execution of little top stocks short that of huge top stocks every year. For instance, from 2012 to 2016, little tops beat huge tops by a normal of 0.26% a year. Similar remains constant for the last 10, 15 and 20 years. 

"Esteem less development" implies the normal execution of significant worth stocks less that of development stocks. In the worldwide securities exchange, esteem stocks have outflanked development stocks by 4.73% a year for the last fi ve years. In the course of the most recent 20 years, from 1997 to 2016, esteem stocks have outflanked development stocks by 3.36% a year.

Shouldn't something be said about the Asia ex-Japan securities exchange? See Table 2. 

Asia demonstrates a comparable outcome. There is a general out performance of little tops and esteem stocks. A basic peruser may bring up that in the last fi ve years, little tops have failed to meet expectations huge tops by 1.64% a year. I think the more drawn out term results should convey heavier weight — little tops outflanked more than 10-to 20-year time frames.

In Asia, the esteem methodology is plainly better than the development system. Esteem beat development in all cases and by an immense quantum as well (4 or more for each penny). One would likewise see that esteem stocks' out performance in Asia is better than that in the worldwide securities exchange.

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Source  - theedgesingapore

Today's SGX/KLSE Hot Stocks Update .

Here is Today's SGX Hot Stocks List of Singapore  :

• REX INTL.SG
• TT INTL.SG
• NOBLE.SG 

Here is Today's KLSE Hot Stocks List of Malaysia  :

• CSCSTEL.KL
• COMCORP.KL
• BIMB.KL
  
  

These rundown Are more gainful for Contra exchanging and Intra Trading . So I Wish all of you the best.

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Today's SGX Hot Stocks List .

 

Here is Today SGX Hot Stocks Of the Days :

• IEV
• CHINA EVERBRIGHT
• CITYNEON

These rundown are useful for Intra , Contra and Long term Trading . So Earn More With us-

STOCK RECOMMENDATION :
BUY FEDERAL INTL ABOVE 0.250 TARGET 0.270 0.300 SL 0.225

You can Visit our Website for live  Today's hot stocks, Useful SGX Stocks .

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SGX Hot Stocks List For Today

In Singapore Market Today these Stocks are In Focus:

SGX Hot Stocks List:

• Vard
• Sembcorp Ind
• Global logistic

Our Recent Stocks Recommendations:
INTRADAY CALL: BUY VARD.SG ABOVE .16 TARGETS .168/.176 STOPLOSS BELOW .149

Follow Up:

PROFIT: BOOK FULL PROFIT IN VARD.SG MADE HIGH OF .18 OUR FINAL TARGET .176 ACHIEVED

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