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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Investing Update: SGX's 20 largest China exposure plays posts 27% return YTD

The Singapore Exchange has 180 stocks which can be viewed as China introduction plays.

Together, they create 20% of their income from China while more than 80% infer in any event half of their income from the nation.

Year to date, the 20 biggest promoted stocks which create no less than half from China have posted a normal market top weighted value return of 27.3% with 16 out of the 20 stocks producing positive returns.

The 20 organizations exchange at a market top weighted normal P/E of 13.5 times and P/B of 1.1 times. 

For as long as 15 years, GDP development in China found the middle value of between 9% to 10%. Regardless of the financial stoppage, GDP is as yet anticipated that would increment around 6% for the following five years.

In 2017, China's GDP figure was additionally overhauled higher in the last quarter to 6.7%, three times more contrasted with 2.1% for US. 

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As indicated by SGX, there are five drivers that add to China's blasting GDP development.

The One Belt and One Road (OBOR) Initiative is the greatest driver. In May, China's President Xi vowed to empty US$124 billion into the activity. The assets will be utilized as gifts to the current Silk Road Fund, credits from approach banks and help to creating nations. 

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The OBOR Initiative is one of China's most critical drivers to shape its national monetary advancement system and global exercises.

Furthermore, the Chinese government a year ago set "supply-side auxiliary change" as a concentration which will bolster development through new request and efficiency.

The third driver is state-possessed undertakings (SOEs) change, which China has made a need in the previous couple of years. Some portion of the change incorporates presenting a blended possession framework and making SOEs more streamlined and productive.

The fourth driver is China's developing center wage class and local utilization. The National Bureau of Statistics detailed that yearly discretionary cashflow of Chinese family units in 2016 expanded to RMB23,821 ($7,664) contrasted with RMB10,000 in 2009. 

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China will likewise observe about US$2 trillion in new utilization by 2021 which implies it will be one of the greatest markets for purchaser organizations all around later on.

In conclusion, the "Made in China 2025" national arrangement will help add to China's GDP development. Revealed in 2015, the 10-year design means to change China from an assembling monster into a world assembling power.

Under the arrangement, China will concentrate on five noteworthy ventures, including setting up an assembling advancement focus and boosting insightful assembling. Then, it will likewise acquaint approaches with extend institutional changes and reinforce money related help, and additionally rebuild old economy over all divisions and ventures with its web based business advertise.

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How Singapore investors can profit from unstructured data

Data that is collected in the business environment can be structured or unstructured. In general, structured data refers to information which is highly organised and which can easily be stored in rows and columns within database systems. On the other hand, unstructured data does not have a strict data structure, and is also not organised in a pre-defined manner.

Whilst data used in the business context is often well-structured and financial in nature, unstructured data represents a valuable but often neglected source of information that investors can use in their analysis of firms. In particular, a variety of unstructured data can be used to supplement and enhance their analysis of financial information traditionally reported by firms when making investment decisions.

Certainly, there has been a growing focus globally on using technology to gain insights from unstructured data. In a recent report titled “Finance reimagined: Finding long term value in a digital age” published by financial services company State Street, 2,000 investors and 500 investment providers were surveyed globally.

A key finding in the report is that the ability to combine both structured and unstructured data is set to become one of most important aspects of data that will define stewardship for the digital age.

In Singapore, there have also been efforts to leverage on unstructured data to gain insights. In a press release titled “DBS bank engages IBM”s Watson to achieve next generation customer experience,” the bank highlighted how it was using technology to deliver innovation anchored around analytics and the use of big data, both structured and unstructured.

 

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In this article, I highlight two types of unstructured data – audio and text data - that exists in many firms, and which can be leveraged on by investors to gain insights into these firms.

Audio data
Potential sources of audio data include quarterly earnings calls, presentations to shareholders, and other audio recordings of public disclosures that executives routinely make. Such audio data can be analysed by investors to generate important insights beyond what is traditionally reported by a company in its financial statements.

For example, recent academic research suggests that a CEO’s affective state, as detected in his or her speech patterns (for instance, on earnings calls), may be effective in predicting the likelihood of a firm’s future stock price movements.

Further, there is also evidence to indicate that vocal and linguistic cues in a CEO’s voice may be predictive of possible irregularities in a company’s reported financial statements, which could eventually lead to restatements of reported financial results.

 

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Text data
Text data represents another category of unstructured data that investors can leverage on when evaluating firms. Sources of text data include annual reports, regulatory filings, and other written disclosures made by a firm.

As with audio data, academic research has examined how text data can be incrementally informative in predicting future firm performance and events. For example, recent research has found evidence that the linguistic tone of disclosures made in the Management Discussion & Analysis (MD&A) section of a firm’s regulatory filings can be predictive of a firm’s possible bankruptcy in the near future and also of future firm earnings.

 

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Incorporating the analysis of relevant audio and text data can be tremendously helpful. It can provide analysts and investors with a more holistic evaluation of a firm, and can provide valuable insights that would ordinarily not be available to them through traditional financial analysis techniques.

Therefore, even as traditional quantitative methods of financial analysis that leverage on structured data continue to form the basis of investors’ evaluations of firms, unstructured data – including audio and text data - can also be an important, complementary area of focus that can provide important insights and information.

 

Source - www.sbr.com.sg

Singapore Stocks Market Analysis of ComfortDelGro Corp

ComfortDelGro Corp - Downgrade: A rail disappointment

 
■ Regulator awards TEL contract to SMRT despite poorer track record
■ We see greater uncertainty over the outcome of future contracts
■ Downgrading to Hold (3) from Buy (1); lowering TP to SGD2.09

What's new:

The recent award of the Thomson-East Coast Line (TEL) rail contract to SMRT (not listed) raises uncertainty over the regulator’s evaluation process for future transport service contracts, in our view. As our original expectation for ComfortDelGro (CDG) to be a key beneficiary of greater public transport usage in Singapore appears diminished, we downgrade our rating on the stock to Hold (3) from Buy (1).

 

What's the impact:

The TEL contract was widely expected to be a key near-term catalyst for CDG. While we had not factored its potential into our forecasts, we estimate that the rail line could have contributed around SGD0.08/share to our valuation. According to the regulator, SMRT’s bid of SGD1.7bn was 30% below that of CDG while still ranking higher on quality – despite CDG’s relatively better rail reliability track record. More importantly, the outcome of the bid raises uncertainty over the bidding and evaluation process for future contracts in both the bus and rail segments.

 
In the rail segment, CDG remains in negotiations with the regulator over the transitioning of its existing lines to a new rail model (see our note dated 20 July 2016), which we think could now lead to a less favourable resolution. Meanwhile, as bus packages currently operated by CDG are to beprogressively tendered out over the next decade, we see elevated risks
that bids may have to be priced more competitively for CDG to retain them.
Finally, while we have been aware of competitive pressures, we nowexpect CDG’s taxi business to see a structural longer-term decline. In terms of forecast changes, we cut our near and longer-term growth and margin expectations for CDG’s Singapore businesses across its segments, resulting in 4-13% cuts to our 2017-19 EPS forecasts. 

 

We now look for a structural decline in CDG’s taxi business over a 10-year horizon, as well as reduced profitability outlook for bus and rail. We also factor potential fare reductions into our 2018-19 rail forecasts following the regulator’s recent fare review exercise.

 

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STOCK INVESTMENT : KGI downgrades Ezion to 'sell' on weak fundamentals .

KGI Securities has downsized Ezion Holdings to an offer from a hold because of the organization's feeble essentials and high valuation contrasted with worldwide companions.

"Since our last redesign, Ezion's share cost has ascended by around 50 for each penny and presents impressive drawback hazard. Along these lines, we downsize Ezion to offer,'' KGI expert Joel Ng composed.

He has an objective cost of 20 Singapore pennies for Ezion, which gives benefit rigs and seaward coordinations bolster administrations to the oil and gas industry.

At 10.24am, Ezion was exchanging at S$0.315 a share, down 1.5 Singapore pennies, or 4.545 for each penny. More than five million shares changed hands.

A key sympathy toward the stock is the organization's powerless income position and arranged capital use of US$160 million to US$180 million for financial year 2017. This, Mr Ng said, may put advance weight on its accounting report if working money streams were to debilitate one year from now. He likewise noticed that Ezion's net outfitting after its rights issue is still raised.

Tormenting the stock is likewise the overarching supply overhang in the seaward bolster part. "We can expect facilitate decrease in usage and day rates, putting Ezion's now low profit for value under further weight,'' Mr Ng said.

The stock could be hosed if there are further compose downs or disabilities, higher than anticipated capital consumption because of upkeep and redesign works, and deferrals in receivables accumulation that may put weight on its accounting report.

Notwithstanding, a supported rally in raw petroleum costs above US$60 a barrel driven unsuspecting and geopolitical issues could give an upward impetus.

Ezion investigated Thursday that its second from last quarter net benefit fell 69 for every penny to US$9.4 million from US$30.3 million a year prior.

These Stock movable in SGX Market :

• FIRST  RESOURCES
• DBS
• IFAST
• JAPFA

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

Our Stock Recommendation-

• SGX INTRADAY SIGNAL:BUY IFAST  AT 0.87 TARGET 0.91, 0.95  SL 0.82 … 

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Today's SGX Hot Stock List

Today  In Singapore SGX Stock Market Below Stocks Are In Focus for Trading:

Hot Stocks List:

• Sembcorp Marine
• HTL Intl
• Hyflux

Yesterday SGX Stock Picks Near to reach the TGT...

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SGX Stocks Today's News: SapuraKencana Petroleum 3Q16 Profit Go Down With 63 Percent

SGX Stock Update: Due to Falling oil costs keep on impeding SapuraKencana Petroleum's execution, as 3Q16 income declined 62.7 percent to RM129.9 million, on the back of a 19.9 percent ascend in income to RM2.9 billion.

The gathering's outcomes were essentially affected by procurements for debilitation on property, plant and gear and oil and gas properties of RM317.3 million furthermore weighed on by lower benefits from the vitality division as a consequence of a lower normal acknowledged cost per barrel accomplished.

For the nine-month period, turnover expanded 5.4 percent to RM8 billion while primary concern slipped 62.1 percent to RM494.6 million.

Regardless of the difficulties confronting the business, the company's orderbook remained at RM21 billion, and its money position stayed solid, with current money and bank parities of RM2.4 billion. 

Hot Stocks List:

OCC 5.1% NCPS

UOB

DBS

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4 SGX Stock Market Strategies To Pick Good Penny Stocks

When it comes to trade with penny stocks, you need to think on impact full strategies to execute as penny stocks are usually speculative & involve high risk factors due to liquidity & small capitalization. Therefore, investments in penny stocks need capital investment strategy. As investment is risky in penny stocks, here are some investment strategies shared for how to pick good stock while trading in Singapore stock market.

Analyze the Stocks?

 

Being investors in penny stocks, you shouldn’t consider the source of internet forums. Instead of this, to analyze whether there is sufficient amount of stock in the investing community, it’s recommended for investors to analyze the demand of stocks. And, this can be regulated by average daily volume of the stock which will function as good Stock trading picks for you. Preferably, the least volume of stocks should be more than 100,000 units each day.

Fundamental of Penny Stock:

 

Fundamentals research is one of the important things to follow. The fundamental criteria which must e followed includes EPS (Earnings per share) or Discount to Net asset value (NAV) which means that stock is at lower price than its total accounting value.

EPS is a profitable & one of the easiest ways to measure stocks, if company is profitable. But, if the company is trading at the same time at a discount to NAV then it may happen that market hasn’t valued properly.

Also, when investing in penny stocks; avoid all dividends as these are not reliable & have worst selling point.

Pricing Trends:

 

If stock pricing getting lower down then it’s better to quit the trading. Also, it’s recommended to go for the stocks which are trading in an increasing manner but also not remains all time high. Getting Stock Picks will be a profitable option to get some idea about pricing trends.

Check out the News:

 

Checking out the news is one of the best factors to provide Stock signals. Knowing the sectors offering growth potential or to know where the country’s economical stands are the beneficial factors to look for. The articles from these kinds of sources highlighting the penny stocks will help you to be confident for investing in stocks.

Investment in penny stocks will be profitable if invested by understanding the financial knowledge. However, following the above mentions strategies will be beneficial to invest in penny stocks.

Source: {http://www.mmfsolutions.sg/blog/4-strategies-to-pick-good-penny-stocks-in-sgx-stock-market/}