Jan[2] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Jan[1] - Venture (High yield machine)

COUNTER: Venture Corporation Limited

OVERVIEW:
Venture is a global provider of Electronics Manufacturing Services (EMS) for a wide range of high-mix, high-value and complex electronics products, such as photonics system, electron mechanical printing devices, Post of Sales (POS) machines, handheld devices, etc. Headquartered in Singapore, Venture comprises about 40 companies with global clusters in Asia, US and Europe. It is strategic partner of choice over 100 global companies including Fortune 500 corporations, such as HP, Honeywell, etc.

HIGHLIGHTS:
[1] The group saw its 3Q15 revenue up 16% to S$693m year on year. The growth was driven by market share gain among clients as well as favorable exchange rate movement. 9M15 net profit rose 9% year on year to S$109m.

[2] While contribution from segments like computer peripherals, printing & imaging have been shrinking, the group saw higher growth from segments such as life sciences, and networking & communication. Medical & life science is likely the key growth driver in medium term. One US based client, Illumina has been producing strong results in medical segment.

[3] World Semiconductor Trade Statistics suggests that semiconductor market will maintain steady growth of 3.4% in 2016 and 3% in 2017. Positive growth rate is anticipated across Asia-Pacific and Americas regions in 2016.

INVESTMENT THEMES:
[1] About 60% of Venture's shipments are to US. Considering USD being strengthened along with rising interest rate, the currency movement will be benefit to the counter. Less than 15% of shipment is derived from Singapore. Thus, it is less vulnerable the falling export index in domestic context.

[2] Almost 60% of staff cost are incurred in Malaysia. Weakening MYR vs US and SGD translates to heavy reduction in cost for the counter.

[3] Current valuation represents PE about 15 and PB about 1.2 which are in normal range. Dividend yield is about 6.1% which is attractive. The dividend payout has been consistent over past 5 years. 

PRICE TREND:
Due to its consistent payout of dividend over years, the counter has been trading in range bound as shown below. Recent falling presents hunting window.

Chart[4] - Super Group

This week was a short trading week with relatively light market volume, yet in the case of Super Group, traded volume was fairly elevated compared to previous trading sessions.

The counter has an immediate support in the range of $0.825-0.835. Short term moving averages (MA) are showing initial signs of turning up, suggesting the possibility for further upward movement. Should there be a follow through on the trading interest in the coming week, the counter needs to overcome the current resistance level of around $0.855 (where the weekly chart shows the banding of shorter term MA and the upper end of the Bollinger Band is located on the daily chart), with the immediate price objective of $0.87 (about the 50 day MA). If the counter manages to clear the 50 day MA, the next price objective would be $0.91 and possibly $0.95.

Chart[4] - Super Group

This week was a short trading week with relatively light market volume, yet in the case of Super Group, traded volume was fairly elevated compared to previous trading sessions.

The counter has an immediate support in the range of $0.825-0.835. Short term moving averages (MA) are showing initial signs of turning up, suggesting the possibility for further upward movement. Should there be a follow through on the trading interest in the coming week, the counter needs to overcome the current resistance level of around $0.855 (where the weekly chart shows the banding of shorter term MA and the upper end of the Bollinger Band is located on the daily chart), with the immediate price objective of $0.87 (about the 50 day MA). If the counter manages to clear the 50 day MA, the next price objective would be $0.91 and possibly $0.95.

Dec[8] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Dec[7] - M1 (High yield hunting)

COUNTER: M1 Limited

OVERVIEW:
Established in 1997, the counter is 2nd licensed telecommunication service provider in Singapore. Besides mobile and iDD services, it also provides fibre broadband and fixed voice services. Its major shareholders, Axiata Group (from Malaysia), Keppel Co, SPH are holding 28%, 19% and 13% of shares separately.

HIGHLIGHTS:
[1] M1 saw its 3Q2015 revenue climbing 11% year on year. Net profit inched up 0.8% to $44.9m. 9M2015 revenue and net profit rose 16% and 2.8% year on year.

[2] While mobile service revenue was flat, fixed service revenue has been growing steadily with fibre customers up by 5% quarter on quarter. For enterprise customers, it has launched an extensive range of XGPON services (high speed optical network) and also introduced M2M (machine to machine) Connect. M2M also known as Internet of Things, connects million of devices such as vending machines, trucks, appliances and buildings. This allows M1's corporate customers to access, track and manage all their connected devices through M2M Connect.

[3] Amid the concern of rate hike from US (which has been announced) and potential entry of 4th-telco, the counter has been suffering from heavy selling pressure (down > 30%) over past 8 months.

INVESTMENT THEMES:
[1] The management guided at least 80% of payout ratio. Based on estimation, it translates to >7% of dividend yield for current trading price. 

[2] Domestic market is well saturated. Further rate hike could post higher financial barrier to new player into local telecom sector as well. Shall entry of 4th Telco being ceased, M1 could be back to investor's favor again. 

[3] The below table compares financial ratios among domestic telcos. M1 price valuation is not expensive yet with highest dividend yield. 

PRICE TREND:
Current price is hitting support at 2.6 which was formed on 2012/13.

*** Note: Same counter has been mentioned in June[4] ***

Chart[3] - City Development

Earlier this week, the company announced that it would monetize some office assets to unlock value. The news saw a spike in the share price of the counter with volume, and though the new is positive, it has not exactly "broken free"of the downtrend as yet.

For the week ahead, short term moving average (MA) are about to attempt a crossover from below suggesting that there is support in the range of $7.3 to $7.38 should it experience a correction. Immediate resistance to overcome is the upper limit of the Bollinger Band at $7.66 and the 50 day MA at about $7.72. Clearing those resistance levels, in what would be a short and light trading week, would suggest that it could attempt a movement to about $7.93, with $8.06 the next significant price objective though it is unlikely to happen in the week ahead.

Dec[6] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Dec[5] - Talkmed (Seek shelter in rain)

COUNTER: Talkmed Group Ltd

OVERVIEW:
The company provides tertiary healthcare services in the fields of medical oncology and palliative care to oncology patients under the Parkway Cancer Centre (PCC) brand name. Its clinical functions include attending to patients, examination and administering medical treatment to patients, prescribing medicines and investigations such as laboratory tests. The medical oncology practice has an established track record of more than 15 years. Currently, there are 7 clinics in Singapore.

HIGHLIGHTS:
[1] 3Q2015 saw its revenue up 4% year on year. Due to higher employee benefit and operating expenses, net profit drop 2% year on year.

[2] In June 2015, it acquired 30% in Hong Kong Integrated Oncology Centre Holdings Limited which is also its first overseas venture. CIMB analyst projected $1m of share of loss will be incurred annually before breaking even in 2017.

INVESTMENT THEMES:
[1] According to the National Registry of Diseases Office in Singapore, 13,416 people were diagnosed with cancer in 2014, vs 12651 in 2013. The company is positioning in an environment where the incidence of cancer is on any upward trend.

[2] It is in net cash position (0 gearing ratio) with insignificant short term liability. Cash and cash equivalent stood at $39.5m. Current trading price represents ~4.7% of dividend yield. PE ~17 which is pretty attractive among its peers.

[3] Based on discount cash flow model (DCF), CIMB derived $1.27 as target price for the counter.

[4] While market is facing headwind over weakening regional economic, healthcare and medical sector could be one defensive counter in one's portfolio.

PRICE TREND:
The counter usually trades in insignificant volume so price could fluctuate in wide range. It would be a boring counter for traders. Long term investor could take dividend yield as a gauge for entry.

Chart[2] - Genting Singapore

Since the time Chinese President Xi commenced his anti corruption campaign in China, Genting Singapore along with Hong Kong listed casinos operating in Macau have been fairly poor.

As can be seen from the daily and weekly charts, the overall trend has been to the downside, though there are some tentative signs that it might be attempting to turn around.

Genting Singapore closed the week the week at $0.765, which is both the 20 day MA and middle of the Bollinger Band. The easing this week has been on declining volumes, however it is difficult to determine if it could also be due to the overall quietness in the market, where participation is light due to it being the end of the year. Should the next support level of $0.755 be breached, the counter could drift to the lower limit of the Bollinger Band which currently resides around the $0.735 level, followed by the previous low of $0.695.

The immediate resistance range for the counter to overcome is $0.77 to $0.785, preferably with large volume supporting, this would suggest $0.83 as being the next price objective. 

Dec[4] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Dec[3] - REITs Hunting

Heading into the FOMC meeting next week, regional markets faced strong headwind of selling. Local listed REIT counters used to be victim amid worry of rate hike. Valued hunter shall be paying attention to counters with less gearing and no pressure of short term debt. Let's look into following counters which were presenting value while falling in price.

[1] Keppel DC REIT: The only REIT serves as proxy into data center sector which has high entry barrier. 

[2] Starhill Global REIT: With a mixed portfolio of retail outlets in domestic and overseas markets, the counter managed to produce stable earning over years.

*** Note: Same counters have been mentioned in July[4] & Nov[1] ***  

Dec[2] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Dec[1] - Sembcorp Ind (Buy into Utilities asset)

COUNTER: Sembcorp Industries Ltd

OVERVIEW:
A conglomerate with two dominant businesses - offshore oil & gas heavy engineering via Sembcorp Marine and a global utilities business. Temasek Holdings owns major shares at 49.5%.

HIGHLIGHTS:
[1] 9M2015 result saw the counter falling in both revenue and profit about 13% and 6% year on year. Marine segment registered net profit $151m which was down 36% drop in net profit, thus contributed the most for overall tumbling. Utilities segment was up by 3% to $306m.

[2] The counter is facing stiff competition in domestic power market thus it has been expanding into emerging market over years. Overseas contribution for utilities segment has been growing at 12%. First thermal power project (Total 2000MW power supply) in India achieved full operation since last September. It was just awarded a 426MW gas-fired power project in Bangladesh.

[3] Last week, Sembcorp Marine issued profit warning about significant decline in net profit by FY2015. It was attributed to "customer deferring or seeking to defer their rig orders". It involved in legal action with Marco Polo Drilling about a termination of rig contract.

INVESTMENT THEMES:
[1] The management guided that net gain ~$350m to be recognised in 4Q2015 due to divestment of its stake in Australian waste management joint venture. Investor can look forward annual dividend at $0.16 on FY2016. It translates to 5% based on current trading price. New power plant in overseas is widely expected to be bright spot next year.

[2] Due to headwind in oil&gas sector, the counter has been trading with heavy discount to its net asset value as refer to the chart below. It represent attractive price range with P/B ~0.85 and P/E ~7.8.

[3] Based on Sum of Part valuation (SOP), both OCBC and UOB rated the counter > $3.8. 

PRICE TREND:
Price is hitting support at 3 and showing rebound. Latest OPEC meeting announced its determination to maintain current oil supply glut. Shall trading price of the counter break current support, further discount is presented for value investor. 

*** Note: Same counter has been mentioned in Mar[3] ***  

Chart[1] - ST Engineering

The week the counter experienced relatively high trading volumes compared to previous weeks and the seeming formation of the three white soldiers pattern (Tuesday / Wednesday / Thursday trading sessions), coupled with the counter making higher lows since Aug (25 Aug 2015 low was $2.70, 29 Sep 2015 low was $2.82 and 1 Dec 2015 low was $2.83) and a higher high (28 Aug 2015 high was $3.13 and 29 Oct 2015 high was $3.38) suggests that perhaps the counter might be turning the corner on its downward movement. The 50 day moving average (MA) has also started to flatten out which is a slightly promising sign to a trend change.

For the record, do not possess a crystal ball that tells me the future, however assuming that the above does turn out to be correct (changing of trend), the current market price $2.94 would be a decent entry price into the counter. Immediate resistance is the 20 day MA which is at $2.97, followed by the 50 day MA at $3.09, then the current upper limit of the Bollinger Band at $3.15. Clearing those resistance levels would see the counter retest the 200 day MA which is about $3.30.

Immediate support is at $2.92/93 where the 10 day exponential MA (open and close) reside.

THREE WHITE SOLDIERS
http://www.investopedia.com/terms/t/three_white_soldiers.asp

Nov[9] - Local Banks

This gonna be a happening week due to few market data and events. ECB might announce larger scale of QE and Janet Yellen will testify with congress. OPEC meeting is around corner as well. While market could be emotional in short term, shares value doesn't vaporize in split second. Let's look at chart of local bank counters below which highlight technical support price with its underneath fundamental ratios.

Note:
Net asset value = entity's value - entity's liability 

Nov[8] - Market Update

Macro economic announcement date for coming week (Critical events highlighted in RED)

Nov[7] - Raffles Medical(Entry during correction)

COUNTER: Raffles Medical Group

OVERVIEW:
Founded in 1976, the counter evolved from two clinics to be a leading medical group with largest private group practice in Singapore. It provides general and specialized medical services. Its subsidiaries include Raffles Medical, Raffles Hospital, Raffles Dental, Raffles Chinese Medicine, Raffles Health Insurance, etc. Being a member of the Mayo Clinic Care Network, the counter has access to the finest medical expertise from US.

HIGHLIGHTS:
[1] The latest financial results saw its Q32015 revenue and earning up >5% year on year. Net profit grew 1% to S$15.7m. After accounting expenses on several investment projects as well as interim dividend, the counter maintain cash position at S$86m.

[2] The counter is facing higher pressure from expenses on staff and rental which was up ~20% year on year. Part of the costs are due to new and expanded operation outlets.

[3] Looking ahead, new revenue contribution shall come from Shaw Centre (4Q2015) and Holland Village (1Q2016). For overseas market, a new medical centre was opened last September. Two new presence in China will be completed on 2016, 2017. The counter seek to diversify its business into regions so as to cope with falling number of foreign patients recently.

INVESTMENT THEMES:
[1] Generally, regional medical counter is trading with P/E 40-50. The counter is trading at P/E ~ 35 which is in lower range. Thus current valuation is not expensive. 

[2] Both UOB and OCBC set entry price ~ 4.3 for the counter. Current price is trading close to its support ~ 4.11. Valuable entry point is present now. Over past 4 years, moving average 200 used to be a good reference as entry points. It can be referred to chart below.

ENTRY PRICE:
Accumulate now.

Nov[6] - Market Update

Macro economic announcement date for coming week:

Nov[5] - SingPost (Join party with ALIBABA)

COUNTER: Singapore Post Limited

OVERVIEW:
The well known local counter is running national postal service.  It provides domestic and international postal and courier services. It also offers end-to-end e-commerce logistic solutions.

HIGHLIGHTS:
[1] Latest result saw 1H2015 revenue leaping 20% year on year. Major contribution came from logistic segment due to its aggressive acquisition and growth in eCommerce related business.

[2] Its traditional business in mail segment dropped 2% but net profit improve >5% because of improvement in mail infrastructure which brought higher productivity and efficiency. Total underlying net profit up 1.4%

[3] The counter has announced a series of business acquisition. Recent ones include TradeGlobal and Jagged Peak. Both are US based eCommerce provider. It is also going to redevelop its existing center into Singapore's first retail mall with eCommerce services. It is estimated to be completed by mid 2017.

INVESTMENT THEMES:
[1] The counter is transforming its business base from declining postal services to booming eCommerce logistic. It has been a happening year with few exciting aggressive plans being announced and executed. Higher attention will be paid into FY2016. Investor shall take position during execution phase which is now.

[2] Alibaba is currently holding ~10% of shares into the counter. It will subscribe another 5% with long stop dated on Feb 2016. The management indicated that it is pending for regulatory approval.

[3] The counter has been consistently giving dividend quarterly with total ~0.07 per share. Interest coverage is still healthy at 40.6 thus less subjective to rate hike risk. 

ENTRY PRICE:
Last month, the counter surged in price since a series of announcement about new business acquisition which strengthened its ambition into eCommerce sector. Since dividend released last week, it has been retreating to support price ~1.8, which represents ~ 3.8 to 4% dividend yield. Buying window is present again. 

*** Note: Same counter has been mentioned in Apr[2] ***  

Nov[4] - Market Update

Bright spots among results released last week:

[A] OUE C-REIT - Q3 distribution per unit exceeds IPO forecast by 10%.
[B] OUE H-REIT - Q3 distribution per unit rose 5% year on year.

Macro economic announcement date for coming week:

Nov[3] - ThaiBev (Let's drink!)

COUNTER: Thai Beverage Public Company Limited

OVERVIEW:
Established on 2003, the counter consolidated a number of leading spirits and beer business in Thailand. Three years later, it got listed in Singapore. Now, it is Thailand's leading beverage producer as well as one of Asia's largest beverage producers. Business mainly consists of 4 segments - spirits, beer, non-alcoholic beverage and food. It has broad range of well known products, such as Change beer, F&N drinks, Isotonic 100Plus, etc.

HIGHLIGHTS:
[1] In Thai currency, the latest result saw 3Q2015 sales revenue and net profit up 3.4% and 15% respectively year on year. 9M2015 was in line with 3Q results as well.

[2] Beer segment saw net profit falling 182%, mainly due to higher cost of new designed bottle. Spirits segment falling 1% in net earning because of higher operating expense. Its shareholding from F&N earned itself 543 mil Thai Baht which was major contributor of earning.

[3] To avoid floating interest rate and currency exposure, the counter has refinanced its Singapore Dollar loans with Baht short term notes. Both current and gearing ratio has been improving over last year.

[4] Looking ahead, the counter is in working on new packaging so that Chang Classic will be a more global brand. The Chang Classic will be launched in SG, HK, UL, AUS as well as US by mid of 2016.

INVESTMENT THEMES:
[1] Amid recent volatile market condition, the counter is one of the few blue chips which didn't really see roller coaster typed movement in prices. Its alcoholic segment proved to be defensive against weak market sentiment.

[2] Summer months (2Q-3Q) are typically slower for the counter for the sake of hot weather. 4Q is much stronger as tourist season is around the corner. 

[3] Generally, the counter is rated > 0.8. Current dividend yield is 3.6%. Its dividend has been rising over the past three years.

ENTRY PRICE:
Accumulate now   

Nov[2] - Market Update

Bright spots among results released last week:

[A] DBS - Q3 total income and net profit jumped 8% and 6% year on year.
[B] SingPost - Q3 revenue rose 19.4% year on year.
[C] Capitaland - Q3 net profit surged 48% year on year.
[D] Parkwaylife REIT - Q3 distribution per unit surged 15.6%
[E] Fraser Centrepoint Limited - Full year profit leaped 49%

3Q2015 results announcement date for coming week:

Nov[1] - REITs Update

NOTES:
The above counters have released financial results up-to-date Sep 2015. They were shortlisted because of strong results being achieved as well as attractive dividend yield as of current price. Financial ratio used were derived based on latest announcement reports and served as reference.

Oct[9] - Market Update

Bright spots among results released last week:

[A] Starhill Global - Both distribution per unit and net property income improved.
[B] Global Logistics Properties - Earning leap 27% year on year.
[C] Fraser Hospitality Trust - Distribution per unit beat forecast from its IPO.

3Q2015 results announcement date for coming week:

Oct[8] - GLP (ride with steady ship)

COUNTER: Global Logistic Properties
 
OVERVIEW:
The modern logistics facilities provider is mainly owned by GIC (Government of Singapore Investment Co). It develops, owns and manages a 43 million square meters portfolio of logistic facilities across China, Brazil, Japan and US. It also involved property investment and management activities. Total portfolio assets amounted to US$29b as in latest record.

HIGHLIGHTS:
[1] The latest six months results saw earning from the counter leaped 42% year to year.

[2] In China, lease ratio achieved 89% with rent growth on renewal up 8.6%. In Japan, new leases jumped 208% year on year. It has achieved lease ratio to 94% since entering US in 2014. New and renewal leases jumped 27% quarter on quarter.

[3] Its fund management segment has hit $27.3b for the asset under management with compound annual grow rate (CAGR) ~ 96%. Latest quarter of fund management fee rose 41% year on year.

[4] Its financial position remain strong with cash position at US$3m and gearing ratio at 31%. 

INVESTMENT THEMES:[1] The counter has been steadily growing its portfolio of logistic assets across four countries. End users were well diversified into various sectors. E-commerce represents 26% of leased area in China, 12% in Japan, 18% and 10% in Japan and US respectively.

[2] On 30th Oct, the counter announced its largest development plan of logistic park in Japan which is its 2nd largest business area. Total investment is US$490m.


[3] At current price, the dividend yield is 2.5%. The counter has been rising its dividend at growth rate > 10% over past 3 years.

[4] From the chart, the counter retreated in price after recent surge. Latest result and announcement plan is worth of attention among investors.

ENTRY PRICE:Accumulate now   

 

*** Note: Same counter has been mentioned in Mar[6] ***  

Oct[7] - Marke Update

Bright spots among results released last week:

[A] M1 - Income is stable. Fiber broadband subscriber expanded 22.5% year on year.
[B] Triyard - Profit jumped 59% year on year. New record high of orderbook was achieved.
[C] SGX - Earning growth remained with derivatives business as major boost
[D] Capitaland Mall Trust -  Distribution per unit jumped 9% year on year
[E] Suntec REIT -  Distribution per unit jumped 8% year on year
[F] Fraser Commercial Trust -  Full year distribution per unit jumped 18%.

3Q2015 results announcement date for coming week:

Oct[6] - Keppel T&T (Buy on weakness)

COUNTER: KEPPEL TELECOMMUNICATION & TRANPORTATION LTD

OVERVIEW: 
The subsidiary of Keppel Corp, is a leading service provider in Southeast Asia and Europe with businesses in logistics and data center. In logistics, it offer one-stop, integrated solutions to help clients manage their entire supply chain. It owns and operates data centers across Asia Pacific and Europe, providing dedicated co-location suits with technical support. 

HIGHLIGHTS:[1] Its latest result saw revenue in last night month lower by 4% at $148m year on year. Operating profit was lower by $9.7m as well. It was mainly due to absence of revenue from two data center assets disposed last year to Keppel DC REIT in which the counter is having shares.

[2] As compared to same period last year, logistics division's revenue increased by 9% and data center drop 30%. Investment division achieved comparable results.

[3] The warehouse at Tampines Logistics Park commenced operations in 2Q2015 with occupancy rate > 60%. Tianjin Eco-city distribution center and Lu'An logistics park in China shall begin operation by early next year.

[4] The counter is on track to divest one of its data center asset to Keppel DC REIT in 2016. The disposal gain is projected to be ~S$65m.

INVESTMENT THEMES:[1] The counter is trading with P/E at 3.22x which is considered heavy discount. 

[2] When existing assets turn into fully operational, the income shall be rising significantly. Due to its growth prospect, CIMB rated the counter >1.9

[3] The price has been falling heavily since mid of the year but without any panic sell among major shareholders. Price movement is sable upon latest announcement of poor result. Most negative concern seems to have factored in price. Mid to long term investor could take position now. Harvest time shall be on 2016.

ENTRY PRICE:Accumulate now  

 
*** Note: Same counter has been mentioned in May[1] ***  

Oct[5] - Market Update

Bright spots among results released last week:

[A] SPH REIT - Consistent dividend yield with stable performance from existing assets portfolio.
[B] Soilbuild REIT - Revenue and distribution unit improved year on year.
[C] Keppel DC REIT - Result beating forecast in IPO prospectus.


3Q2015 results announcement date for coming week:

Oct[4] - CMPacific (Infrastructure in expansion)

COUNTER: CHINA MERCHANTS HLDGS (PACIFIC)

OVERVIEW:
The counter is a leading toll road company focused on investing in and managing toll roads in People's Republic of China (PRC). It invests in and operates five toll roads located in Zhejiang, Jiangxi, Guangxi Zhuang Autonomous Region and Guizhou with total distance at 415 kilometres. Its mother company, China Merchants Group is state owned corporation of PRC which has broad business footprint such as banking, logistics, marine, real estate, etc.

HIGHLIGHTS:
[1] On mid 2015, the counter announced acquisition of three tolls roads in Guangxi. The total distance amount to 160km. Together with existing portfolio, the counter would have an expressway network totalling 298km in Guangxi. 

[2] By 16 Oct, the counter has completed the acquisition. It was mainly funded by rights issue ($598m) and loan (US$350m) from external bank loan. Due to new shares issued, the EPS (Earning Per Shares) is expected to shrink ~30% excluding earning from newly acquired toll roads. Gearing ratio (Debt over Equity) would be doubled up to ~60%.

INVESTMENT THEMES:
[1] Generally, the latest move has been welcomed by research firms with BUY rating at target price > $1.1. The acquisition shall contribute to earning from 4Q2015 onward. Projected earning is 30~40% improvement by 2016. 

[2] The counter has proven itself as a well-growing counter with consistently increasing in earning and total asset over past 4 years. Its annual dividend is 0.068, equivalent to ~7% dividend yield.

[3] From the chart, price has been edging upward and breaking resistance ~0.93. Moving average of 10 and 20 days are crossing and pointing up. Buying interest could be gaining momentum.

ENTRY PRICE:
Accumulate now

*** Note: Same counter has been mentioned in May[2] *** 

Oct[3] - Market Update

The latest flash note by UOB highlights few important dates when market could get some hints on possibility of rate hike from US Fed Reserve:

Local listed company kicks off 3Q result announcement. Releases on coming week will be:

Oct[2] - Ezion [Ride on the trend of oil]

COUNTER: Ezion Holdings Limited

OVERVIEW:
The counter specializes in the development, ownership and chartering of strategic offshore assets and the provision of offshore marine logistics and support services to the offshore oil and gas industries. It owns one of the largest and most sophisticated class of liftboats in the world. The liftboats are mainly used for well-servicing, commissioning, maintenance of offshore platforms. Other offshore assets are:

HIGHLIGHTS:
[1] The counter has been delivering excellent results over past few years. Its EPS (earning per share) jumped from 0.051to 0.162 on 2014. Revenue contribution was diversified across geographical market. In FY2014, the contribution by Singapore, Australia, rest of Asia and Europe amounted to 6.4%, 14.5%, 38.9% and 33.4% respectively. Total revenue was ~USD360m.

[2] Due to plummeting of oil price, oil companies shift focus to maintain oil production from existing oilfield. This will involve repair and maintenance of existing production platforms. Liftboats and service rigs provide accommodation and deck space during platform maintenance. For the counter, four of five expiring contracts has been renewed. Operational vessels are 99% utilized.

[3] Recent $120m bond issue at 3.65% provides enough funding for the counter to cater higher operation cost and new project requirement.

INVESTMENT THEMES:
[1] Similar to other oil related counters, it has been experiencing heavy down falling in share price since 2H2014. Current shares price represents P/B (price to book) ~ 0.638 and P/E (price to earning) ~ 3.8x. The counter is trading with heavy discount now.

[2] A meeting is scheduled among OPEC (Organisation of Petroleum Exporting Countries) and non OPEC countries on 21 Oct. Market speculates that oil output from OPEC could be cut. As a result,  crude oil has been edging upwards even higher supply has been flooding the market.

[3] Recently, the counter price movement has been imitating oil price. It has been testing 0.74 three times. Shall price breaks up 0.74, it is forming a triple top break up. Higher price could be expected. Buyer has been rising significantly as well. Short term trader could take the opportunity.

[4] For investor who is long term bullish on oil price, the counter is one of the highly recommended proxies. It has been the favorite among research firms because of its healthy finance book as well as project visibility. General rating price is >1.

ENTRY PRICE:
Buy ~ 0.74.

 

Oct[1] - Summary

Let's review the following counters which have been discussed on previous posts.