June[4] - M1 (Buy ~$3.2; Let's make a CALL)

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) In 1Q2015, SingTel and M1 achieved increases in total mobile revenue at 2% and 1.6% year on year respectively. Starhub reported drop of 0.2%. In Broadband segment, M1 outperformed the peers with 31.2% growth year on year.

(2) M1 management is guiding for "moderate" earning growth for 2015. It is also positive on its fixed services segment, where it expects to grow share in the government and corporate sectors, citing the launch of new services like ultra-high speed broadband plans, data centre and cloud-based applications.

(3) It has entered investment agreement with Telecom Oman (TeO) in Oman which is a high income country with 4mil of population. TeO is currently an international gateway operator and mobile services reseller. It could evolve to be 3rd mobile operator in Oman.

(4) Singapore could welcome a fourth Telco operator into mobile market. SMRT previously announced its intention for the 4th license, but has abandoned the joint bidding with OMGTel lately.

INVESTMENT THEMES:
(1) Amid market worry over interest rate hike and possibility of 4th Telco operator, M1 has shed 20% in share price over last 4 months. At current price level, the dividend yield could be ~5.7% which is the highest among its peers.

(2) Based on discounted cash flow model, target price of M1 is $3.58. Current share price presents 8% discount. DBS, OCBC and UOB have upgraded rating on the counter.

ENTRY PRICE:
BUY ~$3.2 which has been formed as support line from recent downfall.

June[3] - STI ETF (Bargain Hunting)

COUNTER: STI ETF

OVERVIEW: 

SPDR funds are a family of exchange-traded funds (ETF) traded in US, Europe and Asia Pacific and managed by State Street Global Advisor. SPDR® Sraits Time Index ETF ("STI ETF") is Singapore's first locally created ETF which can be traded like any listed share. It seeks to generate return that closely correspond to the performance of Sraits Time Index ("STI"). 

Adopting physical replication model, STI ETF actually buy into constituents of STI so as to track its price movement. It releases dividend bi-annually with annual yield about 2.8%.

INVESTMENT THEME:

(A) Looking into the following chart, the forward Price to Earning ratio (P/E) of STI used to be swinging within 13.0x to 14.5x or even bigger since 2013. Current STI valuation touched forward P/E about 13.02 which is at the lower end of the swinging range. So opportunity is present for bargain hunting.

(B) US might not raise up interest rate drastically by end of 2015. Local market could welcome next "spring" in mid term.

(C) General election is widely expected to be around the corner. Market sentiment could give a boost to the local index.

ENTRY PRICE:
It is suggested to put STI ETF into one's shares portfolio so as to enjoy with overall market growth instead of picking individual counter. It is for mid-long term holding. Currently, STI ETF is testing support ~3.35 second time. Should STI return to its average forward P/E about 13.7x, investor could target 3.5 as exit price. 

Suggestion is to accumulate ~3.35. Next support is 3.21. Provided general earning prospect from STI constituents retains, investor could buy again.

June[3] - STI ETF (Bargain Hunting)

COUNTER: STI ETF

OVERVIEW: 

SPDR funds are a family of exchange-traded funds (ETF) traded in US, Europe and Asia Pacific and managed by State Street Global Advisor. SPDR® Sraits Time Index ETF ("STI ETF") is Singapore's first locally created ETF which can be traded like any listed share. It seeks to generate return that closely correspond to the performance of Sraits Time Index ("STI"). 

Adopting physical replication model, STI ETF actually buy into constituents of STI so as to track its price movement. It releases dividend bi-annually with annual yield about 2.8%.

INVESTMENT THEME:

(A) Looking into the following chart, the forward Price to Earning ratio (P/E) of STI used to be swinging within 13.0x to 14.5x or even bigger since 2013. Current STI valuation touched forward P/E about 13.02 which is at the lower end of the swinging range. So opportunity is present for bargain hunting.

(B) US might not raise up interest rate drastically by end of 2015. Local market could welcome next "spring" in mid term.

(C) General election is widely expected to be around the corner. Market sentiment could give a boost to the local index.

ENTRY PRICE:
It is suggested to put STI ETF into one's shares portfolio so as to enjoy with overall market growth instead of picking individual counter. It is for mid-long term holding. Currently, STI ETF is testing support ~3.35 second time. Should STI return to its average forward P/E about 13.7x, investor could target 3.5 as exit price. 

Suggestion is to accumulate ~3.35. Next support is 3.21. Provided general earning prospect from STI constituents retains, investor could buy again.

June[2] - HPH Trust USD (Buy for Dividend yield > 6%)

COUNTER: HUTCHISON PORT HOLDINGS TRUST

BUSINESS: 

The business trust is affiliated with Hutchison Port Holdings, the global leader in the container port industry by throughput and a subsidiary of CK Hutchison Holdings Limited. It owns interests in world class deep-water container port assets located in two of the world's busiest container port cities by throughput - Kwai Tsing in Hong Kong and Shenzhen in the People's Republic of China ("PRC"):
(A) Hongkong International Terminals (HIT)
(B) COSCO-HIT Terminals (CHT)
(C) Asia Container Terminals (ACT)
(D) Yantian International Container Terminals (YICT) in PRC

HIGHLIGHTS:

(1) 1Q2015 results saw YICT posting 10% increment in throughput year on year. It was mainly driven by US, transshipment and empty cargoes.
(2) Throughput of terminals in Hongkong posted 1% drop year on year. Total throughput from the counter saw 4% increment year on year. 
(3) Excluding one off gain in 1Q2014, 1Q2015 net profit is up 4%. Including the gain, overall earnings fell 49%.
(4) The management is planning to raise its tariff by 4-6% as it ramps up capacity to handle larger mega-vessels. 

REASONS TO BUY:
(1) Management was guiding > HKD 0.33~0.36/shares for FY14 dividend. Assuming the lowest guide of HKD 0.33 for FY15, it would translate into >6.5% of annual dividend yield based on current exchange rate and trading price at USD0.64
(2) Following management plan in rising capital expenditure to upgrade existing infrastructure, core earning is expected to improve afterwards.
(3) Recent downfall in the shares price presents entry opportunity. 4 years trough is ~USD0.62.

ENTRY PRICE:
HPH Trust is listed as dual currency and USD denominated counter is preferred. This is mainly for accumulation as dividend stock in investor's portfolio. Suggested entry is close to USD0.62. 

June[2] - HPH Trust USD (Buy for Dividend yield > 6%)

COUNTER: HUTCHISON PORT HOLDINGS TRUST

BUSINESS: 

The business trust is affiliated with Hutchison Port Holdings, the global leader in the container port industry by throughput and a subsidiary of CK Hutchison Holdings Limited. It owns interests in world class deep-water container port assets located in two of the world's busiest container port cities by throughput - Kwai Tsing in Hong Kong and Shenzhen in the People's Republic of China ("PRC"):
(A) Hongkong International Terminals (HIT)
(B) COSCO-HIT Terminals (CHT)
(C) Asia Container Terminals (ACT)
(D) Yantian International Container Terminals (YICT) in PRC

HIGHLIGHTS:

(1) 1Q2015 results saw YICT posting 10% increment in throughput year on year. It was mainly driven by US, transshipment and empty cargoes.
(2) Throughput of terminals in Hongkong posted 1% drop year on year. Total throughput from the counter saw 4% increment year on year. 
(3) Excluding one off gain in 1Q2014, 1Q2015 net profit is up 4%. Including the gain, overall earnings fell 49%.
(4) The management is planning to raise its tariff by 4-6% as it ramps up capacity to handle larger mega-vessels. 

REASONS TO BUY:
(1) Management was guiding > HKD 0.33~0.36/shares for FY14 dividend. Assuming the lowest guide of HKD 0.33 for FY15, it would translate into >6.5% of annual dividend yield based on current exchange rate and trading price at USD0.64
(2) Following management plan in rising capital expenditure to upgrade existing infrastructure, core earning is expected to improve afterwards.
(3) Recent downfall in the shares price presents entry opportunity. 4 years trough is ~USD0.62.

ENTRY PRICE:
HPH Trust is listed as dual currency and USD denominated counter is preferred. This is mainly for accumulation as dividend stock in investor's portfolio. Suggested entry is close to USD0.62. 

June[1] - iFAST (Buy ~$1.4; FAST growing market)

COUNTER: IFAST CORPORATION LTD

BUSINESS: 
Inception in 2000, the counters offer internet-based investment product (bonds, unit trusts, ETF, etc) distribution and administration platform. There are major two business segments, B2B and B2C. B2B customers includes banks, Financial advisors, and financial insititutions. B2C B2C clients are from mass market who access through its Fundsupermart.com website. 

HIGHLIGHTS:

(1) The latest result for 1Q2015 saw net revenue and net profit rose 18% and 49% year on year.

(2) AUA, Asset under Administration (Investment value from investors) rose 21.8% as a total from all three markets, namely Singapore, Hong Kong and Malaysia. AUA generates recurring revenues which forms major income to the counter.

(3) On end of May, iFAST Singapore launched ETF and bond into his platform. These could further enhance existing AUA.

(4) The company is in early phase of exploring into China market. With SGD35 mil cash on hand, the company is seeking potential M&A in the market. 

REASONS TO BUY:
(1) From price chart, the counter has been riding on bullish trend since its IPO last year. A triple top breakout was formed in early this year. ~1.4 can be seen as strong support. Recent retreat in the price could present entry opportunity.

(2) The management is expecting to dividend every quarter in 2015. Total amount is forecast to be 60% of total net profit.

ENTRY PRICE:
Buy ~$1.4 for potential rebound. Mid-longer holder could position for the future growth of its business and quarterly dividend.

June[1] - iFAST (Buy ~$1.4; FAST growing market)

COUNTER: IFAST CORPORATION LTD

BUSINESS: 
Inception in 2000, the counters offer internet-based investment product (bonds, unit trusts, ETF, etc) distribution and administration platform. There are major two business segments, B2B and B2C. B2B customers includes banks, Financial advisors, and financial insititutions. B2C B2C clients are from mass market who access through its Fundsupermart.com website. 

HIGHLIGHTS:

(1) The latest result for 1Q2015 saw net revenue and net profit rose 18% and 49% year on year.

(2) AUA, Asset under Administration (Investment value from investors) rose 21.8% as a total from all three markets, namely Singapore, Hong Kong and Malaysia. AUA generates recurring revenues which forms major income to the counter.

(3) On end of May, iFAST Singapore launched ETF and bond into his platform. These could further enhance existing AUA.

(4) The company is in early phase of exploring into China market. With SGD35 mil cash on hand, the company is seeking potential M&A in the market. 

REASONS TO BUY:
(1) From price chart, the counter has been riding on bullish trend since its IPO last year. A triple top breakout was formed in early this year. ~1.4 can be seen as strong support. Recent retreat in the price could present entry opportunity.

(2) The management is expecting to dividend every quarter in 2015. Total amount is forecast to be 60% of total net profit.

ENTRY PRICE:
Buy ~$1.4 for potential rebound. Mid-longer holder could position for the future growth of its business and quarterly dividend.