Aug[5] - STI ETF (Ride along the potential U turn)

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.

HIGHLIGHTS:
(1) STI index has been shedding 20% since it hit its peak ~3550 last April. The downfall accelerated over past few weeks along with global market sell down, especially in China and US.

(2) Current STI index basically represents forward Price to Earning Ratio (P/E) < 12 .6. Looking back the P/E range of STI over past 3 years, this is under oversold region. Since it used to be capped between 13x to 14.5x

INVESTMENT THEMES:
(1) Over past 3 years, it issued dividend ~ 0.09 per share. Current trading price represents >3% dividend yield. 2015 dividend was ~ 0.098 per share actually.

(2) STI actually comprises of 30 constituent counters with business footprint across the globe and multi sectors. Weakness from one counter (eg, oil plunging) could be complemented by advantage of another (eg, telecommunication) in same time. Therefore one could look into the ETF counter as diversifying its portfolio exposure. It could be one safe bet during fragile market condition.

(3) Market could be over reacted for potential rate hike in US which is widely expected on coming September. Quoted from Warren Buffett: "Be fearful when others are greedy and greedy when others are fearful"

ENTRY PRICE:
Accumulate at current price.

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

Aug[5] - STI ETF (Ride along the potential U turn)

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.

HIGHLIGHTS:
(1) STI index has been shedding 20% since it hit its peak ~3550 last April. The downfall accelerated over past few weeks along with global market sell down, especially in China and US.

(2) Current STI index basically represents forward Price to Earning Ratio (P/E) < 12 .6. Looking back the P/E range of STI over past 3 years, this is under oversold region. Since it used to be capped between 13x to 14.5x

INVESTMENT THEMES:
(1) Over past 3 years, it issued dividend ~ 0.09 per share. Current trading price represents >3% dividend yield. 2015 dividend was ~ 0.098 per share actually.

(2) STI actually comprises of 30 constituent counters with business footprint across the globe and multi sectors. Weakness from one counter (eg, oil plunging) could be complemented by advantage of another (eg, telecommunication) in same time. Therefore one could look into the ETF counter as diversifying its portfolio exposure. It could be one safe bet during fragile market condition.

(3) Market could be over reacted for potential rate hike in US which is widely expected on coming September. Quoted from Warren Buffett: "Be fearful when others are greedy and greedy when others are fearful"

ENTRY PRICE:
Accumulate at current price.

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

Aug[4] - DBS (Buy, Let share a bank)

COUNTER: DBS Group Holding Limited

OVERVIEW:
The household branding counter is a leading financial group in Asia with over 280 branches across 18 markets. Headquartered in Singapore, it has growing presence in Greater China, Southeast Asia, and South Asia. Singapore government investment company, Temasek holding is the major shareholder with 30% of shares holding.

HIGHLIGHTS:
(1) Latest financial results saw net interest income up by 13% to $3.43B for 1H2015. Loan grew by 9% to $280B. This was contributed by re-pricing of loans at higher interest rates.

(2) Non-interest income rose 16% to $2B. Wealth management fee grew 34% to $342M with total assets under management increased 22% to $143B. Institutional banking income grew 7% to $2.67B. A healthy pipeline of investment banking deals lined up for 2H2015.

(3) Generally, the results beat expectation among research houses. Based on liquidity requirements effective 1 Jan, 2015 under the Basel framework, the counter's average liquidity coverage ratio during 2Q was 131% which was well above regulatory minimum of 100%. Both capital adequacy ratio and leverage ratio are more than fulfilling required ratio as well.

INVESTMENT THEMES:
(1) Even though registering with strong financial result, the counter has been shedding in share price (-13%). Global market sell down has been intensifying with the worries of China economy melting as well as uncertainty over interest rate decision from US Federal Reserve on coming Sep. However, value persists throughout such panic mood. Valued investor get a chance to gain holding from such strong counter only during such turbulent environment.

(2) Current price represents P/E ~ 10.8 and P/B ~ 1.1. An estimated P/E chart can be referred to below chart. Shall current price hits lower price, the more value it presents.

(3) Shall US Federal Reserve announce rate hike either end of 2015 or beginning of 2016, SIBOR (Singapore Interbank Offered Rates) is expected to follow suit as well. Banks will be beneficiary of rising rate undoubtedly.

ENTRY PRICE:
Accumulate with unit of 200~300 shares each time, so as to catch the low entry then look forward next rising trend.

Aug[3] - Q&M (Buy, Ride with its ambition)

COUNTER: Q&M Dental Group

OVERVIEW:
Established in 1996 in Singapore, the counter started as single clinic with one dental surgeon. It has evolved into a well-known branded healthcare group comprising of more than 60 clinics located island-wide. With a pool of more than 180 dentist and 300 dental surgery assistant, it provides comprehensive range of primary care dental services as well as specialist services. The counter has business presence in Malaysia and People's Republic of China (PRC). On last June, it was awarded with 2015 Forbes Asia's "Best under A Billion" list.

HIGHLIGHTS:
(1) 2Q2015 results revenue leap by 51% to $30.52mil year on year. Net profit rose 212%  to $3.69mil. Such a higher earning was mainly contributed by new dental outlets in Singapore as well as the acquisition of Aoxin and Aidite in PRC last year. Aoxin is a dental healthcare group based on Shengyang, PRC with operation history more than 20 years. Aidite is a dental supplies manufacturer.

(2) The counter has raised $60mil from issuing 3 years bond last March. It boasted the cash and cash equivalents to $87mil by last June. It could be used to fund existing acquisition plans.

(3) The counter has a long list of undergoing expansion plan, such as proposed acquisition, joint ventures and strategic alliances in the regions, including Singapore, Malaysia and PRC.

INVESTMENT THEMES:
(1) Generally 4Q is the seasonally strong quarter for the counter. Investor could also expect stronger earning on 2H2015 once its acquisition plans is completed, especially buying of TP dental which could enhance its market share in premium market.

(2) Both CIMB and Maybank rated the counter above $0.90 which represent >20% of growing room from current trading price.

(3) From the chart, the counter has formed support ~ 0.715. Since its result announcement, the price is edging upwards. Immediate resistance is 0.88. Trader could take position for potential price gain.

ENTRY PRICE:
Buy < $0.8

Aug[2] - APTT (Accumulate, Strong dividend call)

COUNTER: Asian Pay Television Trust (APPT)

OVERVIEW:
Listed on SGX since 2013, APPT is the first listed business trust which focus on pay-TV business. Its seed asset, Taiwan Broadband Communication Group ("TBC Group"), is Taiwan's leading cable TV operator. It is a provider of cable TV services in 5 closely clustered franchise areas in Taiwan, namely South Taoyuan, Hsinchu County, North Miaoli, South Miaoli and Taichung City. The services include basic cable TV, premium digital cable TV and broadband services to households and businesses.

HIGHLIGHTS:
(1) 2Q2015 results saw earning up 2.4% year on year. Premium digital cable TV revenue was up 11.6% mainly due to more subscribers being signed up. The rest of two segment, namely basic cable TV and broadband services achieved steady results as well.

(2) TBC continued the roll out of digital set-top boxes across its 5 franchise areas and achieved penetration of 100%. Thus TBC remains at the forefront of digitization in Taiwan.

(3) TBC's core network has been expanded to cover well in excess of 30% homes in the new coverage area in greater Taichung region.

INVESTMENT THEMES:
(1) The board of directors gave guidance that dividend for 2015 being at least equal to 0.0825 per share. It will be distributed at least 0.02 for 1st to 3rd quarter and 0.025 for last quarter. Based on current trading price, it represents dividend yield > 8%. A strong dividend play for long term investor.

(2) Based on Discounted Cash Flow model (DCF), CIMB rated the counter at 1.28. Current trading price presents >30% of potential value gain.

(3) Since releasing latest results, the counter has been trading with upward movement. From the chart, moving averages of 10 days and 20 days are narrowing and pointing upwards. Traders could position for short term price gain.

ENTRY PRICE:
Buy ~ $0.85.

Aug[1] - Singapore O&G (Accumulate, New delivery ~)

COUNTER: Singapore O&G Ltd

OVERVIEW:
Incorporated on 2011, the counter is in business of providing healthcare services to women, with a focus on the female reproductive system, pregnancy care and delivery, and gynaecological and breast cancer. There are totally 7 physicians. Most of the them have a track record of more than 10 years, which two founders hold more than 20 years of experience each. The clinics located in medical centers such as Gleneagles, Mount Elizabeth, Thomson, etc.

HIGHLIGHTS:
(1) The counter has been debt free over past 2 years. Operating cash flow grew from $2.1mil in 2012 to $4.9m in 2014. Earning per share surged 30% on FY2014.

(2) Private sector generally makes up ~60% of live births in Singapore. The counter's market share has been increasing from 4.3% in FY2012 to 5.6% in FT2014.

(3) The management targets a 90% payout ratio for dividend, which is expected to be 3~4% based on current trading price.

(4) The counter listed on SGX on early June 2015. With ~$9.2m of net proceeds, the management is planning to expand into infertility and in vitro fertilization, and paediatrics. Long term plan involves expanding into childcare services as well as buying more clinics in the region (such as Myanmar, Malaysia, PRC)

INVESTMENT THEMES:
(1) Compared with public sector, private obstetrics and gynecology clinics offer a wider range of services, greater flexibility and could potential house more experienced specialist medical practitioners. Hence the demand for private healthcare remains strong. Besides, there is about 400,000 foreigners travel to Singapore for medical treatment annually. Investor could take this as one defensive counters in portfolio.

(2) The counter is in cash rich position, thus less susceptible to the upcoming trend of rate hike. Potential expansion plan could also raise return to investor in mid to long term.

(3) UOB rated the counter at $0.87 based on PEG ratio in the medical industry. 

ENTRY PRICE:
From the chart, the counter is edging towards support ~ 0.655. Considering the huge buying volume on June, suggestion is to accumulate near to 0.655.