Note:
Net asset value = entity's value - entity's liability
Monday, November 30, 2015
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
Note:
Net asset value = entity's value - entity's liability
Saturday, November 28, 2015
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.
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.
Saturday, November 21, 2015
Friday, November 20, 2015
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] ***
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] ***
Saturday, November 14, 2015
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:
[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:
Friday, November 13, 2015
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
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
Saturday, November 7, 2015
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:
[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.
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