Saturday, May 28, 2016
Chart[13] - HPH USD
Friday, May 27, 2016
May[11] - Market Update
Crude Oil:
Last week US crude oil inventory unexpectedly fell 4m barrels, but oil price merely up 5%. Looking over the past 10 months, it has hit strong resistance at USD50. OPEC meeting is scheduled on coming Thursday, 2 June. Any new decision about oil production among OPEC shall decide the next move of oil price which hang at the juncture.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
Last week US crude oil inventory unexpectedly fell 4m barrels, but oil price merely up 5%. Looking over the past 10 months, it has hit strong resistance at USD50. OPEC meeting is scheduled on coming Thursday, 2 June. Any new decision about oil production among OPEC shall decide the next move of oil price which hang at the juncture.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
May[10] - Silverlake (Proxy to Information Technology)
COUNTER: Silverlake Axis Ltd
OVERVIEW:
The counter is a provider of digital economy solutions and services for major organisations in Banking, Insurance, Payment, Retail & Logistics industries. Its client base consists of top 5 largest ASEAN financial institution as well as top 20 largest banks in South-East Asia, including three local banks.
HIGHLIGHTS:
[1] Latest quarter saw revenue up 10% year on year. Net profit down 20%. Last 9 months saw net profit down 5% year on year.
[2] Its revenue contribution among business activities showed improvement in overall.
[3] The group is in net current asset position worth RM246m. Total debt/equity <25%.
INVESTMENT THEMES:
[1] Current valuation: PE ~15 || PB ~ 7 || Dividend yield ~ 5%
[2] Last quarter earning was largely dragged down by one off cost incurred due to new business consolidation. A better Q4 would be expected as new business contribution grows. In early this month, its subsidiary just announced five new accounts being won from insurance companies in growth market, such as Vietnam, Philippines and Thailand.
[3] Amid current soft economic condition, financial institutions in Asia region are seeking to expand services in a more cost effective manner by leveraging on information Technology. It presents growth opportunities for the counter. Its evolution path is clear and impressive.
PRICE TREND:
Current price hit support line at 0.5 which was formed last year September. Rebounding signal on last trading day could present accumulation chance.
OVERVIEW:
The counter is a provider of digital economy solutions and services for major organisations in Banking, Insurance, Payment, Retail & Logistics industries. Its client base consists of top 5 largest ASEAN financial institution as well as top 20 largest banks in South-East Asia, including three local banks.
HIGHLIGHTS:
[1] Latest quarter saw revenue up 10% year on year. Net profit down 20%. Last 9 months saw net profit down 5% year on year.
[2] Its revenue contribution among business activities showed improvement in overall.
[3] The group is in net current asset position worth RM246m. Total debt/equity <25%.
INVESTMENT THEMES:
[1] Current valuation: PE ~15 || PB ~ 7 || Dividend yield ~ 5%
[2] Last quarter earning was largely dragged down by one off cost incurred due to new business consolidation. A better Q4 would be expected as new business contribution grows. In early this month, its subsidiary just announced five new accounts being won from insurance companies in growth market, such as Vietnam, Philippines and Thailand.
[3] Amid current soft economic condition, financial institutions in Asia region are seeking to expand services in a more cost effective manner by leveraging on information Technology. It presents growth opportunities for the counter. Its evolution path is clear and impressive.
PRICE TREND:
Current price hit support line at 0.5 which was formed last year September. Rebounding signal on last trading day could present accumulation chance.
Friday, May 20, 2016
May[9] - Market Update
Singapore:
Another silent week for local market. STI lacked momentum to break up 2786 which was a resistance formed up early this month. Current trend is weak.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
Another silent week for local market. STI lacked momentum to break up 2786 which was a resistance formed up early this month. Current trend is weak.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
May[8] - ComfortDelGro (Buy your driver)
COUNTER: ComfortDelgro Corporation Limited
OVERVIEW:
The counter is the world's second largest listed land transport companies with total flee size of over 46650 buses, taxis and rental vehicles. Business segments include bus, taxi, rail, car rental and leasing, automotive servicing, driving centers. Operation exists in 7 countries: SG, Aus, China, UK, Ireland, Vietnam and Malaysia.
HIGHLIGHTS:
[1] Its latest quarter registered 3~5% growth in revenue and net profit year on year. Major business segments, bus and taxi up 3%. Rail segment jumped 28%, mainly due to Downtown line operation.
[2] Earning contribution is well diversified across few countries:
[3] The counter is in net cash position of $400m. Total debt/equity is as low as <20%.
INVESTMENT THEMES:
[1] Current valuation: PE ~19 || PB ~ 2.5 || Dividend yield ~ 3.2% || Dividend growth > 8% pa
[2] The counter is deemed to be benefited from Bus Contracting Model of local authority. Although the model might not be implemented all at once, it would translate to high cashflow in the counter eventually.
PRICE TREND:
The counter has been riding uptrend throughout past 4 years. Its defensive business characteristic proved resilience towards various market turbulence in the the period. Current price is lingering at one year support ~2.71
OVERVIEW:
The counter is the world's second largest listed land transport companies with total flee size of over 46650 buses, taxis and rental vehicles. Business segments include bus, taxi, rail, car rental and leasing, automotive servicing, driving centers. Operation exists in 7 countries: SG, Aus, China, UK, Ireland, Vietnam and Malaysia.
HIGHLIGHTS:
[1] Its latest quarter registered 3~5% growth in revenue and net profit year on year. Major business segments, bus and taxi up 3%. Rail segment jumped 28%, mainly due to Downtown line operation.
[2] Earning contribution is well diversified across few countries:
[3] The counter is in net cash position of $400m. Total debt/equity is as low as <20%.
INVESTMENT THEMES:
[1] Current valuation: PE ~19 || PB ~ 2.5 || Dividend yield ~ 3.2% || Dividend growth > 8% pa
[2] The counter is deemed to be benefited from Bus Contracting Model of local authority. Although the model might not be implemented all at once, it would translate to high cashflow in the counter eventually.
PRICE TREND:
The counter has been riding uptrend throughout past 4 years. Its defensive business characteristic proved resilience towards various market turbulence in the the period. Current price is lingering at one year support ~2.71
Saturday, May 14, 2016
May[7] - Market Update
Gold:
It is interesting to note that gold price has been pretty bullish since early 2016. Amid weakening US dollar strength, traders shifting towards one of the safe heaven, gold. Market sentiment is not much bullish on stocks meanwhile.
Singapore:
STI has gone through a silent week. Last week moving range is only 50 points. Drawing line to connect all the peaks since mid 2015, a downward moving channel can be seen. Most of the STI constituents have released latest financial results. Weakening earning provides less support to the index as well.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
It is interesting to note that gold price has been pretty bullish since early 2016. Amid weakening US dollar strength, traders shifting towards one of the safe heaven, gold. Market sentiment is not much bullish on stocks meanwhile.
Singapore:
STI has gone through a silent week. Last week moving range is only 50 points. Drawing line to connect all the peaks since mid 2015, a downward moving channel can be seen. Most of the STI constituents have released latest financial results. Weakening earning provides less support to the index as well.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
May[6] - Financial Highlights
The following counters released respective latest financial results last week. A summary is provided.
Sunday, May 8, 2016
May[5] - Yield Hunting
DBS: To the surprise of investors, the counter has been trading below its book value ~16.4 since early this year. Although the loan growth slow down, current valuation is attractive.
OCBC: Current price trend is heading towards its book value ~ 8.2. The counter won the bidding of wealth management business of Barclays Bank in SG and HK. Management indicated that actual earning accretion to begin from second year onward. Current price valuation well present chance for accumulation.
SGX: The cash rich counter dedicates minimum 80% of earning to shareholders as dividend. 4% dividend yield usually attracts strong support for the counter. Recent down sliding looks interesting.
UOB: The counter has just fallen into its book value again. Both price and dividend yield worth to gain some attention.
Recommended Strategies: Dollar Cost Averaging + Diversification.
Saturday, May 7, 2016
May[4] - Market Update
Singapore:
In the past week, market has been free falling. STI has broken support @ 2783. Next support could be 2661. Most blue chips are showing downtrend upon dividend exclusive (EX) dates. One catalyst could be the weakening PMI from China's services sector.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
In the past week, market has been free falling. STI has broken support @ 2783. Next support could be 2661. Most blue chips are showing downtrend upon dividend exclusive (EX) dates. One catalyst could be the weakening PMI from China's services sector.
Market Calendar on coming week:
(SG: Singapore; CH: China; US: USA)
May[3] - Financial Highlights
The following counters released respective latest financial results last week. A summary is provided.
Sunday, May 1, 2016
Chart[12] - Venture
Venture has been growing steadily in earning, as well as giving constant dividend (>0.5 per share) throughout the years. With such characteristic, its shares used to be range bound between dividend yield from 5.8% to 7%. On EX date, price used to fall in the amount of dividend given. It presents yield hunting period for investor instead. Next EX date falls on 5 May, which is next Thursday. Immediate support is 7.8, next would be 7.16.
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