Saturday, September 30, 2017
Chart[62] - SIA Eng
The counter saw strong buying volume on last trading day. It broke up
from 3.45. Next stronger resistance could be ~ 3.6 shall buying
interest continues. Shall it fall back 3.37, the uptrend could be failed
in formation.
Friday, September 29, 2017
Oct[2] - Cash is King
The following counters were shortlisted for their net cash position
(insignificant debt). China Aviation Oil, Golden Energy and ISDN have
been producing strong improvement in earning year to date. Coming
quarters could see Silverlake recovering from declining earning as well.
Recent price weakness among them might present hunting opportunity
before 3rd quarter result announcement.
Oct[1] - Market Updates
Singapore:
STI has retreated about 5% from its 2017 peak. It's gaining support ~ 3193, but fails to break up 3250 so far. Trend look stagnant for meantime. Such correction is actually reasonable considering its bullishness in first half year. Investor could take position through STI ETF (listed in SGX) before next rally.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
STI has retreated about 5% from its 2017 peak. It's gaining support ~ 3193, but fails to break up 3250 so far. Trend look stagnant for meantime. Such correction is actually reasonable considering its bullishness in first half year. Investor could take position through STI ETF (listed in SGX) before next rally.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Friday, September 22, 2017
Sep[9] - STI Book Value Hunt
The following counters were shortlisted from STI because they are trading below respective book or equity value.
Sep[8] - Market Updates
Crude Oil:
Oil price has been in short rally over last two weeks. Price is close to two years resistance ~ USD52~55. Latest OPEC meeting didn't come to any conclusion on any production freeze or extension from previous cut. Refineries in US has been back to operation upon hurricane attack. Coming weeks' oil inventory data in US shall determine the direction of crude oil.
Trade on bullish Oil: Oil ETF (ticker: DBO)
Trade on bearish Oil: Inverse Oil ETF (ticker: SCO)
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Oil price has been in short rally over last two weeks. Price is close to two years resistance ~ USD52~55. Latest OPEC meeting didn't come to any conclusion on any production freeze or extension from previous cut. Refineries in US has been back to operation upon hurricane attack. Coming weeks' oil inventory data in US shall determine the direction of crude oil.
Trade on bullish Oil: Oil ETF (ticker: DBO)
Trade on bearish Oil: Inverse Oil ETF (ticker: SCO)
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Friday, September 15, 2017
Chart[61] - Singapore O&G
The counter saw some significant buying volume on end Aug and mid Sep
as highlighted in upper chart below. Price moving in a small upward
channel. 0.5 is immediate resistance, shall buying interest continue.
Looking
into its weekly chart (lower), price is capped between between 0.44 and
048. Shall price break down from 0.44, downward trend could continue.
Sep[7] - Raffles Medical
COUNTER: RAFFLES MEDICAL GROUP LTD
OVERVIEW:
The Group is a leading integrated private healthcare provider in Asia, operating medical facilities in 13 cities in SG, China, Japan, Vietnam and Cambodia. From primary care at its network of Raffles Medical clinics to specialist and tertiary care at Raffles Hospital, the Group prides itself on offering a seamless continuum of care to all its patients.
HIGHLIGHTS:
[1] Latest results saw 1H2017 revenue hit 235m and net profit 31m, both are flat year on year.
[2] RafflesMedical continued to expand its network of clinics in SG. While 3 clinics are undergoing relocation and refurbishment, 5 are going to reopen by 3Q2017 with 1 new opening in Hillion Mall. RafflesHospital's Emergency Care Collaboration with Ministry of Health was extended for another 5 years. New RafflesHospital Extension will open in 4Q2017.
[3] Cash and cash equivalent registered at $112m. After deducting borrowing, it is in net cash position of $60m.
INVESTMENT THEMES:
[1] 1H Earning per shares - 0.0185 || Dividend ~ 0.02
Last trading price, 1.1 translates to PE ~ 30 and dividend yield ~ 2%, which is in average valuation among its peers in the region.
[2] In China, 700-bed Raffles Hospital Chongqing and 400-bed RafflesHospital Shanghai are targeted to be operational by 2H2018 and 2H2019 respectively. The Group has a clear growth plan out of domestic market.
PRICE TREND:
The counter has been facing headwind since end of July. Downfall near to 20% in the period. Strong buying volume appeared on mid Sep. Its major shareholder, Standard Life Aberdeen plc raised its stakes to > 6% on 8 Sep as highlighted below. Downtrend could have paused, with support ~ 1.04. Resistance ~ 1.16. Chances for accumulation might be now.
OVERVIEW:
The Group is a leading integrated private healthcare provider in Asia, operating medical facilities in 13 cities in SG, China, Japan, Vietnam and Cambodia. From primary care at its network of Raffles Medical clinics to specialist and tertiary care at Raffles Hospital, the Group prides itself on offering a seamless continuum of care to all its patients.
HIGHLIGHTS:
[1] Latest results saw 1H2017 revenue hit 235m and net profit 31m, both are flat year on year.
[2] RafflesMedical continued to expand its network of clinics in SG. While 3 clinics are undergoing relocation and refurbishment, 5 are going to reopen by 3Q2017 with 1 new opening in Hillion Mall. RafflesHospital's Emergency Care Collaboration with Ministry of Health was extended for another 5 years. New RafflesHospital Extension will open in 4Q2017.
[3] Cash and cash equivalent registered at $112m. After deducting borrowing, it is in net cash position of $60m.
INVESTMENT THEMES:
[1] 1H Earning per shares - 0.0185 || Dividend ~ 0.02
Last trading price, 1.1 translates to PE ~ 30 and dividend yield ~ 2%, which is in average valuation among its peers in the region.
[2] In China, 700-bed Raffles Hospital Chongqing and 400-bed RafflesHospital Shanghai are targeted to be operational by 2H2018 and 2H2019 respectively. The Group has a clear growth plan out of domestic market.
PRICE TREND:
The counter has been facing headwind since end of July. Downfall near to 20% in the period. Strong buying volume appeared on mid Sep. Its major shareholder, Standard Life Aberdeen plc raised its stakes to > 6% on 8 Sep as highlighted below. Downtrend could have paused, with support ~ 1.04. Resistance ~ 1.16. Chances for accumulation might be now.
Sep[6] - Market Updates
Singapore:
STI trend looked weak since early August. On last trading day, it briefly touched support ~ 3191. Since US market is still riding on its bullish path, STI shall hold well above support for the moment. Shall it breaks down from support, next support shall be ~ 3114. Investors could look into STI ETF (listed on SGX) for potential rebound by year end.
Market Calendar on coming week:
Next week the most important events will be Fed and Bank of Japan monetary policy decisions. Other key data to be published include US flash PMIs, housing statistics, existing home sales and current account; UK retail trade and CBI factory orders; the Eurozone flash PMIs, consumer sentiment and inflation; and China house prices.
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
STI trend looked weak since early August. On last trading day, it briefly touched support ~ 3191. Since US market is still riding on its bullish path, STI shall hold well above support for the moment. Shall it breaks down from support, next support shall be ~ 3114. Investors could look into STI ETF (listed on SGX) for potential rebound by year end.
Market Calendar on coming week:
Next week the most important events will be Fed and Bank of Japan monetary policy decisions. Other key data to be published include US flash PMIs, housing statistics, existing home sales and current account; UK retail trade and CBI factory orders; the Eurozone flash PMIs, consumer sentiment and inflation; and China house prices.
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Friday, September 8, 2017
Sep[5] - SBS Transit
COUNTER: SBS TRANSIT LTD
OVERVIEW:
SBS Transit is a leading bus and rail operator in SG. It is subsidiary of another listed company, ComfortDelgro. Its rail route includes North East Line, Downtown Line and LRT in SengKang and Punggol.
HIGHLIGHTS:
[1] Latest result saw 1H2017 operating profit leap 41% yoy, mainly due to contribution from bus services with transition to the Bus Contracting Model (BCM) and higher ridership from rail services, offset by lower average rail fare from the fare reduction effective since 2017. Staff costs up 11% yoy.
[2] Dividend declared for 1H2017 is 0.0365, ~ 50% jump from 1H2016.
[3] It is under net current liabilities of 240m, due to short term borrowing expiring soon. Debt gearing is 58%, and interest coverage > 10. Refinancing should not be issue with healthy balance book.
INVESTMENT THEMES:
[1] 1H Earning per shares - 0.0738 || Dividend ~ 0.0632
Last trading price, 2.5 translates to PE ~ 17 and dividend yield ~ 2.6%.
[2] Management expects higher revenue from public transports services (both bus and rail services) for FY2017. Downtown Line 3 is expected to commence revenue service by October.
PRICE TREND:
2017 peak, 2.8 translates to dividend ~ 2.3%. Early of the year saw it trading ~ 2.08, equivalent to 3% yield. Recent downfall is testing support ~ 2.48. Shall it be broken, next support shall be ~ 2.32. Considering its growing earning prospect, its weakening movement presents opportunity to accumulate.
RELEVANT LINKS:
[1] http://www.channelnewsasia.com/news/singapore/bus-industry-to-complete-transition-to-bus-contracting-model-on--7839882
[2] http://sbr.com.sg/transport-logistics/news/how-did-bus-contracting-model-change-public-bus-industry
[3] http://www.businesstimes.com.sg/transport/singapores-public-transport-council-starts-fare-review-exercise
OVERVIEW:
SBS Transit is a leading bus and rail operator in SG. It is subsidiary of another listed company, ComfortDelgro. Its rail route includes North East Line, Downtown Line and LRT in SengKang and Punggol.
HIGHLIGHTS:
[1] Latest result saw 1H2017 operating profit leap 41% yoy, mainly due to contribution from bus services with transition to the Bus Contracting Model (BCM) and higher ridership from rail services, offset by lower average rail fare from the fare reduction effective since 2017. Staff costs up 11% yoy.
[2] Dividend declared for 1H2017 is 0.0365, ~ 50% jump from 1H2016.
[3] It is under net current liabilities of 240m, due to short term borrowing expiring soon. Debt gearing is 58%, and interest coverage > 10. Refinancing should not be issue with healthy balance book.
INVESTMENT THEMES:
[1] 1H Earning per shares - 0.0738 || Dividend ~ 0.0632
Last trading price, 2.5 translates to PE ~ 17 and dividend yield ~ 2.6%.
[2] Management expects higher revenue from public transports services (both bus and rail services) for FY2017. Downtown Line 3 is expected to commence revenue service by October.
PRICE TREND:
2017 peak, 2.8 translates to dividend ~ 2.3%. Early of the year saw it trading ~ 2.08, equivalent to 3% yield. Recent downfall is testing support ~ 2.48. Shall it be broken, next support shall be ~ 2.32. Considering its growing earning prospect, its weakening movement presents opportunity to accumulate.
RELEVANT LINKS:
[1] http://www.channelnewsasia.com/news/singapore/bus-industry-to-complete-transition-to-bus-contracting-model-on--7839882
[2] http://sbr.com.sg/transport-logistics/news/how-did-bus-contracting-model-change-public-bus-industry
[3] http://www.businesstimes.com.sg/transport/singapores-public-transport-council-starts-fare-review-exercise
Sep[4] - Market Updates
USD vs Gold:
Political tension in US and geographical conflicts attracted market interest towards safe-heaven assets, such as gold. Thus USD entered downtrend since mid 2017. Both assets have been testing respective resistance and support last week. Coming weeks will be central bank meeting from Europe and US, which shall decide the fate of both asset classes.
Gold ETF: GLD (listed on NYSE)
USD index ETF: UUP (listed on NYSE)
Market Calendar on coming week:
In the US, the most important events will be inflation rate, retail trade, industrial production and the preliminary reading of Michigan consumer sentiment. Elsewhere, the Eurozone industrial production and China industrial output, retail trade and fixed asset investment will be announced.
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Political tension in US and geographical conflicts attracted market interest towards safe-heaven assets, such as gold. Thus USD entered downtrend since mid 2017. Both assets have been testing respective resistance and support last week. Coming weeks will be central bank meeting from Europe and US, which shall decide the fate of both asset classes.
Gold ETF: GLD (listed on NYSE)
USD index ETF: UUP (listed on NYSE)
Market Calendar on coming week:
In the US, the most important events will be inflation rate, retail trade, industrial production and the preliminary reading of Michigan consumer sentiment. Elsewhere, the Eurozone industrial production and China industrial output, retail trade and fixed asset investment will be announced.
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
Friday, September 1, 2017
Chart[60] - CSE Global
The counter has been down falling since early Aug. Last two days saw
price rebounding with good buying volume. The down fall might have found
support ~ 0.36. Shall buying interest continue, it shall hit 0.39
before moving further. Downtrend might continue if support 0.36 fails to
hold.
Sep[3] - STI Yield Review - 2
The following counters were shortlisted among STI constituents with one common point. Their dividend yield > 4%.
ComfortDelgro (CDF), SingTel, ST Engineering (ST Eng), Starhub
ComfortDelgro (CDF), SingTel, ST Engineering (ST Eng), Starhub
Sep[2] - STI Yield Review - 1
The following counters were shortlisted among STI constituents with one common point. Their dividend yield > 4%.
Ascendas REIT (ART), Capitaland Commercial Trust (CCT), Capitaland Mall Trust (CMT), HPH USD Trust
Ascendas REIT (ART), Capitaland Commercial Trust (CCT), Capitaland Mall Trust (CMT), HPH USD Trust
Sep[1] - Market Updates
US:
Market has been recovering from heavy sell down on mid August. NASDAQ briefly touched historical 6000 on last trading day as below. Few important events to watch out on September, includes Germany election, OPEC meeting, FOMC meeting. Military tension in Korea peninsula shall stir market sentiment sporadically. Bullishness in US market shall lend strong support to SG market as well.
Market Calendar on coming week:
In the US, the most important events will be trade balance, factory orders and ISM non-manufacturing PMI. Elsewhere, the ECB and the RBA will announce their interest rate decisions; Australia will release the first estimate of GDP growth, and the Eurozone and Japan will publish final figures for GDP growth. China inflation rate and foreign trade; and UK industrial output and trade balance will also be in the spotlight.
Market has been recovering from heavy sell down on mid August. NASDAQ briefly touched historical 6000 on last trading day as below. Few important events to watch out on September, includes Germany election, OPEC meeting, FOMC meeting. Military tension in Korea peninsula shall stir market sentiment sporadically. Bullishness in US market shall lend strong support to SG market as well.
Market Calendar on coming week:
In the US, the most important events will be trade balance, factory orders and ISM non-manufacturing PMI. Elsewhere, the ECB and the RBA will announce their interest rate decisions; Australia will release the first estimate of GDP growth, and the Eurozone and Japan will publish final figures for GDP growth. China inflation rate and foreign trade; and UK industrial output and trade balance will also be in the spotlight.
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