Mar[6] - ISDN (Proxy to industrial automation)

BUSINESS:
[1] The group offers motion control solution in fully automated or semi automated products, equipment and production lines. Last year December, it formed a joint venture with Switzerland-based, Maxon Motors to sell Maxon motor's product in Southeast Asia.
[2] FY2018 saw revenue crossing S$300mil first time. Contribution from China is $211mil, up 1.6% despite a slowdown in the economy. Profit recorded $10.9mil, highest in history. 4Q actually incurred loss $1.5mil, due to higher cost, impairment allowance, inventory write off. Full year dividend announced 0.7 cent, up from 0.6 on FY2017. 

HIGHLIGHTS:
[1] Novo Tellus private equity fund subscribed 6.4% stake in ISDN at 20 cent last Feb. The managing partner is Loke Wai San, who is executive chairman of AEM, one of the local favorite tech stocks. He favored potent of ISDN due to it's unique position in industrial automation solutions. 
[2] FY2019 will see contribution from it's hydropower plants in Indonesia. It's estimated to generate US$7-12mil revenue a year. Company is planning to add more afterwards. 
[3] Current price translates P/E ~ 8, P/B ~ 0.6, Dividend yield ~ 3%, which is pretty attractive, considering net cash position ~ $10mil. 

CHART:
Ever since the group announced shares placement to Novo Tellus, share price rally to 26 cents on early March. Recent downfall could translate to entry opportunity. 22.5 cents is average trading price for past 2 years.

Mar[4] - CNMC

BUSINESS:
[1] The group is gold miner who operates in Kelantan, Malaysia. Business commenced on 2007 and listed on 2011.
[2] With CIL plant in place, management expects gold production to ramp up on FY2019. Potential income from production and sales of silver, lead & zinc once flotation plant commences operation.

HIGHLIGHTS:
[1] It's in net cash position with US$17mil now. Net asset value is S$0.14. Current price translates to P/B ~ 1.5. Management proposed dividend $0.002 for FY2018, pending for approval from AGM.
[2] Gold price has been moving to the high size of past 4 years. Higher gold sales price incorporated with expected higher production volume could contribute positively to the group's earning on coming quarter.

CHART:
The counter has been range bouncing between 0.185 to 0.24 since mid 2018. This is considered low range of its historical price range since IPO. Recent rally in gold price have provided support to it's share price. Shall the rally continue, trader could position for potential break up from 0.24.

Mar[2] - Raising Gear

SilverlakeAxis delivered impressive earning for last quarter. Gross profit up 32%, with both new projects and recurring income segment (ie maintenance, etc) registered double digits of growth. Having net cash ~ RM300mil, current price translates to dividend yield ~ 4%. Buying interest was strong since result released as highlighted on chart below. Recent price correction could present buying opportunity, considering the group is on the right track to deliver huge projects in pipeline. Earning prospects is convincing to shareholders as chart suggests.

SingMedical registered 48% growth in profit for FY2018. Being expanding its specialists clinics in SG, the group is aggressively penetrating into new geographies, such as Indonesia and Malaysia. Its' newly acquired clinic in Vietnam will operate on coming quarter. Recent announcement revealed that major shareholder, CHA group (South Korea's leading healthcare group) is going to raise stake onto the group through shares placement and loan scheme. CHA is enhancing corporation with the group for better exploration into new projects in overseas. Similarly, buying interest is surging on the counter upon latest announcement on earning and business plan from CHA as chart below suggests. Looking its peak of share price on 2018, current price presents huge room to grow.

Feb[2] - Big Boys Falling

STI has been rally from it's 2018 trough. It's REIT counters have been hovering around multiple years peak as well. Let shift the focus to some index stocks which still struggle in multiple years low price range. While other counters pause from rally, they could take the lead instead.

Shall any positive announcement came from US-China trade talk by deadline, it could change sentiment to port operator, HPH Trust which gives highest yield among STI constituents. Infrastructure segment usually draw attention during mid-bear cycle, so Sembco Ind and Singtel worth for monitoring now. SPH already came to historical low range during its transition from printed media to property and overseas market exploration. It's dividend yield looks attractive though. Latest operating results show improve in load factor for passenger to SIA but weakened for it's cargo. Current price valuation is undemanding.

Jan[5] - Unsung Heros

Local healthcare sector has been facing competition such as rising competitors in regions, higher operation cost, declining medical tour groups, etc. However, some of them still produce outstanding results, such as Singapore O&G which shows growth of 40% yoy. Talkmed's earning over last 9 month down 21% yoy but some positive growth was seen for last quarter. With its CEO back from suspension, earning could be stable down. ISEC has outlets across western Malaysia and Singapore. Recently it has been exploring Myanmar market, pending for approval from several government bodies.

Fundamentally, these three counters look attractive with heavy net cash position and consistent pay out in dividends. While market has been weakening, healthcare sector could provide necessary shelter for your investment fund.

Dec[3] - Hong Leong Finance

BUSINESS:
[1] With over 50 years of track record, the finance company has established network of 28 branches and 10 SME Centres island-wide.
[2] On last 9 months, it achieved net interest income, $158m, 25% up year on year. It's mainly due to rise in loan yield amid rising interest rate environment. 80% of loan book is related to domestic property market. Its branches have been actively writing HDB loans.
[3] MAS has been seeking to ease finance companies regulations, thereby improving business conditions.

HIGHLIGHTS:
[1] Current share price ~ 2.4 translates to 40% discount from book value. It has been consistent in paying annual dividend, 0.1 in the past. Due to improvement in earning this year, it paid 0.14, which translates to dividend yield is ~ 5%.
[2] The company have embarked on digital transformation journey. It wants to be an active participant in SG's smart nation and cashless society push.

CHART:
The price shot up > 20% when MAS announced financial de-regulations on Feb 2017. It hit highest ~ 2.84. Current price is around two years low. Trading activities is low for the moment.

Nov[7] - Fu Yu (Cash Cow for You)

BUSINESS:
[1] The company is now one of the largest manufacturer and supplier of high-precision injection mould and plastic parts in Asia. With plants in China, Malaysia, SG, it's serving wide range of sectors such as telecommunication, automotive, medical, etc.
[2] It's net income is on track to beat 14mil which was the peak of past 5 years. The earning growth mainly due to expansion in automotive, medical and consumer segments.
[3] Benefited from rising USD, due to majority of topline is in US currency.

HIGHLIGHTS:
[1] It has net cash 77mil, which translates to 0.1026 per share. Consistent dividend paid 0.016, ~ 8.8% yield.
[2] Last trading price 0.18 translates P/B ~ 0.8. Considering current attractive valuation, it could be potential privatization target.
[3] Downside risk could be worsening trade war between US-China.

CHART:
The counter has been trading below it's book value 0.216 for year to date. ~ 30% lower than it's peak ~ 0.26 on FY2017. Last 5 months saw the price moving in narrow range. Accumulation on weakness~

Nov[5] - Golden Energy ("Coal" Star)

BUSINESS:
[1] Golden Energy and Resources Limited is 4th largest coal reserve player in Indonesia. It collectively own the right to mine 2.7mil tones of thermal coal resources with coal reserves of more than 1022MT as of 2017.
[2] It's earning has been growing in double digits year on year since 2017, on the back of strong growth in both coal mining and trading divisions.

HIGHLIGHTS:
[1] Debt gearing ~ 53% with insignificant interest expenses.
[2] Company announced interim dividend 0.0139 for last quarter which is equivalent to 5% dividend yield based on last trading price. It announced 0.01 as dividend for first quarter as well. Management has been generous to share growing cash balance with shareholders.
[3] Current valuation is attractive: P/E ~ 7, P/B ~ 1.3
[4] Earning for next quarter is expected to be supported by rising investment into coal and mineral sector by Indonesia government as well as higher export to China.

CHART:
Share price surged upon latest results announcement. Transaction volume was significant ever since. Coming Monday will be expiry of dividend entitlement. Shall buying volume continue, next resistance could be 0.33.

Nov[2] - REIT Screening

The following table lists down all REIT counters with following measures:
Div Yld in %: Dividend yield
P/BV: Price to Book Value
Price vs High in %: Current price vs 52 weeks High
D/E in %: Debt to Equity
Growth 3y in %: 3 years Revenue Growth

Considering borrowing cost would be in rising path, lower debt is the top criteria to for shortlisting REIT.  Following four counters were selected because of respective D/E less than 50%. Generally, all of them have been declining from 52 weeks high. Investors could set accumulation price based on individual risk investment objective.

ESR - REIT:
Upon consolidation with Viva Industrial Trust, it emerged as 4th largest industrial REIT which could benefit from widely expected bottoming of SG industrial market. The synergy would take time to realize. 7% yield looks attractive.

Mapletree Industrial REIT:
Another industrial REIT which used to deliver stable distribution. Newly completed assets in Kallang contributed to higher earning ahead. Besides lower debt gearing, 74% of borrowing is in fixed rate.

SPH REIT:
The counter has been pretty stable in shares price since IPO, benefiting from its mature assets in portfolio. Newly acquisition of Rail Mall strengthen its food & beverage offering with the location benefit. Market is still waiting for its inclusion of Seletar Mall which might take longer time than expected. It could prove to be next price catalyst

Keppel DC REIT:
Being one of the top favorite REIT, it delivered strongest earning growth over the years. Its assets is in high demand and high entry-barrier sector. Its dip in price used to attract attention of buyers. It has just signed agreement Macquare Telecom (MT) for construction of new data center in Sydney. The latter would become tenant for 20 years master leases.

Reference:
[1] https://research.sginvestors.io/2018/06/esr-reit-cgs-cimb-research-2018-06-01.html
[2] https://www.theedgesingapore.com/will-strong-fundamentals-shield-mapletree-industrial-trust-market-headwinds?fbclid=IwAR1jYOVyrG10pkG4q4S0KgT7Xh2mQ8fMBN6X6k-Lcduxt205_reQ0LrNOIQ
[3] https://research.sginvestors.io/2018/10/sph-reit-dbs-group-research-2018-10-12.html
[4] https://www.theedgesingapore.com/keppel-dc-reit-kept-%E2%80%98buy%E2%80%99-positive-outlook-aum-growth-healthy-operating-stats?fbclid=IwAR3F3AitC4R1WWFdFyhzLGi2RxNBNyEPvBwWnDzuVU1TBnEY6pr6HnU-Q54

Oct[4] - Banks Screening

Local banks have been falling ~20 to 30% from respective peak of share price this year. In fact, they led the recent down sliding of entire market. Historical mean value for bank shares is about 1.5 P/B (Price to Book) of which have been exceeded on mid of this year. Bank shares fall below Book Value during crisis period, such as 1999, 2009 and 2016 as shown below.

Latest update on valuation of banks are below.

UOB just released it's earning last week. NAV and RNAV reached 20.78/share and 23.64/share with 5% improve year to year. DBS and OCBC will give respective announcement on 5 Nov and 1 Nov. It's everyone guess whether we are coming to any stock market crisis period. From perspective of valuation, recent plummet across bank shares deserve some attention of investors. OCBC was selected for showing price valuation chart below. Support at 10.87 already broken, bargain hunter could back anytime soon.

Sep[5] - HL Global Ent (Cash Asset at Discount $)

BUSINESS:
(1) The company operates in the hospitality operation and property development activities in Malaysia and the People's Republic of China. It's Copthorne Hotel Cameron Highlands (picture below) is the only hotel situated at the highest accessible point of the highlands.
(2) Last quarter saw higher revenue, due to recognition of $3m on the sales of land in Punggol. Net profit was 2m vs net loss on 2Q2017.

 

HIGHLIGHTS:
(1) The counter is in net cash 60m, which is more than its market capitalization based on current trading price ~ 0.42. It could simply privatize itself.
(2) It was removed from SGX watchlist last April due to continually improvement in earning. Shall earning momentum maintain, its net cash position could swell further.

CHART:
The highest trading price was 0.55 on 2018 Mar. It translates to price to book 0.65x. Last trading price ~ 0.42 was undoubtedly under further discount from asset value.

http://aspire.sharesinv.com/57453/si-research-three-companies-with-the-lowest-pe/

Sep[2] - Singtel (Semi-bond share)

BUSINESS:
(1) Last quarter saw operating profit maintained. Contributions from associates down ~ 20%, mainly due to weaker performance from Airtel and Telkomsel in India and Indonesia.
(2) Free cash flow up 13% to 1.47b
(3) It's CEO highlighted that revenue is stabilizing on sequential quarter basis for India.

HIGHLIGHTS:
(1) The Group has been aggressive in digital segment. Digital Life business, Amobee has been narrowing loss. It could be next IPO target once turning into profit
(2) Collaborating with Razer, a regional eSports will be launched on October. eSports has been gaining high population in world. It's also one of the competitions in latest Asian Game.
(3) A potential merger between Vodafone Hutchison and TPG could see Singtel facing less competition in Australia, where it generates half of revenues.

CHART:
The counter has been top selling target among institutes fund on mid 2018. Undoubtedly, price broke few years support. Somehow it formed double bottom ~3 last month. Buying interest might have returned for the moment. >5% dividend yield is attractive for investors as well.

Aug[5] - Wilmar (Institutes' favourite)

BUSINESS:

(1) Earning from major segments saw significant improve. Sugar segment managed to reduce net loss y-o-y and q-o-q.
(2) Indonesia government has been pushing for higher biodiesel blending which continue to benefit the Group.

HIGHLIGHTS:
(1) The Group intends to IPO its China operation on FY2019. It could be price catalyst when more detail is disclosed.
(2) It is often appearing in net buying list of institute fund since June.

CHART:
Since 2018, the price has been range bouncing from 3 to 3.3, which is below it's net asset value. Investors could accumulate in the range (~3% dividend) while waiting for potential break up from 3.3.

Aug[3] - Big Boys near Support Price

The following counters were shortlisted from STI constituents. They have been showing strong earning based on latest reports. Being overwhelmed by regional pessimistic trading environment, their share price have been declining to one year support range, which could translate to buying opportunities. Shall market sentiment change (could be due to positive trade talk progress among US and China, etc), we could be see some rebound among these index constituents.

Jul[4] - Property Sector Highlights

On last Thursday, a 5% increase in stamp duty was announced on some home buyers who is going to buy second or more properties. The change in policy came alongside tighter housing loans by Singapore's bid to keep price increase in line with economics fundamentals. Most of properties suffered heavy punch in shares price immediately on following day. A quick highlight on valuation of some major properties counters was shared below:

Generally most counters were trading > 20% lower than its 52 weeks high. Only Ho Bee Land slightly above its 52 weeks low. Recent acquisition of Ropemaker Place in UK could enhance its recurring EBIT by 39%. Bukit Sembawang and Wheelock are the only two close to zero debt. Former actually giving highest dividend at 6%, but with most exposure to SG residential market. Latter has more development projects in China. Capitaland has substantially sold off residential projects in SG. Underpinned by growing earning from commercial portfolio across the region, current dividend yield ~ 4% looks undemanding.

Jul[2] - Institute's Top BUY

The counter has been gathering strong interest from institutes fund. It top the buying list from mid May till last week, which translates to price zone ~ 1.22 as below chart. Higher low formation was seen. It might worth some attention for such accumulation activity.

Jun[8] - Rebounding Counters

In tandem with overall market sell down, the following counters have been falling in price heavily but somehow they showed sign of hitting support or rebounding on last trading days.

<Capitaland> A hammer was seen when the counter down > 10% from its peak on last May. Current price represent >20% discount from its net tangible asset value. Further sell down shall be interpreted as more value to be hunted.

<M1> Significant buying volume on M1 could signal its downfall hitting some support for now. Market has been worrying over earning prospect of three local Telcos. During latest investor day Q&A, Singtel actually mentioned local market couldn't accommodate four telcos, so potential consolidation might take place.

<QAF> The producer of famous brand "Gardenia" has been facing severe challenge on its major business segment, primary production. Rivalea (its subsidiary, running pork production in Australia) is badly hit by oversupply in pork industry. Incidents like calling off of IPO plan, ammonia leakage in warehouse added more pressure to it. Looking at chart, price rebounded twice from 0.95 which is its net assets value. Considering its strong balance sheet, and potential business yet to announce, it deserve a place in watch-list for current price.

Jun[6] - Yield Hunt (STI Constituents)

SGX has undemanding valuation than its global peers. Its defensive business nature and deep pocket could protect itself well in volatile market condition as proven in previous bearish cycle. Thus its weakening price period shall be interpreted as buying chance.

Telcos have been suffering in intensifying price competition in local market. Trading price is under severe winter as well. Singtel was singled out for consideration, mainly for its diversifying business. There is not single segment contributing more than 10% earning of the group. Its shares could be treated as "semi-bond" type for consistent dividend payout.

Jun[4] - Small but Strong

The following counters were shortlisted because their earning prospect looks good, and might not yet reflect in share price. Financial wise, they are strong in cash position: <Automation Industry> ISDN, <Gold Miner> CNMC, <Coal Miner> Golden Energy

ISDN shows steady track record

CNMC shall benefit from higher gold price year to date on 2018

Golden Energy saw its coal production ramping up across the years.

Apr[4] - Potential Earning Swing

Local banks (DBS, OCBC, UOB) have been showing stellar earning from last quarters. Rising interest rate ahead could be continuing earning catalyst to them as well. ThaiBev has been plunging in share price upon announcement of acquisition. Coming quarter will examine actual contribution from new acquisition. Recent price movement tends to seek support ~ 0.78.