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] ***  

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:

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   

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:

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.

Oct[9] - Market Update

Bright spots among results released last week:

[A] Starhill Global - Both distribution per unit and net property income improved.
[B] Global Logistics Properties - Earning leap 27% year on year.
[C] Fraser Hospitality Trust - Distribution per unit beat forecast from its IPO.

3Q2015 results announcement date for coming week:

Oct[8] - GLP (ride with steady ship)

COUNTER: Global Logistic Properties
 
OVERVIEW:
The modern logistics facilities provider is mainly owned by GIC (Government of Singapore Investment Co). It develops, owns and manages a 43 million square meters portfolio of logistic facilities across China, Brazil, Japan and US. It also involved property investment and management activities. Total portfolio assets amounted to US$29b as in latest record.

HIGHLIGHTS:
[1] The latest six months results saw earning from the counter leaped 42% year to year.

[2] In China, lease ratio achieved 89% with rent growth on renewal up 8.6%. In Japan, new leases jumped 208% year on year. It has achieved lease ratio to 94% since entering US in 2014. New and renewal leases jumped 27% quarter on quarter.

[3] Its fund management segment has hit $27.3b for the asset under management with compound annual grow rate (CAGR) ~ 96%. Latest quarter of fund management fee rose 41% year on year.

[4] Its financial position remain strong with cash position at US$3m and gearing ratio at 31%. 

INVESTMENT THEMES:[1] The counter has been steadily growing its portfolio of logistic assets across four countries. End users were well diversified into various sectors. E-commerce represents 26% of leased area in China, 12% in Japan, 18% and 10% in Japan and US respectively.

[2] On 30th Oct, the counter announced its largest development plan of logistic park in Japan which is its 2nd largest business area. Total investment is US$490m.


[3] At current price, the dividend yield is 2.5%. The counter has been rising its dividend at growth rate > 10% over past 3 years.

[4] From the chart, the counter retreated in price after recent surge. Latest result and announcement plan is worth of attention among investors.

ENTRY PRICE:Accumulate now   

 

*** Note: Same counter has been mentioned in Mar[6] ***