Sep[5] - ComfortDelgro (Buy on dip)

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 results saw 1H2016 registered 1% and 5% growth in revenue and net profit year on year. Earning contribution is well diversified across few countries:

[2] The counter is in net cash position of $323m. Total debt/equity is as low as ~15%.

INVESTMENT THEMES:
[1] Current valuation looks attractive:
Earning per share (1H2016) - 0.073 || Dividend (2016) - 0.0925 || Dividend growth > 8% pa

[2] Under new bus operating regime, LTA will own all operating assets from SBS (75% own by the counter) and SMRT. Instead of paying a lump sum, LTA pays leasing charge to operators up based on bus packages contract ranging from 2 to 10 years. Over the entire contracts, SBS will be paid $5.3b. This could translate to progressive improvement on balance sheets of the counter.

[3] Ridership on North East Line and Downtown Line (DTL) is picking up. 3rd section of DTL is target for completion on 2017.

[4] Shall SMRT to be privatized, the counter will be the sole representative from public transport sector in local exchange. It might draw further attention due to its defensive business nature.

PRICE TREND:
The counter showed its resilience throughout various market panicking moment (devaluation RMB, rate hike worries, BREXIT) over past 1 year. Strong support ~ 2.64. Recent market turbulence provided hunting period to it again.

*** Note: Same counter has been mentioned in May[8] 2016 *** 

Chart[24] - Small counters with big interests

Significant buying volume was seen in following counters. Trader could take position for next potential push from hidden buyers.

Avi-Tech

Fu Yu

Singmedical

Sep[4] - Market Updates

US:
On last trading day alone, Dow Jones shed 2%. Rate hike fear could be haunting market again. Two important meetings for this month: US FOMC [20th Sep] and OPEC energy conference [26-28th].

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Sep[3] - Dutech (Put money in Safes!)

COUNTER: Dutech Holdings Limited

OVERVIEW:
The counter is a global leading manufacturer in the high security equipment industry. As a leading Original Design Manufacturer (ODM) and largest producer in Asia, it supplies wide range of high security products such as ATM safes, bank safes, commercial safes, and cash handling systems for both commercial and consumer uses. Its headquarter is located in Shanghai, which serves as center of research & development. The reputable global customers base consists of Wincor Nixdorf (World No 2 ATM maker), Hitachi, Liberty Safe & Security Products, etc.

HIGHLIGHTS:
[1] The past five years saw its earning growing steadily. Its market base is well diversified into Europe, US and China.

[2] Latest quarter result saw both revenue and profit leap ~ 20%, due to recent acquisition of Krauth (developer of Auto-Ticketing Machine and Money Changers) from Germany. It enhanced contribution to business solution segment.

[3] It is in net cash position of RMB200m which is mainly held in USD, thus reducing the exposure to weakening RMB.

INVESTMENT THEMES:
[1] Its 1H2016 earning per shares is RMB0.15, so last trading price (0.485) translates to P/E ~ 8, dividend yield ~ 2%.

[2] Over past four years, the group managed to deliver high ROE and ROA ~ 10% consistently, which showed strong management and execution on delivering results.

[3] Until 2020, Asia Pacific and global vending machine market is forecast to grow >10% annually. The group is working towards vertical integration and move up the value chain so as to provide one-stop solutions for worldwide clients in future.

PRICE TREND:
The counter has been delivering strong earning results over past two quarters. Strong buying interest was seen on days following the result as well. It's highlighted in June and Aug period below. Uptrend is residing above 0.465. Investor could take position now so as to enjoy potential push from big player next round.

*** Note: Same counter has been mentioned in Chart[22] 2016 ***  

Chart[23] - Cogent

The counter saw surging volume on last few trading days. A triple top break up at 0.705 with significant transaction volume. Looking backwards, similar break up happened at 0.535 on May, 0.58 on early July and 0.66 on late July. The counter could be heading next record high in continuation of current uptrend.

Sep[2] - Market Updates

Singapore:
STI ended last week amid worries of potential rate hike in coming Fed meeting. Last trading day the index breaking down support 2809 following plummeting of SingTel and Starhub. Immediate support is ~ 2700. Investor could accumulate STI ETF shall STI approaching 2700. OPEC Russia meeting and FOMC shall be major market theme on September.

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Sep[1] - SingTel (Welcome 4th Telco)

COUNTER: Singapore Telecommunications Limited

OVERVIEW:
The counter is a leading communication group with significant presence in Singapore and Australia (Optus). It own stakes in regional mobile associates, namely Bharti Airtel (India, South Asia and Africa), Telkomsel (Indonesia), Advanced Info Service (Thailand) and Globe Telecom (the Philippines). The services range include fixed line, mobile, data, internet, TV, infocomm technology (ICT) and digital solutions.

HIGHLIGHTS:
[1] The latest result saw its earning growing steadily. Shrinking domestic earning offset by overseas contribution.

[2] The group is in net debt position, $7.9b. Total debt/equity < 40%, which is lowest among local telcos.

[3] Three parties submitted application to be 4th telco by deadline, 1 Sep. IDA is expected to make decision in end Sep ~ early October.

INVESTMENT THEMES:
[1] Its annual dividend is $0.170. Shall price fall below 4, dividend yield is attractive at 4.2%

[2] Mobile business in Singapore contributes ~7% of total revenue of the group. Thus it should be the least susceptible to impact from 4th telco.

[3] The group continues to raise its shareholding in regional telco group. 

PRICE TREND:
The defensive counter has cyclic behavior in its price movement over past three years. A simple average price is $ 3.9. Current price is trading in the lower zone. Accumulate chance is presenting.

*** Note: Same counter has been mentioned in Sep[2] 2015 ***