Friday, December 30, 2016
Chart[34] - Sheng Siong
The retail counter encountered strong selling force since mid Dec. The downfall rebounded twice from support 0.905. Last trading saw rising buy volume which pushed up price beyond soft resistance 0.93. Shall strong buy up interest continue, price could be heading towards next resistance ~1.
Jan[2] - Market Updates
Singapore:
2016 was definitely a happening year. STI was riding in roller coaster throughout. We witnessed 10 years bottom of crude oil, and two hyper-volatile days on BREXIT and US Election. Banks' asset has been deteriorating due to bond defaulting risk rising from local offshore sector.
Although the index failed to break out from 2967 in its three attempts this year, a higher low formation as below gave some relief sign. Market could have absorbed most of the worries. STI is moving into narrowing corner of ascending triangle. A quadruple top break up looks possible on 2017.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
2016 was definitely a happening year. STI was riding in roller coaster throughout. We witnessed 10 years bottom of crude oil, and two hyper-volatile days on BREXIT and US Election. Banks' asset has been deteriorating due to bond defaulting risk rising from local offshore sector.
Although the index failed to break out from 2967 in its three attempts this year, a higher low formation as below gave some relief sign. Market could have absorbed most of the worries. STI is moving into narrowing corner of ascending triangle. A quadruple top break up looks possible on 2017.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
Jan[1] - Yield Hunting
Among STI constituents, following counters were trading at dividend yield > 4%. Due to entry of 4th telco, Singtel has been trading at its lower zone based on price movement in past four years. Its reportedly $2.5b IPO plan could be price catalyst on 2017. Recent oil price recovery improved market sentiment towards banks. OCBC is trading at highest yield among its peers meanwhile. New acquisition from Barclays could be earning catalyst in future.
Among REITs (dividend yield > 5.5%), following counters were shortlisted because of their lower liabilities and high interest coverage. CapitaMall Trust has advantage in location of its local retail assets. IPO debut on 2016, Frasers Logistics & Industrial Trust is proxy to growing demand for industrial space in Australia.
Recent bullish USD defeated gold, thus gold miner, CNMC Goldmine was facing down selling headwind. The counter is raising production margin to offset downward pressure of gold price. With little debt (<1% gearing), it offers consistent payout of dividend in the past. Current price translates to ~2% yield. CNMC closely tracking gold price movement, so it could be star performer in one's portfolio, especially when stock market is in panic selling condition (eg. Brexit and pre-US election this year). Further information can be referred to Nov[3] in 2016.
Sunday, December 25, 2016
Dec[8] - Market Updates
Singapore:
Following retreat of bank, STI had a falling week. Volume was thin in the week when most have been out of town. Coming to post Christmas week, volume could be no much change. Price is near to support 2856. Let's see whether the last week of 2016 could end with a rebound!
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
Following retreat of bank, STI had a falling week. Volume was thin in the week when most have been out of town. Coming to post Christmas week, volume could be no much change. Price is near to support 2856. Let's see whether the last week of 2016 could end with a rebound!
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
Friday, December 23, 2016
Dec[7] - Capitaland (Asset Hunting)
COUNTER: CAPITALAND LIMITED
OVERVIEW:
Headquartered in Singapore, Capitaland is one of the Asia's largest real estate companies. Its portfolio includes integrated developments, shopping malls, serviced residences, offices and homes across Asia countries. REITs under its business structure includes Capitaland Mall Trust, Capitaland Commercial Trust, Ascott Resisdence Trust, Capitaland Retail China Trust and Capitaland Malaysia Mall Trust.
HIGHLIGHTS:
[1] Latest quarter saw revenue and net profit up 27% and 11% year on year. Adjusted profit for past 9 months up 13% year on year.
[2] 81% of asset are located in Singapore and China. In China, 93% of property are in tier 1 and 2 cities. 76% of total asset contributes to recurring income.
INVESTMENT THEMES:
[1] 9 month earning per shares - 0.17 || Dividend per shares ~ 0.09 || Net Tangible Asset - 3.9
Last trading price 2.97 translates to PE ~ 13, dividend yield > 3% and 24% discount to net tangible asset value, which is attractive.
[2] Management indicated resilient and steady performance from local market. More residential projects to be launched in China as well as Vietnam, so higher revenue to be recognized on coming quarter.
[3] The group managed to recycle mature assets into listed REITs as well as its fund management platform, so as to reduce balance sheet requirement while scale up asset under management (AUM). It is now on track to grow AUM up to $10b by 2020.
[4] The group shows disciplined interest cost management record throughout the years, which could be well prepared for widely-expected high rising interest rate period ahead.
PRICE TREND:
Upon Yellen's latest announcement on rate hike and China president Xi Jinping's comment about cooling property speculation, local real estate counters were taking double blow. Selling pressure prevailed meantime. Looking at price trend of the counter, it used to range bounce between 2.8 to 3.2. Recent falling seems to be correction instead of panic selling. Bargain hunting period present instead, as it represents higher dividend yield as well as more discount into net tangible asset value.
OVERVIEW:
Headquartered in Singapore, Capitaland is one of the Asia's largest real estate companies. Its portfolio includes integrated developments, shopping malls, serviced residences, offices and homes across Asia countries. REITs under its business structure includes Capitaland Mall Trust, Capitaland Commercial Trust, Ascott Resisdence Trust, Capitaland Retail China Trust and Capitaland Malaysia Mall Trust.
HIGHLIGHTS:
[1] Latest quarter saw revenue and net profit up 27% and 11% year on year. Adjusted profit for past 9 months up 13% year on year.
[2] 81% of asset are located in Singapore and China. In China, 93% of property are in tier 1 and 2 cities. 76% of total asset contributes to recurring income.
[3] Total debt/equity ~ 65%, Interest coverage ~ 4.
INVESTMENT THEMES:
[1] 9 month earning per shares - 0.17 || Dividend per shares ~ 0.09 || Net Tangible Asset - 3.9
Last trading price 2.97 translates to PE ~ 13, dividend yield > 3% and 24% discount to net tangible asset value, which is attractive.
[2] Management indicated resilient and steady performance from local market. More residential projects to be launched in China as well as Vietnam, so higher revenue to be recognized on coming quarter.
[3] The group managed to recycle mature assets into listed REITs as well as its fund management platform, so as to reduce balance sheet requirement while scale up asset under management (AUM). It is now on track to grow AUM up to $10b by 2020.
[4] The group shows disciplined interest cost management record throughout the years, which could be well prepared for widely-expected high rising interest rate period ahead.
Upon Yellen's latest announcement on rate hike and China president Xi Jinping's comment about cooling property speculation, local real estate counters were taking double blow. Selling pressure prevailed meantime. Looking at price trend of the counter, it used to range bounce between 2.8 to 3.2. Recent falling seems to be correction instead of panic selling. Bargain hunting period present instead, as it represents higher dividend yield as well as more discount into net tangible asset value.
Friday, December 16, 2016
Dec[6] - Market Updates
Singapore:
STI failed to form triple top break out from 2967. It closed ~1% lower last week. Immediate support is ~2909. Trend looks bullish meantime. Transaction volume has been improving since last November as highlighted. Coming to last two week of 2016, STI has actually covered the lost ground on Feb. It amazingly survived through BREXIT, Trump winning, etc. Most encouragingly, oil price has been moving up. A quadruple top break out still looks possible.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
STI failed to form triple top break out from 2967. It closed ~1% lower last week. Immediate support is ~2909. Trend looks bullish meantime. Transaction volume has been improving since last November as highlighted. Coming to last two week of 2016, STI has actually covered the lost ground on Feb. It amazingly survived through BREXIT, Trump winning, etc. Most encouragingly, oil price has been moving up. A quadruple top break out still looks possible.
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)
Dec[5] - Singtel (Join the leader)
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.
ANALYSIS:
[1] Last August, Singtel further acquired shares from Intouch (major shareholder of Thailand mobile operator AIS) and Bharti Telecom (India mobile operator) for a consideration of $2.47b. The funding mainly came from shares placement ($4.16 per Singtel shares) to Temasek which translates to ~2.4% shares dilution. Management indicated the acquisition will secure better economic benefit from regional market, as Thailand and India has been high-market growth to them. Although the transaction will prompt net adjusted leverage, Moody maintained its credit assessment to the company.
[2] On Mid Nov, Thomson Reuters revealed that the company hired DBS, Morgan Stanley and UBS to handle an IPO of up to $2.5b for its broadband subsidiary NetLink Trust, which is expected to take place on 2nd or 3rd quarter of 2017. It could further enhance company cash-flow. A 'special dividend' could be announced due to one-off gain.
[3] On December, it's Australia subsidiary, Optus announced a new 5 years Managed Services contract (worth ~$20m) with Townscville City Council as well as 3 years contract extension (worth ~$40m) with specialist security provider, Suretek.
[4] On early December, TPG from Australia won the bidding to become 4th Telco in demestic market. The spectrum rights commences on April 2017, and TPG might launch its mobile on 2018. Among local telco incumbents, Singtel is widely recognized to be least impacted. Its debt gearing is lowest and earning stability is best among its peers. Mobile business occupy ~7% of the group and 37% of mobile service revenue came from enterprises (which are less likely to switch operator). Recent downward pressure among incumbents' share price presents opportunity to accumulate Singtel.
PRICE vs YIELD CHART:
The counter will enter EX (expiry of dividend entitlement) on coming Monday. Price could fall ~0.68 (dividend paid) from last trading price 3.73. It could touch down to immediate support $3.6 which translates dividend yield ~4.8%, without considering further earning growth as well as any special dividend. It is pretty attractive yield. Compared to recent share placement price, $4.16, it is actually in deep discount ~14%.
*** Note: Same counter has been mentioned in Sep[1] 2016 ***
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.
ANALYSIS:
[1] Last August, Singtel further acquired shares from Intouch (major shareholder of Thailand mobile operator AIS) and Bharti Telecom (India mobile operator) for a consideration of $2.47b. The funding mainly came from shares placement ($4.16 per Singtel shares) to Temasek which translates to ~2.4% shares dilution. Management indicated the acquisition will secure better economic benefit from regional market, as Thailand and India has been high-market growth to them. Although the transaction will prompt net adjusted leverage, Moody maintained its credit assessment to the company.
[2] On Mid Nov, Thomson Reuters revealed that the company hired DBS, Morgan Stanley and UBS to handle an IPO of up to $2.5b for its broadband subsidiary NetLink Trust, which is expected to take place on 2nd or 3rd quarter of 2017. It could further enhance company cash-flow. A 'special dividend' could be announced due to one-off gain.
[3] On December, it's Australia subsidiary, Optus announced a new 5 years Managed Services contract (worth ~$20m) with Townscville City Council as well as 3 years contract extension (worth ~$40m) with specialist security provider, Suretek.
[4] On early December, TPG from Australia won the bidding to become 4th Telco in demestic market. The spectrum rights commences on April 2017, and TPG might launch its mobile on 2018. Among local telco incumbents, Singtel is widely recognized to be least impacted. Its debt gearing is lowest and earning stability is best among its peers. Mobile business occupy ~7% of the group and 37% of mobile service revenue came from enterprises (which are less likely to switch operator). Recent downward pressure among incumbents' share price presents opportunity to accumulate Singtel.
PRICE vs YIELD CHART:
The counter will enter EX (expiry of dividend entitlement) on coming Monday. Price could fall ~0.68 (dividend paid) from last trading price 3.73. It could touch down to immediate support $3.6 which translates dividend yield ~4.8%, without considering further earning growth as well as any special dividend. It is pretty attractive yield. Compared to recent share placement price, $4.16, it is actually in deep discount ~14%.
*** Note: Same counter has been mentioned in Sep[1] 2016 ***
Subscribe to:
Posts (Atom)