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#Date (Latest)MktTickerCompany NameQuick BackgroundCategory (Orange tab)Stock Rating [1 to 5 (Best)]Reasons for BuyingReasons for CautionWrite-Ups (If any)Write-Ups (If any)Write-Ups (If any)
121/11/18SGXZ74SingtelLargest telco in SingaporeSlow Growers***High Dividend Yield of 5%
Multi Year Low signifies oversold
Strongest Telco among all in Singapore
Investments in other countries
Facing structural changes
New competition due to entrants for Singapore and Australia
Netflix taking away market share
Flattish growth over past decade
221/11/18SGX5MLOld Chang KeeOperates snack food stalls and food retail outlets i.e. Curry Times. Moat: Curry!Turnarounds***Curry Puff as brand recall moat!
Expected lower costs due to new factory
Recent expansion to London!
Easy to Understand
Recent seasonsal launches can drive up gross margins
Declining profits over last 4 years
Facing high rental and labour costs which are unlikely to go away
Fierce competition from various F&B operators
Execution risks from London franchise
321/11/18SGX5TG800 SuperProvide environmental services include waste management, cleaning and conservancy and horticultural services.Stalwarts***- Waste Collection - Recession Proof
- Huge vested interest by management team
- Co-location of vehicle depot, biomass plant, sludge treatment plant & industrial laundry facility tgt in Tuas to drive synergy cost savings
- Taking over market share from competitors (Bedok region)
- Growth capped since ops only in SG
- Recent renewal of waste collection contracts at lower prices
- Loads of borrowings taken for sludge plant
421/11/18SGXOU8CenturionWorker + Student Dormitory Rental BizAsset Plays***- >95% occupancy rate for workers' dormitory, higher than industry avg.
- 2 new projects under development to be completed in 2018 and 2020
- Announced 2nd private fund - Centurion Student Accommodation Fund
- Continued acquisitions in UK and first foray into Seoul
- Always a possibility of doing a student accomodation trust
- Oversupply in Singapore
- Overhang due to new government stepping in and probably change in regulations
- Net gearing ratio at 53%
521/11/18SGXCC3StarhubOne of the best dividend + Blue chip stocks in SG.Turnarounds**- Telco dividend play
- Strategic resructuring after incoming new CEO
- Expecting cost savings of $210mil from 2019-2021
- Past dividend yield of 8.5% but highly expected to be cut
- Emergent of new 4th telco Australia-based TPG to eat more into the market share.
Capitamall trust
CMT has many retail properties/mall at convenient locations and well spread out in Singapore.Asset Plays***- Strong sponsor and income stock
- A large portion of its tenants (about 30%) is food and beverage related which is less likely to be disrupted.
-Maintained a stable and slightly growing distributable income. Dividend yield is about 4-6%.
- Continual AEI to drive DPU growth in future. Esp. the upcoming futuristic Funan mall
- Increasing competition among retail mails
- Rise of e-commerce
- Rising interest rates -> higher borrowing costs
722/11/18SGXC52ComfortDelgroOne of the largest land transport operators in the world. Businesses include bus, taxi, rail, car rental and leasing, automotive engineering services, inspection and testing services, etc. Owns stakes in SBS Transit & Vicom as wellSlow Growers**- Strong cash hoard to support acquisition spree
- Diversified transport company with Ops in U.K., Australia, China & more
- Decent 4+% dividend yield
- Intense competition versus Grab & incumbent Go-Jek
- Indication that the Transport Business can be disrupted
- Changes in regulations on operations, heightened competition,
- Volatile currency swings with operations overseas.
822/11/18SGX544CSE GlobalOffers cost effective, integrated solutions to industries in the Oil & Gas, Infrastructure and Mining sectors.Turnarounds****- Spectacular 2018 results - profits up >50% on low base in FY2017
- Sustainable dividend yield of more than 6%.
- Net Cash Position.
- Potential synergies from new shareholder. Serba Dinamik, a Malaysian-listed company, recently bought a 25% stake in CSE at S$0.45/share.
-Grim industry outlook
-Suffered losses in FY2017 due to subdued oil prices
-Orderbook remains low as large greenfield orders not coming in
99/6/2019SGXCRPUSasseur REITOutlet Mall REIT based in ChinaAsset Plays****-Attractive 8+% Yield; 0.9x P/B
-Strong occupancy rate of ~95%
-Long Runway for Growth - China's huge market potential - U.S. competitor Tanger owns 44 outlets in U.S. & Canada (8x that of Sasseur REIT!)
-Founder has 28 years exp. in fashion retail biz
-Competitive edge versus E-commerce (Selling of Authentic, High-End Products with Good Consumer Exp.)
-High in Concentration Risk (All in China)
China stigma at play (you won't know whether it may be a dead town)
-Short wale -> means tenants may run off during times of recession
-Lack of income support after 2 years may lead to plunge in unit price
-Trade War uncertainities (China/US products)
1022/11/18SGXT24Tuan SingInvestment holding company engaged in property development, property investment and hotel ownershipAsset Plays**-Trading at cheap P/B of <0.5x
-Completion of 18 Robinson by end-2018 will result in material profit
-Substantial recurring income in the pipeline from commercial site at 896 Dunearn Road, and AEI of -Grand Hyatt Perth
-Latest property cooling measures affecting future residential sales
-Lack of market appreciation about its potential
-High debt with rising interest rate
1123/11/18SGXC31CapitalandOne of Asia's largest real estate company with asset portfolio worth $92.8 billionAsset Plays****-Investment properties constitutes 79% of assets providing stable recurring income
-P/NAV of 0.714 and fairly good dividend yield of 3.9%
-Least impacted by local property cooling measures as 99% of lauched projects sold-
-China regulatorty crack down on rising property prices
-Rising interest rate
-All out trade war with US affecting China economic growth
1223/11/18SGXQ1PAscendas Hospitality TrustHospitality trust with diversified assets across 7 Asia Pac cities: Spore, Seoul, Tokyo, Osaka, Sydney, Melbourne BrisbaneAsset Plays***-Attractive 8.8% yield based on TTM dividends with PB of 0.75
-Singapore tourists arrival showing clear expansion
-Clear growth plan with major serviced residence in Melbourne coming on stream in 2019
-Foreign exchange risks
-Australia assets affected by weaker performance due to room over supply and loss of convention business
-Osaka facing over supply of room
1323/11/18KLSE6963V.S Industry BerhadIntegrated Electronics Manufacturing Services (EMS) provider in the region; Undertake manufacturing needs of global brand names for office and household electrical and electronic products.Cyclical****- Trade War could be a boon for VS industry as clients will shift focus from China to Malaysia.
New plant and facility with warehouse ready to take on more new orders
- May revise up pricing with key customers (passing on the costs)
- 4Q2018 poor results. net income 33.1% down yoy due to high set up costs.
- Facing headwinds like lower USD, higher labour costs
- 12,000 strong workforce has to be paid while waiting for orders -> under-utilization
1423/11/18HKEX2298Cosmo LadyLargest branded intimate wear enterprise in China. Market share of 2.84% according to Frost & Sullivan in 2017.
Biggest retail network in China ─ 1,332 self-managed stores and 6,036 franchised stores on end-June 2018.
Fast Growers****- Net Cash, 1.1% dividend yield
- Defensive Business of selling intimate wear
- Branding - Lin Chi-ling is their model!
- Riding the strong e-commerce growth momentum: 27% growth yoy in 6 mths 2018
- Mgmt interests aligned (Chairman and CEO Mr. Zheng and other 3 founders own collectively 51.4%)
- Margin pressures
- Growth starting to tamper
- Competitive environment in China's intimate wear
- Execution Risks as company has various future plans
1523/11/18KLSE7216Kawan FoodProduces a wide range of frozen local food products which include parathas, spring roll pastries, and chapatis from three factories:
2 located in Shah Alam, Malaysia and 1 in Nantong, China.
Stalwarts***- ROE of 13% over past 12 years
- Sales and Profits also steadily increasing over past 12 years until 2017
- Low Debt-to-Equity Ratio of 16%+
- Easy to understand business (Selling of frozen food products worldwide)
- New state-of-the-art manufacturing factory in Pulau Indah, Klang has commenced operation. It enables company to expand total production & try out innovative new products
- Drop in earnings over 9 mths 2018
- Lofty P/E ratio at 30.4x
1624/11/18KLSE2658Ajinomoto BerhadExpanded from being a distributor of MSG to a manufacturer of a wide range of food seasoning including umami seasoning, ready-mix seasoning, chicken stock, pepper, sweeteners, and industrial seasoningStalwarts****- Long history of seasoning distributor
- Stable biz with y-o-y increase in Sales + Profits
- Good cash cow with 50% dividend payout ratio
- Positive effect from 0% GST in Malaysia
- Malaysian economic growth driven by domestic demand and improving exports, higher private consumption
- High P/E >20x
- Dividend yield low at 2+%
- Country concentration in Malaysia
1724/11/18SGX42RJumbo GroupFamous for namesake Jumbo Seafood outlets. Grown to over 20 restaurants in Singapore, China and Japan via franchise outletsStalwarts***- Strong Brand Recall for Chilli Crabs
- Franchise model to overseas expansion (9th outlet in Bangkok)
- Plans to open 2 new JUMBO Seafood restaurants, 1 Teochew cuisine restaurant & 2 more Tsui Wah Hong Kong-styled
Cha Chaan Teng outlets in Singapore in the next 12 months
- Margin to be impacted by higher operating costs and expansion related costs
- Concern on ability to maintain its brand equity in China where F&B scene is competitive
- Ability to maintain food quality and cost control amidst agressive expansion
184/4/2019SGXG13Genting SingaporeOwns Resorts World Sentosa, a destination resort, which offers a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore Theme Park, MICE facilities, hotels etc.Cyclicals**- Potential of securing Japan IR license
- 1 of 2 casinos in Singapore, indicate a strong barrier entry
- High profit margins ~ 30% & Low Capex once IRs get up and running (cashflow generative)
- Strong Balance Sheet: net cash w/ 3% dividend yield (may change sharply if Japan bid secured)
- Re-development of RWS (~50% of new gross floor area of leisure & entertainment spaces including USS expansion w/ two new theme parks: Minion
Park and Super Nintendo World; a 500 sq m gaming space addition; up to 1,100 additional hotel rooms)
- Heavily dependant on "good luck factor" and VIP gaming for the casino earnings.
- Unable to scale up. IRs require tons of capex to build and also hinges on government regulations
- Stiff competition for bid in Japan for the Integrated Resort (IR)
- One big risk is Government Intervention like the upcoming hike in Tax (feb2022) on gaming revenues
- Re-development of RWS required to extend its exclusivity until 2030 comes at a S$4.5 billion cost (not cheap at all!)
1924/11/18HKEX2319China Mengniu DairyOne of China's top dairy brand with diversified products including liquid milk, ice cream and milk formula. Stalwarts****- 2nd largest market share (27%) of liquid milk market in China
- Top 10 of the Global 20 Dairy Brand in 2017 and 2018
- 17% revenue and 28% gross profit growth yoy in 1H 2018
- Improved branding as FIFA World Cup official sponsor
- Enlarged market with relaxation of one child policy in China
- Food and supply chain safety issues especially in China
- Subjected to raw dairy price fluctuation
- Competition from other top brands such as Yi Li
- Increased Receivables Turnover days
2025/11/2018SGX5GDSunpowerManufactures environment protection equipment, provides engineering solutions and build/operates steam power generation plants Fast Growers***- Growing revenue and net profit past 5 years
- Ops cashflow positive past 2 years despite a capital intensive business
- Green Investment segment of env friendly power generation plants able to meet new environmental standards set by government
- Record high order book of RMB2.2 b
- Debt to Assets of 0.7
- A high capex business
- Large portion of intangible and receivables in assets
- The China company (S-chip) stigma. Corp governance is a concerrn. See recent legal case of pledged shares by substantial shareholder
2126/11/2018SGXMR7NordicProvider of precision engineering, vessel maintain, repair and overhaul (MRO), insulation and scaffolding services to the oil & gas industry Fast Growers****- Increase in sales due to organic growth + well-timed acquisitions
- Good history of positive ops cash flow
- Majority of customers from downstream segment that is relatively sheltered from falling oil price
- Top management holding >70% of shares
- Possible cancellation of MRO orders in weak oil price environment
- Top customers account for bulk of business
- No strong competitive moat
2226/11/2018SGXBN2ValuetronicsIntegrated electronics manufacturing services (EMS) provider, offering a mixture of Design, Engineering, and Manufacturing services.Cyclicals***- Net Cash Position of cash and bank deposits of HK$671 mil.
- Attractive 6.5%+ yield to support share price
- Riding the trend of in-car connectivity through its production of connectivity modules
- FY2018 net profits up 32.9%
- May be affected by semiconductor sector's pullback
- No obvious moat
- Possible near-term slowdown due to slowdown of a major customer
2326/11/2018SGX42TTrendlinesSomewhat like a Venture Capital firm that invests and nurtures medical and agtech companies to improve the human condition.Asset Plays**- Strong Tie-ups e.g. B-Braun & SGH
- Helmed by experienced team & govt. support
- At $0.12, it has a low P/B ratio of 0.6x
- Successful sale of its MVP (most valuable player) to B-Braun for US$40+ mil, more than 1/2 its market cap
- Lumpy Revenue due to nature of business (only realized upon exits)
- Not well understood by retail investors (Hard to measure the company's valuation)
- Negative cash flow can weigh on investors' sentiment
2425/11/2018SGXH02Haw ParA diversified holding company with businesses in healthcare, leisure, property and investmentsAsset Plays***- A niche healthcare product with strong brand recognition globally
- Diversified revenue sources that are resilient to cyclicality
- Consistently positive ops cash flow
- Price has ran up and covered much of the value gap.
- Much legacy business eg. leisure and investments that have not much growth prospect
- Investments value has to be marked down during stock market downturn
2525/11/2018SGXJ17JackspeedSpecialist manufacturer of of custom-fit automotive and aviation seat upholdstery and interior partsFast Growers**- Positive and growing net ops cashflow past 5 years
- Cheap valuation of PE roughly 8.8 plus 5.4% dividend yield
- On SGX watchlist due to Minimum Trading Price Criterion
- Shrinking automobile population in Sg
- Too niche a product in a highly fragmented market
2625/11/2018SGXI07ISDNProvides precision engineering and motion control solutions to a diverse industries. also dual-listed on HKEX recently.Fast Growers***- Ride the wave of increasing automation in manufacturing
- Core motion control solutions are applicable in wide range of industry
- Rapidly growing revenue and net profit past 6 years
- Cheap valuation: TTM PE 6.8 at Sept 18, P/NAV 0.60
- Potential slowdown in China's manufacturing activity due to trade tariffs
- Highly sensitive to any negative macroeconomic news
- Venturing into renewable energy sector in China and Indonesia, capital intensitiec industry and competitive market. Execution risk
2725/11/2018SGX5SODuty Free InternationalLeading duty free retailer in Malaysia. Also owns the Black Forest Golf and Country Club and an oil palm plantation.Stalwarts**- Rock solid balance sheet; Net Cash
- Partnership with Heinemann to drive supply chain cost reductions & bring about more products/variety for sale
- Alluring 9% dividend yield
- Cash cow business (investment in Medium Term Note of RM30.0 million)
- Investing into Brand Connect for alcohol distribution
- Poor Track Record (Revenue CAGR from FY2011 - 2018 at 1.13%; Net Profits at 3.42%)
- 1Q2019 revenue continued to decline, down 28.9% to RM117.4 million; no rebound in sight
- Challenging environment with volatile USD-MYR Rate, Weak consumer purchasing sentiment
- Losing the case against the demand of customs payments from Royal Malaysia Customs (check link >>)
- Price-to-book ratio of 1.3 and a Price-to-earnings multiple of 21+.
2825/11/2018SGXO10Far East OrchardPrimarily a hospitality player with 15 assets in Aust, Denmark and Germany, and smaller property development arm and investments in healthcare and student accommodation assets.Asset Plays**- Near term positive outlook for Singapore hospitality sector
- Good dividend yield of >4%
- Potential to scale up Purpose Built Student Accommodation segment, a promising area
- Its hospitality brands are relatively unknown
- Signs of slowing down in Sydney, Melbourne and Perth hospitality sector due to room over supply
- Consistently priced at a low PB. Value trap?
2925/11/2018SGXCH8China Sunsine ChemicalLeading producer of specialty chemical, rubber accelerators and insoluble sulpher used in the tire companiesFast Growers****- Expanding tyre production market in China with 7% growth in 2017
- Market leader with 25% share
- Industry consolidation resulting in increase market share and revenue
- New capacity coming on stream 2H 18
- Trading at low TTM PE of 4.5 compared to industry peers
- high dependence on performance of automobile industry
- single product stream risk
- Surging administrative cost, staff cost and R&D expenses
3025/11/2018SGXUD2JapfaIndustrial agri-food company that produces and sells dairy products, protein staples and packaged food products in Asia. Brands include SoGood consumer products and GreenFields dairy milk.Cyclical***- Supply of basic food stuff (animal proteins) will always have demand
- Growth potential for Asia' economies (Indonesia, China, Vietnam) as their meat consumption continues to increase
- 3Q FY2018 operating profit up 47%, mainly due to earnings turnaround from Animal Protein Other segment and strong Avg Selling Prive of poultry in Indonesia
- Not easy to understand biz model (government regulations, revaluation of biological prices, FX fluctuations and more)
- That's not all (selling prices also get affected by demand/supply cycles, potential disease outbreak and market competition which is hard to gauge)
- Net gearing to go up to 1.1x
- From its commentary [The agri-food business is subjected to cyclicality dependent on a variety of external factors, including the seasonality of harvest and festivals]
3125/11/2018SGXS63ST EngineeringA global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. Customers come from defence, government and commercial segmentsStalwarts****- Decent 4.3% dividend yield
- Good diversity of different industries e.g. Aerospace, Defence and Electronics
- Strong orderbook of S$13.3 Billion over next 2 years provide visibility
- Riding on smart city trends in and out of SIngapore
- High 20x P/E compared to STI Index
- Required to keep chasing bigger contracts to drive Top-line
- Not easy to comprehend biz model due to many differentiated cogs
- Increased Execution Risks can derail growth path
3225/11/2018SGXF03Food EmpireGlobal F&B branding company offering instant beverages, frozen convenience food and snacks with sales across 50 countriesStalwarts****- Owns the leading 3-in-1 coffee brand in Russia, Ukraine and Kazakhstan.
- Main products are for daily, non discretionary consumption
- New geographical markets showed sustained revenue growth past 3 years: 28.6% CAGR
- Latest quarter earnings show strong growth in Indo China (23.8%) and Kazakhstan & CIS Market (40.2%)
- Healthy balance sheet with net cash
- Foreign exchange fluctuation
- Key markets all heavily dependent on oil exports eg. Russia, Ukraine, Kazakhstan
- Growing consumer preference for more artisan, boutique cafe experience
3325/11/2018SGX5HJCityneonSolutions provider for interior architecture and events, with specialty in creating immersive and unforgetable visitor experience for exhibition, museum and galleria.

* It has since received privatisation offer of $1.30 per share by Executive Chairman
Fast Growers*****- Exclusive IP rights and license for blockbuster movie exhibition
- Business model with low maintenance and growth capex
- Healthy revenue and earnings growth
- Growing gross and net profit margin due to growing IP Rights segment
- IPR segment is consumer discretionary (tastes can change fast)
- Negative cashflow due to rapid expansion
- Early termination of partnership with film studio
3425/11/2018SGX588HMI2 tertiary hospitals in Msia; nursing education and healthcare vocational training in Spore. Stalwarts****- Increase in patient bill size (up 7.6%) and patient volume (up 1.3%) in 1Q 2019
- Sustained increased in average patient bill size past 4 quarters
- Msia reputation as an affordable destination for medical tourism
- Improved connectivity with upgrading of Malacca Airport
- Sliding Ringgit exchange rate
- Competition from new hospitals in Malacca and Johor
- Gestation start-up costs of StarMed Specialist Centre in Johor
3525/11/2018HKEX839China EducationLeading large scale private higher and vocational education group in China. Operates 5 schools with an estimated 120K students enrolled in 2017/2018 school year.Fast Growers***- Entered into an agreement with Value Partners to invest in private higher education and vocational education
- Net Cash position; > 10% ROE
- Bright Outlook with focus on lucrative Higher Education Biz in Greater China
- Easy to understand Biz Model (Invest in Schools and earn management fees)
- Lofty P/E ratio and EV/EBITDA
- Growth will come primarily from M&A, may lead to heavy cashflow required
- Drop in student enrolment numbers will sound alarm
3625/11/2018HKEX1681Consun pharmaceuticalManufacture and sale of pharmaceutical products including kidney medicines, contrast medium and others. Also engaged in the R&D of pharmaceutical products.Stalwarts***
- 0.7x PEG based on12x FY18F PE and expected EPS CAGR of 16% in 2018F
- 50% discount to pharmaceutical sector average FY18F PE of 24x in HKEX;
- Multiple Growth trajectories: i) sales network expansion, ii) redevelopment of current products in new
dosage forms & iii) promotion of at least 8 exclusive products
- Net Cash; ROE > 15%
- Chairman & CEO owns 41.07% stake in the cpy
- R&D of pharma products takes long gestation time
- Products need to go through clinical trials, may not be successful
3725/11/2018SGXC29Chip Eng SengLeading construction player who built Pinnacle @ duxton with a sizeable property development divisionSlow Growers**- Potential to unlock value of hotel assets
- Increasing recurring income base from hotel and commercial properties
- A competitive, fragmented industry that is hard to stand out
- Property development susceptible to goverment cooling measures
- Negative ops cash flow past 3 years
- Why is substantial shareholders selling 29.7% stake to Singhaiyi?
3825/11/2018SGXB58Banyan TreeInternational hospitality brand known for its premium resorts, hotels and spa. Own or manage 30 hotels/resorts and 60 spas across 27 countries.Stalwarts***- Opening 4 new resorts 8 spas under management contract in next 12 mths
- Growing penchant of luxury spa experience from China tourists, its largest visitor source
- Partnership with Accor
- Cyclical industry
- Lacks critical scale to compete globally
- Property sales concentration in Phuket
- Growth projection for China, its key market, revised downward due to trade tension
3925/11/2018KLSE5230Tune Protect GroupGeneral Insurance provider in Malaysia.Stalwarts***- Conservative balance sheet,
- Online travel insurance business backed by Anchor AirAsia
- Change in Strategy underway, up premiums and shift to non-motor insured products
- Still benefits from low claims' rate for Travel Insurance
- Modest valuationsTTM P/E ratio of 9.2
- Growth in gross writte premium in Q3 0128 of 8.7%
- Underwriting process not as robust, leading to large one-off claims in FY2017
- U never know whats coming for the claims (Flooding in areas that never flood before)
- Concentration risk on AirAsia although its branching out
- Underperformance due to changes in the regulations imposed by MAVCOM. The new regulation restricts airline companies like AirAsia from automatically adding travel insurance (offered by Tune Protect).
- Free Float from premiums not utilized properly, for invesment.
- Frequent Change in CEO
4025/11/2018SGXK03Khong GuanOne of the biggest Biscuit Making company in Singapore, making crackers, wafers, cookies and moreSlow Growers*- This part is left blank intentionally -- Paltry net profit margins of 1.7% in FY18
- Inability to capture the change in consumer tastes (unless u are falling sick and need to eat Milo + Biscuits)
- Fluctuating FX risks
- Slow 2018 revenue growth of 6% & low dividend yield of 1.5%
4125/11/2018KLSE7034Thong Guan IndustriesOne of the largest manufacturers of plastic packaging products in Malaysia. Also manufactures and distributes F&B products - visit and Stalwarts****- Easy to understand biz - selling plastic wrapping products plus F&B products (check the links in the profile)
- Largest PVC food wrap producer in SE Asia -> Economies of Scale
- Steady growth in revenue over past 5 years
- Rock solid balance sheet
- Focusing on R&D to improve net margins
- Sales/Profits highly dependant on raw material Resin
- Possible diworsification to F&B sector like acquiriing the organic noodles segment
- Lower ROE & Profit growth compared to peers like Daibochi and Scientix
4225/11/2018SGXBS6Yangzijiang ShipbuildingOne of the top 5 largest shipbuilder in China and the only S Chip among the STIStalwarts****- Improved 3Q 18 revenue (up 23%), gross profit (up 49%) and margin (up 3%) in a challenging climate
- Net cash balance sheet
- Higher ROE of 8% to 9% versus peers
- Management active share buyback recent month
- Expansion into LPG vessel sector that is of higher margin
- Rising steel cost
- Recent impairment of RMB333m of financial products. Could there be more due to tightening credit environment in China?
- Excess supply in global ship/vessel market
- Falling Gross Profit and EBITDA in past 5 FYs
4325/11/2018SGXF83Cosco InternationalA shipyard and marine engineering player turned integrated logistic management service provider and a shipping fleet owner Turnarounds**- Disposal of loss making shipyard business resulting in a fresh start: Q3 2018 revenue from continuing ops increased 502%
- Subsidiary Cogent Holdings as a leading logistic player locally, aiming to expand market in SEA and South Asia
- New chemical logistic project at Jurong Island with higher margin
- Execution risk: can Cogent stand out among the third party logistics player in Sg?
- Ultimately, can it succesfully turn around, hinging on Cogent's performance
4425/11/2018KLSE4731ScientexOne of the world's largest producter of stretch film, industrial and consumer packaging products. Also a major developer of affordable homes in Johor and Melaka.Stalwarts****- Rapidly growing food packaging segment with inelastic demand
- New manufacturing site in US to meet growing demand in US market
- Affordable homes meeting demand of disgruntled youngsters priced out of residential market
- Proven track record of consistent revenue, earnings and dividend growth. Past 5 yr CAGR: 16.4%, 21.3%, 17.4%
- Packaging material can be considered commodity product
- Cost of resin rising in tandem with crude oil price
- An export company. Will be beaten down if RM appreciates significantly agaist USD
- A slow down in trade activities
4525/11/2018HKEX2318Ping An InsuranceChina's second largest insurer in terms of premiums. A 'new age' insurer with heavy focus on tech-enabled banking, asset management and other financial services.Stalwarts****- China is pushing for increase insurance coverage for citizens. A long runway.
- Largest shareholder of HSBC Group
- First mover in insuretech
- Strong digital financial platform offering loans, banking and asset management
- Established unicorn subsidiary aiming for IPO: Ping An Good Doctor (IPO-ed) and Lufax
- Rising interest rate
- China clamp down on micro financing and peer to peer lending
- Much expectations built into its growth like a tech stock. When expectation fades away?
4627/11/2018SGXBOLMemtech InternationalManufactures and sells customised precision moulded components such as high-end silicone rubber, plastic and silicone rubber-plastic hybrid keypads, mainly for the mobile phone and automobile industries.Stalwarts**- Pristine bal. sheet - net cash position of US$15.8 million as at 30 Sep 18
- Automotive customers include some big MNC names like Tesla, Volkswagen, Huawei, Lenovo etc.
- Poor 3Q 18 results may be due to a significant portion of the volume
- Affected by higher costs of raw
materials - silicone rubber and plastic resin
- Declining low gross profit margin at 16.9% in 3QFY2018 results
- 3 China plants may be affected by on-going Trade War
4728/11/2018SGXD5IULippo MallPortfolio consists of approximately 20 retail malls and over seven retail spaces located within other malls in Indonesia including Istana Plaza, Depok Town Square, Java Supermall, Mall WTC Matahari.Asset Plays**- Sky high dividend yield of 17%
- P/B at 0.7x
- Rupiah selloff,
- Negative headlines at its sponsor, PT Lippo Karawaci Tbk (“LK”),
- Heavier expenses from new tax regulations
- Gearing shot up to 37%
4828/11/2018SGX558UMS HoldingsProvides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products. Cyclicals**- Client diversification underway
- Cheap P/E of 6x, High dividend yield of 8%
- Automotive and IoT sectors can help UMS grow over the medium-to-long term.
- Between 80% and 90% of UMS’s revenues are attributable to Applied Materials; & the latter is facing a bearish outlook
- Latest quarterly net profit down sharply
- Multi-year growth in semiconductor industry coming to slowdown
- UMS cut dividends by 50% in 3Q18, more dividend cuts likely
4928/11/2018SGXE5HGolden-AgriPrimary activities include cultivating and harvesting oil palm trees, processing fresh fruit bunches (FFB) into crude palm oil (CPO) and palm kernel (PK), refining CPO into industrial and consumer products, as well as merchandising palm products across the world.Asset Plays*- No reasons to buy given that its peers are doing much better- Output growth and untimely purchases of feedstock points to poor management
- Poorer performance across all segments compared to peers and industry
- Fluctuating Earnings not for faint-hearted.
- Sky high borrowings at floating rates
- Lower ASP (average selling price) leads to inventory build-up. Means even harder to sustain sales growth going forward
5028/11/2018SGX5CPSilverlake AxisProvider of digital economy solutions and services to the banking, insurance, payment industries. Customers include OCBC Bank, CIMB, Bank MualamatFast Growers****- Expected 4+% yield
- Stellar 1Q2019 with sales & profits up 36% & 70% yoy
- Acquired 80% of Xinfotech enables another revenue stream - providing Digital Identity and Security Technologies
- Strong orderbook of over MYR325 mil & large order wins pending
- P/E still high at 24x
- HNA (prev. substantial shareholder) may continue to sell down its stake to alleviate its debt burden, which cont' to pressure Silverlakeaxis' share price
- Stigma from previous allegations from Short-Sell report which mentioned that Silverlake Axis has inferior and
inflexible product compared with competing software from Oracle, Temenos, TCS, and Infosys []
5130/11/2018SGX1D0Kimly67 food outlets and 129 food stalls. 2 Divisions - 1) Outlet Management Division operates and manages 60 coffee shops and 4 industrial canteens & 3 food courts. 2) Food Retail Division comprises individual Mixed Vegetable
Rice, Dim Sum, Seafood “Zi Char” food stalls etc.
Turnarounds*- Resilient F&B biz provides recurring stream of income
- Cash rich with S$38+ mil
- Dividend yield of 3.4% given dividend payout of 0.96 cents
- Lackluster growth (FY2018 sales and profits see mere 5.3% and 2.1% yoy growth)
- Slew of bad news (Kimly Exe Chairman Lim Hee Liat and Exe director Chia Cher Khiang under investigation by the MAS & CAD.
- Backing off from Asian Story's acquisitions bcos Pokka intends to cut the outsourcing manufacturing for them.
- Cost pressures on labour, food cost, rental cost and expansion cost
- No competitive moat (you only go there for convenience sake)
5230/11/2018SGXO39OCBCOCBC has longstanding presence in Singapore and Malaysia and entered the Indonesia market through acquisition of Bank NISP in 2004. It owns 87% of life insurer Great Eastern Holdings and has a 20% stake
in Bank of Ningbo.
Stalwarts****- Beneficiary of rising interest rates -> higher NIM
- Expansion to Greater China via acquisition of Wing Hang Bank
- Solid dividend yield of 4%+ and increasing
- Non-performing loans remained low at 1.4%
- Possible dividend payment from sale of Great Eastern Malaysia's 30% stake
- Trade war risks loom
- Dividend yield lower than Banking peers
- P/B of 1.17 close to 10 year average of 1.3x forward P/B
532/12/2018SGXF34WilmarIntegrated agribusiness group with many leading global positions such as largest sugar producer in Australia, leading cooking oil brand in China, largest producer of consumer pack oil in IndonesiaStalwarts****- Deeply established in the business of producing basic food ingredients to feed the growing population of Asia
- Market leading positions in many large population countries
- Impending IPO of its China ops
- 4% and 21% growth in revenue and net profit yoy in 3Q 18
- 17% increase in PBT for largest segment in 3Q: Oilseeds and Grains
- Unpredictabality of Crude Palm Oil price affecting its earnings
- Weather or natural disasters disrupting its supply chain
- Sucession risk. Key founder who is astute and sharp (Kuok Khoon Hong) is getting on age.
544/12/2018SGXO32OlamGlobal integrated supply chain manager of agricultural products and food ingredients including cocoa, coffee and edible nuts. Own 210 processing plants across 66 countries.Stalwarts***- PE of 11x is cheap by historical standards that hovers between 10 to 18
- 53.6% owned by Temasek
- Large variety of producst and ingredients reducing reliance on any particular product stream
- Doing heavy share buybacks
- Long term plan in tact (debt reduction and focus on FCF)
- Commodity business. Razer thin margin of 1.99% latest FY
- Debt to Equity of 1.38. $2.8b cash, $11.8b borrowing
- Capital intensive business. Only in FY17 capex lower than net ops cash flow. Previous years have been frequently above.
555/12/2018SGXF13Fu yuEngaged in the manufacturing and sub-assembly of precision plastic parts and components, as well as fabrication of precision molds and dies. Has 10 manufacturing plants in Sg, Mlysia & China.Cyclicals****- Net cash almost half of market cap
- Provides dividend yields of 8% & above
- Trailing P/E of 12x
- Optimising and turning around loss-making operations.

- Shutting down factories with over-utilization
- Slowdown in revenue and profits after 2018 massive cost reduction year.
- No moat as the products are homogenous
569/12/2018SGXS58SATSProvider of gateway services for airports and cruise centre, and food solutions to hospitality, healthcare and logistics industry. Dominant player in Changi AirportStalwarts****- Almost like a toll road business. All passengers passing thru Changi contribute to its revenue
- Growth potential of T4 and future T5
- Broad base operating statistics improvements in 1H FY19: Passengers, cargo, ship calls handled, and gross meals produced
- Key subsidiary Japan TFK revenue up 5.7%. Japan's target of 40m tourists by 2020 provides growth opportunity
- Execution and macro risk of overseas associates and Joint Ventures. Eg. recent termination of Istanbul new airport central kitchen
- 2QFY19 associates profit down 22% yoy to S$14m
- Higher oil price and competition affecting its margin
- Sensitive to macro headwinds eg trade frictions
5710/12/2018SGX5OIJapan FoodsOperator of Restaurants (mainly Japan focused). Restaurant brands include Ajisen Ramen brand, Kazokutei, Menya Musashi, New ManLee Bak Kut etc. Own brands include Fruit Paradise, Dutch Baby Cafe, Japanese Gourmet TownStalwarts****- Ajisen Ramen remains as top contributor and cash cow for cpy to expand into other brands
- >4% tasty yield one of the highest among F&B operators
- Cashflow generative + Net Cash position of $22 mil
- Recent JV with Minor International to manage the JV company’s Thai cuisine in Japan (Thai Express)
- New Michelin restaurant Konjiki Hototogisu
- Opportunity to operate more franchise branches open doors to more stuff
- Low Net margins of 5.8%
- Plagued by familiar issues such as increasing rental, labour and material costs
- Ajisen Ramen continued to lose its shine. Other brands need to do better to maintain and prop up revenues higher
- Revenue and Gross Profits growing at slow pace ~5% since FY2011. Needs a better growth strategy
5814/12/2018SGXS08SingpostSingapore's postal sevice provider with exclusive access to all mail boxes in the country. Also provide digital mail, e commerce, paccel and self-storage logistic services. Present in 19 countries.Slow Growers**- Collaboration with Alibaba logistics arm Cainiao
- Hidden assets among its properties
- Post and parcel segment still resilient with 1.6% and 5.1% growth in revenue and ops profit in Q2 Fy18/19
- E commerce related revenue constitutes 51%. However, e commerce segment losses widened to $11.2m, in Q2 FY18/19.
- US businesses, acquired at big costs, still see no sight of turnaround, due to competition and pricing pressure
- International mail revenue growth slow down to 4.7% in Q2 FY18/19
- High valuation with a PE of ~21, for a business thats facing challenges in multiple fronts
5919/12/2018SGX1F0Shopper360Singapore's postal sevice provider with exclusive access to all mail boxes in the country. Also provide digital mail, e commerce, paccel and self-storage logistic services. Present in 19 countries.Fast Growers****- New contracts w/ Burger King Sg & Shell etc. provides visibility of earnings for FY19
- Add. revenue stream from media reseller rights for Spotify Malaysia
- Partnership with Pa - Myanmar's leading chain may spur a new era of growth (given the huge market potential of Myanmar)
- 8x P/E even when including the listing exp of RM 1mil.
- Big time player in Malaysia - in-store advertising space in over 1,900 retail outlets across 183 towns in Malaysia
- Niche market - Shopper360 connects big brand names (Nestle, Colgate-Palmolive, F&N Beverage) w/ hypermarkets & supermarkets (Giant, Cold Storage,
& Aeon etc.)
- 4.5% dividend yield!
- At least 7 key management or board changes since listing in 2017 (leading to uncertainty)
- FY2017 Rev up 20% but Profits down 50% - due to listing costs, higher sampling costs & lack of diposal gains in FY2016
6019/12/2018SGXF83Cosco ShippingEngaged in operating ship repair, ship building, marine engineering and dry bulk shipping outfits in China and Singapore. The Company operates through three segments: Shipping; Ship repair, ship building and marine engineering activities, and all other segment.Turnarounds***- Leapfrogged from -S$157 mil losses for 9MFY2017 to S$5mil profits due to lack of losses from discountined ops & ingestion of Cogent Holdings
- Debt ballooned to S$181.6 mil due to logistics biz acquistion but interest on borrowings at manageable 4% - Turning around its streak of losses
- Improvement in dry bulk shipping market; the Baltic Dry Index averaged 1,607 points in the third quarter of 2018, an increase of 41.7% yoy
- Lack of Analyst Coverage
- 9M FY2018 EPS of 0.0033 equates to a whooping 106x PE ratio (have to monitor Q4 for more details)
- Although backed by parent company Cosco China, there has been little to show over the years.
6119/12/2018SGXCNEMindChamps PreschoolLargest operator of premium preschool in terms of market share in Singapore. Present in Vietnam, Phillipines, Myanmar, Australia, China. Fast Growers***- Its all about the growth. 9 mth 2018 revenue, gross profit and ops profit grew 58%, 54%, 34%; Q3 2018 growth was 74%, 52%, 31%
- Past 3 years CAGR or revenue, gross profit and ops profit was 35.6%, 35.7%, 24%
- 126 centres out of the total 180 franchises sold yet to commence operation. Clear growth prospect in recurring fees
- 8 company owned and operated (COCO) preschools in Australia and Singapore to contribute full year revenue in 2019
- Still net cash positive
- Growth via acquisition resulting in negative free cash flow
- Can the growth materialise? Execution risk in China, a very competitive market that is getting negative scrutiny lately; and Australia, a mature market with established operators
- Set to take on more debts for expansion
- Costs creeping up. 9 mth Admin and Marketing expenses up 84%; Q3 up 87%. Australia, one of expansion market, has very high manpower cost
- Trailing PE 27 times. Expensive valuation
6225/12/2018SGXQ01QAFManufacture and distribution of bread, bakery and confectionery products; trading and distribution of F&B. Brands include Gardenia Bread, Rivalea, Cowhead & Farmland.Turnarounds**- Strong balance sheet and cash reserves of approximately $67 million as at 30 September 2018
- Rachel Liem, daughter of Vice Chairman Andree, has been buying shares from open market
- P/B of 0.67x at multi-year low, but P/E soared to 55x on the back of falling profits
- Strong Brand Recall for Gardenia Bread; Economies of Scale for bakery segment
- 9M2018 revenue largely unchanged but profits plunged 85% due to broad-based increase in expenses.
- 8 Year Financial highlights show that revenue has been side-lining ever since 2011.
- Even if we disregard the latest profit margins, QAF's profit margin indicates around 4+% on average (measly)
- Capital Intensive, need lots of capital to expand overseas, leading to higher depreciation costs, in turn cause lower profits
- Oversupply of pork situation unlikely to reverse anytime soon
635/4/2019SGX5MZKingsmen CreativeCommunication design and production group specialised in creating unique interior, exhibitions, events and thematic space for retail brands and corporate clients. Turnarounds***- Net cash rock solid balance sheet with >40% of market cap in cash
- Past two quarters increase in revenue year-on-year suggest that business could be turning around
- Partnership with Hasbro to own and operate world's first NERF family centre. Also in talks to buy other IP brands...Follow footsteps of Cityneon?
- Banging on the opening of Jewel Changi Airport + new orders from RWS/MBS following the S$9 billion redevelopment
- Net Profit Margin and ROE been falling from FY13 - FY17: 6% - 3.2%, 22.3% - 8.2%
- Licensing deal with Hasbro on NERF Entertainment centre still early days. NERF has much weaker brand compared to the blockbuster Intellectual Property rights that Cityneon owns such as Transformer, Jurracsic Park, Hunger Games etc.
- High end and luxury retail segments with high margin could suffer if economy slowdown
648/1/2019SGXAWZAEMProvider of equipment systems solutions and manufacturing services to clients in the electronics, life sciences, instruments and aerospace industrieFast Growers****- Provision of cable test solutioning contract for Huawei's 5G network
- The growth of 5G technology and network in China opening up large growth avenue. Case in point, 5G test equipment market worth US$350m in 2018
- Pristine balance sheet with net cash
- Still showing strong growth: 9m 2018 revenue and Profit before Tax up 37.2% and 34.6% yoy
- Single customer concentration that takes up more than 90% of revenue
- Slow down in demand for test handler from 2019 onwards
- Semiconductor secular growth trend slowing down
6515/1/2019HKEX1810XiaomiMajor smartphone manufacturer with 9.7% global market share in Q3 2018. Also a major smart TV producer in China with a suite of other Internet of Things product offering Fast Growers****- Unique ecosystem of smartphones + Iot/Lifestyle products + Internet Services that builds on network effect to gain active users
- IoT growth prospect. Global IoT market expected to grow to 50.1 billion devices in 2020, 23.1% CAGR from 2014, according to research by USA CompTIA.
- 21.5% largest market share in global smart wearables in Q3 2018
- Relatively low smart phone selling price with comparable specs of top range model, catering to consumers in emerging market. In Q3 2018, No. 1 in India, No. 2 in Indonesia.
- Global smartphone shipment growth has reached a plateau especially in developed markets. Case in point: Apple reducing its sales guidance
- Compeition on many fronts. Huawei and Oppo for smartphone, Midea/Gree/Haier for smart home appliances
- Fail execution of its IoT strategy
- Internet Services, next growth area, takes up less than 10% of revenue
663/5/2019SGXCHZHRnetGroupLargest recruitment player in Asia Pac (ex Japan) based on revenue. Present in 13 growth cities such as Jakarta, Shanghai, Shenzhen etc.Fast Growers****- Good track record 12.8% and 14.6% CAGR in revenue and net profit from 2007 to 2016
- Balanced exposure to both professional recruitment and flexible staffing that smoothen earnings swing during economic downturn
- Clear organic growth path with new operations setting up in Shanghai and Shenzhen
- Highly scalable business that do not need large capital, but rely on expertise, scale and deep know-how of the local market
- Rock Solid balance sheet: $282m cash as of 31 Dec 2018, representing ~30% of market cap.
- Still a low entry barrier industry that faces constant competition
- Business very sensitive to economic cycle
- Key man risk. Departure/poaching of highly successful top agent with key network and connections can be big issue
- Technology disruption on recruitment activity eg. Artifical Intelligence analysis on candidate suitability can render the business model obsolete
- Rising trend of in-house recruitment activities ie 'in-sourcing'
685/4/2019SGXS61SBSTransitAs its name suggests, operator of buses and MRT lines such as Punggol LRT, DownTown Line, NEL etc.Fast Growers****- Execution of Bus Contracting Model turning SBS into a cost-plus asset light biz model
- Handling of new MRT lines which means higher visitorship (i.e. Punggol LRT, DownTown Line, NEL)
- 4.3% fare adjustment effective on 29 December 2018 will further increase FY2019 revenue
- Limited expansion as SBS only operates in Singapore
- highly dependant on policies, may rake up public grievances if SBS earns too much (supposed to be public cpy)
- Increased oil prices, labour, maintenance costs may dampen financials going forward
695/4/2019HKEX0173K.Wah International HoldingsK.Wah is an integrated property developor and investor. It is the listed property arm of Kah Wah Grp, founded by billionaire Lui Che Woo, the owner of Galaxy Entertainment.Asset Plays****- low valuation of P/NAV of 0.42 and PE of 3.76, based on share price of HK$4.87
- Steadily rising dividends since FY13 to FY18: 15cts to 20cts
- Total Debt/Asset ratio of 0.52
- Earnings visibility: HK$12.2b of sales to be booked as at 31 Dec 18, more than FY18 total revenue of HK$10.7b
- Plugged deep into China's top urban areas: Yangtze RIver Delta, and Pearl River Delta (The Greater Bay)
- Regulatory risks from China property market
- Lack of substantial investment properties portfolio for recurring income that provides stability to earnings
- Discount to net asset derived from property value. Some of its assets are not marque/prime properties, which may not hold value that well
7010/4/2019KLSE7160Pentamaster25 years of experience in Automation manufacturing & technology solutions provider serving diverse industries across the Globe.
Listed in both Bursa Malaysia & Hong Kong.
Fast Growers****- Company expects 2019 to be another good year.
- Diversification into the automotive sector
- Spectacular growth in top and bottom-line over past 5 years.
- Net Cash strong balance sheet
- Have been recording existing shareholders through Bonus issues - Nov 2017 & proposed for upcoming Apr 2019
- CEO owns 19.6%; Exec Director owns 4.5%
- No dividends despite strong growth in profits
- Inventory Turnover (how fast inventory is moving) dropped from around 6x in FY2014 to 2.2x in FY2018
- 1 Key Concentration Risk - The biggest customer comprises of 57.9% of Total revenue in FY18!
7111/4/2019SGXVL6KoufuManager and operator of 46 food courts, 15 coffee shops, restaurants and hawker centre, with a presence in MacauSlow Growers***- Tapping on tech eg. self ordering and payment kiosks to reduce reliance on labourers
- integrated central kitchen facility ready in 2020
- Getting very efficient at operating food courts and coffee shops: improving margin for Outlet & Mall Mgmt Segment in past 4 FY
- Focus area for local expansion: hospitals, commercial malls, tertiary institutions and new housing estates
- Expansion in Macau largely un-proven
- PE of 17 seems high for a F&B business entity
- Past 4 FY EPS CAGR of 3.6%. Hence a PEG ratio of 4.72 that seems stretched
- Potential rise in CAPEX due to agressive bidding of food courts and coffee shop spaces
7215/4/2019HKEX1558HEC PharmEngages in the development, manufacturing & selling of pharmaceutical products in the therapeutic areas of anti-virus, endocrine and metabolic diseases, cardiovascular diseases and others. Growers****- Issue favourable convertible bond issuance of 3% per annum (Sub px @ HKD38 each) to Blackstone group a Vote of Confidence.
- 124% & 110% yoy jump in revenue & profits in 1H2018
- Gearing at 0.58% only; Net profit margin at 43%!
- 92.5% market share of the drug Kewei - within Oseltamivir
- Significant market potential in China as Influenza activity continues to increase, driving ongoing shift to modern treatments away from
obsolete Amantadine & TCM drugs, which currently still account for >50% of the treatment market
- Mo Kit, non-exec director owns 36% of the firm?!
- Pharma companies require long gestation periods for their drugs (need to go through long periods for clinical trials)
- Highly regulated by China govt - subsidies & regulations etc.
- Stiff global competition against all pharma companies once IP protection ends in yr 2026 (currently only manufacturer of the patent-protected granules form of oseltamivir phosphate in the PRC).
7316/4/2019SGXP34Delfi LimitedMarkets and distribute own proprietary and major brands of chocolate confectionery in South East Asia Turnarounds***- Distribution model transformed to a direct shipment model to reach major minimarts as key
- Exclusive distributorship of Van Houten
- Growth of own brands sales by 16% in FY18 that command higher margin
- While chocolate snacks are considered consumer product with inelastic demand, industry is competitive with numerous brands, and lack of premium quality that can retain customers
- Susceptible to impact of weak Rupiah currency
- Very low trading volume
- Lack of consistent dividend track record
7422/4/2019SGXCJLUNetlink NBN TrustOwner and operator of the fibre network infrastructure that is the backbone of nation-wide broadband network.Slow Growers***- Defensive industry with inelastic demand for its service
- Growing network in new housing estate
- Extensive nationwide network puts it in pole position to support Smart Nation Initiative
- 3Q 19 revenue and net profit 3.4% and 17.6% higher than IPO forecast
- Capital expenditure required for maintenance and replacement of fibre infrastructure
- No possibility of explosive growth. A utility-liked business
- Heavy competition in CBD area for non residential space from Starhub and Singtel
- Potential growth from Non Building Access Points (ie. Internet of Things) fail to materialise/delayed roll out
7526/4/2019HKEX3918NagacorpLargest hotel, gaming and leisure operator in Cambodia. Its flagship asset, Nagaworld, enjoys a 70-year casino license concession that will run till 2065.Fast Growers***- Owns Phnom Penh only gaming property; monopoly within 200km of the city
- Favourable macro picture: fast economic growth in the region, booming tourism industry,
- Further expansion of Nagaworld third phase in the works
- FY18 revenue grew 54.1% to US$1.47b; 5-year CAGR of 34%
- FY18 net profit grew 52.9%; 5-year CAGR of 23%
- Expanding junket operations to Macau to bring in Chinese high rollers
- Cambodian government may implement 4-5% gaming tax (currently none)
- Competition from regional integrated resorts eg. Macau, Malaysia, Japan
- High capex for expansion plans
- Gaming business will be particularly hard-hit if economic growth stalls
7622/5/2019SGXU96Sembcorp IndustriesA provider of essential energy and water solutions. Facilities with over 11,000MW of gross power capacity & over 9m cubic metres of water per day in operation and under development. Also a world leader in marine and offshore engineering (via Sembcorp Marine).Asset Plays**- Trading at cheap 0.6x FY19 P/BV; 5 years bottom of 1 standard deviation range
- Proxy to oil&gas recovery with Sembcorp Marine, anchored by defensive Utilities Biz
- SCI’s India operations rebounded from a loss of S$58m in 2017 to a profit of S$47m in 2018, and the positive trend should continue over long term.
- Paltry net margins of 2-4%
- Asset-Heavy Biz requires tons of capex
- 11-week planned shutdowns may lead to lumpy earnings
- Many moving parts to Biz - not easy to understand
- Seasonal effects make financials fluctuating
7724/5/2019SGXC6LSingapore AirlinesSingapore Airlines is Singapore's flag carrier, flying to more than 60 destinations in over 30 countries. Traveller’s World Magazine and Skytrax samed SIA as Best Airline In 2018Cyclicals- Transformation bears fruit as revenue growth finally returning after years of stagnation due to cost management efforts
- Undemanding valuations at 0.8x P/B, -1.5 SD below 10 year average
- 30 cents dividend translates to around 3.2% yield
- Opening of Jewel mall to revitalize tourist happenings around the area
- Weakening cargo traffic ahead of latest Sino-US tariffs
- 8 Boeing 737 Max grounded with another 31 on order a big risk + disruption
- Trend of pax traffic heading to Low-Cost carriers still intact. Huge demographics risks.
- Saturated local market compared to U.S. where airlines like southwest airlines can have huge economies of scale
7828/5/2019SGXG92China Aviation OilLargest physical jet fuel trader in Asia Pacific. Supply jet fuel to 17 gateway airports in China including Beijing Capital, Shanghai Pudong and Hongqiao.Cyclicals****- Macro growth trend of China's domestic aviation demand. Apr 19 passenger traffic grow 3.9% yoy
- Global expansion plan: 11 airports along the Belt Rd Initiative; top 3 supplier at LA airport; new business in Frankfurt and Armsterdam
- New satellite terminal at Pudong commence operation in Sept 19
- Cash hoard of US$379 m with no loans/borrowings
- Volatility of oil prices posing difficulty to price hedging that could bring about sudden large loss
- Opening up of China's jet fuel market impacting its market position
- Reduced supply and trading volume arising mainly from 35.5% fall in 'other oil products'
7914/6/2019KLSE5099Air AsiaAirasia Group Bhd (AAGB) is the largest low-cost carrier in Asia. It operates nine airlines in six countries under Airasia and Airasia X across Asia. They include key markets such as Malaysia, Thailand, the Philippines, Indonesia, India and Japan.Cyclicals****- Grown revenue from 3.1 bil MYR in 2009 to 10.6 Bil MYR in 2018.
- Net cash as of FY2018
- Base dividend yield of 7% + Special dividend of 90 sen equivalent to 34% of dividend yield from price of RM2.63. Mainly due to sale of 25 aircraft to US private investment firm Castlelake LP in a deal worth US$768mil (RM3.22bil) last year.
- Aims to become the preferred travel & financial platform in ASEAN via Airasia 3.0. It focuses on three areas for growth: Airline, Digital and Technology. (check link for more details).
- Economic moat as the market leader in the low cost and efficient cost-structure airline model
- Earnings have been volatile over the decade due to factors like volatility in Fuel Prices, FX, purchase & disposal in associated cpy etc
- Only Malaysia's market making profits as of now.
- High uncertainty over airline. E.g. the Airbus crash incident.
8014/6/2019SGX5UJNeo GroupNeo Group Limited is a leading food catering group in Singapore. The company operations is divided into 4 highly synergetic business segments: Food Catering, Food Retail, Supplies and Trading, Food Manufacturing and other businesses.Turnarounds**- 90.7% surge in profit before tax to S$6.2 million, mainly due to its strategy to consolidate and reduce low margin trading transactions and overheads for its Supplies and Trading business.
- Still generating free cash flow and has a ROE above 10% for the past 2 years.
- Top 3 shareholders own a collective 77.62% of Neo Group.
- Currently one of the smaller F&B player with S$81 million market cap
- Paltry margins of 2+%
- Dividend yields of 1-2%
- Management emphasise that they will continue to do M&A once a year, which may lead to higher borrowings if profits don't cover the debt quick enough
- May have difficulty meeting short-term obligations due to a poor current ratio for past 3 years
8128/6/2019SGXND8UFrasers Comm TrustA commercial REIT holding six quality office properties across Singapore, UK and Australia Asset Plays***- Google to lease $344k sq ft of space at newly upgraded Alexandra Techno Park
- Gearing 29.1% one of the lowest in REITs space
- Pipeline of acquisition assets from sponsor's UK properties, taking advantage of Brexit uncertainty
- Completion of China Sq Central asset enhancement (new hotel and retail podium) to act as further rental uplift catalyst
- Continuted softness is AUD exchange rate
- Current price at more than 10 yr high, compressing the yield to 5.7%
- Is the current REITs bull run too fast too furious?
8218/7/2019KLSE7237Power Root BerhadManufactures and distributes beverages product including Ready to Drink (RTD) coffee, RTD tea, chocolate malt drinks, cereal and energy drinks. Primary market is Msia, while also exporting to 18 overseas markets.Stalwarts***- FY19 profit before tax more than doubled to RM28m
- RM41m cash and RM36m borrowings. Net cash
- FY19 Net Ops cash Flow more than doubled to RM41m
- Decent dividend yield of 5%
- Domestic fast moving consumer goods business more sheltered than choppy international trade conditions
- Small market cap of RM720m. not as sturdy and defensive as the big boys eg. Carlsberg or Nestle
- Excise duty on sugar sweetened beverage
- Flucuation of raw material cost that constitues around 50% of revenue
- Stiff competition. Think of the various brands of RTD coffee, and alternative beverages such as bubble tea etc
8319/8/2019SGXC2PUParkway Life REITOne of Asia's largest listed healthcare reit. Currently holding assets in form of hospital, medical centre and nursing homes across Spore, Malaysia, Japan.Slow Growers***- Excellent record of DPU growth
- Healthcare assets that are defensive and recession proof
- Spore hospital operator Parkway Pantai is a strong regional player
- 46 high qualities in Japan catering to an ageing population and long term lease of 11.89 yrs of WALE
- Price to NAV of 1.622. Consider if you will pay 62% premium above asset value even when there is an excellent asset manager?
- Only 4.23% yield. Is there better alternative around?
- is it a too stable stock without much growth potential?
8419/8/2019SGXT82USuntec REITA REIT comprising retail, office properties, and convention exhibition centre in Singapore, Sydney and Melbourne. Slow Growers****- All assets are prime grade real estate
- With sizeable retail and office segment offering portfolio resilience
- Managed by renowned external manager: ARA Trust Management
- Upcoming developments to boost DPU probably: 9 Penang Rd office already 100% pre leased to UBS; 477 Collns Street 85% pre committed
- Gearing on the high side: 38.3%
- Recent expansion into Australia could be a boon or a bane? Would Aust economy slow down due to lesser commodity demand from China?
- Singapore recession soon?