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#Date (Latest)MktTickerCompany NameQuick BackgroundCategory (Refer to orange tab)Reasons for BuyingReasons for Caution
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121/11/18SGXZ74SingtelLargest Telco in SingaporeSlow GrowersHigh 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
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221/11/18SGX5MLOld Chang KeeOperates snack food stalls and food retail outlets i.e. Curry Times. Moat: Curry!TurnaroundsCurry 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
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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
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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%
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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.
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622/11/18SGXC38U
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
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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.
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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
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922/11/18SGXCRPUSasseur 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)
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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
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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
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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
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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
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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
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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
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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
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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
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1824/11/18SGXG13Genting 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 ops margins of 38.8% TTM and good ROE of 9.5% TTM
- 3rd Qtr 2018: Operating Profit increase 17% yoy
- Strong Balance Sheet: net cash
- 52% owned by parent company - Genting Berhad
- 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
- Risk of losing bid in Japan for the Integrated Resort (IR)
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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
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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
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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
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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
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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
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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
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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
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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
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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+.
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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?
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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
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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]
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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
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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
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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
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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
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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
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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
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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?
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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
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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
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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%
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4125/11/2018KLSE7034Thong Guan IndustriesOne of the largest manufacturers of plastic packaging products in Malaysia. Also manufactures and distributes F&B products - visit www.888teacoffee.com.my and www.organicnoodle.com.my. 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
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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
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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
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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
48
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?
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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
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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%
51
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
52
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
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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 [https://s3-ap-southeast-1.amazonaws.com/investingnote-production-webbucket/attachments/de4b847fad94cd22411eda65868dfdb46fec91e1.pdf?1440215716]
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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)
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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
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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.
57
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.
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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
59
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
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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
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