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Category: SG Stocks And Shares
– Key highlight this week is the commencement of the China CPC on 18 Oct (Wed), where investors will focus on the direction to be set by top leader Xi Jinping for the country over the next five years.
– Technically, the STI sees immediate upside resistance at 3,320, with the next objective at 3,355. Downside support is at 3,275 followed by 3,250.
– 3QFY17 DPU dipped 1.8% to 1.374¢, bringing 9MFY17 DPU to 4.329¢ (-4.2%).
– Quarter revenue grew 4.1% to $20.5m on higher takings from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection and Tellus Marine, but was partially offset by reduced income from 72 Loyang Way.
– NPI rose at a slower clip to $17.8m (+3%), on higher property expenses (+11.3%) at Loyang Way and Bukit Batok Connection.
– Occupancy rate improved 1.5ppt to 94.1%, while average debt cost was slightly lowered to 3.32% (2QFY17: 3.37%).
– NAV/unit at $0.71.
*Transit Mixed Concrete
– 1H17 net profit crashed 93% to $0.8m, alongside by a 27% fall in revenue to $8.6m on keen competition and slowdown in construction activities in Singapore and Malaysia.
– Consequently, gross margin slumped to 11.1% (-9.6ppt), while bottom line was further dragged by a 77% dive in other income to $0.6m.
– Management expects weak demand and stiff competition to persist.
– Slashed interim DPS to 1¢/share (1H16: 1.5¢).
– Last traded at 19.4x trailing P/E.
– Guided for higher FY17 pretax operating profit of at least $32m from $24m previously.
– The raise was due to higher sales, better profit margin, and improved operational efficiency.
– AEM is under-researched with only one broker coverage with a Buy and TP of $3.43.
– Last traded at 8.2x forward P/E prior to the 33% earnings upgrade.
*Lippo Malls Indonesia Retail Trust
– To acquire Lippo Plaza Jogja and Kediri Town Square for $98.1m.
– The slightly accretive deal will boost its portfolio to 30 properties in Indonesia with a valuation of over $2b and NLA of 921,026 sqm.
– Pro forma FY16 DPU of 3.43¢ (+0.6%) translates to an implied yield of 7.9%.
– Exploring the sale of property assets on Molokai Island in Hawaii.
– The assets are listed for sale at US$260m, consisting of 55,000 acres of land and operations which provides water and wastewater services.
– Last traded at 16.7x trailing P/E.
– Invited to further negotiate with the Norway government for the construction of three new coast guard vessels.
– Tender for the project is scheduled for approval by the Norwegian Parliament in 2018 and the first vessel is slated for delivery in 2022.
– Last traded at 0.77x P/B.
– Formed a 70:20:10 JV with Progen Industrial and Seacare Property Development.
– The JVCo will undertake the redevelopment of the properties at 17 Balmoral Road.
– Group’s judicial management has been extended to 31 Oct ’18.
– Judicial managers have also been granted an extension to 31 Mar ’18 to send proposals to creditors for its debt restructuring.
– Secured a revolving credit facility worth US$1.75b from a consortium of banks.
– Proceeds to be used towards refinancing of existing loans.
Singapore Stocks to Watch
* First REIT (FIRT SP): To Buy Hospital Component Of Property In Yogyakarta
*GL Ltd (GLL SP): To explore sale of Hawaii assets worth $260m
*Lippo Malls Indonesia Retail Trust (LMRT SP): Agrees to buy two retail malls in Indonesia
*Noble Group (NOBL SP): Filings warn of bankruptcy risk at two subsidiaries
*Olam (OLAM SP): Secures $1.75b revolving credit line
*Pan-United (PAN SP): Proposes separate concrete and cement, port business
*Poh Tiong Choon Logistics (PTC SP): Some shareholders accept Poh Tiong Choon stake takeover offer
*SBI Offshore (SBIO SP): To sell Solar Africa Investments
*Vard (VARD SP): Vard Invited To Negotiate For 3 Coast Guard Vessels For Norway
– Technically, the STI see immediate support at 3,275, with upside resistance pegged at 3,320.
– Not considering the 1 time gain from sale, SPH revenue fell as expected in my previous email
For investing: may consider bank shares, namely DBS. Property counters such as Wheelock and Capitaland too
For trading: personally I am watching Rowsley, KOP and sunmoon
– FY17 net profit grew 32% to $350.1m, mainly lifted by a $149.7m divestment gain arising from a 33% stake sale in online classified site 701Search.
– Otherwise, full-year core earnings of $200.4m (-24.5%) missed street forecasts.
– Operating revenue of $1.05b (-8.8%) continued to be pressured by the core media business (-13%).
– EBIT margin contracted to 19.5% (-7ppt), on impairment charges totalling $60.6m.
– Final and special DPS shaved to 9¢ (4Q16: 11¢), bringing FY17 DPS to 15¢ (FY16: 18¢).
– Group reducing headcount further and expects to incur retrenchment costs of $13m in 1QFY18.
– Last traded at 19.1x forward P/E and 2.7% dividend yield.
*Duty Free International
– 2QFY18 net profit crept 1.6% higher to RM14.1m, lifted by a RM1.6m fair value gain on option.
– This brought 1HFY18 earnings to RM29.1m (-13.6%), or 45% of full-year street estimate.
– Quarter revenue slipped 5.5% to RM148.3m, on lower demand due to the GST imposition at border outlets and duty free zones.
– Declared second interim DPS of 0.5¢ (2QFY17: nil).
– Trades at 13.9x forward P/E.
– Slumped into a 1QFY18 net loss of $0.9m (1QFY17: $0.6m profit) on gross margin compression.
– Revenue rose 9.6% to $70.1m from higher progressive sales from ongoing development properties, but gross margin contracted to 10.1% (-1.2ppt).
– Bottom line was further impacted by a 221.3% spike in selling & distribution expenses on promotional activity, as well as absence of tenant compensation (1QFY17: $0.4m) and FX gain (1QFY17: $0.2m).
– NAV/share at $0.189.
– 1QFY18 net profit dived 96.3% to $22,000.
– Revenue surged 88.4% to $26m on higher progressive revenue from development projects Hibre 28, 183 Longhaus and Have Avenue project.
– But gross profit narrowed to 16.3% (-12.1ppt) on a shift in sales mix.
– Earnings fizzled on a 225% spike in selling & distribution costs from promotional expenses incurred and lower associate contribution (-20.3%).
– NAV/share at $0.352.
– 32.5% owned Nanjing Puzhen Rail Transport secured three metro train car supply contracts worth Rmb2.37b.
– The contracts are slated for delivery between Jun ’18 and Mar ’21.
– The counter is a beneficiary of China’s push to develop and expand urban rail transit systems to meet the needs of urbanisation.
– Last traded at 11.9x forward P/E.
– Proposed placement of 500m new shares (8.7% enlarged share capital) at 0.8¢ to two parties.
– The placees include management consultancy firm, Summit Planners Advisory Group, and non-exec director, Liu Song.
– Net proceeds of $3.9m intended to support M&A of WE Crowdfunding and working capital.
– Proposed 11% investment in a cross-platform Malaysian B2B commerce solution provider, Boostorder, for RM2.5m.
– The investment is synergistic to the group’s existing proprietary software and customer base.
– Last traded at 1.2x trailing P/E.
– Entered into an agreement to dispose a 60-year leasehold, underutilised cold storage and office at 5 Second Chin Bee Road for $7.8m.
– The sale price is at a 6% discount to a market valuation done back in 2015, and the group estimates a disposal gain of $4.2m.
– Net proceeds from the disposal will be used to pare debt and for working capital.
News for today 12/10/2017:
– Five Things You Need to Know to Start Your Dayhttps://www.bloomberg.com/news/articles/2017-10-11/five-things-you-need-to-know-to-start-your-day-j8nm4fkk
– IMF calls for fiscal policies that tackle rising inequality http://www.straitstimes.com/business/imf-calls-for-fiscal-policies-that-tackle-rising-inequality?xtor=CS3-18
– Oil prices settle up on demand forecasts, Kurdistan tensions http://www.businesstimes.com.sg/energy-commodities/oil-prices-settle-up-on-demand-forecasts-kurdistan-tensions
– Gold extends gains after latest Fed meeting minutes http://www.businesstimes.com.sg/energy-commodities/gold-extends-gains-after-latest-fed-meeting-minutes?xtor=CS3-25
– Dow, S&P 500, Nasdaq at record highs, extending rally http://www.straitstimes.com/business/companies-markets/dow-sp-500-nasdaq-at-record-highs-extending-rally?xtor=CS3-18
– ‘Many’ Fed members favour December rate hike: Minutes http://www.straitstimes.com/business/companies-markets/many-fed-members-favour-december-rate-hike-minutes?xtor=CS3-18; Federal Reserve should raise policy rate to 2.5% over two years: Williams http://www.businesstimes.com.sg/government-economy/federal-reserve-should-raise-policy-rate-to-25-over-two-years-williams?xtor=CS3-25
– US carrier drills with Japanese navy around Okinawa, south-west of Korean peninsula http://www.straitstimes.com/asia/east-asia/us-carrier-drills-with-japanese-navy-around-okinawa-south-west-of-korean-peninsula?xtor=CS3-18
– Condo, private apartment rents slip 0.1% in September; HDB rents slide 0.9% http://www.straitstimes.com/business/property/condo-private-apartment-rents-slip-01-in-september-hdb-rents-slide-09?xtor=CS3-18
– Women’s CPF savings go up, narrowing gender gap http://www.straitstimes.com/singapore/manpower/womens-cpf-savings-go-up-narrowing-gender-gap?xtor=CS3-18
– Collective sales: Why some owners missed out http://www.straitstimes.com/business/property/collective-sales-why-some-owners-missed-out?xtor=CS3-18
– Sim Lim Square forms committee in first attempt http://www.straitstimes.com/business/property/sim-lim-square-forms-committee-in-first-attempt?xtor=CS3-18
– Many in finance, accounting ‘not future-ready’ http://www.straitstimes.com/business/companies-markets/many-in-finance-accounting-not-future-ready?xtor=CS3-18
Stocks to watch today 12/10/2017:
– Accrelist last close $0.007, 52wk high/low $0.008/$0.004 – Company to raise S$4m via proposed share placement to support e-medical and e-wallet initiatives http://www.businesstimes.com.sg/companies-markets/accrelist-to-raise-s4m-via-proposed-share-placement-to-support-e-medical-and-e?xtor=CS3-25
– Banyan Tree last close $0.645, 52wk high/low $0.68/$0.36 – Company marks homecoming with resort in Mandai http://www.businesstimes.com.sg/companies-markets/banyan-tree-marks-homecoming-with-resort-in-mandai?xtor=CS3-25
– Frasers Centrepoint last close $2.08, 52wk high/low $2.17/$1.47 – Company acquires three German companies http://www.straitstimes.com/business/companies-markets/frasers-centrepoint-acquires-three-german-companies?xtor=CS3-18
– Genting Singapore last close $1.18, 52wk high/low $1.215/$0.74 – Company markets debut Samurai bonds http://www.straitstimes.com/business/companies-markets/genting-singapore-markets-debut-samurai-bonds?xtor=CS3-18
– Lafe Corp last close $0.90, 52wk high/low $0.92/$0.305 – Chairman’s buyout offer goes unconditional http://www.straitstimes.com/business/companies-markets/lafe-corp-chairmans-buyout-offer-goes-unconditional?xtor=CS3-18
– New Silkroutes last close $0.42, 52wk high/low $1.09/$0.35 – Company buys The Dental Hub’s three clinics; auditor flags prepayments to a supplier http://www.straitstimes.com/business/companies-markets/new-silkroutes-buys-the-dental-hubs-three-clinics-for-32m-in-shares-to?xtor=CS3-18
– SPH last close $2.69, 52wk high/low $3.78/$2.54 – Company speeds up staff cuts; posts 32% rise in full-year net profit http://www.straitstimes.com/business/companies-markets/sph-posts-32-rise-in-net-profit-to-speed-up-staff-cuts?xtor=CS3-18; SPH revamps for better footing in digital information age http://www.businesstimes.com.sg/companies-markets/sph-revamps-for-better-footing-in-digital-information-age?xtor=CS3-25
– Spackman last close $0.121, 52wk high/low $0.199/$0.097 – Company buys Korean film production company Take Pictures for $3.9m in shares, cash http://www.straitstimes.com/business/companies-markets/spackman-buys-korean-film-production-company-take-pictures-for-39m-in?xtor=CS3-18
– SIIC last close $0.525, 52wk high/low $0.655/$0.45 – Company receives green light for upgrading, expansion of Wuhan water plant http://www.businesstimes.com.sg/companies-markets/siic-receives-green-light-for-upgrading-expansion-of-wuhan-water-plant?xtor=CS3-25
– Market sentiment is expected to remain subdued as traders awaiting key data from US (inflation), China (trade)and Singapore (3Q GDP, MAS policy) this Fri. – But support could come from the latest IMF update, which bumped up its global growth forecasts as an upswing in the world economy is expected to gather pace into next year.
– Technically, the STI is approaching overbought territory with upside resistance pegged at 3,320 and underlying support at 3,275.
– According to news reports, CapitaLand is holding back sales of two residential projects (57% sold Marina Blue, 81% sold Sky Habitat).
– This comes as other developers, Landlease, Qingjian Realty and GuocoLand have also postponed the next phase of their sale launches for projects launched earlier this year, possibly in the hope of raising prices next year.
– Top picks are UOL (TP: $9.43), GuocoLand (TP: $2.75) and City Dev (TP: $12.05).
– Clinched a Rmb94.8m contract to provide four cold hydrogenation fluidized bed reactors to Chinese conglomerate Inner Mongolia Tongwei.
– Delivery is slated by 1H18 and will be positive for the group’s FY18 results.
– Last traded at 15.7x trailing P/E.
– Korean film, The Outlaws, distributed by 51%-owned subsididiary, has taken the top spot in the Korean box office for two consecutive days.
– Separately, the group raised its stake in 26.17% owned talent agency, Spackman Media Group, to 29.12% for US$2.7m. This will be funded via issue of by 28.5m new shares (6.1% of share capital) at $0.13 each.
– Proposed to acquire a development stage motion picture production firm, Take Pictures, for $3.9m, via cash ($0.6m) and 25.7m new shares (5.6% of share capital) at $0.13 each.
– Last traded at 8.6x forward P/E.
– Completed acquisition of Sengkang Pawnshop for $3.58m.
– The acquisition will provide an additional revenue stream and is in line with group’s expansion plan.
– Last traded at 9.6x trailing P/E against 10.1x for peer Maxi-Cash’.
– Guided for a 3Q17 operating loss of several hundred thousand dollars.
– Forecast revenue for 3Q17 will just exceed US$11m (-33%).
– The lacklustre quarter was due to excess inventories of polished diamonds, which prompted manufacturers to slow down production and hold off capex, and imitation products that impaired the sales of its capital equipment.
– Last traded at 14.2x forward P/E.
– Proposed a slew of changes to encourage new remisiers to join the industry in bid to improve trading activity on the local bourse.
– These proposed changes include removing the minimum $30,000 security deposit in order to allow broking houses to set their own credit limit, and giving brokers more flexibility to operate off-premises and their own non-trading businesses.
– Last traded at 21.5x forward P/E.
– Acquiring two warehouse facilities in Moosthenning, Bavaria/Germany, for €42.4m ($67.8m).
– The properties with a combined gross lettable area of 72,558 sqm are leased on a long-term basis to a leading German car manufacturer for the warehousing of automotive spare parts.
– Secured its second management contract in China for an upcoming integrated marine located at Sanshan Island, Suzhou.
– The contract will be for a 10-year term, with no further financial details provided.
– Separately, the group inked an MOU with Hainan Cruise & Yacht Association to exchange ideas regarding the development and expansion of Hainan Island’s leisure marina industry.
– Proposed placement of 100m new shares (19.7% existing share capital) at $0.1403 (10% discount to last close) to placement agent PrimePartners Corporate Finance.
– Net proceeds of $13.3m to be used for general working capital (30%) and investments into new, prospect or existing portfolio companies (70%).
– Proposed interested party transaction for a 51% acquisition of investment holding company, which owns Malaysian incorporated travel agency, YC Travel & Tours, for $15m.
– Funding will be via 117.2m new shares at $0.128 apiece to be issued to Executive Chairman and CEO, Chu Sau Ben, and will lift his stake from 50.002% to 74.752%.
*Samurai 2K Aerosol
– Signed an MOU with Genesis GD for the latter to be the sole and exclusive distributor of Samurai’s line of products in Cambodia.
– Entered into a JV agreement with a privately-owned automobile parts importer in Myanmar.
– The JVCo will develop and establish a marketing business for automobile and industrial products in Myanmar.
– YHI has the option to increase its shareholding to a maximum of 51% from its current stake 19%.
– Last traded at 26.7x trailing P/E and 0.97x P/B.
News for today 11/10/2017:
– Oil rises above US$56 on Saudi export cuthttp://www.businesstimes.com.sg/energy-commodities/oil-rises-above-us56-on-saudi-export-cut?xtor=CS3-25
– Gold rises but US rate expectations cap gains http://www.businesstimes.com.sg/energy-commodities/gold-rises-but-us-rate-expectations-cap-gains
– World economic growth improving, even as US, UK potential slows: IMF http://www.straitstimes.com/business/world-economic-growth-improving-even-as-us-uk-potential-slows-imf?xtor=CS3-18
– Dow ends at record high as Wal-Mart surges on forecast http://www.straitstimes.com/business/companies-markets/dow-ends-at-record-high-as-wal-mart-surges-on-forecast?xtor=CS3-18
– Canada housing starts, building permits fall as long boom cools http://www.businesstimes.com.sg/real-estate/canada-housing-starts-building-permits-fall-as-long-boom-cools?xtor=CS3-25
– Euro rises to 1-week high on German trade data http://www.businesstimes.com.sg/companies-markets/euro-rises-to-1-week-high-on-german-trade-data?xtor=CS3-25
– Catalan leader stops short of formal independence declaration to allow talks http://www.straitstimes.com/world/europe/catalan-leader-puigdemont-to-address-regional-parliament-amid-fears-of-declaration-of?xtor=CS3-18
– China says will have no problem meeting 2017 growth target, may beat it http://www.straitstimes.com/business/economy/china-says-will-have-no-problem-meeting-2017-growth-target-may-beat-it?xtor=CS3-18
– IMF raises Japan growth forecast for 2017 to 1.5% http://www.businesstimes.com.sg/government-economy/imf-raises-japan-growth-forecast-for-2017-to-15
– SGX’s top 20 China-linked firms achieve 39.8% average return http://www.businesstimes.com.sg/companies-markets/sgxs-top-20-china-linked-firms-achieve-398-average-return?xtor=CS3-25
– Locals make up majority being trained, hired for key jobs in Singapore’s financial institutions http://www.straitstimes.com/business/banking/financial-institutions-in-singapore-training-and-employing-over-80-per-cent-of?xtor=CS3-18
– Condo resale prices edge up 0.1%, volume down 10.9% in September: SRX Property http://www.straitstimes.com/business/property/condo-resale-prices-edge-up-01-volume-down-109-in-september-srx-property?xtor=CS3-18
Stocks to watch today 11/10/2017:
– Adventus last close $0.013, 52wk high/low $0.019/$0.009 – ICT solutions provider Adventus names RHT Capital as Catalist sponsor http://www.businesstimes.com.sg/companies-markets/ict-solutions-provider-adventus-names-rht-capital-as-catalist-sponsor?xtor=CS3-25
– China Jishan last close $0.181, 52wk high/low $0.28/$0.025 – Company calls off asset disposal, may stave off cash company status http://www.businesstimes.com.sg/companies-markets/china-jishan-calls-off-asset-disposal-may-stave-off-cash-company-status
– First REIT last close $1.36, 52wk high/low $1.39/$1.25 – REIT completes Siloam Hospitals Buton, Lippo Plaza Buton purchase http://www.businesstimes.com.sg/companies-markets/first-reit-completes-siloam-hospitals-buton-lippo-plaza-buton-purchase?xtor=CS3-25
– GRP last close $0.20, 52wk high/low $0.283/$0.19 – Company to take up 51% stake in Malaysian property development firm http://www.businesstimes.com.sg/companies-markets/grp-to-take-up-51-stake-in-malaysian-property-development-firm?xtor=CS3-25
– Koh Bros Eco Engineering last close $0.119, 52wk high/low $0.134/$0.036 – Company receives regulatory approval for proposed rights cum warrants issue http://www.businesstimes.com.sg/companies-markets/koh-bros-eco-engineering-receives-regulatory-approval-for-proposed-rights-cum?xtor=CS3-25
– Olam last close $2.23, 52wk high/low $2.25/$1.855 – Company’s 5.6% surge prompts SGX query http://www.businesstimes.com.sg/companies-markets/olams-56-surge-prompts-sgx-query?xtor=CS3-25
– Sunpower last close $0.63, 52wk high/low $0.885/$0.38 – Company’s unit clinches 94.8 million yuan contract http://www.businesstimes.com.sg/companies-markets/sunpower-unit-clinches-948-million-yuan-contract?xtor=CS3-25
– Secura Group $0.109, 52wk high/low $0.23/$0.098 – CEO resigns to ‘pursue personal interests’ http://www.businesstimes.com.sg/companies-markets/secura-group-ceo-resigns-to-pursue-personal-interests?xtor=CS3-25
– SUTL last close $0.69, 52wk high/low $1.01/$0.50 – Company secures 10-year management contract for new Suzhou marina http://www.businesstimes.com.sg/companies-markets/sutl-secures-10-year-management-contract-for-new-suzhou-marina?xtor=CS3-25
– Trendlines last close $0.156, 52wk high/low $0.205/$0.136 – Company proposes S$14m share placement http://www.businesstimes.com.sg/companies-markets/trendlines-proposes-s14m-share-placement?xtor=CS3-25
– YHI last close $0.39, 52wk high/low $0.415/$0.28 – Company’s unit in joint venture with Myanmar firm to market car and industrial products http://www.businesstimes.com.sg/companies-markets/yhi-unit-in-joint-venture-with-myanmar-firm-to-market-car-and-industrial-products?xtor=CS3-25
Singapore Stocks to Watch
* CWT (CWT SP): HNA to acquire all issued, paid-up ordinary shares in CWT: filing
*Nam Cheong (NCL SP): Latest Singapore restructuring shows oil distress far from over
*Noble Group (NOBL SP): Noble Group is said in advanced talks to sell oil unit to Vitol
* Olam (OLAM SP): Unaware of factors driving share price
*SGX (SGX SP): Proposes changes to rules on securities trading
*Sembcorp Industries (SCI SP): Raised to hold at HSBC; PT raised to S$3.05
*Sunpower (SPWG SP): Clinches contract worth RMB94.8m
*Wilmar (WIL SP): Ukraine’s Odessa region to get $300m of agriculture investments
|SGX gives brokers more flexibility|
SPH results will be released tomorrow. Suggest avoiding buying into SPH as revenue should be on a downtrend as before. And even if there is an increase of revenue or net profits, it is not stable and for it has been decreasing over several mo…
Sharing is an altruistic act. With or without risks, altruism is a helping behaviour that is motivated only by the desire to relieve suffering, and without any anticipation of reward to come.Blog, free seminars, networking, free coaching, I have done i…
– Attention will likely turn towards Fri’s 3Q GDP growth estimates, which could hit a 3-year high of >5%, China’s manufacturing and services PMI readings, a slew of US data, FOMC meeting minutes as well as start of US corporate earnings season.
– Technically, the STI has broken clear of its short term downward trend and above its 3,275 resistance and appears headed for the next upside objective at 3,320.
*Sembcorp Marine (SMM)
– Singed agreements to sell nine Pacific Class 400 drilling rigs to Borr Drilling for US$1.3b ($1.77b) plus a market-based fee.
– The rigs include all six rigs from previously-terminated contracts, and will be delivered over a 14-month period from 4Q17 to 1Q19.
– While the transaction will result in a loss of $15m, it will significantly improve SMM’s liquidity position.
– Last traded at 45.7x forward P/E.
– Acquiring a 50% stake in the proposed manager of Keppel-KBS US REIT, for US$27.5m.
– The move is in line with its plans to carry out an IPO for its portfolio of US commercial assets on SGX, comprising 11 office assets, with a mandate to invest in a diversified portfolio of income-producing assets in the US.
– Last traded at 14.8x forward P/E and 1x P/B.
– Collaborating with Air India Engineering Services to provide MRO services in India.
– Last traded at 20.9x forward P/E.
– Proposed placement of 221.6m new shares (25% share capital) to prominent investor Sam Goi at 5¢ each.
– Net proceeds of $11m earmarked for business development.
– Completed disposal of property at 16 Tuas Avenue 20 to JTC for $3.1m.
– The disposal will result in a disposal gain of $1.6m.
– Last traded at 14.9x trailing P/E.
– Entered into a conditional agreement to dispose loss-making subsidiary, Toko Construction, for $1m.
– The divestment is undertaken as part of a restructuring and will result in a disposal gain of $1m, to be used for working capital.
News for today 9/10/2017:
– Five Things You Need to Know to Start Your Dayhttps://www.bloomberg.com/news/articles/2017-10-08/five-things-you-need-to-know-to-start-your-day
– IMF chief cheers broadest recovery in decade http://www.straitstimes.com/business/imf-chief-cheers-broadest-recovery-in-decade
– Oil down 2%, breaks five-week rally as oversupply fears resurface http://www.businesstimes.com.sg/energy-commodities/oil-down-2-breaks-five-week-rally-as-oversupply-fears-resurface
– S&P 500 streak ends on weak US jobs report http://www.straitstimes.com/business/companies-markets/sp-500-streak-ends-on-weak-us-jobs-report; US: Jobs data knock Dow, S&P 500 from record pedestal http://www.businesstimes.com.sg/stocks/us-jobs-data-knock-dow-sp-500-from-record-pedestal
– Hurricanes take their toll on US jobs market http://www.straitstimes.com/business/hurricanes-take-their-toll-on-us-jobs-market; US payrolls fall 33,000 on storms, jobless rate drops to 4.2% http://www.straitstimes.com/business/us-payrolls-fall-33000-on-storms-jobless-rate-drops-to-42
– UK home-price inflation accelerates to fastest in seven months http://www.straitstimes.com/business/uk-home-price-inflation-accelerates-to-fastest-in-seven-months
– Catalan separatists squeezed further as Spain tightens grip http://www.businesstimes.com.sg/government-economy/catalan-separatists-squeezed-further-as-spain-tightens-grip
– Hong Kong: Stocks rally to hit 10-year high http://www.businesstimes.com.sg/stocks/hong-kong-stocks-rally-to-hit-10-year-high
– Malaysia’s August exports grow 21.5% on strong global demand http://www.businesstimes.com.sg/government-economy/malaysias-august-exports-grow-215-on-strong-global-demand
– SG Q3 economic growth likely to hit 3-year high http://www.straitstimes.com/business/economy/q3-economic-growth-likely-to-hit-3-year-high?xtor=CS3-18
– Collective sale fever: How much longer will it last? http://www.straitstimes.com/singapore/housing/collective-sale-fever-how-much-longer-will-it-last?xtor=CS3-18; Collective sales quadrupled to S$5.2 billion across 25 deals, marking start of 3-year cycle of properties sold en bloc http://www.straitstimes.com/business/companies-markets/collective-sales-quadrupled-y-o-y-to-s52-billion-across-25-deals-marking; Owners moving fast to catch collective sales wave http://www.businesstimes.com.sg/real-estate/owners-moving-fast-to-catch-collective-sales-wave; Broker’s take: JP Morgan says Singapore en bloc frenzy is sustainable http://www.businesstimes.com.sg/real-estate/brokers-take-jp-morgan-says-singapore-en-bloc-frenzy-is-sustainable
– Property stocks soar amid rise in collective sales http://www.straitstimes.com/business/property/property-stocks-soar-amid-rise-in-collective-sales; Singapore property stocks jump as big sales buoy sentiment http://www.businesstimes.com.sg/real-estate/singapore-property-stocks-jump-as-big-sales-buoy-sentiment
Stocks to watch today 9/10/2017:
– China Taisan last close $0.04, 52wk high/low $0.087/$0.028 – String of SGX queries leaves China Taisan under a cloud http://www.businesstimes.com.sg/companies-markets/string-of-sgx-queries-leaves-china-taisan-under-a-cloud
– Keppel Corp last close $6.68, 52wk high/low $7.23/$5.23 – Company receives eligibility-to-list letter from SGX for planned US commercial Reit http://www.businesstimes.com.sg/real-estate/keppel-receives-eligibility-to-list-letter-from-sgx-for-planned-us-commercial-reit
– KOP last close $0.078, 52wk high/low $0.112/$0.049 – Company, Sam Goi in share placement deal http://www.businesstimes.com.sg/companies-markets/kop-sam-goi-in-share-placement-deal?xtor=CS3-25
– Lee Metal Group last close $0.315, 52wk high/low $0.335/$0.275 – LMG Realty buys Nassim Road bungalow for S$23.7m http://www.businesstimes.com.sg/real-estate/lmg-realty-buys-nassim-road-bungalow-for-s237m
– Parkson Retail last close $0.092, 52wk high/low $0.167/$0.072 – Company’s auditor raises going concern doubts http://www.businesstimes.com.sg/companies-markets/parkson-retail-auditor-raises-going-concern-doubts
– SBI Offshore last close $0.095, 52wk high/low $0.146/$0.063 – Company’s ex-CEO rekindles boardroom fight, now seeks directorship http://www.businesstimes.com.sg/companies-markets/sbi-offshores-ex-ceo-rekindles-boardroom-fight-now-seeks-directorship
– Sembcorp Marine last close $1.735, 52wk high/low $2.09/$1.265 – Company to sell nine jackup drilling rigs to Borr Drilling for US$1.3b http://www.straitstimes.com/business/sembcorp-marine-to-sell-nine-jackup-drilling-rigs-to-borr-drilling; Sembcorp Marine to sell 9 jackup drilling rigs to Borr Drilling http://www.businesstimes.com.sg/companies-markets/sembcorp-marine-to-sell-9-jackup-drilling-rigs-to-borr-drilling
– SIA last close $10.28, 52wk high/low $10.85/$9.60 – Airline embarks on biggest internal overhaul http://www.straitstimes.com/singapore/transport/sia-embarks-on-biggest-internal-overhaul; Singapore Airlines plans wide-ranging cost cuts to offset stiff competition http://www.businesstimes.com.sg/transport/singapore-airlines-plans-wide-ranging-cost-cuts-to-offset-stiff-competition
– SIA Engineering last close $3.19, 52wk high/low $4.15/$3.15 – Company inks MOU with Air India to service Indian market http://www.businesstimes.com.sg/companies-markets/sia-engineering-inks-mou-with-air-india-to-service-indian-market
– ST Engineering last close $3.39, 52wk high/low $3.86/$3.03 – Company eyes new tech, high-growth sectors http://www.businesstimes.com.sg/companies-markets/st-engineering-eyes-new-tech-high-growth-sectors?xtor=CS3-25
– ThaiBev last close $0.915, 52wk high/low $0.99/$0.83 – Company looks to food and abroad for growth after sales dip http://www.straitstimes.com/business/companies-markets/thaibev-looks-to-food-and-abroad-for-growth-after-sales-dip; ThaiBev looks to food and abroad for growth after sales dip http://www.businesstimes.com.sg/companies-markets/thaibev-looks-to-food-and-abroad-for-growth-after-sales-dip
– TalkMed Group $0.635, 52wk high/low $0.95/$0.495 – Company’s subsidiary to form JV http://www.businesstimes.com.sg/companies-markets/talkmed-groups-subsidiary-to-form-jv
Singapore Stocks to Watch
* Genting HK (HENHK SP): New agreement reflects increase in purchase price
*Keppel (KEP SP): Agrees to buy 50% stake in Keppel-UBS US REIT for $27.5m
*MM2 Asia (MM2 SP): To make early redemption to holders of conv debt
* Sembcorp Marine (SMM SP): To sell nine rigs to Borr Drilling for $1.3b
*SIA Engineering (SIE SP): Signs MOU with Air India on repair services
* Here’s Another Positive Sign for Singapore Property Bulls: Chart
Many times friends and clients ask me what is the difference between private and public information. They are confused and unclear, not able to discern a clear distinct difference between the 2.In this video, Clemen Chiang explains the definition …
WHAT’S BITCOIN AND THE BLOCKCHAIN?
Before the invention of Bitcoin, ledgers had to be maintained by central authorities like banks, which kept a single authoritative copy of the ledger. This meant that users that relied on a ledger had to trust the central authority.
Bitcoin’s use of a blockchain eliminates the need for central authorities and the need to trust them. It does this by allowing each user of the system to maintain their own copy of the ledger and keeping all copies of the ledger verifiably synchronized through a consensus algorithm.
Bitcoin is designed to allow its users to hold, send, and receive money online, but distributed ledgers can be used to do much more, including clearing and settlement of digital asset trading, provisining of identity, and distributed computing—all without the need for central intermediaries. The 10-minute video that follows presents plain English explanation of these concepts and why they have the potential to change the world.
And this short plain-English backgrounder explains the basic concepts in simple to understand terms.
SOME ADVANCED CONCEPTS
- What is Bitcoin Mining, and Why is it Necessary?
- What is Multi-Sig, and What Can It Do?
- What are Forks, Alt-coins, Meta-coins, and Sidechains?
- Is Blockchain Different than Bitcoin?
- What is Ethereum?
If you want to take a deep dive on the technology and what it means for the world, we recommend a great book by two Wall Street Journal reporters, The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order by Paul Vigna & Michael J. Casey. And for an even deeper dive into the distinction between open and closed blockchain technologies and why open networks are essential for several exciting use cases, read our report, Open Matters.
HOW DOES POLICY AND REGULATION FIT IN?
Here are two resources that we recommend to get you up to speed on the technology and the policy questions it raises:
- Is Bitcoin Regulated?
This short backgrounder explains that while the technology itself can’t really be regulated, its users are certainly subject to many different kinds of regulation.
- Bitcoin: A Primer for Policymakers
This monograph by Jerry Brito & Andrea Castillo presents a high-level overview of the technology and the regulations its use implicates.
WHAT ARE THE REGULATORY ISSUES?
- Consumer protection
- Financial surveillance and anti-money-laundering
- Securities and commodities regulation
- Tax compliance
- Privacy and identity
– The market could chalk up further upside gains on growing confidence after IMF chief Christine Lagarde said that the long-awaited global economic recovery is taking hold and urged policymakers to seize the opportunity to create a more inclusive economy and broader, lasting prosperity.
– NFP data tonight, expecting Fed to increase interest rates
– Technically, the STI is likely to break out of its tight 3,230-3,265 range bounded by the 20 and 50-day moving averages.
– MKE estimates flash 3Q GDP to be near 4%, with strong manufacturing (+20%) leading a broadening recovery in the services sector.
– Full-year GDP growth could well exceed the government’s 2-3% and MKE’s 3% forecasts, with 8M17 core inflation creeping higher to 1.5%.
– This could prompt the MAS to normalize and tighten its neutral stance at its upcoming semi-annual policy meeting this month.
– Normanton Park has been sold en bloc to Chinese firm Kingsford Huray Development for $830.1m or 4% above its reserve price.
– Inclusive of development charges, this works out to a land price of $969 psf ppr for the 667,368 sf site, which can yield a total gfa of 1.4m sf accommodating 1,200 new homes.
– This is the 12th residential collective sale sealed this year, reflecting the mad scramble among land-hungry developers.
– Top picks are UOL (TP: $9.43), GuocoLand (TP: $2.75) and City Dev (TP: $12.05).
– Awarded a contract from Soilbuild Group to erect a 7-storey single-user general industrial factory development for $50.4m.
– Works expected to be completed by 3Q19 and will lift order book to $574.2m.
*Croesus Retail Trust
– Scheme of arrangement to take the Japanese mall landlord private at $1.17/unit has been sanctioned by the Court.
– Last day of trading will be on 10 Oct, with expected payment to unitholders will be no later than 26 Oct. Counter will be delisted on 27 Oct.
– Enlists CIMB Securities to place out 47.5m new shares representing 10% of its existing share capital at $0.255 apiece or 5.6% discount to the last close,
– Net proceeds of $11.9m will be used to for general working capital purposes.
– The steel engineering group is loss-making and trades at 0.44x P/B.
– Acquiring a second land plot, adjacent to its previous purchase, in Kuala Lumpur, Malaysia, for RM4.95m.
– The 99 year-leasehold site has an area of 1,533.5 sqm.
– Last traded at 35.81x trailing P/E.
– Proposed acquisition of 80% stake in each of Hebei Xingrun Shengwu Keji Gufen, Chengde Purun Shengwu Zhiyao and Benchmark Trade, for Rmb120m ($24.5m) or 25% below independent valuation.
– The three firms are involved in the development, manufacture and sale of animal feed and related products in China.
– The move will help the group expand and strengthen its foothold in the agribusiness and food industry in China.
– The pig farmer and pork processor has been loss-making for the past two years.
– Signs MOU with Temasek Polytechnic to collaborate on training and R&D, relating to aquaculture and biomedical sciences.
News for today 6/10/2017:
– Five Things You Need to Know to Start Your Dayhttps://www.bloomberg.com/news/articles/2017-10-05/five-things-you-need-to-know-to-start-your-day-j8f0juaj
– Oil rises 2%, boosted by potential Opec deal http://www.businesstimes.com.sg/energy-commodities/oil-rises-2-boosted-by-potential-opec-deal?xtor=CS3-25
– US stocks end at fresh record peaks; Nasdaq up 0.8 per cent http://www.straitstimes.com/business/companies-markets/us-stocks-end-at-fresh-record-peaks-nasdaq-up-08-per-cent?xtor=CS3-18
– US trade deficit narrows as exports hit 2.5 year high http://www.straitstimes.com/business/us-trade-deficit-narrows-as-exports-hit-25-year-high?xtor=CS3-18
– Trump jolts markets with remarks about erasing Puerto Rico’s massive debt http://www.straitstimes.com/business/companies-markets/trump-jolts-markets-with-remarks-about-erasing-puerto-ricos-massive-debt?xtor=CS3-18
– Fitch joins S&P in issuing Catalonia debt downgrade warning http://www.businesstimes.com.sg/government-economy/fitch-joins-sp-in-issuing-catalonia-debt-downgrade-warning?xtor=CS3-25
– Australian retailers suffer worst sales in 4½ years as hefty mortgages push up household debt http://www.straitstimes.com/business/economy/australian-retailers-suffer-worst-sales-in-412-years-as-hefty-mortgages-push-up?xtor=CS3-18
– Singapore, Thailand discuss e-payment alliance for digital push http://www.straitstimes.com/business/economy/singapore-thailand-discuss-e-payment-alliance-for-digital-push?xtor=CS3-18
– Model Factory to help SMEs test production line solutions http://www.businesstimes.com.sg/companies-markets/model-factory-to-help-smes-test-production-line-solutions?xtor=CS3-25
– ‘Gig economy’ cushioning impact of weak job market: Maybank Kim Eng report http://www.straitstimes.com/business/economy/gig-economy-cushioning-impact-of-weak-job-market-maybank-kim-eng-report?xtor=CS3-18
– Harnessing new blockchain tech for inter-bank payments http://www.straitstimes.com/business/banking/harnessing-new-blockchain-tech-for-inter-bank-payments?xtor=CS3-18
– Normanton Park sold en bloc for $830.1 million http://www.straitstimes.com/business/companies-markets/normanton-park-sold-en-bloc-for-8301-million?xtor=CS3-18
– Selling en bloc: Cairnhill Mansions jumps on bandwagon for the fifth time, with $362 million guide price http://www.straitstimes.com/business/property/cairnhill-mansions-jumps-on-en-bloc-bandwagon-for-the-fifth-time-with-362-million?xtor=CS3-18
– S’pore’s hotel market draws investors http://www.businesstimes.com.sg/real-estate/spores-hotel-market-draws-investors?xtor=CS3-25
– Second-liner property stocks now in play http://www.businesstimes.com.sg/companies-markets/second-liner-property-stocks-now-in-play?xtor=CS3-25
– 10 largest Catalist stocks beat blue chips: Report http://www.straitstimes.com/business/10-largest-catalist-stocks-beat-blue-chips-report?xtor=CS3-18; Some Catalist stocks shine, but traps lurk http://www.businesstimes.com.sg/stocks/some-catalist-stocks-shine-but-traps-lurk?xtor=CS3-25
Stocks to watch today 6/10/2017:
– Far East Group last close $0.081, 52wk high/low $0.11/$0.018- Company inks deal to buy S$22.5m property at Ubi Avenue 3 http://www.businesstimes.com.sg/companies-markets/far-east-inks-deal-to-buy-s225m-property-at-ubi-avenue-3?xtor=CS3-25
– OCBC last close $11.25, 52wk high/low $11.49/$8.33 – Bank joins fixed-rate home loan battle http://www.businesstimes.com.sg/banking-finance/ocbc-joins-fixed-rate-home-loan-battle?xtor=CS3-25
– SIA Engg last close $3.22, 52wk high/low $4.15/$3.15 – SIAEC struggles to recover from 6-year low despite buyback http://www.businesstimes.com.sg/companies-markets/siaec-struggles-to-recover-from-6-year-low-despite-buyback?xtor=CS3-25
– United Food Holdings last close $0.37, 52wk high/low $0.41/$0.025 – Company to buy 80% stakes in 3 animal feed-related companies for 120m yuan http://www.businesstimes.com.sg/companies-markets/united-food-to-buy-80-stakes-in-3-animal-feed-related-companies-for-120m-yuan
– Yongnam last close $0.27, 52wk high/low $0.31/$0.193 – Company to place S$12.1 million of shares at S$0.255 apiece for working capital http://www.businesstimes.com.sg/companies-markets/yongnam-to-place-s121-million-of-shares-at-s0255-apiece-for-working-capital?xtor=CS3-25
Oversea-Chinese Banking Corporation (OCBC SP/BUY/S$11.25/Target: S$13.38)
At A Glance
Addvalue Technologies: Partners to trial app for fishing vessels, eye market size of 500.
Micro-Mechanics: CEO gives S$435,000 of own shares to family charity.
SIA Engineering Company: Conducts largest one-day share buyback in a year as stock slumps.
United Food Holdings: To buy 80% stakes in 3 animal feed-related companies for Rmb120m.
Yongnam Holdings: To place S$12.1m worth of shares at S$0.255 apiece for working capital.
Click on the link for details.
Click on the link for details.