Category: SG Wealth Builder

Being one of the largest listed real estate companies in South East Asia, Capitaland remains an enigma in Singapore stock exchange. Share price reached a record high of $7.00 in 2007 and subsequent bombed out during the Great Financial Crisis.

Since then, this counter never really recover from the setback, presumably due to the slew of property cooling measures implemented by Singapore government. The slowing down of the China market could also played a part in the laggard of the share price. In this article, the investment merits of Capitaland are examined.

Profile of Capitaland

Formed in November 2000 following a “big bang” merger between DBS Land Limited and Pidemco Land Limited, Capitaland is 40% owned by Temasek Holdings. Black Rock also has a stake of 6% in this real estate giant.

Capitaland is famous for its Raffles City integrated projects. [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Sometimes, you really have to hand it to the policymakers for coming out with an acronym like CPF LIFE, which stands for Lifelong Income for Elderly. As the name aptly suggests, CPF LIFE provides you with a lifetime monthly pay outs.

Introduced in 2009 by the Singapore government, this annuity scheme ensures that Singaporeans do not outlive their CPF savings.

There is a marked difference between the previous scheme, CPF Retirement Sum, and the current CPF LIFE. It is important that Singaporeans understand how this improved system works so that they can plan their retirement needs appropriately. It should also be noted that the old scheme, CPF Retirement Sum, has not been phased out because there are many Singaporeans who may not qualify for CPF LIFE.

Another unique aspect of CPF LIFE is that it allows you to decide how much you wish to set aside for your loved ones upon your death while balancing the amount of monthly payouts. Thus, I feel that the CPF Advisory Panel had developed a rather comprehensive framework because the plans allow you to choose whether you want a higher monthly payout or lower monthly payouts with more bequest for your loved ones.…

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Singapore’s oldest bank, OCBC, delivered an excellent full year results for 2017, setting the share price on fire. The venerable bank reported on 14 February 2018 a net profit after tax of $4.15 billion, an increase of 19% from $3.47 billion a year ago. This is the first time the net profit of OCBC surpassed the $4 billion mark.

In my opinion, OCBC share price is poised to surge to another new level with the impending divestment of Great Eastern Life Insurance (Malaysia). There might even be special dividends for OCBC shareholders. Against this background, OCBC is deemed to be in the unique category of a stock which possesses features of growth, value and asset-rich.

There are a few important drivers for OCBC share price to rise in the next few months, not least because of its recent divestment moves to dispose its non-core banking assets accumulated in the past 100 years. Great Eastern Holdings remains the crown jewel of OCBC, setting the iconic bank apart from the rest of its competitors.

Unrealized Valuation Surplus

For FY2017, OCBC’s unrealized valuation surplus stood at $9.9 billion, 54% higher from S$6.45 billion as at 31 December 2016, mainly from [This is a …

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In the aftermath of the 2009’s Great Financial Crisis, interest rates had remained very low, driving Singapore wealth builders to look to overseas properties that generate high returns. In addition, the implementation of Additional Buyer Stamp Duty (ABSD) has also led to many wealthy Singaporeans to invest in overseas properties in United Kingdom, Malaysia and United States. In this article, the risks of investing in overseas properties are discussed.

Before we talk about returns, it is important to think about the risks of owning a foreign property. Context is important because investing in properties in Singapore is very different as compared to investing in overseas properties.

In life, if it is too good to be true, it probably is. Henceforth, I always believe in taking care the downside risks and let the potential upsides do the talking itself. Broadly speaking, the downside risks are geopolitical, regulatory and market supply.

Geopolitical risk

Unlike many countries, Singapore has a very stable government with strong ruling party. This is an important factor because investors do not like uncertainties arising from a change of government or major upheaval in the political environment, which often leads to new policies for property ownership for foreigners.

Brexit …

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On 6 February 2018, OCBC Investment Research upgraded its rating on Hutchison Port Holdings (HPH Trust) from “hold” to “buy”. One wonders what had been going through the OCBC analysts’ minds when they made such a call. Following their upgrade, the unit price had been on an embarrassing downward trend and recovered slightly lately.

And every drop in the unit price seems like a slap to the analysts’ face. Of course, investors must be feeling unhappy. In my opinion, there is absolutely no basis to claim that “the worst is over” for this business trust.

When HPH Trust debut in SGX mainboard in 2011, the IPO price was between USD0.90 to USD1.10. There was much hype among investors, not least because the business trust was 30% owned by “Asia Superman”, billionaire Li Ka Shing. But after the dream debut, unit price had a horror run of decline. Currently trading at USD0.33, shareholders must be wondering what on earth has happened. Should investors cut loss or continue to hold?

Corporate profile

HPH Trust owns interests in deep-water container port assets such as Hongkong International Terminals(“HIT”) in Kwai Tsing Port, Hong Kong; and Yantian International Container Terminals (“Yantian”) and Huizhou International Container …

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And so the dust has finally settled for Singapore’s iconic Fraser and Neave (F&N). Following the explosive takeover saga in 2012, share price languished at $2.20 level since. In the aftermath of the corporate drama, is F&N currently a value trap?

For a 135 years old company, Fraser and Neave (F&N) limited should be a household name to many Singaporeans. But understanding this venerable SGX-listed company is not an easy feat as corporate events unfolded between 2008 and 2013 transformed its destiny forever.

The takeover saga

On looking back, the appointment of Lee Hsien Yang as Chairman in 2008 must have heralded great things for F&N. Lee Hsien Yang had at that point of time, left SingTel as CEO and joined F&N as Chairman, overseeing the divestment of the Asia Pacific Breweries (APB) and the takeover of F&N by Thailand tycoon, Charoen Sirivadhanabhakdi, founder of Thai Beverage (ThaiBev).

As Chairman of F&N, Lee Hsien Yang unlocked much value for F&N investors. After the takeover battle, there were two capital reduction exercises which saw shareholders receiving a total of $3.70 per share. Then the listing of Frasers Centrepoint (FCL) saw F&N distributing two FCL shares for one F&N share (without …

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SGX-listed Dyna-Mac to sink or swim? As an oil and gas player, it is so easy to write off this company like so many of its struggling peers (EMAS, Nam Cheong, Ezion, Marco Polo Marine, etc). But then again, every stock has its own story. So let’s examine whether Dyna-Mac stands a chance in winning the battle of survivorship.

The collapse of the oil price since 2014 had led to a long winter for the oil and gas exploration industry. Many companies in this sector had been embattled by the protracted oil slump and quite a number mid-sized players face the prospect of liquidation. With a market capitalization of only $130 million, Dyna-Mac is no exception. The oil services provider is currently hanging on precariously for its dear life as the devastating oil slump threatens to destroy its business.

In the good old days

When Dyna-Mac got listed in SGX mainboard in 2011, it was a market darling. The IPO price was $0.35 and many investors bought into its growth story due to the boom in the oil price. Share price surged almost 100% to reach nearly $0.70 within a few months. It even counts big boy, Keppel Corp, as …

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From hospitality to the hospital industry, OUE Limited is certainly going places, But the question now is whether the share price of the real estate company is grossly undervalued? It certainly seems so as current trading price was $1.85 while Net Asset Value (NAV) amounted to a staggering $4.46. In my opinion, the laggard share […]…

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This is an article on an ancient money concept which you should not dismiss. You might have heard of the phrase “money not spent, not yours” What is the meaning of this phrase and does it even make sense? After all, if the money does not belong to you in the first place, how do […]

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As an investment blogger, my goal is always to add value and enhance my members’ investment knowledge. Thus, when a member asked me whether Frasers Centrepoint Trust (FCT) and Frasers Commercial Trust (FCOT) are similar, I have deep concerns. This is because if they cannot get the basic fundamentals right, chances of losing money in […]

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