Category: SG Wealth Builder

It is the perfect storm for OCBC share price. The recent Hong Kong protests would likely to hurt its business in the former British colony (OCBC has a presence over there because of Wing Hang Bank). Singapore economic growth is slowing down to 0 to 1% for 2019 because of the global trade war. Being the economy bellwether, bank stocks are sensitive to economic condition. Thus, OCBC share price will be among the first line of stocks to be hit by a market slowdown.

OCBC share price comes under further pressure following the release of financial results which showed that its total housing loans portfolio continued to fall to $62.4 billion as compared to $65.9 billion in the same period last year.

Notwithstanding the above, OCBC announced a set of good Q2FY2019 results that saw net profits rising 1% to $1.22 billion. Net interest margin has increased to 1.79%. Also, the decline in housing loans had been offset by the huge increase in building and construction loans, which surged to $59.5 billion from $40.9 billion in last year. Despite the rosy report card, OCBC share price turned bearish and lost support at the $11.00. Current OCBC share price is $10.65.…

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The recent volatility of Singtel share price must have caused many investors to shed tears. From a high of $3.56 in early July, Singtel share price spiralled out of control to reach a low of $3.12 on 14 August. The decline represented a correction of 12% for Singtel share price within the span of only a month.

Obviously, the knock-out punch for Singtel share price came from the latest 1QFY2020 which revealed net profit had plunged by a whopping 35% to $541 million. The latest results came on the back of seven consecutive quarter of declining profits.

On 2 July 2019, I warned that Singtel share price would be entering a dark chapter but is still considered a good company to invest for the long run because of its massive economic moat. Although this counter is ideal to hold for the long-term, investors must set appropriate entry-levels. Some members have enquired my entry level, which I have revealed to be $2.60.

Based on the trend, it is possible that Singtel share price could reach the level of $2.60 in the coming months. The lowest level for 2019 was $2.86 recorded on 3 January 2019. So unless the management announced some …

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Will Keppel Infrastructure Trust (KIT) do a Hyflux? I have never been a big fan of business trusts. Just take a look at Asian Pay TV Trust (APTT) and Hutchinson Port Holdings (HPH) Trust. The unit price of both business trusts plunged to incredibly abysmal levels in recent years due to declining business fundamentals. Could Keppel Infrastructure be different?

Bizarrely, all three business trusts are linked to Temasek Holdings. Even more strange is that there are eerie similarities between Keppel Infrastructure Trust and Hyflux.

Like Hyflux, Keppel Infrastructure Trust owns just one power-plant (Keppel Merlimau Cogen Plant), which has been making huge losses and still counting. Similar to the ill-fated Hyflux, Keppel Infrastructure Trust issued $300 million 4.75% Perpetual Bonds. Oh yes, KIT also owns a 70% stake in SingSpring Desalination Plant, which was built by Hyflux. Gulp, all these sounds quite ominous right?

Nonetheless, with sovereign wealth fund Temasek Holdings as backer, chances of KIT share suffering the same fate as Hyflux is low. Temasek Holdings would not allow it to happen. But will KIT share price collapse like APTT and HPH Trust? Read on to see my review of KIT share price.

KIT share price to sink or …

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One quarterly financial result does not define the long-term prospect of a company. But following the release of the latest financial results, can Singtel share price and StarHub share price really fight gravity? It appears to me that that both telco players are heading into two completely different unchartered territories.

It was only a few years ago that the local telco stocks were deemed as defensive stocks because of their stable stock prices and high dividend pay outs. But the market dynamics changed swiftly with the introduction of a fourth telco player, TPG, in 2016.

Subsequently, StarHub share price plunged from $4.00 to the current abysmal level of $1.45. As the dominant player, Singtel share price remained resilient so far but had lost plenty of the bullish momentum seen in its hey-days.

Is this the end of the road for Singtel share price and StarHub share price? In this article, let’s examine the outlook for these two counters.

Singtel share price stung by Airtel

Singtel share price is expected to come under pressure after the management delivered a set of trashy 1QFY2020 results that saw net profit plummeted by 35% to $541 million. On 2 July 2019, I warned that …

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Could it be the straw that broke the camel’s back? Since 2014, there were persistent rumours of Sembcorp Marine merging with Keppel Corp. But the rumours remain as rumours until now. With the explosive revelation of potential corruption charges and the recent meltdown of Sembcorp Marine share price, Temasek Holdings could be forced to show-hand.

Sembcorp Marine share price ripped apart by corruption probe

Sembcorp Marine share price see red

Incidentally, Keppel Corp was involved in another merger and acquisition activity (M1) in 2018. That might have stalled the proposed deal between Sembcorp Marine and Keppel as substantial resources would have been expended to fund the exercise. But now that the M1 saga is over, it is timely to examine whether Keppel would make a move to rescue Sembcorp Marine share price. After all, both entities share the same parent company – Temasek Holdings.

The impetus for the merger came at a time when the oil-rig builder continued to struggle in the midst of a protracted slow-down in the oil and gas industry. For 1HFY2019, Sembcorp Marine reported losses of $8.77 million. To make matter worse, its subsidiary in Brazil, Estaleiro Jurong Aracruz Ltda (“EJA”), had been stormed by the …

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SGX share price is in the form of its life following the release of solid full-year financial results for FY2019 that saw the bourse operator delivering the highest profits in 11 years. Revenue of $909.8 million was also the highest in 19 years. With such stellar report, no wonder SGX share price rocketed in recent weeks.

It has been 4 years since Loh Boon Chye took over as CEO of SGX. On the basis of the past four years of financial records, I would give Loh Boon Chye an A+ for his leadership performance. Under his tenure, net profits surged from $349 million in FY2016 to $391 million in FY2019. What is even more impressive is that the Return on Equity (ROE) has increased to 36%. Against this backdrop, will SGX share price hit $10, a level last seen in 2010?

On looking back, Loh Boon Chye certainly brought peace and stability to SGX share price. This is in deep contrast to his predecessor, Magnus Bocker, which presided SGX over the period of penny chip meltdown, trading breakdowns and the fallout from the S-chips saga. While these episodes had long blown over, SGX is dealing with a new set of …

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It seems that Temasek Holdings had chosen the right man to lead ST Engineering. Prior to Vincent Chong taking on the top job in October 2016, ST Engineering share price had been roiled by a devastating corruption scandal news that broke in 2014. That episode saw ST Engineering share price collapsing from $4.40 in 2013 to a low of $2.70 in early 2016.

Since then, ST Engineering share price has finally seen glimpse of light at end of the tunnel. With a new CEO and a major rebranding exercise, this corporate behemoth appears to put to rest the haunting dark chapter.

ST Engineering share price performance was indeed intriguing. I would have bought into this counter a couple of years ago if not for the appointment of the new CEO. Usually, I would avoid companies which experienced a change of leadership because of the need to give the CEO to implement his ideas. This is especially so as Vincent Chong’s background was previously from the oil and gas sector. But my concern proved to be invalid as Vincent Chong managed to revive the ailing ST Engineering share price.

As expected, the aerospace business provided the impetus for ST Engineering share …

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What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments.

Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018.

Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price and what is the outlook for this homegrown counter?

BreadTalk share price thrashed

Every dog has its day. BreadTalk share price used to be one of the top dogs in SGX, hitting a pre-split of $2.50 on 3 July 2018. But the dynamics for this counter had changed swiftly. In the blink of an eye, BreadTalk had transformed into a dead stock, with average 3-month trading …

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What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments.

Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018.

Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price and what is the outlook for this homegrown counter?

BreadTalk share price thrashed

Every dog has its day. BreadTalk share price used to be one of the top dogs in SGX, hitting a pre-split of $2.50 on 3 July 2018. But the dynamics for this counter had changed swiftly. In the blink of an eye, BreadTalk had transformed into a dead stock, with average 3-month trading …

The post BreadTalk share price lost steam appeared first on SG Wealth Builder.

Since my last coverage in 2018, Wilmar share price went on a stupendous lung bursting form, surging from $3.20 in May 2018 to reach a multi-year high of $4.00 in recent days. The catalyst for the bullish Wilmar share price performance should be the approval of its subsidiary’s IPO application in China.

On 12^th July 2019, Wilmar share price climbed from $3.76 to $4.06 on 26 July 2019 upon the announcement of China Securities Regulatory Commission (“CSRC”)’s acceptance of Yihai Kerry Arawana Holdings Co., Ltd’ (YKA)s application for its proposed listing on the Shenzhen Stock Exchange. YKA is a 99.99%-owned subsidiary of Wilmar.

While the recent form of Wilmar share price had been quite bullish, this counter has not reached the mighty level of $7.00 seen in the giddy days of 2010 when palm oil prices were at the peak. In recent years, Wilmar share price had been hurt by the collapse of the palm oil prices. Will the China IPO ignite another phase of explosive growth for Wilmar?

Wilmar share price in enigma

As a growth stock, Wilmar share price performance is intricately tied to its revenue growth. If investors look back, revenue had risen steadily from USD38.8 …

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