SG Investor Hub Blog

Stocks to Watch: ShengSiong, Parkson Retail, Sembcorp Marine

Crude oil plunged from a high of 51+ to a low of $48. OPEC confirmed on Thursday that both the cartel and non-OPEC members led by Russia have agreed to extend its output cut agreement for another nine months and expect to reach supply target by the end of 2017. It seems that market is not agreeing with this news, and focusing largely on the demand side instead.

Personally, I have sold my last batch of Sunningdale (small amount) and have taken profits along the way previously.

Personal list:

  1. Sembcorp Marine         possible privatisation, the dropped in oil prices also caused a drag on Sembcorp M prices too
  2. Serrano                         for trading only, no major news or developments within the company.
  3. Noble                       plagued with debts and cash flow issues, good for trading, not for the risk takers
  4. MM2                         acquired Golden Village cinemas, vertical integration. Possible more upside to come in months/years
  5. Parkson Retail           changed CEO, need time for its stores to turnaround, Net asset value 0.200
  6. Banks                         prices still rise after ex-dividends. Personally i feel it may be about time to take some profits now. If it drops, then able buy in again.
  7. Lee Metal                   good for dividends, but need to be patient to get a good price. Though lower the better, below 0.300 is a good price to get in.
  8. Comfort Delgro          facing competitions as Grab and Uber burning cash to capture market share. Yet, good news: GBP seems to be in recovery
  9. Ascott                        Good entry price would be below $1.100. Dividends about 6-7%
  10. ShengSiong               after XD, price stable around 0.970 to 0.980. Though price is high, for investing friends, i think it’s relatively ok. Dividends abt 3%

Stocks to watch:
*GLP: Updated that discussions on the non-binding proposals it received during its strategic review are ongoing and due diligence process is still in progress

*Oxley/KSH/Lian Beng: A consortium by Oxley (35%), KSH (35%), Lian Beng (20%) and Apricot Capital (10%) has purchased a former HUDC estate, Rio Casa, in a collective deal for $575m. The 286-unit residential property sits on a site area of 36,811 sqm, with gross plot ratio of 2.8. Inclusive of $208m differential premium payable for lease top-up and redevelopment, the estimated land cost works out to $706 psf ppr.

*Oxley: Proposed to sell its 19.85% interest in MGlory to Sociedade De Investimento E Desenvolvimento Glory for Rmb22m.*Accordia Golf Trust: 4QFY17 DPU fell to 1.48¢ (-24.5%), bringing FY17 payout to 6.04¢ (-8.9%), meeting expectations. Quarterly revenue declined 5.1% to ¥9.91b due to a 0.2% dip in visitorship to its gold courses as well as the absence of a one-off refund recorded in 4QFY16. Consequently, operating loss deepened to ¥2.32b (4QFY16: ¥622m). Course utilisation rate inched up 1ppt to 70.2%, while loan-to-value ratio held steady at 28.9%. NAV/share at $0.91.

*Pan Hong: FY17 net profit jumped 25.3% to Rmb100.9m, while revenue surged 131.1% to Rmb1.4b, buoyed by the handover of property units at Nanchang Sino harbour Kaixuan City Zone 3, Pan Hong Run Yuna Phase 1 and Huzhou Hua Cui Ting Yuan Phase 2. Gross margin jumped 5.6ppt to 18.9% from improved sales mix. NAV/share at Rmb4.33

*Jason Marine: Broke even in FY17 with net profit of $0.3m (FY16: $6m loss). Revenue fell 10.8% to $33.2m, with weakness across all business segments. But gross margin widened 11ppt to 30.1% due to cost and operational efficiency. Bottom line was further boosted by a overall drop in operating expenses. NAV/share at 21.3¢

*Hiap Tong: FY17 net profit more than doubled to $4.8m mainly due to $3.8m in fair value gain on investment properties. Revenue rose 3.7% to $41.6m, mainly on the strength of its leasing business (+3.8%). Gross margin compressed to 19.2% (-5ppts) on higher wages. Bottomline was shored up by lower finance (-33.8%) and tax (-30.2%) expenses. NAV/share at $0.2696.

*BBR: Acquiring Goh & Goh Building at Upper Bukit Timah Road in $101.5m en-bloc deal, following the exercise of a call option. The 4-storey freehold property has a plot ratio of 3 and comprises seven apartments and seven shops, which can be redeveloped into 100 residential units with ground floor retail space, subject to a development charge.

*Rickmers Maritime: Received US$24.7m from the sale of 14 vessels to Navios Partners as part of its US$59m sale, which also saw Navios assume US$34.3m of secured loan obligations.

*ISDN: Entered into strategic cooperation framework with HK-listed Comtec Solar Systems to develop and operate solar power generation station projects, as well as collaborate on power storage and electric bar charging businesses. Group will also offer Comtec right of first refusal for sale of roof distributed photovoltaic power stations that it might develop in the future.

*DISA: No longer proceeding with the 50-into-1 share consolidation, citing the increase in company’s share price over the past few months (ytd return: +117%). However, as shareholder approval has been sought for the consolidation, management will have to seek approval to disregard the exercise.

Singapore Stocks to Watch

* Noble Group (NOBL SP): Muddy Waters asks when “last wheel” may fall
Oxley (OHL SP): Leads group buying former housing estate for S$575m
Rickmers Maritime (RMT SP): Received $24.7m from sales of 5 vessels

Malaysia Stocks to Watch

* AirAsia (AIRA MK): 1Q net 615.8m rgt vs 877.8m rgt y/y

Buy transactions for May 2017

Good to know we were still able to make investment purchases for May 2017 despite being away from Singapore half of the month. Automated Investing Maybank Kim Eng Monthly Investment Plan (Maybank KE MIP) Buy 29 units of SPDR STI ETF (ES3 on SGX) at S$3.28 per unit on 8 May 2017 Buy 92 units of Nikko AM […]