Sembcorp Industries Limited (SGX: U96) is a Singapore-listed conglomerate with three business divisions – Utilities (Energy, Water, Waste Management), Marine (a 61% ownership of Sembcorp Marine Ltd (SGX: S51)) and Urban Development. Between 1 Jan to 31 Dec 2018, Sembcorp’s total return, which includes reinvested dividends, came in at a negative 15%, compared to a negative 6.5% for the Straits Times Index (SGX: ^STI). With the sharp pullback in Sembcorp’s shares, is Sembcorp Industries a bargain? For this we will be using four metrics, namely, the price-to-earnings (P/E) ratio, the price-to-book (P/B) ratio, the dividend yield and the net-debt-to-equity ratio. Sembcorp Industries has a trailing twelve months (TTM) earnings per share of S$0.12. With the industrial conglomerate’s cu

In the first two parts of this four part series, we highlighted two of four investment themes that DBS recommended for 2019 (Defensive plays with strong earnings visibility & yield plays with growth potential). With the market on the backfoot, DBS thinks that there is potential for value investors to seek value plays. In this article, we highlight another key investment theme that DBS recommends for investors in 2019: Bombed out value plays. Investors Takeaway: 4 Bombed Out Value Buys By DBS Genting Singapore Despite the turnaround in profitability after the challenging period in 2015-16, the market remains sceptical over the sustainability of Genting Singapore’s (Genting) earnings recovery. However, DBS begs to differ. According to DBS, as Genting selectively extends credit to its

I like buying undervalued shares of companies. As such, a lot of my time is spent searching for such opportunities. One of my personal techniques to do so is to look for shares that are trading below book value – i.e., they have a price-to-book (PB) ratio of below 1. In this article, I want to discuss two such blue chip shares. (If you’re wondering what terms such as PB ratio, book value, and blue chips mean, fret not – I’ll be explaining them shortly!) For some investors, finding shares with low PB ratios is futile, since many of such companies are cheap for good reasons – their PB ratios may look cheap, but they are not undervalued! Still, a low PB ratio is a useful way to find ideas, especially if it’s blue chip companies that carry such valuatio

The Straits Times Index (SGX: ^STI) has been falling steeply of late, and this could have thrown up some bargains. In this article, let’s look at three companies that are part of the STI and are selling near their respective 52-week low prices. The companies are Keppel Corporation Limited (SGX: BN4), Singapore Telecommunications Limited (SGX: Z74) and Sembcorp Industries Limited (SGX: U96). All data in the table below are as of 19 December 2018. Keppel Corporation and Sembcorp Industries have not been doing well ever since the oil price took a massive hit in 2015. Keppel, through its Offshore & Marine (O&M) division, and Sembcorp, through its 61%-ownership in Sembcorp Marine Ltd (SGX: S51), are heavily involved in the offshore rig and marine sectors. In mid-2014, oil was tradin

Keppel Corporation Limited (SGX: BN4) and Sembcorp Industries Limited (SGX: U96) are two conglomerates that have similar businesses. In this article, I will compare the two companies to determine which might be a better buy. Introducing the Contenders Keppel Corporation is a conglomerate with four key business divisions, namely, Offshore & Marine (O&M), Property, Infrastructure and Investments. Sembcorp Industries, on the other hand, has three main businesses: Utilities, Marine and Urban Development. Sembcorp Industries owns 61% in Sembcorp Marine Ltd (SGX: S51). Both Sembcorp Marine and Keppel Corporation’s O&M division are large oil rig builders of the world. The table below shows the market capitalisation and revenue of the two firms. Market capitalisation is as of the cl

There are many ways to find investment ideas. Some useful ways are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore stocks (among the top ten stocks) that have seen the highest net disposal in dollar value

I’m a value investor. So, I like to search for companies that are trading at good value. A list of stocks that are near their respective 52-week lows is a good place to start my search for a good reason. These are the stocks that are either neglected or beaten down by investors. And, some of these stocks can be bargains in relation to their actual economic worth because market participants can at times react too negatively to certain companies that have sound long-term prospects but have experienced some short-term stumbles. As such, I will screen for stocks that are trading near 52-week lows nearly once every week. There are many stocks that pop up on my screen each time I run it.  So what are the companies that have shown up on this week’s list? Here are three of them: Source: SGX.

Singapore listed companies crossed the 3Q18 finishing line with a subpar performance. Among the companies covered by UOBKH, 36 percent of them missed consensus estimates. According to UOBKH, 37 percent of companies reported results that fell below expectations, the highest rate of disappointment since 2Q16. Only 17 percent of companies reported better-than-expected results. Here is a breakdown of the most interesting sectors and how they fared in 3Q18. Investors Takeaway: Hits And Misses Of 3Q18 Banks: Delivering In 3Q18 Amidst Volatile Environment The banking sector was one of the few sectors that delivered in 3Q18. All three Singapore banks met UOBKH’s earnings expectations. Both DBS and OCBC achieved net interest margin (NIM) expansion and strong growth in net trading income. OCBC’

There are many ways to find investment ideas. Some useful ways are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore stocks (among the top ten stocks) that have seen the highest net disposal in dollar value

Earnings season is winding down. Given that many companies are reporting their results at the same time, it might be useful to categorise them into three buckets of positive, negative and mixed. In this article, we will look at two companies that have recently reported mixed results. Sembcorp Industries Limited (SGX: U96) is the first company that we will look at in this article. As a quick introduction, Sembcorp Industries is a conglomerate with three major business segments: Utilities, Marine, and Urban Development & Others. The Marine segment’s contribution mainly comes from Sembcorp Industries’ 61% ownership stake in Sembcorp Marine Ltd (SGX: S51). For the quarter ended 30 September 2018, Sembcorp Industries’ revenue improved by 36% year-on-year to S$3.0 billion. Yet, profit

The past is history and the future remain a mystery. Would Sembcorp Marine continue to fulfil its destiny as the world no.2 oil rig builder or would it collapse in style? Sembcorp Marine share price is set for a roller-coaster ride as the company faces yet another explosive full-year loss for FY2018. The last time Sembcorp Marine reported an annual loss was in FY2015, which saw it recording a massive loss of $289 million. For sure, the winter had lasted longer than expected. It has been four years since Sembcorp Marine share price was trading at $4.00. Currently trading at $1.66, Sembcorp Marine share price is a shadow of its former self. Although Sembcorp Marine is operating in a cyclical industry, there is no guarantee that the share price would restore to its heyday form. Should investo

Last Friday, Sembcorp Industries Limited (SGX: U96) released its 2018 third-quarter earnings update. As a quick introduction, Sembcorp Industries is a conglomerate with four major business segments: Utilities; Marine; Urban Development; and Other Businesses. The Marine segment is made up of Sembcorp Industries’ 61% ownership stake in the Singapore-listed marine engineering firm, Sembcorp Marine Ltd (SGX: S51). Here are 10 things investors should know about Sembcorp Industries’ latest results: 1. Revenue for the reporting quarter improved by 36% year-on-year to S$3.02 billion. 2. The Utilities segment reported a 27% year-on-year increase in revenue to S$1.8 billion for the reporting quarter. Similarly, the Marine segment reported 60% year-on-year increase in revenue to S$1.2 billion. 3

Some solid numbers from United Overseas Bank (SGX: U11) has set the bar for Oversea-Chinese Banking Corporation (SGX: O39), which is pencilled in for third-quarter numbers next week. In August, OCBC said second-quarter profits jumped 16% to S$1.21 billion. But it warned that the operating environment is becoming increasingly challenging. It also said that it was watchful of the severe implications to the global economy and financial markets from the escalating trade and political tensions. Venture Corporation (SGX: V03) surprised the market last time with a 40% jump in second-quarter profits. The electronics manufacturer also caught the market off guard with the announcement of an interim dividend. It typically only pays one dividend at the end of the year. But in its August announcement

Crude oil prices have spiked 30% year to date. This is great news for companies that operate in the oil and gas scene, such as China Aviation Oil (Singapore) Corp Ltd (SGX: G92), Sembcorp Marine Ltd (SGX: S51) and KrisEnergy Ltd (SGX: SK3). However, at the same time, rising oil prices can also have a negative impact on companies that are end-users of oil. Two such transport companies in Singapore stand out – Singapore Airlines Ltd (SGX: C6L) and ComfortDelGro Corporation Ltd (SGX: C52). Here are some things to keep in mind when dealing with these two companies right now. Airlines companies biggest users of fuel Airlines are some of the biggest end users of fuel. In the April-June quarter, Singapore Airlines reported a 16.1% decrease in operating profit, excluding one-off items. This wa

There are many ways to find investment ideas. Some useful methods are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore stocks that were among the top 10 shares that saw the highest net purchases in dollar

On 24 September 2018, US President Trump and his South Korean counterpart Moon Jae-in signed a revised version of the US-Korea Free Trade Agreement. This was another breakthrough for Trump, following a revised bilateral agreement with Mexico. Following which on 1 October 2018, the US finally reached a pact with Canada to achieve a significantly revised North American trade deal. The trilateral agreement will be renamed the US-Mexico-Canada Agreement (USMCA) which will replace the North Atlantic Free Trade Agreement (NAFTA). The slew of revised agreements was a major victory for Trump and would embolden him as he turns all his efforts towards forcing China to yield. Correspondingly, Chinese investors are showing growing signs of anxiety as reflected by the weakness in China A-shares and Hon

There are many ways to find investment ideas. Some useful ways are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore stocks (among the top ten stocks) that have seen the highest net purchases in dollar valu