In mid-May, the engineering conglomerate Singapore Technologies Engineering Ltd (SGX: S63), released its 2018 first quarter earnings update. During the reporting quarter, the company reported strong top line and bottom line growth. Revenue was up 9.0% year-on-year to S$1.65 billion, while profit attributable to shareholders jumped by 17.8% to S$117.7 million.  These growth numbers captured my attention and got me interested in finding out more about the company. In particular, I want to understand: Does ST Engineering have a high quality business? This question is important. If ST Engineering has a high quality business, it might be a good idea to carry on a detailed study on the company. Unfortunately, there’s no easy answer to the question. But, a simple metric can help shed some li

Maybank Kim Eng has the conviction that the stock market is still going strong and has identified some cyclical stocks that are expected to outperform at this later stage of the upcycle. According to report, Maybank is positive on sectors such as banking, developers, industrials, consumer as well as the tech sector. Overall the economy is expected to continue to grow steadily, and when considering the prospects of a stock, analysts took into consideration the economic backdrop of a rising interest rate, higher residential property prices, as well as rising consumer confidence due to the overall growth in the economy. Another development in the regional economy includes the exponential growth in e-commerce in ASEAN which is beneficial for companies to expand their customer base and reach ou

We are reaching the tail-end of the earnings season. Given that many companies have already reported their results, 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. Singapore Post Limited (SGX: S08) is the first company that we will look at in this article. As a quick introduction, SingPost is a mail and logistics company, organised into three major segments of Mail/Postal, Logistics, and Retail & eCommerce. For the fourth quarter ended 31 March 2018, sales revenue improved 13.5% year-on-year to S$367.5 million. Quarterly operating profit improved from a loss of S$66.5 million last year to S$40.1 million. Similarly, net profit turned from a loss of S$66.2 m

My view: S'pore-1Q18-Wrap-Up: Theme: Good-value-at-current-level 1. Personally, I am of the view that S'pore market offers value at the current moment because it is trading at -1SD PB. 59% of the 1Q18 results were in line, with circa 15% surprising on the upside. Our 2018 market EPS growth forecast has been raised to 10.1% (from 8.0%) on upgrades in the bank and aviation sectors. We are selective after the outperformance of the FSSTI, which is trading close to mean valuations. 2. UOBKH Research is selective in his S'pore picks. He reckon 2018 FSSTI target of 3,710 after latest revisions. Our current themes include multi-year growth drivers, reflation picks, quality laggards and stocks with earnings surprises/specific catalysts. In the large-cap space, we like DBS, OCBC, Kepp

Two weeks ago, Singapore Technologies Engineering Ltd (SGX: S63) reported its 2018 first quarter earnings update. As a quick introduction, ST Engineering is a large engineering conglomerate with business interests in various sectors, namely Aerospace, Electronics, Land Systems, Marine and others. Here are nine key highlights from its latest earnings update: 1. Revenue for the reporting quarter grew by 9.0% year-on-year to S$1.65 billion. 2. Earnings before interest and taxes (EBIT) for the first quarter of 2018 improved by 8.4% year-on-year to S$122.1 million. 3. Profit attributable to shareholders climbed by 17.8% year-on-year to S$117.7 million. 4. Similarly, earnings per share (EPS) increased by 17.8% to 3.78 cents. 5. ST Engineering generated operating cash flow of S$430.7 millio

Singapore Technologies Engineering Ltd (SGX: S63), or STE, is a conglomerate with many business segments, namely, aerospace, electronics, land systems, marine and others. In this article, I want to dig deep into STE’s return on equity, or ROE. The choice of ROE Why ROE, some of you might be asking? That’s because the financial metric gives investors important insight on a company’s ability to generate a profit using the shareholders’ capital it has. A ROE of 20% means that a company generates $0.20 in profit for every dollar of shareholders’ capital invested. In general, the higher the ROE, the more profitable a company is. A high ROE can also be a sign that a company has a high-quality business. That being said, it’s worth noting that the use of high leverage – which increa

Hello, everyone. Here are three things about the local stock market that you might be interested in today. 1. The Straits Times Index (SGX: ^STI) ended Wednesday at 3,533.1 points, inching down 0.2% or 7.2 points. Of the 30 index components, Venture Corporation Ltd (SGX: V03) lost the most ground as its shares slumped 4.3% to S$21.22. On the other hand, the biggest winner of the index was Singapore Technologies Engineering Ltd (SGX: S63) after putting on 2.1% to S$3.46. 2. The earnings season is here so do check out the latest earnings coverage below: a) SIA Engineering Company Ltd (SGX: S59) – head here b) Straits Trading Co Ltd (SGX: S20) – head here SIA Engineering ended the day at S$3.31 per share, down 0.6%, while Straits Trading’s shares rose 0.5% to S$2.19. 3. Frasers P

1.  SPH Reit  --  6th Apr 20182.  SPH  --  10th Apr 20183.  M1  --  16th Apr 20184.  Soilbuild REIT  --  16th Apr 20185.  Kep DC Reit  --  16th Apr 20186.  Kep Inf Trust  --  16th Apr 20187.  Kep T&T  --  17th Apr 20188.  Kep-KBS US Reit  --  17th Apr 20189.  First REIT  --  17th Apr 201810.  Kep Reit  --  18th Apr 201811.  Ascott Reit  --  18th Apr 201812.  Kep Corp  --  19th Apr 201813.  FrasersCom Trust  --  20th Apr 201814.  SGX  --  20th Apr 201815.  CapitaMall Trust  --  20th Apr 201816.  MapletreeInd Trust  --  23rd Apr 201817.  Ascendas

MARKET OVERVIEW- The market could edge higher after US stocks rallied to a 7-week high as a benign inflation data reduced the odds of aggressive Fed interest rate hikes. - Technically, STI could continue to drift directionless in the near term within the broad 3,500-3,610 range.CORPORATE RESULTS*Genting Singapore- 1Q18 net profit rose 3% to $217.2m, achieving 29% of full-year consensus estimate.- Excluding one-off $96.3m gain from disposal of Jeju JV in 1Q17, earnings would have soared 156%.- Revenue jumped 15% to $675.1m on robust growth in volumes across gaming (+17% to $507.4m) and non-gaming segments (+10% to $167.1m). - Adjusted EBITDA leapt 27% $358.9m on 40% drop in bad debt provisions. - Japan IR Implementation Bill has been submitted to Diet for debate, paving the way Japan gaming

Several industries in Singapore are going through a period of rapid change brought about by shifts in technologies, competition and government policy. According to Daiwa Capital Markets, these shifts will bring about new phases of growth for some of the Singapore-listed stocks. If you are an investor looking for exposure to growth in your portfolio, here are three stocks that Daiwa recommends. Investors Takeaway: 3 SG Growth Stocks That Should Be In Your Portfolio ST Engineering Aerospace, Electronics Division To Spearhead Operating Performance ST Engineering put in a positive performance in 4Q17 following tax benefits from tax reform changes in the US and better operating cost control. With a positive industry outlook on aerospace and electronics industry from the management, Daiwa be

With more than two-thirds of the Straits Times Index (SGX: ^STI) having reported, the first-quarter earnings season will enter the home straight next week. Genting Singapore (SGX: G13) will be the first blue chip to report next week. In February, the integrated resorts owner lifted its dividends, even though earnings fell 17%. It said that it had seen a stronger underlying performance from the leisure and hospitality segment, thanks to higher business volume. Singapore’s second-largest bank, Oversea-Chinese Banking Corporation (SGX: O39), will also report on Monday. The bank soundly beat analyst estimates in the fourth quarter, when it posted a 31% jump in net profits. It said it had seen sustained growth momentum in banking, wealth management and insurance. But will it be able to compl

Top 30 in my portfolio: No. STOCK NAME No.of SHARES PORTFOLIO% MARKET $ 1SGX4,30010.217.722SATS4,0006.825.543OCBC Bank1,4386.1013.804UOB6335.8730.145CapitaLand Mall Tr7,8005.042.106SPH6,0005.022.727Starhub7,0004.892.278AIMSAMPI Cap Ind R10,0004.371.429Keppel Corp1,6004.038.1910CDL HTrust6,8003.721.7811Suntec Reit5,8003.501.9612SingTel3,1903.453.5213Keppel DC Reit7,4003.251.4314FCT4,7003.242.2415ParkwayLife Reit3,6003.092.7916Starhill Global Reit12,0002.660.7217SPH Reit8,5002.590.9918Mapletree Com Tr4,8002.391.6219CapitaLand2,0002.313.7620Frasers Com Tr4,8492.091.4021Bukit Sembawang1,0001.916.2022Sembcorp Indust1,8001.703.0723Ascendas Reit2,0001.642.6724SIA Engg1,5001.503.2525Keppel InfraTr9,0001.490.5426Frasers Property1,8001.122.0327Cache Log Tr4,0001.030.83528Frasers L&I Tr

Global equity market seemed to shrug off the bad news in previous month (Sino-US looming trade war, Middle East crisis, interest rate hike etc.). The positive turn of the relationship between the two Korean governments, and the good corporate earning news push the market upwards.Good economic data boosted investors' sentiment in Singapore. STI performed very well in the month of April. As at today, STI rose 185.96 points, or 5.42% compared to last month. Unfortunately, my portfolio did not perform as well. Its value only rose 2.48% for the month.I sold off the Xinhua Port shares obtained from Pan U spin-off. I also received some shares from Global Investment Limited through scrip dividend scheme. No other trade was done.Total dividend received this month was S$9,918, about 60% from shares

Performance of Straits Times Index (STI) Constituents in April 2018 The Straits Times Index (STI) ended 185.96 points or 5.42% higher to 3613.93 in April 2018.(compared to 3427.97 on 29-Mar-2018)Top Performers: Hutchison Port Holdings Trust, DBS Group, ComfortDelGro, Thai Beverage, UOB. Least Performers: Venture Corp, Yangzijiang Shipbuilding, ST Engineering, City Developments, Jardine Matheson. Most Volatile: Venture Corp, DBS Group, Genting Singapore, Hutchison Port Holdings Trust, UOB. Advertisement Continue Reading »

From a top-down investment approach, Daiwa Institute of Research recommends taking positive positions on emerging markets for three reasons: Gradual Fed policy normalisation; Strong commodity and trade cycles; and deep valuation discount. These three reasons will drive the Asian reflation story. There are four sectors that Daiwa highlights as the inflation group: Financials, energy, materials and consumer discretionary sectors. Daiwa notes that these sectors are displaying superior earnings momentum than the general market. Among the Asian markets, Daiwa is positive on the Singapore economy as recent data suggests the Singapore economy remains in good shape. Daiwa believes that the positive momentum will persist through 2018 as trade-driven economic growth broadens to services and other do

The impact of a US-China trade war will be prominent, especially for a small and open economy like Singapore. Singapore’s electronics industry would be the greatest loser if the trade tariffs discussed by China and the USA get implemented. However, RHB believes that various other sectors have been negatively impacted by the uncertainties in the global economic environment. In particular, the consumer and real estate sectors in Singapore should still be buoyant even if a full-blown US-China trade war sparks off. If you are looking for a portfolio that hedges against any US-China trade tantrums, RHB recommends investing in Singapore companies with clear visibility of earnings growth and potential to deliver steady cashflow. Investors Takeaway: Hedging Against US-China Trade War With These

Over the last few weeks, some technology stocks in Singapore follow the footsteps of US technology stocks, having significant correction in share prices, triggered by various negative news or market fear. Is it the end of technology stocks bubble or just a temporary price correction?   Strong fundamental technology stocks such as Venture Corp (SGX: V03) and Valuetronics (SGX: BN2) have dropped more than 25% in short term stock prices, disappointing many traders who hope to buy high sell higher with support of strong company fundamental. Other popular technology stocks such as AEM (SGX: AWX), Micro-mechanics (SGX: 5DD), Sunningdale Tech (SGX: BHQ), UMS (SGX: 558) also suffer various degrees of share price corrections, worrying the traders.   Here are the general strategies of mo

SBS Transit Ltd (SGX: S61) provides bus and rail services to the Singapore public. Under the rail services business, SBS Transit operates the North East Line (NEL), the Downtone Line (DTL), and the Sengkang and Punggol Light Rapid Transit (SPLRT). Earlier this month, SBS Transit released its annual report for its financial year ended 31 December 2017. I learnt a few things about the company’s growth potential as I was reading through the Chairman’s statement, one of the many sections in the report. Here are a few takeaways. Transition to the New Rail Financing Framework (NRFF) On 1 April 2018, the NEL and the SPLRT systems transitioned to the NRFF. DTL was already under the new framework. Under the NRFF, the Land Transport Authority (LTA) will buy over SBS Transit’s existing rail

There are a few companies that will be going ex-dividend on Tuesday, 24 April 2018. In other words, you need to own shares of the company before that day to receive their dividends. Let’s check out three such firms at random. iFAST Corporation Ltd (SGX: AIY) iFAST is an Internet-based investment products distribution platform that provides a comprehensive range of investment products and services to both corporate clients and retail investors. The company is dishing out 0.90 Singapore cent per share for its 2017 fourth-quarter. For the full year ended 31 December 2017, net revenue surged 21.5% to S$49.4 million mainly due to the growth of its business, and assets under administration in both the business-to-consumer and business-to-business divisions. Meanwhile, profit attributable to s

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 that have seen the highest net purchases in dollar value by institutional investor