The impact of the ongoing trade war between China and the US can be seen in 2Q19 results of which 16 out of 61 stocks that were under RHB Invest’s active coverage reported earnings that were below estimates. Meanwhile, earnings revisions for the Straits Times Index (STI) have turned negative again. On top of that, there exist risks of further downgrades to consensus estimates if China-US trade tensions escalate. Despite a 7.4 percent decline from its 2019 peak, the STI is trading at a very reasonable valuation – 12.6 times one-year forward price-to-earnings (P/E), which is at its minus one standard deviation band. Meanwhile, the 4.4 percent forward yield remains attractive and is the highest amongst Asian markets. In the face of slower economic growth in Singapore and an uncertain

Dividend investors generally invest in well-known blue-chip companies since these companies tend to pay consistent dividends over a long period of time. Yet, those who are willing to explore beyond their comfort zone might occasionally bump into smaller companies that have the potential to sustain, as well as grow, their dividends over time. Though these types of investments are rare, they can be quite profitable to invest in when the opportunity presents itself. In this article, I’ll look at one of these rare breeds that has grown its dividend by 400% in the last decade. The outperformer The company I’m talking about is Micro-Mechanics (Holdings) Ltd (SGX: 5DD). For starters, Micro-Mechanics designs, manufactures, and markets high precision parts and tools that are used in th

The impact of the ongoing trade war between China and the US has been felt in 2Q19 results for Singapore technology-related manufacturing companies. Five out of the 12 companies under CGS-CIMB Research’s coverage reported 2Q19 results that came in below analysts’ expectations while only four companies managed to beat expectations. With no end in sight, the trade war is making itself felt in the form of uncertainty and/or delays in customers’ plans while analysts also opined the impact of the escalating trade war will likely to continue into 2H19. However, some analysts believe that Southeast Asia countries, including Singapore, may benefit from the situation as they have always been an alternative manufacturing hub to China when customers seek to mitigate risks arising from the produ

The Straits Times Index (SGX: ^STI) is up just 1.2% so far for the year. With the US-China trade war, Hong Kong protests, Brexit, and general economic slowdown worrying investors, it’s not surprising to see the Singapore stock market languishing. If you are looking for stock ideas amid all the macro fears, you have come to the right place. Using our data provider, S&P Global Market Intelligence, and a Magic Formula methodology popularised by Joel Greenblatt, we found some of the best stocks for the month that could go on to perform well. The basic premise of the Magic Formula is to find the 30 best shares in the market as ranked by their cheapness and their quality and to hold on to that basket of shares for a year before repeating the ranking process. For a deeper underst

Information technology (IT) can be considered a sunrise industry as it offers great future prospects for enhancing our quality of life. The sector itself is large and varied, ranging from companies that manufacture components for the electronics industry to software companies that write programs for clients. SGX has recently highlighted the IT sector as the best-performing sector over first the seven months of 2019, generating a total return of 29.8%. With the ongoing trade dispute between the US and China, electronic manufacturers may witness higher costs seeping into their supply chains, while demand may also remain muted moving forward. However, I believe all these headwinds will eventually pass, and they are currently creating mouth-watering opportunities for long-term investors to pi

Micro-Mechanics (Holdings) Ltd (SGX: 5DD) is involved in the designing, manufacturing, and marketing of consumables and precision tools that are used in the semiconductor industry. On Thursday, the company released its financial results for the full year ended 30 June 2019 (FY2019). Here are some key highlights from the announcement. Show me the money Revenue for FY2019 tumbled 7.3% to S$60.3 million due to a slowdown in the global semiconductor industry. Sales fell across Micro-Mechanics’ major geographical markets, including that of China, Malaysia, and Singapore. This fall in the top line, together with higher depreciation costs from capital investments, caused the company’s earnings to contract by 24.5% to S$12.9 million. Consequently, earnings per share fell from 12.33 S

HRnetGroup Ltd (SGX: CHZ) is the largest recruitment firm in Asia ex Japan. It was listed two years ago on the Singapore stock exchange. HRnet recently caught my attention as it share price is trading at 52-week low of S$0.56 (as of writing). What’s more, it has plunged by 38% from its 52-week high price of S$0.90. Personally, the very first question that I have in my mind now is whether the stock is cheap. This question is important because if the firm’s shares are cheap, I might take some time to learn more about the company’s future prospects. Clearly, there is no easy answer. However, we can still get some insight by comparing HRnet’s current valuations with the market’s valuations. The three valuation metrics I will focus on are the price-to-book (PB) ra

Electronic companies can be great candidates for investment if they check all the right boxes, as the focus in the last few years has been on the technological advancements in computers and the internet. This has created a booming industry that has caused demand to surge for electronic components and parts. While some believe the industry remains inherently cyclical and is subject to sharp booms and busts, others feel the cycle has lengthened enough for most companies to be able to make consistent profits. A previous article of mine had questioned whether electronic companies’ businesses had peaked. Though it may seem that many companies in this industry have seen weakening revenue and profit numbers on a year-on-year basis, it still seems worthwhile for investors to sift out the st

We take a look at the 10-year history of Venture Corporation Limited (SGX: V03) to demonstrate this blue chip company’s track record of stability and consistency.

Planning for one’s retirement can be a major challenge, as there are so many aspects to take care of. Aside from setting aside enough savings as a buffer against financial calamities or family emergencies, it’s also important to build up a strong and resilient investment portfolio that can provide both steady growth and a stream of passive income. This is where proper due diligence plays a key role in determining which companies investors include in their retirement portfolios. Necessary characteristics include a great track record of handling crises and emerging unscathed, along with a history of growing dividends. So, here are four well-run companies that deserve a place in investors’ retirement portfolios. 1. Venture Corporation Limited Venture Corporation Limited (SG

Return on equity (ROE) is a simple metric to showcase how good a company’s management is in turning every dollar of shareholders’ equity into earnings. It’s calculated by taking the annual earnings of a company (found under its income statement) and dividing it by the shareholders’ equity (found under the balance sheet). Generally, the higher the ROE figure, the better it is for shareholders. We all want the companies we’ve invested in to generate as much profit as possible for every dollar of our equity, don’t we? A recent report by the Singapore Exchange revealed the ROE of the top 10 largest industrials shares of the Straits Times Index (SGX: ^STI). The first five shares out of the 10 with the highest ROEs are: Singapore Technologies Engineering Ltd

1. SPH REIT  --  11th Jul 20192. SPH  --  12th Jul 20193. Kep Infra Trust  -- 15th Jul 20194. Kep Reit  --  15th Jul 20195. Kep-KBS US Reit  --  16th Jul 20196. Kep DC Reit  --  16th Jul 20197. CapitaCom Trust  --  17th Jul 20198. Kep Corp  --  18th Jul 20199. SATS  --  18th Jul 201910. FrasersCom Trust  --  22nd Jul 201911. Mapletreelog Trust  --  22nd Jul 201912. CapitaMall Trust  --  23rd Jul 201913. MapletreeInd Trust  --  23rd Jul 201914. Frasers Cpt Trust  --  23rd Jul 201915. MapletreeCom Trust  --  25th Jul 201916. Cache  --  25th Jul 201917. SIA Engg  --  26th Jul 2019 18. Suntec Reit  --  26th Jul 201919. Fr

Strong free cash flow and a low payout ratio should give investors confidence in Venture Corporation Ltd's (SGX: V03) dividend-paying ability.

Ending the first half of 2019, UOBKH’s alpha picks closed 6.8 percent in the month of June, with outperformance being led by Wilmar and CapitaCommercial Trust. That said, UOBKH notes that it is now time for meaningful changes to its portfolio. Here are four stock strategies that UOBKH made to its alpha portfolio which investors should take notice. Investors Takeaway: 4 Stock Strategies UOBKH Made To Its Alpha Portfolio That Investors Should Take Notice Consider: CDL Hospitality Trust CDL Hospitality Trust is one of the latest additions into UOBKH’s alpha picks. In the near term, UOBKH likes CDL Hospitality Trust for its exposure to Singapore tourist arrivals. As of 1Q19, CDL Hospitality Trust owns seven hotels in Singapore, which accounts for 62.5 percent of its portfolio valuation. Th

In this part of the series, we continue with three more blue-chip stock picks that will thrive in a ‘Risk-On’ environment. Investors Takeaway: 6 Blue-Chip Stocks To Own In A ‘Risk-On’ Environment Keppel Corp Keppel Corp is in a unique position where it is expected to ride on the recovery of multiple sectors, i.e. property and O&M sector. According to DBS, the Chinese market, which accounts for half of Keppel Corp’s property segment, is seeing improving sentiment with rising demand and average selling price on the back of loosening liquidity year-to-date, especially in the tier 2 cities. Land sales in the Tianjin Eco-City project should also pick up. For O&M, Keppel Corp’s year-to-date orders of  $1.8 billion has already surpassed the whole of last year. Thus, moving fo

Is Venture Corporation Ltd (SGX: V03) a great buy for investors now, after falling 50% from its peak? Find out here.

On 17 July 2019, the Singapore Exchange (SGX) will celebrate the 2nd anniversary of launching Daily Leverage Certificates (DLCs) in the market. DLCs are short-term trading products that allow investors to amplify their exposure to the market and offer both long and short positions. Offered by Societe Generale in Singapore, the number of securities listed in the market has increased from just 10 initially to more than 76 today, covering both the Singapore and Hong Kong markets. This includes 56 single stock DLCs, such as Venture Corp, Yangzijiang Shipbuilding and Keppel in Singapore and Tencent, Geely Automobile, AIA and China Construction Band in Hong Kong, and the rest comprises indices such as the MSCI Singapore Index and Hang Seng Index (HSI). Allowing traders to leverage their positio

Singapore Exchange Limited (SGX: S68), Venture Corporation Ltd (SGX: V03), and SATS Ltd (SGX: S58) are three blue chips that offer opportunities for your investment portfolio.

Venture Corporation Ltd's (SGX: V03) share price has nearly halved since April last year. Is now a good time to take a closer look at the company?

Despite an overhang on the equities markets due to the ongoing trade tensions and worries about the economic slowdown, most companies generally continue to deliver decent results for the last quarter. Some of the key highlights in this earnings season include Keppel Corporation announcing a turnaround of its offshore and marine division. Meanwhile, local bank DBS Group Holdings also achieved record quarterly net profit of $1.7 billion rising 8.5 percent year-on-year, which helped to lift Straits Times Index temporarily above the 3,400 level closing at 3,407.02 on 29 April 2019. Nevertheless, with the recent rally, the probability of an imminent correction has also heightened. For investors who are getting jittery about the widely-believed axiom, “sell in May and go away”, we identify t