tag:blogger.com,1999:blog-266684242024-03-05T03:51:15.288-08:00SG STOCKS PICKUnknownnoreply@blogger.comBlogger141125tag:blogger.com,1999:blog-26668424.post-81708270845162343932023-03-27T22:50:00.003-07:002023-03-27T22:50:25.195-07:00PRIME US REIT: Is this an opportunity? <p> At this point of writing, PRIME is trading at US$0.30.<br /><br />Its yield is now almost 20%, at US$0.06 ( base on FY2022).<br />Trading a 0.44x book value, NTA is US$0.75.<br /><br /><br />Let take a look at a few metrices.<br /><br />1) <b>Weighted Average Lease Expiry (WALE)</b> is 4.1 years, which provides sufficient time to cushion any volatility in the stock market. <br /><br />2) <b>Weighted Average Debt Maturity is 2 years.</b> This may raise some concerns here. Out of the US$449 million debt maturity in 2024, US$160 million can be extended to July 2026 ( 2 years extension ), bringing Weighted Average Debt Maturity to 2.7 years. Personally, I am not sure if this provide sufficient buffer time for PRIME to obtain new loan facilities. <br /><br />3) <b>Average leverage is 42%. </b>This figure is still below the requirements of 50%. <br /><br />Summary:<br />All investments come with RISK, some is higher while some is lower. <br />At a yield of close to 20%, and trading at 0.44x book value, i think the risk is justified. <br /><br /></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-46086667851157165472022-09-06T04:46:00.001-07:002022-09-06T04:46:06.254-07:00Is First Ship Lease Trust worth SGD7.3cts today ?<p><span style="font-family: arial;"> If investors can recall, <br />in 2018, there was a rights issue at 4.5cts , 3 rights for every 2 shares. <br />In 2019, there is a takeover at 5.85cts by <span style="background-color: white; color: #222222;">a group of investors led by Prime Marine’s Efstathios Topouzoglou.<br /><br />Since then, FSL has paid out a total of USD9.6cts of dividend.<br /><br />So as of 6th Sep, what's left for FSL ?<br /><br />As reported in its 1HFY2022, NTA is US$0.04 or roughly S$0.0548. But FSL is trading at $0.073, that is a 33% premium over its NTA. <br /><br />I can safely remove US$0.015 from its NTA, as it had just paid out 1.5cts as dividend. <br />I assume that the NTA left, should be US$0.025 or S$0.034, at S$0.073, its trading at 113% premium over its NTA. <br /><br /><br />Since 2020, FSL has been selling away its fleet of vessels. <br />I guess moving forward it may adopt this strategy, since the new investors has already profited US$0.096 + (S$0.073 - S$0.0585 = S$0.0145 ) = S$0.146 per share. <br /><br />Personally, i would skip this counter and move on with life. </span></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-38325318900749858022022-04-18T00:50:00.005-07:002022-04-18T00:50:59.851-07:00Semi-conductors/ Tech Firm: Are they STILL worth buying after the correction ?<p></p><p class="MsoNormal"><span lang="EN-US" style="mso-ansi-language: EN-US;">Since the
start of 2022, we have witness the share prices of semiconductors and tech
companies having a correction. No one holds the crystal ball and no one can
predict the future so personally I will place my bet on companies with proven
track record and reputable management.<br /><br />ISDN: <br /><br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;">ISDN Holdings Ltd. engages in the provision of technical consultancy, training and management services. It operates through the following segments: Provision of Engineering Solutions-Motion Control, Other Specialized Engineering Solutions, and Industrial Computing Solutions. The Provision of Engineering Solutions-Motion Control segment offers motion control systems that incorporate components, such as servo motors and drives, mechanical parts, monitors, and industrial computing components. The Other Specialized Engineering Solutions segment includes industrial vision, precision gears, gear boxes, laser technologies for precision measurement and cutting, as well as for industrial locks and hinges. The Industrial Computing Solutions segment provides hardware and software solutions and complements the engineering solutions business. The company was founded in 1986 and is headquartered in Singapore.<br /></span><br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; word-spacing: 2px;">Selected data supplied by </span><img alt="" height="10%" src="https://analytics.poems.com.sg/StockAnalytics/Images/FactSet_Logo_Cyan.png" style="box-sizing: border-box; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; padding: 0px; word-spacing: 2px;" width="10%" /><br /><br />" Indeed, our approach of testing our convictions and moving forward while others are set back has allowed us to deliver 8 successive quarters of record growth for ISDN during these turbulent years, including financial year ended 31 December 2021 (“FY2021”) results that represent all-time records for revenue, shareholder profits, and dividends. More importantly, even while delivering record earnings, we have invested to transform our capabilities. We’ve expanded our technology solutions, upgraded our operational infrastructure, established our 5 pillars of excellence, and grown our productivity. " Adapted from Annual Report 2021. <br /><br />ISDN has gradually built its growth pillar and reaping rewards from its long term approach. <br />Price have corrected from $0.85 to $0.605, or 29% correction. With its stable management and clear growth strategy, I will place my bet on ISDN.</span></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCG9Pi-MN8xXwlL6YGtS9sNs2KaQ5x7s1zqWtyWPaKx_mIGGcmdZ-99H0t6TsTgBnviAwROG-xUJOlXvZ14pkwchpIMhK-hbB4qsl_0WIP0Lp-jz9Fz_5g8YN1Jba7aJoI02IR6ftL-O8kIxnweuT8J1Ym7xDGAipUiWmt-SCn9AgaQZArLQ/s1920/ISDN.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="314" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCG9Pi-MN8xXwlL6YGtS9sNs2KaQ5x7s1zqWtyWPaKx_mIGGcmdZ-99H0t6TsTgBnviAwROG-xUJOlXvZ14pkwchpIMhK-hbB4qsl_0WIP0Lp-jz9Fz_5g8YN1Jba7aJoI02IR6ftL-O8kIxnweuT8J1Ym7xDGAipUiWmt-SCn9AgaQZArLQ/w558-h314/ISDN.jpg" width="558" /></a></div><br /><span lang="EN-US" style="mso-ansi-language: EN-US;"><br /><br />Grand Ventures: <br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;"><br />Grand Venture Technology Ltd. engages in the provision of manufacturing solutions. It operates through the Life Sciences; Electronics, Medical and Others; and Semiconductor segments. The Life Sciences segment is involved in the manufacturing of key components of mass spectrometers, high performance liquid chromatography instruments used for laboratory testing and pharmaceutical applications. The Electronics, Medical and Others segment manufactures consumable parts, manufacturing and assembly of surgical microscopes and the assembly of complex modules for customers in the business of industrial automation and manufacturing equipment. The Semiconductor segment focuses on the manufacture of electrical components and devices such as transistors and diodes for equipment providers. The company was founded on September 17, 2012 and is headquartered in Singapore. <br /></span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; word-spacing: 2px;">Selected data supplied by </span><img alt="" height="10%" src="https://analytics.poems.com.sg/StockAnalytics/Images/FactSet_Logo_Cyan.png" style="box-sizing: border-box; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; padding: 0px; word-spacing: 2px;" width="10%" /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;"><br /></span><br />" In December 2021, we announced our acquisition of Suzhou-based J-Dragon Tech (Suzhou) Co., Ltd (“J-Dragon”). J-Dragon offers design, development and manufacturing services to an established pool of customers in the aerospace, medical diagnostics and semiconductor industries in China and the acquisition will place us in a good position to tap the huge market potential and positive trends in the aerospace and medical industries in China and international market. <br /><br />Together with the J-Dragon acquisition, we also announced our acquisition of Formach Asia Sdn Bhd (“Formach”) in Johor, as part of our strategy to ramp up our precision sheet metal manufacturing capacity. The additional capacity will lend strength to our efforts to increase the wallet share of our existing life sciences and semiconductor customers, as well as to attract new customers in the front-end semiconductor manufacturing space. We are delighted to have already received significant interest from potential customers following this announcement. " Adapted from Annual Report 2021. <br /><br />Grand Ventures seems to have embark on its growth traction since the new shareholder Novo Tellus joined in March 2021. Novo Tellus is specialized in the tech sector and has successfully transformed AEM to a S$1.4 billion market capital company. Price have corrected from $1.45 to $1.02 at this point of writing, 30% correction from its high. <br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidyLE7KOtSsp1hvzH6MOnqi88RC9yP-xOstsHvoN509lZ2F2wLOM2K5Cqi-jo9cIJaOslFELJQOfvYzE-778c36_uFXj0jmrRiBCP_mPM0gL8Q3Rt_hBb4yzjSdFzd6FolbnVc4Md1pV_yM09EusWUqdGPpMoNmRlibWfXFSj1Rpc9oeRDcw/s1920/Grand%20ventures.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="318" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidyLE7KOtSsp1hvzH6MOnqi88RC9yP-xOstsHvoN509lZ2F2wLOM2K5Cqi-jo9cIJaOslFELJQOfvYzE-778c36_uFXj0jmrRiBCP_mPM0gL8Q3Rt_hBb4yzjSdFzd6FolbnVc4Md1pV_yM09EusWUqdGPpMoNmRlibWfXFSj1Rpc9oeRDcw/w566-h318/Grand%20ventures.jpg" width="566" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><br /><br />UMS: <br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;"><br /></span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;">UMS Holdings Ltd. is an investment holding company. The firm engages in manufacturing high precision front-end semiconductor components, perform electromechanical assembly and final testing services. It operates through the following segments: Semiconductor and Others. The Semiconductor segment provides precision machining components and equipment modules for semiconductor equipment manufacturers. The Others segment provides shipment of water disinfection systems and the supplier of base components to oil and gas original manufacturers. The company was founded by Andy Luong in 1984 and is headquartered in Singapore.<br /></span><br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; word-spacing: 2px;">Selected data supplied by </span><img alt="" height="10%" src="https://analytics.poems.com.sg/StockAnalytics/Images/FactSet_Logo_Cyan.png" style="box-sizing: border-box; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; padding: 0px; word-spacing: 2px;" width="10%" /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;"><br /></span><br />UMS has launched a takeover of JEP last year, increasing its stake to 72%, worth about $118 million at $0.40 per share of JEP. I believe UMS will continue to add value to its shareholders while maintaining a good dividend yield. Price has corrected from $1.78 to $1.18 or a 33% correction. <br /><br /><br /><br /><br />Frencken: <br /><br /><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; text-align: justify; word-spacing: 2px;">Frencken Group Ltd. is an investment holding company, which engages in the provision of design and manufacturing solutions for analytical and life sciences, automotive, healthcare, industrial, and semiconductor industries. It operates through the following segments: Mechatronics, and Integrated Manufacturing Services (IMS), Investment Holding and Management Services, and Other. The Mechatronics segment design and manufacture complex electro-mechanical assemblies and automation systems for original equipment manufacturers. The IMS segment deals with one-stop integrated solution to manufacture plastic components for assembly into modules and finished products. The Investment Holding and Management Services comprises investment holding companies. The Other segment focuses in the investment property holding company. The company was founded by Hock Peng Low and Soon Hock Gooi on August 27, 1999 and is headquartered in Prai, Malaysia.<br /></span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; word-spacing: 2px;">Selected data supplied by </span><img alt="" height="10%" src="https://analytics.poems.com.sg/StockAnalytics/Images/FactSet_Logo_Cyan.png" style="box-sizing: border-box; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; padding: 0px; word-spacing: 2px;" width="10%" /><br /><br />" The long-term growth catalysts will come from our continual focus on the expansion of our current businesses through market share increases with both existing and new customers, as well as our initiatives to build new business pillars in the technology space. The Mechatronics Division has forged long-term customer relationships with multinational companies that are leaders in their respective fields. To expand wallet share with these customers, the division will continue collaborating closely with them on new product introductions while working to move up the value chain. " Adapted from Annual Report 2021. <br /><br />I like the fact that the management is working towards a sustainable long term growth rather than a bumpy short term roller coaster ride. Price has corrected from $2.52 to $1.56 at this point of writing, or a 38% correction from its high. <br /><br /><br /><br /></span><br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8xP4Ay8e6XTfrVogtYqjMekOY2ZNM_VkbecNi54i7eJunALjmWiQcs71nqbtR42E3m_QYZQihl5A53tpT4_yVBdiJwWAIIzOH19Bwoa_gHuvt7a0Wx3c3vUbkj8ZGZFWVkX8ZXkhEM0nYGpR4oBWOti7D2_0GwzXhz1LG4hPThvcWsrtfCw/s1920/Frencken.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="329" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8xP4Ay8e6XTfrVogtYqjMekOY2ZNM_VkbecNi54i7eJunALjmWiQcs71nqbtR42E3m_QYZQihl5A53tpT4_yVBdiJwWAIIzOH19Bwoa_gHuvt7a0Wx3c3vUbkj8ZGZFWVkX8ZXkhEM0nYGpR4oBWOti7D2_0GwzXhz1LG4hPThvcWsrtfCw/w584-h329/Frencken.jpg" width="584" /></a></div><br /><o:p></o:p><p></p><br /><p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-73242571484867849162021-12-31T21:57:00.005-08:002021-12-31T21:57:45.112-08:00Effective 17-Jan-2022, all SGX listed ETFs will be traded in 1 unit.<p> <span style="background-color: #e6f4f7; color: #222222; font-family: Lato, HelveticaNeue, "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px;">Effective 17-Jan-2022, all SGX listed ETFs will be traded in 1 unit.<br /><br />This will be great news for investors. <br />Many friends whom i spoke to , was not aware that S&P ETF is also dual listed on SGX. <br />However, min trading size is 10 shares, so minimum entry level will be around US$4700 assuming S&P 500 ETF is US$470 a share. This is hard for some investors to fork out on a regular basis. <br />Now it is made affordable ! </span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-85686961260795179012021-12-31T21:53:00.000-08:002021-12-31T21:53:00.113-08:00Updates to Nordic<p> There are 2 updates to Nordic. <br /><br /><b>9MFY2021 Updates: </b><br />1) 9MFY2021 updates: EPS 9M is 2.8 cts, Trailing PE ratio is 11x as of 31st Dec 2021. <br />2) Net profit for 9M is 11 million vs last FY 9M of 1.9 million. <br /><br />Nordic has shown great recovery from FY2020. <br />Hopefully, this is will continue moving forward. <br /><br /><b>Takeover Starburst<br /></b><br />If the takeover is successful, base on perfoma HY2021, EPS for Nordic will be 3.9cts for 1HYFY2021. <br />Trailing PE will be 5.26x for Nordic. <br /><br />But not all things are rosy, Nordic will end up with Gearing of 0.66x or $52 million net borrowings from a net cash of $11 million. If synergy can be strike between starburst and nordic, this will be a great acquisition as $0.238 is just 4x trailing PE. <br /><br />The past acquisition of Multiheight in 2011 has effectively reduced industry specific risk and , 18% supported Nordic's consistent revenue growth. The acquisitions of Austin Energy in 2015 and Ensure Engineering in 2017 and Envipure in 2019 have further diversified Nordic's revenue stream and stimulated revenue growth. Starburst might jolly be Nordic's rapid growth engine moving forward. <br /><br />With its past track record, I will place my bet on Nordic. <br /><br /><br /></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-91792210189370484772021-12-31T21:21:00.000-08:002021-12-31T21:21:12.093-08:00Mapletree Commercial Trust (MCT) or Mapletree North Asia China Trust (MNACT) has the better deal ?<p><br /><br />I will simply highlight my key observations.<br /><br /><b>For MCT holders:</b><br /><br />1) Distribution per Unit(DPU) <span style="background-color: #04ff00;">positive</span>. <br /><br />DPU (1HFY2021) will increase from 4.39cts to 4.72 - 4.78cts depending on MNACT holders choosing all script or script/cash options. This represent a 7.5 - 8.9% increase in DPU post acquisition.<br /><br />2) Net asset value (NAV) <span style="background-color: #04ff00;">positive</span>. <br /><br />NAV will increase from $1.68 to $1.79 - $1.80 depending on MNACT holders choosing all script or script/cash options. This represent a 6.5 - 7.1% increase in NAV. <br /><br />3) Gearing Ratio <span style="background-color: red;">negative.</span><br /><br /><span style="background-color: white;">Gearing for MCT holders will increase form 33.7% to 39.2%. <br /><br /></span></p><p><span style="background-color: white;"><b>For MNACT holders: </b></span></p><p>1) Distribution per Unit(DPU) <span style="background-color: red;">negative.<br /><br /></span>DPU (FY2020) will decrease from 6.175 cts to 5.60 - 5.67 cts depending on MNACT holders choosing all script or script/cash options. This represent a 8.2 - 9.3% increase in DPU post acquisition.</p><p>2) Net asset value (NAV) <span style="background-color: red;">negative.</span><br /><br />NAV will increase from $1.265 (pre distribution) to $1.10. This represent a 13% decrease in NAV. <br /><br />3) Gearing Ratio <span style="background-color: #04ff00;">positive</span>. <br /><br />Gearing will decrease from 41.4% to 38- 39.2% depending on MNACT holders choosing all script or script/cash options.<br /><br /><b>Conclusion: <br /><br /></b>To make the deal more attractive to MNACT holders, offer price is $1.19, which is at NAV after the recent distribution. MNACT has not trade above its NAV since the HK riot started in 2019, so a $1.19 offer seems very reasonable. <br />MNACT will enjoy the continual growth with the Newco ( Mapletree Pan Asia Commercial Trust(MPACT) and compensated for the drop in DPU with a $1.19 offer. <br /><br />For MCT holders, unitholders have nothing much more to ask for. <br />Existing holders will get higher DPU and NAV, thou Gearing has increased. <br />The rise in Gearing should not be too much of an issue as it is still below the required 50%.<br /><br />Comparing with Capital Integrated Commercial Trust (CICT), <br />P/NAV = <span style="background-color: #04ff00;">1.02x (CICT)</span> vs 1.11-1.12x (MPACT)<br />Yield = <span style="background-color: #04ff00;">5.34% (CICT)</span> vs 4.72 - 4.78%(MPACT)<br />Gearing = 40.9% (CICT) vs <span style="background-color: #04ff00;">39.2% (MPACT)</span><br /><br />MPACT will be a closer competitor to CICT thou I think both are very well managed REITs. <br /><br />Personally, if I own MCT , I will sell and buy into CICT. <br />If I own MNACT, I will sell at market if it is close to $1.19 and buying into Capital Retail China Trust.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-90217867365467360882021-05-24T07:40:00.000-07:002021-05-24T07:40:03.998-07:00Nordic: Beginning of a New Era<p> In the latest 1st Quarter FY2021 update,</p><p>Its gross margin is 26% and net margin at 14%. <br />This set its net profit at $3.5 million, 119% up from 1QFY2020. <br /><br />Its book order is $122.7 million, which is the highest since FY2012 as shared in its 1QFY2021 updates.<br /><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil4CBJz2NCCGd6duitd3rVIBCJHjyP8CnUDs1jvVjgJqbznAiTc5ra_3_YaHjS7hkvFzL1a8JiToEdLn0i_h-xfcuiziyLZfy7GttQrymd__f1PxpeOoujpkLbxEfexrjrvNAy/s1078/Nordic+order+book.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="508" data-original-width="1078" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil4CBJz2NCCGd6duitd3rVIBCJHjyP8CnUDs1jvVjgJqbznAiTc5ra_3_YaHjS7hkvFzL1a8JiToEdLn0i_h-xfcuiziyLZfy7GttQrymd__f1PxpeOoujpkLbxEfexrjrvNAy/s320/Nordic+order+book.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;">Moving forward, i will be keeping a lookout for Nordic. <br /><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><br /><p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-12656815499512682532021-05-09T05:57:00.002-07:002021-05-09T05:57:30.077-07:00Dasin Retail Trust: ARA to be co-manager <p><span style="font-family: arial;"><span style="background-color: white; box-sizing: inherit; color: #222222; font-weight: 600; text-align: justify;">Dasin Retail Trust (DRT) </span><span style="background-color: white; text-align: justify;"><span style="color: #222222;">is a retail property trust that has seven retail malls located in Zhongshan, Zhuhai, and Foshan, all of which are part of the Guangdong-Hong Kong-Macau Greater Bay Area (GBA).<br /></span></span></span><span style="background-color: white; font-family: arial; text-align: justify;"><span style="color: #222222;"><br />Investment merits:</span></span></p><b style="background-color: white; color: #b72e39; font-family: arial;">1) Sponsors has pipeline of assets</b><br /><span style="background-color: white; color: #222222; font-family: arial;">DRT has a large pipeline of assets consisting of 15 right of first refusal (ROFR) properties located across four cities in the GBA – Foshan, Zhongshan, Zhuhai, and Macau. Six of these properties are currently under development, while the remaining nine properties have been completed. The completed properties have a total gross floor area (GFA) of 683 thousand square metres (sqm), which is almost as large as DRT’s existing portfolio.</span><div><span style="color: #222222; font-family: arial;"><br /></span></div><div><b style="background-color: white; color: #b72e39; font-family: arial;">2) Huge discount to NAV<br /></b><span style="background-color: white; color: #222222; font-family: arial;">DRT latest NAV is $1.41 as of 31st Dec 2020. Current trading price is $0.73 or 0.51x Book value. This should be the only reit that is trading at such a huge discount.<br /><br /></span><b style="background-color: white; color: #b72e39; font-family: arial;">3) ARA to be co-manager of Dasin Retail Trust<br /></b><span style="font-family: arial;">ARA to acquire 50.0% stake in the Trustee Manager of Dasin Retail Trust and
approximately 5.0% of the total units issued in Dasin Retail Trust.<br />As announced by Dasin, DRT will be leveraging ARA’s established track record and expertise in REIT management, as well as its
global network of investors, DRTM will work closely with ARA to drive operating performance and
take the Trust into its next phase of growth.<br /></span><span style="background-color: white; color: #222222; font-family: arial;"><br />Hopefully, with ARA as the new co-manager, the gap between NAV and share price will be smaller. <br /></span><b style="background-color: white; color: #b72e39; font-family: arial;"><br /></b><span style="color: #222222; font-family: arial;"><br /><b>Risks</b><br /><b>1) Debt maturing on 18th July 2021<br /></b><br />As reported, </span><span style="font-family: arial;">the Trustee-Manager is in active negotiations with the banks to successfully complete the extension of the loan relating to
the initial portfolio and Shiqi Metro Mall due on 18 July 2021. This seems to put a stress on the unit prices since early 2021. <br /></span><span style="color: #222222; font-family: arial;"><br /><b>2) Sponsors wavier to expire end 2021<br /></b><br /></span><span style="color: #222222; font-family: arial;">Upon listing, its Dasin's intention to grow the DPU so that when the sponsor's waiver expires later this year, the DPU's growth should make up for the waiver. <br />Without the waiver, DPU for 2020 should be 2.87cts down from 3.95cts in FY2019. <br />Assuming no growth in DPU, the yield will be 3.93%, which is low for a Reit with overseas assets.<br /><br /><br /></span><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px; text-align: left;"><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px; text-align: left;"><p></p><div style="background-color: white; box-sizing: inherit; color: #222222; line-height: 30px; margin-bottom: 26px; margin-top: 0px; overflow-wrap: break-word; text-align: justify;"><span style="font-family: arial;"><div style="text-align: left;"><br /></div></span></div><p></p></blockquote></blockquote></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-64880909305476751592020-07-27T03:24:00.000-07:002020-07-27T03:24:04.015-07:00mDR: Entering the new era.Adapt from the Questions and Answers for AGM 2020.<br /><br /><b>Changing its investment portfolio to a 100% allocation to equities within a year.</b><br />1) As at end
2019, our investment portfolio allocation was 66% to equity and 34% to fixed income. During the
recent market correction, mDR took advantage of price volatility and was active in swapping bond
exposure for equity exposure. The asset allocation as of May-end 2020 was 80% equity and 20%
fixed income. mDR will continue to unlock liquidity from its bond portfolio to increase the equity
exposure as the recession runs its course and we expect to have 100% allocation to equities within
a year.<br />
<br /><b>Next transformation phase into physical real estate with sustainable rental cash flow</b><br />
2) The Group will continue to maintain the forward momentum to accelerate growth and create
shareholder value and to improve its profitability, dividend and visibility. A financial crisis may present
compelling distressed opportunities, in which case, the Group will work towards its next
transformation phase into physical real estate with sustainable rental cash flow. The DMS and DPAS
divisions will focus on maintaining their profitability, and will stay nimble and look for opportunities
and additional revenue streams for expansion and growth. We expect mDR to have a stronger
balance sheet and increased profitability in the next three to five years. <br /><br /><b>No further dilution to shareholders such as rights issue </b><br />3) The Company is not planning any rights issue or bonus warrants in the near future after the proposed
consolidation of shares.<br /><br /><b>My takeover: </b><br />1) A share consolidation of 100 into 1 is positive. This will bring the outstanding shares from 90 Billion to 906 million shares. Post-consolidation NTA of $0.17. At pre-consolidation price of $0.001 , mDR is trading at 0.58x book value and at $0.002 , mDR will be trading at 1.18x book value.<br />The huge gap in valuation has possibly resulted in the poor trading sediments over the years.<br /><br />2) The closest peer that i can relate or compare to, probably would be Global Investment.<br />Global investment is trading at 0.71x book value and 7% yield. mDR is trading at 0.58x and 3% yield before 2020.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-21259203065896694182020-07-27T03:01:00.001-07:002020-07-27T03:01:45.289-07:00JEP: Update from the management<br /><br /><b>Below are the updates from the management:</b><br /><br />The aerospace related customers have rescheduled delivery lead time.<br />
Nevertheless, none of these customers had cancelled the signed contracts.<br />
<br />
The Group’s main revenue streams are diversified into a few business segments
and aerospace segment contributes approximately 60% of total revenue of the
Group.<br />
<br />
The Group does not expect to have a significant change to the half year financial
results for FY2020 as compared to the corresponding period last year.<br />
<br />
The past effort in streamlining operations and cost saving initiatives have made
the Group in the better position to tide through this difficult period.<br />
<br />
The Group will continue with its on-going cost saving initiatives and defer its
capital expenditures in relation to aerospace segment to sustain this business
segment during an economic downturn.<br /><br /><b>Takeaway:</b><br /><br />1<span style="font-family: inherit;">) Both </span><span style="background-color: white; font-family: inherit; text-align: justify;">Mr. Zee Hoong Huay </span><span style="background-color: white; text-align: justify;"><span style="font-family: inherit;">Executive Director and UMS has been adding on their positions since Jan 2020. </span><br /><br /><span style="font-family: inherit;">2) JEP is seeing net profit margin increases from 2.7% to 7.3% from FY2019 to FY2020. This shows that JEP's </span>initiatives<span style="font-family: inherit;"> to shift its manufacturing from higher cost countries to lower cost countries are taking positive effect.<br /><br /><b>Catalyst:</b><br /><br />1) A maiden dividend will drive the price further up.<br />2) Synergy between UMS and JEP can further enhance cost savings, which should drive the net margin up.<br /><br />Disclaimer: I am holding 41,000 of JEP. </span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-16076820731286015902020-03-30T06:42:00.000-07:002020-05-18T22:13:59.831-07:00Lendlease Commercial Reit: $0.51 <span style="background-color: white; color: #272727;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Lendlease Global Commercial REIT (“LLGCR”) was listed on 2 October as a real estate investment trust with a principal objective to own in-producing real estate across the globe. The initial portfolio will comprise of full ownership stakes in two assets, retail mall 313@somerset (Singapore) and office asset, Sky Complex (Italy).<br /><br /><b>Merits:</b><br /><br />1) Only 2 assets which makes valuation easier. </span></span><br />
<span style="background-color: white; color: #272727;"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Lendlease Global Commercial REIT current portfolio of properties in Singapore and Milan, Italy, are high-quality properties. Moreover, the current stable of properties have a committed occupancy rate of 99.9%.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Sky Complex, is a freehold Grade A property comprising three buildings in Milan, Italy. It is 100% leased to Sky Italia, a television platform owned by Comcast Corporation, one of the largest broadcasting and cable television company in the world. It is leased out on a long lease of 12 years + 12 years, starting in 2008.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">313@Somerset is a 99-year leasehold prime retail property in the heart of Orchard Road that none of us should be unfamiliar with. It is leased out to a diverse tenant base of 150 tenants across 14 trade sectors, and has a WALE of nearly 1.8 years. 58.9% of 313@Somerset’s leases have an in-built rental escalation of 3.0% to provide stable income growth.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="color: #444444;">Both properties are also leased out at favourable weighted average lease expiry (WALE) terms at 10.4 years by net lettable area (or 4.9 years by rental income). </span><br /><br /><span style="color: #444444;">I am sure covid-19 situation would have vastly improved by 4.9 years.</span><br /><br /><span style="color: #444444;">2) Dividend</span><br /><br /><span style="color: #444444;">Lendlease Global REIT will be distributing 100% of its adjusted net cashflow from operations till the end of FY2021, and thereafter, it will distribute 90% of its adjusted net cashflow from operations.</span><br /><br /><span style="color: #444444;">Estimated DPU for FY2021 will be 5.29cts, vs share price of $0.51.</span><br /><span style="color: #444444;">That's a good 10.4% yield. </span><br /><br /><span style="color: #444444;">3) Discount to Book</span><br /><br /><span style="color: #444444;">Book value is $0.81, so its trading at P/B of 0.63x ,</span><br /><span style="color: #444444;">rare for a good reit to trade at such valuation.</span><br /><br /><b style="color: #444444;">Risks</b><br /><span style="color: #444444;">1) Pipelines of projects</span><br /><br /><span style="color: #444444;">Growth is definitely hindered. Unless the share price rises back to pre-covid level, i don't think sponsor will inject assets into Lendlease.<br />So investors got to make do with the current yield and cheap valuation until a day when price recover to above book value of 81cts<br /><br /><b>Updates:</b><br /><b>313@Sommerset</b><br />Business operations:</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="color: #444444;"> – Tenant sales is expected to be lower for the next few months.</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="color: #444444;"> – Majority of the leases by NLA have been renewed for FY2020 with only approximately 5% by
NLA is due for renewal in FY2021. </span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="color: #444444;">– Rental reversion for the coming quarters might be flat or negative due to weak demand.<br />-- Rent relief measures provided to tenants during circuit-breaker period will potentially weigh down
LREIT’s performance in the coming quarters<br /><br /><b>Analysis: </b><br />1) Occupancy rate as of 31st March 2020 is 99.2%, which is still high. Lendlease will fully support the tenants during this Circuit Breaker period. With the 95% tenants' lease renewed till FY2021, it is sufficient to weather through this period of pandemic.<br /><br />2) YTD net property income was $32.8 million of which $11.2 million ( 34%) is from Sky Complex, the rest from 313@Sommerset. Worst case for last quarter of FY2020, we are still looking at a base contribution from Sky Complex, Milan. 3rd Quarter distribution is 1.28cts, pending 4rd Quarter results.<br /><br /><b>Sky Complex, Milan</b><br />– Rental is expected to remain flat for FY2021.<br /><b>Business operations</b>:
<br />– Long lease term till 2032<br />– Business is under essential services and its operations are continuing with broadcasting (without
live audiences) still taking place within the premises.<br /><br /><b>Analysis:</b><br />Tenant is a media company with filming taking place in the building.<br />It is considered as a specialised building as it is renovated to cater to media industry usage, hence the long lease period.<br /><br />This form the base income for Lendlease Commercial Reit.<br /><br /></span></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-47496637276784562572019-12-31T05:11:00.002-08:002019-12-31T05:11:39.041-08:00Dasin Retail Trust: Is it worth a buy at $0.835 ?<div style="background-color: white; box-sizing: border-box; text-align: justify; transition: background 0.1s ease-in 0s, width 0.4s ease-in 0s, left 0.2s ease-in 0s, right 0.1s ease-in 0s, padding 0.1s ease-in 0s;">
<b><span style="font-family: Arial, Helvetica, sans-serif;">Who is Dasin Retail Trust ?</span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Dasin Retail Trust is managed by Dasin Retail Trust Management Pte. Ltd. in its capacity as the Trustee-Manager ("Trustee-Manager"). The Trustee-Manager strives to provide unitholders of Dasin Retail Trust ("Unitholders") with an attractive rate of return on their investments through regular and stable distributions and to achieve long-term sustainable growth in distribution per unit, while maintaining an appropriate capital structure.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Sponsor of Dasin Retail Trust is Zhongshan Dasin Real Estate Co., Ltd (中山市大信置业有限公司) (the "Sponsor"), one of the leading real estate developers in Zhongshan City, Guangdong Province, with a strong track record as a retail mall operator.<br /><br />More details of the sponsor can be found here : <a href="http://dasintrust.com/sponsor.html">http://dasintrust.com/sponsor.html</a></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Investment merits:</b><br /><br /><b>1) Steep discount to book value. </b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Currently trading at $0.835 vs Book value of S$1.37 as of 30th Sep 2019.<br />Price to book is 0.61x. Investors may be wondering why is there is steep discount.<br />Shortly after listing, Shiqi Metre Mall was injected into Dasin at a discount of 57.8% off its valuation. In the recent injection of Shunde and Tanbei Metro Mall, it was also purchased at a discount of about 25% off its valuation. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Through the sponsor‘s right of first refusal (“ ROFR ”), Dasin
Retail Trust can acquire high quality properties at the right
time. At the time of listing, the Trust had 15 ROFR assets, and
as at 30 September 2019, the number of ROFR properties
owned by the Trust stood at 18. The Trustee-Manager will
undertake a prudent investment approach to inject these
properties to enhance the portfolio of Dasin Retail Trust.<br /><br />With this pipeline from the sponsors, i believe the book value will continue to grow.<br /><br />At this point of time, BHG Trust is trading at 0.87x book value at $0.685, EC World Reit trading at $0.745 , 0.90x book value, and Sasseur Reit is trading at $0.885, 1.05x book value.<br /><br />If Dasin can trade at valuation close to other China REITs listed in SGX, it will be $1.19 at 0.87x book. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>2) H</b><span style="color: #212529; text-align: left;"><b>eadroom to make yield-accretive acquisitions</b></span><br />Gearing is 36.4%, giving the trust </span><span style="color: #212529; text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;">giving it headroom to make yield-accretive acquisitions.</span></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #212529;"><b>3) Well spread Weighted Average Lease to Expiry<br /></b></span>WALE: 7.1 years (by Net Lettable Area) or 4.1 years (by Gross Rental Income)<br />This give the trust some stability in income moving forward.<br /><br /><b>4) Potential Gain on disposal if properties is sold at valuation</b><br /><br />Should this happen, this will be a great booster to the trust, convert the discount to book value to cash. Shareholders can look forward for a capital distribution should this situation occur. </span></div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /><b>Risks</b><br /><b>1) Distribution wavier of Shareholder</b></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Major unitholders (Aqua Wealth Holdings Limited and
Bounty Way Investments Limited) will waive a portion of
their entitlement to distributions from Dasin Retail Trust
for the benefit of other unitholders. This is an expression of major unitholders' confidence in long term income growth with a strong alignment of interest
with other unitholder.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br />The waiver will be 55% ( 2017 ), 48% (2018), 45%(2019), 35%(2020) and 15%(2021) of the units owned by Aqua Wealth Holdings Limited and Bounty Way Investments Limited, not entitled to distribution.<br /><br />Dasin listed with 4 properties in the portfolio. As of 30th Sep 2019, Dasin will have 7 properties. It seems that every year, there will be 1-2 properties to be injected into Dasin.<br />Hopefully, the increased distribution can offset the shareholder wavier of distribution in coming years. Otherwise, it will continue to trade at steep discount to book value.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Conclusion:</b><br />In my opinion, there is only 1 main driver in investing in Dasin. That is Dasin will trade at higher valuation should (1) a disposal of asset at valuation , (2) distribution payout to catch up the distribution wavier.<br /><br />At current portfolio, assuming no growth in DPU, the distribution is likely to be 3.3cts in FY2022 without any waiver, or 4% yield on a annual basis.</span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-20722126064853042062019-07-04T05:23:00.000-07:002019-07-04T05:23:03.548-07:00Investment in REITs: Are they attractive after the run up ?4th July 2019<br />
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The first reit to list in Singapore was CapitaMall Trust on 17th July 2002.<br />Since then we have weathered through various cyclical downturns with the Sub-Prime crisis giving worst hit to the REITs.<br /><br />An investor who has held since IPO would have received $1.37 dividend and enjoy $1.75 of capital gain. That's a 321% gain or 18.9% on a annual basis for the last 17 years. An investment of $1000 at IPO will worth $3210.<br />
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The story would be different for other REITs such as Sabana REIT. IPO at $1.05, after a collection of $0.5425 ( adjusted for rights ), Sabana is trading at $0.46. An investor would have suffered a losses of 4.7% for these 9 years. An investment of $1000 will worth $970, which is a far cry from $1700 ( CapitaMall's 9 years average returns )<br /><br />So I will be sharing on my observations of REITs all these years.<br />
<br /><b>1) Does interest rate really matters ?</b><br /><br />Well, Analysts always call for Underweight when FED raised interest rates and vice versa.<br />However there are some REITs, that is still able to grow their Distribution Per Unit (DPU) every year. Eg Fraser Centrepoint Trust. So a well managed REIT should be able to beat the odds to deliver value for unit holders.<br /><br />My take: Doesn't really matter in the long term. There will be volatile movement in the short term, but in the long run, long term investment is the winning odds.<br /><br /><b>2) Does a strong sponsor matters for investors ? </b><br /><br />Yes. REIT with a strong sponsor will inject mature assets into the REIT which is yield accretive. This provide a pipeline of assets for future growth. However, we have witnessed REITs without sponsors or smaller sponsor suffering in the long run. Eg Allco Reit. <span style="background-color: white; text-align: justify;"><span style="font-family: inherit;">Impending refinancing risk declined after Allco Reit was ‘de-linked’ from Allco Finance Group. Allco REIT was eventually bought over by Fraser Centrepoint. At an IPO of $1, Allco REIT was trading around 9 cents at its lowest point in 2009. With Fraser coming in, Allco Reit is now renamed as Fraser Commercial Trust trading at $1.69 at post-consolidation ratio of 5 into 1 or $0.338 pre-consolidated price. An investor will still see losses after all these years.<br /></span></span><br />
<span style="background-color: white; text-align: justify;"><span style="font-family: inherit;">My take: A good sponsor is very important. It really make a difference during financial crisis. </span></span><br />
<span style="background-color: white; text-align: justify;"><span style="font-family: inherit;"><br /></span></span>
<span style="background-color: white; text-align: justify;"><b style="font-family: inherit;">3) Script dividend vs Cash </b><br /><span style="font-family: inherit;">Of course it matters. Your "cash" in script will earn you future dividend whereas cash will be sitting in banks with lower returns unless you have use for the cash. Using the cash to buy more shares wont make sense as there will be transaction cost involved. Also REIT may give discount in the price during the issue of script dividend.</span><br /><br /><span style="font-family: inherit;">My take: Thou there will be odd lots, but being a long term investor , I will </span>definitely<span style="font-family: inherit;"> choose script dividend over cash.</span><br /><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-75042683390005432892018-12-21T04:31:00.002-08:002018-12-21T04:36:33.651-08:00Is it time to buy APTT, Global Investment or AIMS PSF ?<br />
<div style="margin-bottom: .0001pt; margin: 0cm;">
<span style="color: black; font-family: "arial" , sans-serif;">Let's look into these 3 business trusts:<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;">1) Global
Investment (GI)<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;">2) Asian Paid TV
Trust ( APTT )<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;">3) Aims Property
Security Fund ( AIMS PSF )<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br />
<b>1) Global Investment: </b><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br />
Our fellow investor community has shared on InvestingNote on the recent
weakness in price.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br />
<a href="https://writingofinvestingnoob.com/2018/12/11/global-investment-woes/">https://writingofinvestingnoob.com/2018/12/11/global-investment-woes/</a><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br />
It is quite comprehensive. You all can read his blog.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br />
I just want to add on that <span style="background: white;">Global
Investments Ltd is a mutual fund company incorporated in Bermuda and listed on
the Singapore Exchange. It was formerly known as Babcock and Brown Structured
Finance Fund Ltd and managed by Australian-based Babcock and Brown group.
Babcock and Brown subsequently went into liquidation amidst the credit crunch
in the 2009 global financial crisis. Subsequently, in September the same year,
ST Asset Management Ltd (STAM), a wholly owned subsidiary of Temasek, took over
as the fund’s manager with Mr Boon Swan Foo, ex-CEO of ST Engineering,
appointed to GIL’s board as chairman.</span><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br style="background-color: white; text-align: justify;" />
<span style="background: white;">Since late April 2016, however, STAM has
relinquished the manager role to Singapore Consortium Investment Management
Limited (SICIM), as it focuses on the management of funds of related companies
instead of 3rd party funds. The key management of GIL remains the same though
as SICIM is wholly owned by the current chairman, Boon. </span><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
</span><strong style="text-align: justify;"><span style="color: black; font-family: "arial" , sans-serif;">One key point to note: It is
not subject to the Minimum Trading Price ( SGX )</span></strong><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="color: black; font-family: "arial" , sans-serif;"><br style="background-color: white; text-align: justify;" />
<span style="background: white;">In March 2015, SGX announced and subsequently
implemented the Minimum Trading Price (MTP) continuing listing requirement,
which obligates all SGX mainboard listed companies to maintain a minimum
trading price of S$0.20 per share. </span><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;">While
GI has been listed on the SGX mainboard since late 2006 and trading below the
S$0.20 per share level for the last few years, SGX has ruled that the MTP will
not apply to it as it is classified as an investment fund. This will bring
relief to some investors as they might think that GI needs to do share
consolidation to bring the price above $0.20, of which potentials investors
will choose to come on board after consolidation or existing shareholders will
sell off and come on board later.<br />
<br />
<b>Dividend Re-investment Scheme</b><br />
<br />
There are not many trusts around that has dividend reinvestment scheme.<br />
Using 72 rule, ( <a href="https://www.investopedia.com/ask/answers/what-is-the-rule-72/">https://www.investopedia.com/ask/answers/what-is-the-rule-72/</a> ),
it will take 7.65 years to double your holdings at 10.6cts and a dividend of
1cts per year. However, we should take about 7 years instead as dividend is
paid semi-annually.<br />
<br />
* Disclaimer: I have held GI for more than 8 years, and sold off half the
quantity i have,earlier in June 2018, keeping my profits in shares in GI. Have
recently added at 10.6cts again, to ride another "72" ride.<br />
<br />
<b>2) Asian Paid TV Trust ( APTT )</b></span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<b><span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
</span></b><span style="background: white; color: black; font-family: "arial" , sans-serif;">Macquarie International Infrastructure Fund has listed APTT via IPO,
with APTT shares distributed to its shareholders.<br />
<br />
Since IPO of 97cts, APTT has dropped to a low of 12cts in recent weeks with the
slash of dividend from 1.625cts per quarter to 0.3cts per quarter. </span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
APTT has a book value of 78cts, and trading at $0.129 ( at point of writing )
or 0.165x book value.</span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<b><span style="background: white; color: black; font-family: "arial" , sans-serif;">Concerns: </span></b><span style="background: white; color: black; font-family: "arial" , sans-serif;">1) Many investors have fled from APTT from the
huge volume and falling prices. The market needs some time to digest this huge
volumes and for speculation of shares to settle down.2) Historically, APTT
is trading at close to 10% yield. With a 2019 and 2020 dividend guidance of
1.2cts yearly, i am afraid that the share price will hover around 12cts.<b>Positives: </b>1)
The dividend of 9.3% at $0.129, is quite attractive over a period of 2 years.
This will provide regular income for investors as 0.3cts will be paid
quarterly. </span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;">2)
Management has taken a bold move in slashing the dividend to keep the trust
alive. At 1.625cts per quarter, debts are piling up. Dividend paid will be
reduced from $93 million to $17 million per year, freeing up the cash to reduce
debt.<br />
<br />
* I am vested at a small amount at $0.56, no immediate plans to add more at the
moment.<br />
<br />
<b style="font-family: inherit;">3)
AIMS Property Security Fund </b><br />
<br />
There are a few attempts to liquidate the fund in recent years, which sees the
corporate raiders failed in their attempts. However, every attempt has seen the
fund rose in trading price.<br />
<br />
AIMS PSF was emerged from Mac-cook PSF when they went into liquidation in 2009.
AIMS has "saved" Mac-cook PSF and steered it to be debt free and a
sustainable business model.<br />
<br />
NTA has rose from A$1.17 in June 2013 to A$2.37 in June 2018, with discount to
NTA reducing from 72% to 24% as of 7th November 2018 as announced on SGX.<br />
<br />
<span style="font-family: inherit;"><b>Positives: </b></span></span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
1) George Wang is still the largest shareholders and also the chairman of AIMS
PSF, so his interest is in alignment with shareholders.<br />
<br />
2) Quarterly dividend will be paid, which provides regular income of
shareholders like me. </span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
3) Thou the discount to NTA is shrunk to 24%, it is still a A57cts to
A$2.37 from A$1.80. The management has been able to raise the NTA over the
years which has brought up the share price.</span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
4) There have been share buyback and cancellation. This will enhance the
valuation of AIMS PSF.</span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
<b>Concern:</b></span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
1) The float is really low. It is really difficult to buy more from the market
without causing a rise in price.</span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: .0001pt; margin: 0cm; orphans: 2; text-align: start; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;">
<span style="background: white; color: black; font-family: "arial" , sans-serif;"><br />
* I am vested in AIMS PSF, with an average price of $1.655</span><span style="color: black; font-family: "arial" , sans-serif;"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-23877723776935899882018-09-23T21:14:00.000-07:002018-09-23T21:14:41.563-07:00Revisiting REITs: Sabana REIT<span style="font-family: Arial, Helvetica, sans-serif;">There have been concerns of a rising interest rate environment. This will inevitably reduces the distribution of REITs. However, there are some REITs that were sold down on other reasons such as poor visibility moving ahead(Sabana), and changing taxes landscape(LippoMall Reit).</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">I will discuss this below.<br /><br />Sabana REIT:<br /><br />The NAV of Sabana has decreased significantly from $0.822 ( pre rights issue in 2013, NAV was $1.06) ) to $0.53 ( in Sep 2018). The share price dropped from $1.05( adjusted for rights) to $0.415 on 24th Sep 2018. Nav has decreased 35% and share price has decreased about 60%. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Is the drop justified ?</b></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">1) The distribution for FY2013 was $0.0938 and $0.066( adjusted for rights ).</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">The distribution for FY2017 was $0.033, a 50% drop as compared to FY2013.<br />Based on this, i think the drop was a bit overdone.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">2) <b>New management</b></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">With the strategic review being concluded, a new management team is formed up.<br />Donald Han with vast experience in the industry was appointed as the new CEO. </span><br />
<span style="background-color: white; color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Tan Cheong Hin has joined also the board as a new independent director. Mr Tan was formerly director (Euro) of Mapletree Investments.<br />With a new team, i am confident they can steer Sabana into better days.<br /><br />3) <b>Clear Plans ahead</b><br />Step One: Increase occupancy</span></span><span style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; font-family: "Nunito Sans", Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: 0.15px;">Step Two: Retain tenants</span><br />
<span style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; font-family: "Nunito Sans", Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: 0.15px;"><span style="-webkit-font-smoothing: antialiased; letter-spacing: 0.15px;">Step Three: Asset Enhanced Initiatives</span></span><br />
<span style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; font-family: "Nunito Sans", Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: 0.15px;"><span style="-webkit-font-smoothing: antialiased; letter-spacing: 0.15px;"><span style="-webkit-font-smoothing: antialiased; letter-spacing: 0.15px;">Step Four: Get back the general mandate</span></span></span><br />
<span style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; font-family: "Nunito Sans", Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: 0.15px;"><span style="-webkit-font-smoothing: antialiased; letter-spacing: 0.15px;"><span style="-webkit-font-smoothing: antialiased; letter-spacing: 0.15px;"><br />More information: </span></span></span><br />
<span style="-webkit-font-smoothing: antialiased; background-color: white;"><span style="-webkit-font-smoothing: antialiased;"><span style="-webkit-font-smoothing: antialiased; font-size: 15px; letter-spacing: 0.15px;"><span style="color: #231f20; font-family: Nunito Sans, Helvetica, Arial, sans-serif;"><a href="https://www.theedgesingapore.com/new-broom-sweeps-clean-sabana-reit%E2%80%99s-unitholders">https://www.theedgesingapore.com/new-broom-sweeps-clean-sabana-reit%E2%80%99s-unitholders</a></span></span></span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-72665562202746990522018-05-09T19:36:00.003-07:002018-09-23T20:49:05.801-07:00Promising shares below $0.101) Amplefield:<br />
<br />
Amplefield has $19 million of investment properties as of 30th Sep 2017.<br />
<br />
On 4th Dec, Amplefield has announced a contract of approximately S$24.8 million. The work scope under the Contract will include soil investigation, preliminary works, site clearance, sandfilling and related earthworks. The work is expected to commence in December 2017 and be completed by end of September 2018.<br />
<br />
This will contribute positively to Amplefield.<br />
<br />
<br />
4th April: Amplefield signs memorandum of agreement with Equine Sanctuary
to kickstart the proposed development of a racecourse and
racetracks for horseracing within a 300 hectare land at Le Minh Xuan
Ward, in Ho Chi Minh City, Vietnam<br />
<br />
3rd May: 1HFY2018, profit of $245k.<br />
<br />
<br />
2) JEP:<br />
<br />
JEP is accredited with ohsas, AS9100 and Nadcap, so JEP is part of the global supply chain for leading aircraft manufacturers. JEP also owns Precision engineering business namely Dolphin Engineering & Industrade, that manufactures die and mould for Oil & Gas and aerospace industry.<br />
<br />
Information take from Edge Magazine.<br />
<br />
Luong, CEO of UMS has purchased $28.2 million for 29.5% stake in JEP.<br />
He will be taking a major role in JEP. He announced that he will be transforming JEP into a dividend paying company.<br />
<br />
Investment Merit:<br />
Luong is successfully at UMS, increasing shareholder's value and pays regular dividends.<br />
With an entry into JEP, Luong will map his success in UMS into JEP.<br />
<br />
<br />
<br />
3) Miyoshi:<br />
<br />
9th May: <span style="background-color: white; color: #333333; font-family: "open sans" , sans-serif;">CATALIST-LISTED Miyoshi Limited announced that its affiliated company, automaker Core Power (Fujian) New Energy Automobile, has secured two contracts to manufacture electric cars for Jiangxi Changhe Automotive.</span><br />
<div style="background-color: white; box-sizing: border-box; margin-bottom: 25px;">
<span style="color: #333333; font-family: "open sans" , sans-serif;">The contracts will see Core Power supply 50,000 all-electric car frames and a similar number of sets of lithium batteries, battery management systems and electric motors.</span><br />
<span style="color: #333333; font-family: "open sans" , sans-serif;"><br /></span></div>
<div style="background-color: white; box-sizing: border-box; margin-bottom: 25px;">
<span style="color: #333333; font-family: "open sans" , sans-serif;"><a href="http://www.businesstimes.com.sg/companies-markets/miyoshi-affiliate-core-power-bags-two-electric-car-contracts">http://www.businesstimes.com.sg/companies-markets/miyoshi-affiliate-core-power-bags-two-electric-car-contracts</a></span></div>
8th May:<br />
<br />
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
METALMAKER Miyoshi Limited announced it is seeking to raise S$7.05 million in proceeds through a private placement of 115 million new ordinary shares at S$0.0613 apiece.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
The price is a 9.99 per cent discount to the volume-weighted average price of S$0.0681 for each share based on trades last executed on the Singapore Exchange on May 8, 2018.</div>
<div style="background-color: white; box-sizing: border-box; margin-bottom: 25px;">
<span style="color: #333333; font-family: "open sans" , sans-serif;"><a href="http://www.businesstimes.com.sg/companies-markets/metal-manufacturer-miyoshi-seeks-to-raise-s7m-in-private-placement">http://www.businesstimes.com.sg/companies-markets/metal-manufacturer-miyoshi-seeks-to-raise-s7m-in-private-placement</a></span></div>
Older news:<br />
<br />
<a href="https://www.nextinsight.net/story-archive-mainmenu-60/939-2017/11570-miyoshi-nascent-investment-that-s-a-potential-growth-driver">https://www.nextinsight.net/story-archive-mainmenu-60/939-2017/11570-miyoshi-nascent-investment-that-s-a-potential-growth-driver</a><br />
<br />
4) OKH Global<br />
<br />
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
"PROPERTY developer OKH Global is tying up with Ping An Industrial and Logistics to develop logistics and warehousing facilities in China, it said on Thursday.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
A memorandum of understanding has been inked, and more details will be released later. A joint venture company is expected to be set up by the second half of the year, OKH Global said.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
Ping An Industrial and Logistics is a subsidiary of the Ping An Group, one of China's five largest insurers.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "open sans", sans-serif; margin-bottom: 25px;">
"Ping An has the asset base. They have lots of warehouses and land across the whole of China that we can leverage on," OKH Global chief executive officer Lock Wai Han told The Business Times." </div>
<div style="background-color: white; box-sizing: border-box; margin-bottom: 25px;">
<span style="color: #333333; font-family: "open sans" , sans-serif;"><a href="http://www.businesstimes.com.sg/companies-markets/okh-global-to-develop-logistics-and-warehouse-facilities-in-china-with-ping-an">http://www.businesstimes.com.sg/companies-markets/okh-global-to-develop-logistics-and-warehouse-facilities-in-china-with-ping-an</a></span></div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-26668424.post-2555130049888937912018-05-09T19:25:00.000-07:002018-05-09T19:25:48.260-07:00Koda: Update on 3QFY2018EPS of US$0.0142 for 3QFY2018, bringing 9M EPS to US$0.0572.<br /><br />Trailing PE base on last done price of 69cts, will be 7.3x<br /><br />Still attractive at this price despite the rise from 62 cts.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-82165639105244388042018-03-19T07:30:00.000-07:002018-03-19T07:30:23.714-07:00Koda: A New Era <span style="font-family: Arial, Helvetica, sans-serif;">I still remember the days where they are a few companies in the business of Home Furnishing, such as Nobel Design, HTL International & Koda. However, Nobel Design and HTL have been privatised.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Koda caught my eyes as it is debt free and trading at below 10x PE ratio. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">So i decided to investigate further if Koda can by a multibagger.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Recent Developments:</b></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">In 2011, Koda introduced a new furniture brand called Commune. The brand is managed by third-generation members of the Koh family, which owns Koda.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">The Commune has better margins than Koda’s original design manufacturer business, which makes furniture for other companies. Its contemporary design aesthetic has been popular among furniture buyers in China, where Commune is growing fastest.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">Currently, Commune has 43 stores in China. Koda will continue to put a strong focus on expansion in China, aiming to increase its Commune stores in China to 100 by FY2020.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<b>The HYPE</b></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="color: black; letter-spacing: normal; text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">"An Original Design Manufacturer (ODM) and major exporter of furniture in Southeast Asia, Koda started out locally in 1972 in the woodcraft business producing speaker boxes, television cabinets and jewellery boxes. It then converted to furniture making in 1980, which proved to be a more lucrative business. Today, 60% of their products are dining room furniture.</span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="color: black; letter-spacing: normal; text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The company has created a niche market for itself internationally by customising to its customers’ requirements. Koda has won many repeat customers by merit of its stylish designs and precise workmanship. Its innovative products are exported to more than 200 upmarket and established customers located in over 50 countries." </span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; line-height: 1.3; margin-bottom: 10px;">
<span style="color: black; letter-spacing: normal; text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Souce: </span></span><span style="background-color: transparent;"><span style="font-family: Arial, Helvetica, sans-serif;">http://www.sesami.net/Industry_feature6.aspx</span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; line-height: 1.3; margin-bottom: 10px;">
<span style="background-color: transparent;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; line-height: 1.3; margin-bottom: 10px;">
<span style="background-color: transparent;"><span style="font-family: Arial, Helvetica, sans-serif;">With the reputation it has built up over the decades, Koda now has its own brand, "Commune". It will have another revenue stream that will fetch higher margins.</span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; line-height: 1.3; margin-bottom: 10px;">
<span style="background-color: transparent;"><span style="font-family: Arial, Helvetica, sans-serif;">There is an aggressive plan by Koda to grow the distribution and retail arm in China.</span></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">Koda explained that they have in the last few years, streamline their business and remove the unprofitable aspect of it.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Updates:</b></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">“We want to offer a seamless shopping experience. We intend to make use of a variety of
digital channels while leveraging our physical stores to differentiate Commune from the
competition and to gain a competitive edge over online-only retailers. We will share more
details about this strategy in the coming months,” said Mr Joshua Koh, as announced in the 1HYFY2018.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Financials:</b></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">Net profit for 6 months FY2018 is US$2.4 million, a 26% increase over the same period in FY2017.<br /><br />Cash flow has been positive, ending the Half Year with US$8 million in hand, up from US$6.1 million during the same period last year.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">There is minimum debt which is commendable. Despite the aggressive expansion plan into the retail business in China, Koda did not leverage on debt. </span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>My Take:</b></span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">Koda sounds reasonable at this price, of S$0.625, after hitting a high of $1.095 on 31st Oct 2017.<br />EPS stands at Singapore 3.8cts.</span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">Forwarded PE will be 8.12x. </span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;">If James Koh were to announce a positive plan for Koda to embark on, i believe, in the coming months, Koda will trade at higher valuation . </span></div>
<div style="-webkit-font-smoothing: antialiased; background-color: white; color: #231f20; letter-spacing: 0.19px; line-height: 1.3; margin-bottom: 10px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-27976709542337023102018-01-19T00:25:00.003-08:002018-01-19T00:26:04.300-08:00Amplefield: Properties Investment in Philippines & VietnamAmplefield has $19 million of investment properties as of 30th Sep 2017.<br />
<br />
On 4th Dec, Amplefield has announced a contract of approximately S$24.8 million. The work scope under the Contract will include soil investigation, preliminary works, site clearance,
sandfilling and related earthworks. The work is expected to commence in December 2017 and be
completed by end of September 2018.<br />
<br />
This will contribute positively to Amplefield.<br />
At this point of writing, Amplefield is trading at S$0.052, or $46.80 million market cap on 900 million shares.<br />
<br />
I believe Amplefield will turn profitable with this project in hand.<br />
<br />
* Disclaimer: I am invested at $0.05Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-1855177974373006182018-01-13T21:59:00.000-08:002018-01-13T21:59:39.899-08:00Miyoshi: Gaining success in transformation its business<br />
<br />
"Miyoshi provides a wide range of precision stamping, prototyping, metal finishing and automation for
our customers with high quality solutions. Our technical hub is located in Wuxi, China.<br />
<br />
More specifically, our capabilities include:<br />
• Product design and prototyping for precision components and assemblies in the data storage,
consumer electronics and automotive markets.<br />
• Core manufacturing capabilities such as precision metal stamping, progressive cold forging,
mechanical joining/laser welding, electroplating, manual assembly and testing.<br />
• A regional network of manufacturing sites that have achieved numerous quality registrations,
including ISO 9001, ISO/TS 16949 and ISO 14001.<br />
<br />
Through our subsidiary, Miyoshi Optoelectronics (S) Pte Ltd, we provide electronics solutions that
have wide applications in homeland security, border control and law enforcements. We have entered
into a joint marketing agreement with a Japanese multi-national company for the two companies to
jointly market high-performance face-recognition surveillance related products in Singapore, Malaysia
and other countries in the Asia Pacific region.<br />
<br />
Through our investment in Core Power (Fujian) New Energy Automobile Co., Ltd, we manufacture and
sell electric cars in various parts of China.<br />
<br />
Besides the above, Miyoshi is also developing our high-tech indoor hydroponics plant factory, using
our domain knowledge of mechanical engineering and our Japanese heritage to bring sustainable
farming to the region." ( Taken from Annual Report 2017 )<br />
<br />
Investment Merit:<br />
<br />
1) " <span style="background-color: white; font-family: georgia, palatino;">Miyoshi paid </span><a href="http://www.miyoshi.biz/pdf/FY2016/6.20.pdf" style="background-color: white; color: #ff3939; font-family: georgia, palatino; outline: none; text-decoration-line: none;" target="_blank">S$8.8 million</a><span style="background-color: white; font-family: georgia, palatino;"> for a 15% stake in Core Power (Fujian) New Energy Automobile Co., Ltd, which values the latter at nearly S$60 million. </span><br />
<br style="background-color: white; font-family: georgia, palatino;" /><span style="background-color: white; font-family: georgia, palatino;">Under a MOU with Core Power, Miyoshi has the option to increase its stake to 49%." Taken from </span><span style="font-family: georgia, palatino;"><a href="https://www.nextinsight.net/story-archive-mainmenu-60/939-2017/11570-miyoshi-nascent-investment-that-s-a-potential-growth-driver">https://www.nextinsight.net/story-archive-mainmenu-60/939-2017/11570-miyoshi-nascent-investment-that-s-a-potential-growth-driver</a></span><span style="font-family: georgia, palatino;"><br /></span><span style="font-family: georgia, palatino;">At this point of writing, Miyoshi has a market cap of $37.82 million at $0.076 a share. Based on Nextinsight's article, Miyoshi's investment is now worth $60 million or $0.121 per share, which suggest Miyoshi may have a higher book value.</span><br />
<div>
<div>
<span style="font-family: georgia, palatino;"><span style="font-size: 18.6667px;"><br /></span></span></div>
<div>
2) Rewarding shareholders.<br /><br />Other than the 2 yrs FY2010 and FY2011 which miyoshi suffered losses, Miyoshi has been paying out dividend since 2002, with a total payout of $0.1035.<br />
<br />
<br />
<table border="2" bordercolor="#0033FF" cellpadding="4" cellspacing="4" style="background-color: #99ffff; width: 100%px;">
<tbody>
<tr>
<th>Dividend</th><th>In S$</th></tr>
<tr><td><div style="text-align: center;">
FY2017</div>
</td><td><div style="text-align: center;">
0.004</div>
</td></tr>
<tr>
<th><span style="font-weight: normal;">FY2016</span></th><th><span style="font-weight: normal;">0.004</span></th></tr>
<tr><td><div style="text-align: center;">
FY2015</div>
</td><td><div style="text-align: center;">
0.0035</div>
</td></tr>
<tr>
<th><span style="font-weight: normal;">FY2014</span></th><th><span style="font-weight: normal;">0.004</span></th></tr>
<tr><th><span style="font-weight: normal;">FY2013</span></th><th><span style="font-weight: normal;">0.003</span></th></tr>
<tr><td><div style="text-align: center;">
FY2012</div>
</td><td><div style="text-align: center;">
0</div>
</td></tr>
</tbody></table>
<table border="2" bordercolor="#0033FF" cellpadding="4" cellspacing="4" style="background-color: #99ffff; width: 100%px;">
<tbody>
<tr>
<th><span style="font-weight: 400;">FY2011</span></th><th>0</th></tr>
<tr><td><div style="text-align: center;">
FY2010</div>
</td><td><div style="text-align: center;">
0.003</div>
</td></tr>
<tr>
<th><span style="font-weight: 400;">FY2009</span></th><th><span style="font-weight: normal;">0.003</span></th></tr>
<tr><td><div style="text-align: center;">
FY2008</div>
</td><td><div style="text-align: center;">
0.003</div>
</td></tr>
<tr>
<th><span style="font-weight: 400;">FY2007</span></th><th><span style="font-weight: normal;">0.055</span></th></tr>
<tr><th><span style="font-weight: 400;">FY2006</span></th><th><span style="font-weight: normal;">0.006</span></th></tr>
<tr><td><div style="text-align: center;">
FY2005</div>
</td><td><div style="text-align: center;">
0.003</div>
</td></tr>
<tr>
<th><span style="font-weight: 400;">FY2004</span></th><th><span style="font-weight: normal;">0.009</span></th></tr>
<tr><th><span style="font-weight: 400;">FY2003</span></th><th><span style="font-weight: normal;">0.003</span></th></tr>
<tr><td><div style="text-align: center;">
<b>Total</b></div>
</td><td><div style="text-align: center;">
$0.1035</div>
</td></tr>
</tbody></table>
<br />
<div style="text-align: center;">
<br /></div>
3) A few business in incubation:<br /><br />
- optoelectronics<br />
- electric vehicle<br />
- indoor farming<br />
<br />
The largest of which is electric vehicle. Hopefully, Miyoshi can generate some figures from these incubation and reward shareholder further.<br />
<br />
Risk:<br />
1) Failure in investment<br />
2) Unable to unlock value via sale of assets<br />
<br />
*disclaimer: I am vested at $0.078<br />
<div style="text-align: center;">
<br /></div>
<div style="text-align: center;">
<br /></div>
<br />
<div style="text-align: center;">
<br /></div>
<br />
<br />
<br />
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-62351339928094438182018-01-08T16:45:00.001-08:002018-01-08T16:56:39.793-08:00STAR PHARMACEUTICAL LIMITED: A Star in SGX ?<br />
<br />
<span class="summary" id="lblBusinesSum" style="font-family: "arial" , "helvetica" , sans-serif; word-spacing: 2px;">STAR Pharmaceutical Limited is an investment holding company. The principal activities of the subsidiaries are those relating to the development, manufacturing and trading of pharmaceutical products. The Company operates in the development, manufacturing and trading of pharmaceutical products segment. The Company and its subsidiaries are engaged in the manufacture and sale of both western and Traditional Chinese Medicine (TCM)-formulated prescription drugs. The Company's range of pharmaceutical products include antibiotics, cerebrovascular drugs and cardiovascular drugs, and other specialized drugs manufactured in-house in various dosages and administration forms from powder injections, lyophilized powder injections, liquid injections to tablets, capsules and granules. It has approximately 820 distributors to hospitals, clinics and pharmacies. The Company has a manufacturing facility based in Qionghai City, Hainan Province of People's Republic of China.</span><span style="font-family: "arial" , "helvetica" , sans-serif;"> </span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">( Taken from Thomson Reuters)</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">Listed in 2006 at $1.75 ( Adjusted for share consolidation of 5 into 1 in 2015)</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">Investment Merits:</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
1) Its margin for its business is decent.<br />
<br />
Figures for first 3QFY2017<br />
Gross Margin (TTM) (%)44.12<br />
Operating Profit Margin (TTM) (%)14.59<br />
Net Profit Margin (TTM) (%)12.05<br />
<div>
<br /></div>
<div>
2) NO debt</div>
<div>
<br /></div>
<div>
Current as reported in 3QFY2017, Star Pharm do not have any debt.</div>
<div>
<br /></div>
<div>
3) Net Cash Position</div>
<div>
<br /></div>
<div>
It has a cash of RMB$77 million.</div>
<div>
Its current payable is only RMB$23.9 million.</div>
<div>
Assume we use the cash to over its payable, Star Pharm is sitting on RMB$53.1 million or S$10.6 million.</div>
<div>
Thats S$0.228 or 83% of its last done price of $0.275</div>
<div>
Effectively getting all its other assets of RMB$110 million(S$0.47) for S$0.047 per share(at 90% discount)</div>
<div>
<br /></div>
<div>
4) Low PE of 7x</div>
<div>
<br /></div>
<div>
5) Share buyback by company</div>
<div>
<br /></div>
<div>
I would say it is rare for s-chips to do share buyback on SGX.<br />
I am confident that they do have the cash resource to do it.</div>
<div>
The last share buyback was in Sep 2017, at S$0.22 which is its cash level.</div>
<div>
This provide a base for the share price.</div>
<div>
<br /></div>
<div>
*disclaimer: i am vested in Star Pharm</div>
<div>
<br /></div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-26668424.post-28817874040693713602017-12-11T22:03:00.004-08:002017-12-11T22:04:43.664-08:00Dutyfree Int: A historical dividend yield of 8.89% annualised<span class="summary" style="font-family: "arial" , "helvetica" , sans-serif; word-spacing: 2px;">From Thomson Reuters:</span><br />
<span class="summary" style="font-family: "arial" , "helvetica" , sans-serif; word-spacing: 2px;"><br /></span>
<span class="summary" id="lblBusinesSum" style="font-family: "arial" , "helvetica" , sans-serif; word-spacing: 2px;">" Duty Free International Limited is a Singapore-based investment holding company. The Company and its subsidiaries are engaged in duty free trading. The Company's segments include Trading of duty free goods and non-dutiable merchandise, which focuses on sale of goods, and Investment holding and others, which focuses on sale of oil palm fruit bunches. The Company offers The Zon, which is a travel retail brand. The Company operates over 30 duty-free retail outlets or complexes and trading outlets located at various locations throughout Peninsular Malaysia, including Johor Bahru, Bukit Kayu Hitam, Kuala Lumpur International Airport, Penang International Airport, Padang Besar and Langkawi. The Company owns the Black Forest Golf and Country Club and an oil palm plantation. The Company's 18-hole Golf and Country Club and oil palm plantation assets are located near the Malaysia-Thailand border at Bukit Kayu Hitam, and have a combined land mass of over 700 acres.</span><span style="font-family: "arial" , "helvetica" , sans-serif;"> "</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Investment Merit:</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">1) Consistent dividend. Since the RTO in May 2011, Duty Free Int ( DFI ) has paid out a total of $0.144 in the last 6 years, at this point of writing ( 12th Dec 2017 of 27cts ), 53.3% yield or 8.89% on a annualised basis. I believe the dividend will be sustainable moving forward, as there is only a RM$1 million long term debt.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">2) Potential money raised from exercise of warrants: There are 477 million of bonus warrants of exercise price at S$0.43. Should all the warrants be exercised, about $205 million will be raised. At current price of 27cts, no one will exercise. Its recent high was 44cts in April 2017.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">3) Cash position of RM$279 million as of 2QFY2018. This may allow DFI to acquire business to complement its existing business.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">4) Net margin is high at ave 10.9% for FY 2013 to FY 2017.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">5) Trading at trailing PE of 13.5x PE. Its highest valuation was 22x PE, when it is trading at 44cts.<br /><br /><b>Risks:</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">1) Weakening of Ringgit is a concern. Since 2013 of S$1 : RM$2.50, Ringgit has weakened to S$1:RM$3.03. </span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">2) Implementation of GST has impacted the sales at Duty Free.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><br /></b></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Conclusion:</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">I believe there is a bargain at 27cts, given its historical generous dividend payout and recent drop in share price from 44cts in April 2017 to 23.5cts in Dec 2017.</span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-17991561407509860032017-12-06T18:56:00.001-08:002017-12-06T18:56:21.667-08:00Buying into REIT ETF: yes or no ?<span style="font-family: "arial" , "helvetica" , sans-serif;">Recently, there are <span style="background-color: #e7e7e7;">PHILIPS Asia Pacific Dividend REIT and </span><span style="background-color: #e7e7e7;">NikkoAM-STC Asia REIT</span><span style="background-color: white;"> listed on SGX. </span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Over the last few years, i have progressively sold off my REITS. Of course, I have purchased most of my reits in 2009-2010 at distressed prices. </span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">But these few years, we have witnessed a few REITs being liquidated ( sale of assets ) or crash in prices due to poor management. </span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Just to name a few:</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Being acquired:</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">1) Croesus Reit</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">2) Saizen Reit</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Crash in prices:</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">1) Sabana Reit</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Things, i like about some REITs here is:</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">1) Well managed REIT, i see its price rising by the weeks, eg Fraser Log, AIMS AMP REIT, Maple Log, Maple China.....</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">2) Some allow to collect distribution in Units. This will allow me to enjoy compounding effect of capital growth. Eg Fraser Commerical Trust</span></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">Things, i hate:</span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;">1) Rights issue, i have already planned and allocated funds for investment. And all of a sudden, i need to fork out more to purchase the rights.</span></span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: white;">2) Limited opportunities for reits to grow. Well, Singapore is just this size. There is a limit on your acquisation of properties at yield accretive prices.</span></span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: white;">So i purchase </span></span><span style="background-color: #e7e7e7; font-family: arial, helvetica, sans-serif;">NikkoAM-STC Asia REIT. </span><br />
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<span style="background-color: #e7e7e7; font-family: arial, helvetica, sans-serif;">It will invest in the top reits in Asia, with a projected dividend yield of 5%.</span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: #e7e7e7;">It is traded in min quantity of 100 shares. So, every quarter, i am able to re-invest my dividend by purchasing the amount of dividend received.( I hope they have a dividend reinvestment plan... = ) ).</span></span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: #e7e7e7;">I have no worries about rights issue. No further capital layout upon investment.</span></span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: #e7e7e7;">Lastly, in US, where Reits industry have a longer history, their Reits are trading mostly above book value, vs HK Reits trading below book. I believe the trend of well managed reit in Asia will follow the matrices of a US REIT.</span></span><br />
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<span style="font-family: arial, helvetica, sans-serif;"><span style="background-color: #e7e7e7;">For me, it is a YES in </span></span><span style="background-color: #e7e7e7; font-family: arial, helvetica, sans-serif;">NikkoAM-STC Asia REIT.</span><br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-26668424.post-33357379058955475722017-06-14T05:31:00.001-07:002017-06-14T05:31:30.165-07:00Singapore Kitchen Equipment Ltd: Brewing a nice dish for shareholders !Singapore Kitchen(SKE) was listed on SGX in 2013 at a price of 20cts.<br />
It has hit a high of 25cts on 19th June 2014, a low of 7.3cts in early 2016.<br />
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Investment Merits:<br />
1) Company has only $0.4 million of long term debt vs a net cash position.<br />
2) 2 main segment of business: 1) Distribution & Fabrication of kitchen equipment 2) Maintenance & Servicing: Abt 75% of revenue is accounted for Distribution & Fabrication of kitchen equipment, with 25% of revenue as recurring income. As years go by, i am sure the recurring revenue will keep increasing.<br />
3) With robotic machinery, the product can automated and increase efficiency in kitchens. This may be a stepping stone for SKE to widen its client base.<br />
4) Profit has grown from $0.11 million upon listing to $2.57 million in FY2016. Its ROA and ROE is 11.75% and 17% respectively. In the last 4 years of listing, SKE has slowly growing.<br />
5) Decent dividend yield of 4.69% base on last traded price of 16cts.<br />
6) Single digit PE of 9.35x<br />
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I believe there is still room for SKE to grow , so is the share price.<br />
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Disclaimer: I am vested in SKE.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-26668424.post-3339831913935863272017-04-26T20:52:00.000-07:002017-04-26T20:52:11.752-07:00Brook Crompton: A decade of rebuilding !Brook Crompton, former known as Lindeteves-Jacoberg, registered its first losses in 2003 since listing in 1996. A wrong acquisition of business with debt, en-coupled with slowing European growth, sent Lindeteves-Jacoberg spiral downwards, from a yearly profit of S$20 over million to a yearly loss of more than S$30 million in 2006 to 2008. Its NTA has decreased from $14 to negative $3.20.<br />
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With continual support from ATB, largest shareholder, Lindeteves-Jacoberg was able to pull through.<br />
Things took a further plunge when ATB went into liquidation. The new shareholder, Wolong continued to support Lindeteves-jacoberg, with a S$16 million loan, payable for 5 years till 2016.<br />
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We have to give the management credit for bringing Brook Crompton back on track after a decade of rebuilding. Brook has sold away its manufacturing facilities to offset its debt. Now Brook focus on its strong branding with the distribution of automotive parts.<br />
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In the last 5 years, Brook has achieved positive cash flow from operations, recovering its NTA to S$0.77 as of FY2016. Currently, cash position of S$8.68 million($0.25 cash per share ) with no long term debt.<br />
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At $0.61, as of FY2016, EPS $0.122 or 4.98x PE ratio, which is getting cheaper by the year.<br />
This is a weird case. I attribute the poor performance in the past decade for this. Once a market darling, from a SGX component share to a penny stock over just 1 decade. Many investors feared and stayed out.<br />
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With a dividend of 2cts in FY2016, i believe the dividend will continue in the coming years. With the re-payment of S$16 million loan, the company is set to free up its finance obligation, and start to reward its shareholders.<br />
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Personally, i think Brook is a GEM in this market.<br />
<b>I will value it at least 10x PE ratio or $1.22 as my price target.</b><br />
<b>* disclaimer: i am invested in Brook.</b><br />
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<table border="2" bordercolor="#0033FF" cellpadding="3" cellspacing="3" style="background-color: #99ffff; width: 100%px;">
<tbody>
<tr>
<th><br /></th>
<th>FY2014</th>
<th>FY2015</th>
<th>FY2016</th>
</tr>
<tr>
<td>EPS (in dollars)</td><td>-$0.46</td>
<td>$0.097</td>
<td>$0.122</td>
</tr>
<tr>
<td>PE ratio</td>
<td>NA</td>
<td>6.28x</td>
<td>4.98x</td>
</tr>
<tr>
<td>NTA</td>
<td>S0.625</td>
<td>$0.72</td>
<td>$0.77</td>
</tr>
</tbody></table>
Unknownnoreply@blogger.com2