AIMSAMP Cap Reit

NAV of $1.3725

DPU for FY 2018 is about 10.3 cents , down 6.8% as compared to last year 11.05 cents.

Gearing is about 38% which is staying within the acceptable level of below 45%.

The DPU for FY2018 was lower compared to FY2017 partly due to the increase in Units arising from the private placement of 42,145,000 Units in December 2017. Excluding the effects from the private placement, DPU for 4Q FY2018 and FY2018 would be approximately 2.75 cents and 10.46 cents respectively. 

The placement share was being offered at $1.305 per share. Representing a 6.9% discount for the market traded share price of $1.405 as in Nov 2017. 

Yield is pretty good at the current price of $1.38 which is 7.46% based on DPU of 10.3 cents.

Gross revenue is slightly lowered in FY 2018 of 116.9m versus 120m in FY2017. A decreased of 2.7%. 

Net Property Income came in slightly lowered in FY2018 of 76.4m versus 79.4m in FY2017. A decreased on 3.8%.

Looking through their past DPU for the past five years, we can notice that the DPU had been fluctuating from 10.3 to 11.4 cents. Giving a average yield of 10.8 cents.

Comparing to previous year, DPU seems to be declining slightly . Hopefully, it will stay within the current range . 

I think investor may want to monitor to see what would be the coming quarter result to determine the DPU to be declared for April - June period to see if DPU can staying withing the range of 10.3 to 11 cents.

TA wise, seems like it is being traded in a consolidated mode. Nothing to shout about!

The support level is at 1.35.

It would be good if it can re-conquer 1.42 price level with ease and rises towards $1.45 level.

Not a call to buy or sell.

Please do your own due diligence.

AIMS AMP Capital Industrial REIT (“AA REIT” or the “Trust”) is a real estate investment trust which was listed on the Main Board of the SGX-ST on 19 April 2007. The principal investment objective of the Manager is to invest in a diversified portfolio of income-producing real estate assets located in Singapore and throughout the Asia-Pacific region that is used for industrial purposes, including, but not limited to warehousing and distribution activities, business park activities and manufacturing activities. The Manager’s key objectives are to deliver stable distributions to Unitholders and to provide long-term capital growth. The Group1 has a portfolio of 26 industrial properties, 25 of which are located throughout Singapore and one business park property in Macquarie Park, New South Wales (“NSW”), Australia2 . 

DBS Bank

Downtrend prevail!
Looks like it may likely breaking down the recent low of $26.31 and slide down towards $26.00 which is also coincide with it's 200 days moving average.

Failing to hold on to this support level would be super Bearish!
I think
price could  see further selling down pressure and continue to slide down towards 25.00 then 24.50 and below .

14 June 2018
TA wise Looks rather bearish !
It has broken down 100 days moving average and continue to slide further down with high volume.

Short term wise, I think it may continue to go down to revisit 26.28 then $24.95 with extension to 24.38.

Not a call to buy or sell.

I think similar chart patterns are also reflected on the other 2 local bank counters.

Please do your own due diligence.

The 3 local bank counters are having quite similar chart patterns as shown on the daily candlestick chart patterns.

All 3 counter current price are trading below its 20, 50 & 100 days Moving average.
Looks rather bearish!

OCBC Bank:

It has experienced a Gap down on 30th May 2018 from the previous closing price of $12.99 to touch the low of $12.51 before manage to close slightly higher at $12.66 price level.

The current price of $12.53 is staying slightly above its 200 days moving average at about $12.36 level. Breaking down of $12.36 level , it would be super bearish and may likely continue to slide down to test $12.25 then $11.90 with extension to $11.40.

DBS :

Similarly for DBS , it is having a Gap down scenario on 30th May 2018 whereby the price went down to touch the low of $28.140 before closing slightly higher at $28.23 level as compare to previous day  closing price of $29.15 level.

Looks rather bearish and it may continue to go lower to test $28.14 then $$27.60 with extension to $26.30.

UOB:

It has gone down to touch the low of $28.16 before closing slightly higher at $28.36 price level as compare to the previous day closing price of $29.29 .

This is rather bearish and the price may likely to go lower to test $28.00 then $27.45 with extension to $26.00.

Not a call to buy or sell.

Please do your own due diligence.


Some discussion about the recent selling down:

Any reason u can think of to cause these drags on all 3 banks after reporting excellent results???

• Like
 
• Reply
 
• about 8 hours ago

Sporeshare

Reply to @AllenYip : I think is kind of selling after result . Moreover bank counter are trading at P/B 1.4-1.6 seems expensive. The correction is healthy.. I think any short rebound due to Dow overnight +219 it might be a GD opportunity to exit /lock in profit. Pls dyodd

• Like
 
• Reply
 
• 17 minutes ago

limchris8

Reply to @AllenYip : The answer is simple. Fund managers pushing up bank stocks or any stock prices are not here for charity. They would not wait for ordinary investors to take profit before them. As bank stocks reached few 52-week highs, it was natural to take profit thereby causing corrections. Besides, there are too many uncertainties/volatility this year. It is wise to take money off the table. With nice capital gains & dividend, why shouldn't they take profit? Furthermore, the reporting season for banks is over. Wait till the next reporting season, the games will repeat again..

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides a range of products and services to individuals, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, bancassurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; and investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers, as well as customized and structured equity-linked financing services. It serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company’s Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 590 branches and representative offices in 18 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

 DBS Group Holdings Ltd, an investment holding company, provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in structuring, market-making, and trading in a range of treasury products. The Others segment offers stock broking and Islamic banking services. The company operates approximately 280 branches across 18 markets. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

 United Overseas Bank Limited provides financial products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment provides financing, trade, cash management, capital markets solutions, and advisory and treasury products and services. The company’s Global Markets segment offers foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funds and liquidity. Its Other segment provides investment management, property, and insurance services. The company has a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, Europe, and North America. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was founded in 1935 and is headquartered in Singapore.

SGX

I am waiting for it to go down to revisit $7.00 but seems like market doens't want it to come down!

Have been monitoring this counter seeing it sliding down from a high of $8.50 to a low of $7.07.
Dividend of 28 cents for the past five years, yield of 4% would be nice to have if price is trading at $7.00 and below.

Let's see if market will bring it down to $7.00 again!
I think patience is needed for the right price to appear.

From TA point of view, it is still on a downtrend mode .

The current price of 7.17 is trading below its 20, 50, 100 & 200 days moving average, this is rather bearish.

I think price may likely move up to retest 7.23 level which is also the 20 days moving average.
Reclaiming of this 20MA and staying above would be quite positive.

Failing which, it may continue to retest the recent low of 7.05. Breaking down of 7.05 with high volume that may continue to see the price sliding down towards 7.00 then 6.80 level.

This counter is currently under my watchlist.
I am thinking to slowly accumulate if price goes below $7.00.
I think value is creeping up with a yield of 4% which is quite good for a nice dividend income.
It might be a good idea for me to use DCA .
I think overtime, this counter would still be around as it is the only Stock exchange authority for the local market.

NAV of 0.949.
Trailing EPS of 34.1 cents.
I think PE is about 21x.

Not a call to buy or sell.

Please do your own due diligence.

Trade/invest base on your own decision.

Singapore Exchange Limited, together with its subsidiaries, operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It operates through Equities and Fixed Income; Derivatives; and Market Data and Connectivity segments. The company provides issuer, securities trading and clearing, post trade, membership and collateral management, derivatives trading and clearing, and market data and connectivity services. It also offers counterparty guarantee, and depository and related services for securities transactions; bond trading services; front-line regulatory functions; and computer services and software maintenance services, as well as consultancy services. In addition, the company provides and distributes bulk freight market indices and information; and operates regulated freight derivatives trading facility and electricity market. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.

SingTel

Looks like we may see a replay of the same chart patterns being happened in 2012.
The price was being pushed down near closing yesterday to close lower than previous low of 3.10.

We may likely see the price moving up to reclaim $3.10 level and rises higher from the current level.
Yield is getting attractive now!
Please dyodd.


Are you loosing sleep with your SingTel invested share price keep heading lower?
The whole telco industry sector has been overly punished with the incoming of the 4th operator that may begin its operation on Dec 2018.

I think market has overly reacted and the price has been driven into oversold territories.

I think wise income investor may view this as a golden opportunity to slowly accumulate.

Plus point:

I think SingTel has a stronger balance sheet, stronger free cash flow and it pays out a fraction of its earnings as dividends to shareholders.

If the price on a good investment goes lower, I think it is presenting a good value .

Current price trading at $3.12 , Yield at 5.6% base on annual dividend of 17.5 cents. 

It is looking rather attractive..

Not a call to buy or sell.

Please do your own due diligence.

23rd May 2018
SingTel - Chart wise, it is rather weak and may likely continue to trend lower.
The current price of $3.34 is staying below its 20,50,100 & 200 days moving average. This is rather bearish.

Short term wise, I think it may likely move down to retest the recent low of 3.30.


Breaking down of 3.30 with high volume that would be super bearish and may likely see it slide further down towards 3.19 with extension to 3.08.

Not a call to buy or sell.

Please do your own due diligence.



18 May 2018 - long time didn't see company buying back share ! Looks positive!

Today saw the company bought back 294000+ share between $3.42 to $3.43.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementToday&F=H1UR0B3BPABL4KB0&H=b2e5d5b80b08f4cc5d2922ce03a9263e1a932c75229c687d33fd403eb23c2132


Singtel posts record full-year earnings on NetLink Trust divestment and strong core business 

Financial year ended 31 March 2018




 Record net profit of S$5.45 billion, including divestment gains from NetLink Trust  Operating revenue up 5% to S$17.53 billion

 Strong core and digital businesses drive growth




 Free cash flow up 18% to S$3.61 billion on strong operating cash flow

 Q4 revenue stable and net profit down 19% on weaker associates’ earnings

 Proposed final dividend per share of 10.7 cents; total dividend per share of 17.5 cents

DIVIDENDS

The Board is recommending a final ordinary dividend per share of 10.7 cents, bringing the total ordinary dividend per share for the year to 17.5 cents, representing a payout of approximately S$2.86 billion.

Barring unforeseen circumstances, the Group expects to maintain its ordinary dividends of 17.5 cents per share for the next two financial years and thereafter, will revert to the payout of between 60% and 75% of underlying net profit.

“These results reflect the strong execution of our digital transformation strategy in both our core and new digital businesses. Optus gained market share in Australia underscoring its network and content strategy while our ICT and digital businesses now account for 24% of revenue, with digital marketing arm Amobee achieving growth and positive EBITDA for the year,” said Ms Chua Sock Koong, Singtel Group CEO. “We remain focused on what is important to both our consumer and enterprise customers – premium mobile networks, secure high-speed connectivity, innovative products and services, and excellent customer service. Besides strengthening our competitiveness, this allows us to deliver even greater value to customers.”




 Across the region, all of the Group’s regional associates continued to drive growth in data. However, Airtel’s results were impacted by intense competition with very aggressive pricing led by a new player and further aggravated by mandated cuts in mobile termination rates in India. This is despite recording its highest quarterly net customer adds and strong data usage growth in India, and continued positive growth momentum in Africa. Last month, Airtel announced the merger of Indus Towers and Bharti Infratel to create the largest tower company in the world outside of China, subject to regulatory and shareholder approvals. Telkomsel’s earnings were impacted by the decline in legacy services and heightened price competition particularly during the SIM card registration implementation. Profit contributions from AIS grew on revenue improvement and cost management. Globe also delivered strong earnings growth due to robust data revenue growth and cost control.

Competition remains intense in India but the right regulatory policies and sector consolidation should lead to a more stable market structure in the mid term. In Indonesia, Telkomsel Singapore Telecommunications Limited 2 of 8 Company registration number: 199201624D continues to expand its network to create significant capacity and grow its digital business.

 To forge new areas of growth, we are accelerating collaborations with our regional associates to build an ecosystem of digital services by leveraging the Group’s strengths and customer base across 21 countries.” Recently announced initiatives include a cross-border payments service to connect the Group’s telco wallets in Asia, and strategic partnerships in the areas of e-payments, e-sports and sports content. The Group’s cash position remains strong.

Free cash flow for the full year rose 18% to S$3.61 billion, and for the quarter grew 5% to S$800 million.




GROUP CONSUMER

 In Australia, Optus gained market share as it successfully differentiated itself through its network and content strategy. For the full year, it added a total of 384,000 new mobile customers and 225,000 new NBN broadband customers.

Revenue grew 3% in the quarter as higher equipment sales and strong customer growth offset lower NBN migration revenues due to NBN’s temporary suspension order while EBITDA declined 5%. Excluding NBN migration revenues, revenue would have grown 6% and EBITDA increased 3%. Mobile service revenue grew 1%, impacted by higher service credits. Postpaid ARPU was affected by an increased mix of SIM-only plans, higher device repayment credits and data price competition. Mass market fixed revenues excluding NBN migration revenues increased 6%.

In Singapore, for the quarter, consumer revenue was down 4% and EBITDA declined 14%. Mobile communications revenue was impacted by voice to data substitution, declines in roaming services and a higher mix of SIM-only plans.

The launch of premium handsets presented an opportunity to increase customer recontracting numbers, strengthen customer relationships and reduce churn. Around 18% of new and recontracting postpaid customers signed up for SIM-only plans during the quarter. Home revenues declined with the cessation of Premier League sublicensing and lower fixed voice usage but was partially mitigated by continued growth in broadband services.

Singtel relaunched its flagship store at Comcentre with state-of-the-art features and integration of online-offline channels to give customers greater ease of use.




In the content space, Group Consumer scored broadcasting rights for all the 2018 FIFA World Cup matches in Singapore and Australia. Optus also secured exclusive Premier League rights for three more seasons, solidifying its position as a leading multi-media entertainment company.

GROUP ENTERPRISE

 Group Enterprise revenue was stable for the quarter as growth in ICT revenues offset the continued erosion of the carriage business. ICT services was boosted by strong contributions from cyber security and cloud services.

Cyber security revenue rose 16% on the back of strong growth in managed security services and momentum in the Asia Pacific region.

In Australia, Optus Business maintained its revenue momentum at 5% growth this quarter, driven by sustained growth in mobile revenue and major ICT contract wins.

GROUP DIGITAL LIFE 

Group Digital Life continued to scale and make progress towards profitability. Revenue grew 54%1 for the quarter with EBITDA at breakeven, lifted by one-off content cost credit and government grants.




In my opinion, SingTel has again shown it ability to grow its business and total revenue for the Full Year rises 4.9% to 17,532m.

Underlying Net profit is down 7.8% ( excluding divestment gains) was 3,544m.

Underlying Net profit if included divestment gain of 1,908m , Up 42.2% to 5,451m.

What an outstanding result.

Not a call to buy or sell.

Please do your own due diligence.

KepCorp & Sembcorp Marine

Looks like we may see a rebound happening on a Friday !

Three major indexes higher.

The Dow Jones Industrial Averagerebounded 98.46 points to finish at 24,216.05 after briefly falling 100 points earlier in the session, with Boeing as the best-performing stock in the index. The S&P 500 closed 0.62 percent higher at 2,716.31 as financials, technology and telecoms outperformed. The Nasdaq composite finished up 0.79 percent at 7,503.68 as Amazon rose 2.4 percent after buying an online pharmacy.

oil prices rose to a three-and-a-half year high on Thursday, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from Iran.

U.S. West Texas Intermediate (WTI) crude futures settled at $73.45 a barrel, up 69 cents, or 0.95 percent. It reached $74.03 earlier in the session, highest since Nov. 26, 2014.

The United States this week demanded all countries halt imports of Iranian oil from November, a hardline position the Trump administration hopes will cut off funding to Tehran.(cnbc.com)

https://www.cnbc.com/2018/06/28/oil-markets-well-supplied-despite-strong-demand-outages.html

26 June 2018

US crude surges 3.6%, settling at $70.53, after State Dept says oil buyers must cut Iranian imports to zero

• Oil prices spiked after the State Department signaled the Trump administration will take a hardline approach to cutting off Iran's oil exports.
• A State Department official told reporters the administration expects oil buyers to completely cut off purchases of Iranian supplies in early November.




• Oil prices were already facing upward pressure due to declining production in Venezuela and elsewhere at a time of high global demand.(cnbc.com)

With oil price crossing the $70 mark again, looks like it may attract investor investing in Oil drilling business and hence may boost the demand for new Rigs order.

This may likely benefit both Sembcorp Marine & Keppel Corp.

With this piece of good news, I think Sembcorp Marine may Gap up and retest $2.10 then $2.20 level. 

Keppel Corp may retest $7.20 then $7.40 .

Sembcorp Marine:

NAV of $1.157.

EPS is down 86% to 0.25 cents versus 1.77 cents .

PE is rather high at current price of $2.03 that is a PE of 45.1x ( estimated full year PE of 4.5 cents).

I think The current price of $2.03 is running ahead of its financial fundamentals.

Dividend of 2 cents per annum.

Yield is rather low at 0.98%.

Not a call to buy or sell.

Please do your own due diligence.

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. 

The company engages in the turnkey design, engineering, procurement, construction, and commissioning of offshore newbuilding and conversions, FSOs, FPSOs, FDPSOs, FPUs, MOPUs, gas terminals, FLNGs, FSRUs, jack-ups, semi-submersibles, drill ships, SSP solutions, TLPs, and SPARs. It also engages in the repair, refurbishment, retrofitting, life-extension, upgrading, and conversion of vessels, marine and offshore structures, LNG and LPG gas carriers, cruise ships, ferries, mega-yachts, floating production vessels, MODUs, tankers, containers, and cargo ships, as well as offers jumboization and dejumboization solutions. In addition, the company offers afloat and emergency repair, underwater cleaning and repair, main engine maintenance and repair, steel and pipe work, electrical and instrumentation repair, mechanical and motor rewind repair, tank cleaning, sludge and oily waste disposal, staging work, hydro jetting and hydro/vacuum blasting, riding crew and voyage repair, specialized workshop repair and reconditioning, vessel towage and port clearance arrangement, specialists service and navigation, automation, safety, and fire protection services. Further, it offers offshore platform solutions, such as integrated process; production, riser, and drilling; wellhead, power generation, manifold, and accommodation platforms; and wind-farm substations, as well as topside modules fabrication, installation, and integration. Additionally, it designs and builds sophisticated, specialized, gas value chain, ferry, RoPax, cruise, renewable energy and offshore support, naval support and security, and research and scientific survey vessels. The company was formerly known as Jurong Shipyard Ltd and changed its name to Sembcorp Marine Ltd in 2000. The company was founded in 1963 and is headquartered in Singapore. Sembcorp Marine Ltd. is a subsidiary of Sembcorp Industries Ltd.

 KepCorp - Looking through their financial results for the past 5 years , we can notice that the Total revenue has been declining substantially from 13,282.979m in 2013 to 6,185.668 in 2017.

 I think it is still quite far away for them to grow and increase their total revenue to hit the 10B value. Similarly , the Total net income has also been decreasing from 1,884.798m in 2013 to 301.668m in 2017.

 Diluted EPS has also been going downhill from 0.504 in 2013 to 0.231 in 2017.

 Dividend is almost below half of what has been declared in 2013 of 0.48 versus 0.22 in 2017.

 Diluted EPS of 0.231 , PE is about 35.2 times. I think it is still quite a little bit high as compare to its usual PE of about 13-15 times.

Looking at the latest 1st quarter result which was being released on 

Singapore, 19 April 2018 – Keppel Corporation Limited (Keppel) reported a net profit of S$337 million for the first three months of 2018, 34% higher than the S$252 million net profit for 1Q 2017, bolstered by higher contributions from the Property Division. 

The Group achieved revenue of S$1,470 million for 1Q 2018, which was an improvement of S$222 million or 18% over 1Q 2017. The increase was underpinned by higher revenues achieved by the Property and Infrastructure divisions, which mitigated the impact of lower work volume in the Offshore & Marine Division.

I think the total net profit has also factored in the divestment gain of 289m from the property division.

I think without this divestment gain, net profit may be about the same level as in 1st quarter 2017.

So my observation is that, it may still take quite sometimes for the company to achieve the same level of  net profit as in year 2013.

The current price of $7.09 seems to be trading at a premium level as compare to its NAV of $6.311.

On a positive note , the total order book has generally increased to 4.3B as per the table below:

Another piece of good news is that they have been able to secure a first newbuild drilling rig order in 3 years.

Not a call to buy or sell.

Please do your own due diligence.

Keppel Corporation Limited, an investment holding company, engages in the offshore and marine, property, and infrastructure businesses in Singapore, China, Brazil, other Far East and ASEAN countries, and internationally. It constructs, fabricates, and repairs offshore production facilities and drilling rigs, power barges, specialized vessels, and other offshore production facilities; researches and develops deepwater engineering works; engineers, constructs, and fabricates platforms for the oil and gas sector; undertakes shipyard works and other general business activities; and procures equipment and materials for the construction of offshore production facilities. The company is also involved in the trading and installation of hardware, industrial, marine, and building related products; provision of leasing services; sourcing, fabricating, and supply of steel components; ship repairing, shipbuilding, and conversion activities; marine contracting and ship owning business; painting, blasting, and process and sale of slag; property investment, management, and development activities; fund management; golf and hotel ownership and operation; development of marina lifestyle and residential properties; trading of construction materials; development of district heating and cooling systems; electricity generation and supply, and general wholesale trade businesses; purchase and sale of gaseous fuels; and trading of communication systems and accessories. In addition, it offers jacking systems, and heavy-lift equipment and related services; project management and procurement, towage, financial, real estate investment trust management, logistics and supply chain, warehousing and distribution, data center facilities management, travel agency, and metal fabrication services; housing services for marine workers; and technical consultancy for ship design and engineering works, as well as solid waste treatment solutions. The company was incorporated in 1968 and is based in Singapore.

Ascendas Hospitality Trust

Ascendasas Hospitality Trust (“A-HTRUST”) has on 15 June 2018, via Ascendas Hospitality Real Estate Investment Trust, agreed to acquire a portfolio of three hotels in Osaka, Japan for JPY10,290.0 million (S$126.1 million) (the “Acquisition”). The acquisition of the three hotels, Hotel WBF Kitasemba West, Hotel WBF Kitasemba East and Hotel WBF Honmachi (collectively the “Hotels”), will deepen A-HTRUST’s presence in Osaka, the third largest city in Japan with a population of 2.7 million

 1 . The aggregate purchase consideration represents a 2.9% discount to the latest valuation of the Hotels of JPY10,600.0 million. The Acquisition will be fully funded by debt and is expected to be accretive to distribution per stapled security (“DPS”). On a pro forma basis, the DPS for FY2017/18 would have increased by 4.3% to 6.11 cents

 2 . The acquisitions of Hotel WBF Kitasemba West and Hotel WBF Kitasemba East are expected to be completed by September 2018, while the acquisition of Hotel WBF Honmachi is expected to be completed by January 2019.

Another fantastic acquisition by this trust that is dpu accreditation.

Current price of 77.5 cents yield will be 7.89% if dpu is going to rise to 6.11 cenrs.

Current price is trading below it's fair value ..

Not a call to buy or sell.

A-HTrust : from TA point of view, it is looking rather bearish!
After hitting the high of 90.5 cents on 1st Feb 2018, it has since retreated sharply and continue to go on a down hill to touch the current low price of 78.5 cents.

The price is hovering below most of the SMA lines such as 20,50,100 & 200 days MA.Doesn't look rosy as it has broken down again the recent low of 79 cents.

Short term wise, I think it may likely go down to test 73.5 cents with extension to 70 cents.



Not a call to buy or sell.
Pls do you own due diligence.

Looking through the Financial results for past few years, the Total Revenue seems to be generally increasing from 214.28m (2013) to 224.43m in 2017.

Net income is not consistence as in 2013 it was generating  16.68m and has been drifted lower to 8.10m in 2017.You may want to look further into the detail for this declining net income figure.

Gearing looks fine which is below 35%.

Cash flow has also been generally declining .

Average dividend of 5.48 cents.
Yield is about 6.5%

NAV of 85.6 cents.

I have roughly workout the fair value using DDM and derive the value of about 87 cents.

Trade/Invest base on your own decision.

Quote : Jeremyowtaip -

1. Recent sale of China hotel properties at good premium to unlock value for unitholders.

2. NAV per share after divestment of China properties is increased thus leading to an attractive P/B ratio below 1.

3. Some possible ways the trust may utilise the divestment proceeds include paying higher distributions or a one-off special distribution seen as a return of capital to unitholders. Also, the trust may utilise the proceeds to pare down debts and decrease gearing. The trust may also utilise the proceeds for AEIs of existing properties and/or for new acquisitions. Or can channel the proceeds into all of the above mentioned with different weightings for each depending on the manager.

My take is that no matter which ways the divestment proceeds are utilised, the manager should provide a sound basis to their unitholders why it chooses certain way to use the proceeds.

For example, if it chooses to do a new acquisition that is not so attractive as compared to previous China hotel properties it has divested paying too high a price for the new property which has less attractiveness. Then, we ask ourselves this question. Why exit the China hotel properties at a premium only to re-enter another new property with less attractive future prospects? This would be doing one good decision followed by one bad decision to negate the previous good effect.

If it chooses to pare down strategically some of the existing debts to increase the average weighted length of time to debt expiry in view of potential rise in interest rates. Maybe this is a good decision.

If it chooses to reward unitholders with higher one-off distributions, it is a neutral option depending how they do it. If most of the proceeds are used towards rewarding unitholders, it may help to boost their unit price higher on a short term basis when a higher distribution attracts investors to this trust. But when the buffett has already ended, what comes after next? Any more growth? If not, then it is just a short term fever with no longer term positive effects of increasing distribution on a one-off basis.

Do not get me wrong. I am not saying rewarding unitholders is always wrong. But overdoing it just to boost up the unit price on a shorter term basis may not be as optimal compared to growing the trust on a long term basis providing sustainable increase in distributions over time. Unitholders will be happy only for a short while with a buffett treat as compared to a trust or REIT which really can sustain their growth in distributable income for a very long time to come giving out better and better treats (which may not be buffett standard but still relatively good standard treats).

In conclusion, AHT has done an impressive job with the divestment of the China hotel properties at good premium gains. Let's see how they use the divestment proceeds. I believe this is more important to watch for than the ongoing price movements of this trust. Of course, if the trust proves it can use the proceeds in a very good and sound way, then buying it at the current price now is good. If otherwise, even if one can supposedly get it cheap at less than P/B ratio of 1, think again is it really a great wonderful catch.

Dyodd

Ascendas Hospitality Trust (“A-HTRUST”) was listed in July 2012 as a stapled group comprising Ascendas Hospitality Real Estate Investment Trust (“A-HREIT”) and Ascendas Hospitality Business Trust (“A-HBT”), established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate used predominantly for hospitality purposes, as well as real estate related assets in connection with the foregoing. The asset portfolio comprises 11 quality hotels with over 4,000 rooms geographically diversified across key cities in Australia, China, Japan and Singapore; and located close proximity to central business districts, business precincts, suburban centres, transportation nodes and iconic tourist landmarks. A-HTRUST is managed by Ascendas Hospitality Fund Management Pte. Ltd., the manager of A-HREIT, and Ascendas Hospitality Trust Management Pte. Ltd., the trustee-manager of A-HBT. A-HTRUST is sponsored by Ascendas Land International Pte Ltd, a wholly-owned subsidiary of Ascendas Pte Ltd.

Sembcorp Marine & Kepcorp

US crude surges 3.6%, settling at $70.53, after State Dept says oil buyers must cut Iranian imports to zero

• Oil prices spiked after the State Department signaled the Trump administration will take a hardline approach to cutting off Iran's oil exports.
• A State Department official told reporters the administration expects oil buyers to completely cut off purchases of Iranian supplies in early November.




• Oil prices were already facing upward pressure due to declining production in Venezuela and elsewhere at a time of high global demand.(cnbc.com)

With oil price crossing the $70 mark again, looks like it may attract investor investing in Oil drilling business and hence may boost the demand for new Rigs order.

This may likely benefit both Sembcorp Marine & Keppel Corp.

With this piece of good news, I think Sembcorp Marine may Gap up and retest $2.10 then $2.20 level. 

Keppel Corp may retest $7.20 then $7.40 .

Sembcorp Marine:

NAV of $1.157.

EPS is down 86% to 0.25 cents versus 1.77 cents .

PE is rather high at current price of $2.03 that is a PE of 45.1x ( estimated full year PE of 4.5 cents).

I think The current price of $2.03 is running ahead of its financial fundamentals.

Dividend of 2 cents per annum.

Yield is rather low at 0.98%.

Not a call to buy or sell.

Please do your own due diligence.

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. 

The company engages in the turnkey design, engineering, procurement, construction, and commissioning of offshore newbuilding and conversions, FSOs, FPSOs, FDPSOs, FPUs, MOPUs, gas terminals, FLNGs, FSRUs, jack-ups, semi-submersibles, drill ships, SSP solutions, TLPs, and SPARs. It also engages in the repair, refurbishment, retrofitting, life-extension, upgrading, and conversion of vessels, marine and offshore structures, LNG and LPG gas carriers, cruise ships, ferries, mega-yachts, floating production vessels, MODUs, tankers, containers, and cargo ships, as well as offers jumboization and dejumboization solutions. In addition, the company offers afloat and emergency repair, underwater cleaning and repair, main engine maintenance and repair, steel and pipe work, electrical and instrumentation repair, mechanical and motor rewind repair, tank cleaning, sludge and oily waste disposal, staging work, hydro jetting and hydro/vacuum blasting, riding crew and voyage repair, specialized workshop repair and reconditioning, vessel towage and port clearance arrangement, specialists service and navigation, automation, safety, and fire protection services. Further, it offers offshore platform solutions, such as integrated process; production, riser, and drilling; wellhead, power generation, manifold, and accommodation platforms; and wind-farm substations, as well as topside modules fabrication, installation, and integration. Additionally, it designs and builds sophisticated, specialized, gas value chain, ferry, RoPax, cruise, renewable energy and offshore support, naval support and security, and research and scientific survey vessels. The company was formerly known as Jurong Shipyard Ltd and changed its name to Sembcorp Marine Ltd in 2000. The company was founded in 1963 and is headquartered in Singapore. Sembcorp Marine Ltd. is a subsidiary of Sembcorp Industries Ltd.

 KepCorp - Looking through their financial results for the past 5 years , we can notice that the Total revenue has been declining substantially from 13,282.979m in 2013 to 6,185.668 in 2017.

 I think it is still quite far away for them to grow and increase their total revenue to hit the 10B value. Similarly , the Total net income has also been decreasing from 1,884.798m in 2013 to 301.668m in 2017.

 Diluted EPS has also been going downhill from 0.504 in 2013 to 0.231 in 2017.

 Dividend is almost below half of what has been declared in 2013 of 0.48 versus 0.22 in 2017.

 Diluted EPS of 0.231 , PE is about 35.2 times. I think it is still quite a little bit high as compare to its usual PE of about 13-15 times.

Looking at the latest 1st quarter result which was being released on 

Singapore, 19 April 2018 – Keppel Corporation Limited (Keppel) reported a net profit of S$337 million for the first three months of 2018, 34% higher than the S$252 million net profit for 1Q 2017, bolstered by higher contributions from the Property Division. 

The Group achieved revenue of S$1,470 million for 1Q 2018, which was an improvement of S$222 million or 18% over 1Q 2017. The increase was underpinned by higher revenues achieved by the Property and Infrastructure divisions, which mitigated the impact of lower work volume in the Offshore & Marine Division.

I think the total net profit has also factored in the divestment gain of 289m from the property division.

I think without this divestment gain, net profit may be about the same level as in 1st quarter 2017.

So my observation is that, it may still take quite sometimes for the company to achieve the same level of  net profit as in year 2013.

The current price of $7.09 seems to be trading at a premium level as compare to its NAV of $6.311.

On a positive note , the total order book has generally increased to 4.3B as per the table below:

Another piece of good news is that they have been able to secure a first newbuild drilling rig order in 3 years.

Not a call to buy or sell.

Please do your own due diligence.

Keppel Corporation Limited, an investment holding company, engages in the offshore and marine, property, and infrastructure businesses in Singapore, China, Brazil, other Far East and ASEAN countries, and internationally. It constructs, fabricates, and repairs offshore production facilities and drilling rigs, power barges, specialized vessels, and other offshore production facilities; researches and develops deepwater engineering works; engineers, constructs, and fabricates platforms for the oil and gas sector; undertakes shipyard works and other general business activities; and procures equipment and materials for the construction of offshore production facilities. The company is also involved in the trading and installation of hardware, industrial, marine, and building related products; provision of leasing services; sourcing, fabricating, and supply of steel components; ship repairing, shipbuilding, and conversion activities; marine contracting and ship owning business; painting, blasting, and process and sale of slag; property investment, management, and development activities; fund management; golf and hotel ownership and operation; development of marina lifestyle and residential properties; trading of construction materials; development of district heating and cooling systems; electricity generation and supply, and general wholesale trade businesses; purchase and sale of gaseous fuels; and trading of communication systems and accessories. In addition, it offers jacking systems, and heavy-lift equipment and related services; project management and procurement, towage, financial, real estate investment trust management, logistics and supply chain, warehousing and distribution, data center facilities management, travel agency, and metal fabrication services; housing services for marine workers; and technical consultancy for ship design and engineering works, as well as solid waste treatment solutions. The company was incorporated in 1968 and is based in Singapore.