Raffles Medical

30th April - 1st qtr result is out. Net profit is ip 3.0% from $14,965m to $15,466m.

Total revenue has also risen from $114,915m to $120,189m.
Operation cash flow has also increased from $18,175m to $23,962m.

I think the first quarter result has improved slightly in terms of revenue, total net income and as well as operation cash flow..

Raffles Medical - slowly edging higher , looks pretty encouraging / positive!

 From TA point of view, the current price of $1.17 is staying above its 20 days moving average as well as 50,100 & 200 Days MA.
This is rather bullish! MACD is also rising in a orderly manner and is looking positive to continue to trend higher.

 Short term wise, I think it may likely Re-attempt $1.21 .
 Breaking out of this Price level with ease + high volume that may propel to drive the price higher towards $1.25 then $1.30.

 Trade/invest base on your own decision.

quote : jeremyowtaip
Yeah! This one no need think so much. Long term trend in share price is up supported by general growth in domestic and medical tourism as a baseline support. The potential catalysts are the two new China hospitals which will contribute to it's earnings growth going forward. Even if the initial execution meets with hiccups, I think they will be able to work things out for the longer term as I am confident they have already done their extensive due diligence and ground studies before embarking on the new hospitals. And it is not just one but two new hospitals set up in two separate cities in China. To be able to trigger such a huge expansion project, they must have worked out that on a long term basis, the market there in China have tailwinds favouring demand for private medical healthcare. And Chongqing and Shanghai are two of the largest cities in China which are strategically located with high population and considered few of the important economic centres of China apart from Beijing.

Total Revenue has been consistently increasing from $340.99m in 2013 to $477.58m in 2017.

The Total Revenue is growing at a CAGR of 8.1%. A single digits high ,of which I think is quite good already.

 Operation cash flow has been quite healthy as they are able to generate $71.19m in 2013 to $82 .69m in 2017.

 Net income Margin has been generally declining from 24.89% to 14.82% in 2017.



It might be due to higher material /operation costs. NAV of 40.01 cents. EPS of 4 cents. PE of 27.64 times

 Dividend has been generally increasing from 1.7 cents in 2013 to 2.2 cents in 2017. This is really a welcome news for shareholder .

 For RMG, I have two possible fair values depending on how well it can execute it's new expansion and growth of it's Bugis hospital extension and also it's two China hospitals to grow it's EPS.

For the conservative fair value, it is $1.14 assuming a CAGR of 10% on it's EPS for next 7 years.

 For the more aggressive fair value, it is $1.46 assuming a CAGR of 14% on it's EPS for next 7 years. Thus, any price $1.14 and below is a bargain opportunity. not a call to buy or sell. dyodd.



Raffles Medical Group Ltd engages in the medical clinics operation and other general medical service businesses primarily in Singapore. The company operates through three segments: Healthcare Services, Hospital Services, and Investment Holdings. Its flagship hospital is Raffles Hospital, a tertiary care hospital that offers services, including emergency, cancer, children and women care, traditional Chinese medicine, counselling, dental, diabetes and endocrinology, dialysis, ear nose and throat, eye, family medicine, fertility, health screening, heart, internal medicine, international patients services, neuroscience, pain management, rehabilitation, radiology, Japanese clinic, orthopaedic, skin and aesthetics, surgery, urology, and nuclear medicine services for inpatients and outpatients. The company also operates 100 medical clinics that provide various services, such as general practice/family medicine, emergency, health check, health screening, immunization, travel health, specialty, minor surgery, X-ray, pre-marital screening, and corporate programs; provides health and related insurance; trades in pharmaceutical and nutraceutical products, and diagnostic equipment; and provides healthcare management and consultancy services, as well as specialized medical, medical laboratory, imaging center, dental, and clinical services. In addition, it owns properties; develops IT solutions; provides advisory and medical emergency assistance services; and sells medical kits. The company was founded in 1976 and is based in Singapore.

Earnings Metrics Method for Stock Selection

How to work out the current Earning yields ?

Current Earnings yield = Diluted EPS / share price (range) 

If we take the below example ..

Diluted EPS is 0.0456. Share price is 72-82 cents ) ,we shall use 82 cents as the highest price for calculating the current Earnings yield .

Current Earnings yield = 0.0456 / 0.82 = 0.055 x 100% = 5.5% . 

This is in the way higher than CPF SA if we choose to park our money there .So 5.5% is generally much higher than 4.5% .

I have glanced  through the FY 2017 result for Wilmar, diluted EPS is 0.193 .
Let's say we are taking the future share price of $3.50, that will give us a Earnings yield of 0.193/$3.50 = 5.5%.pls Dyodd.

Yes, suitable to be applied on any stocks using the current earnings yield. And once you worked that out for a few stocks you are comparing which to invest, you can decide based on all their current earnings yield whether which stock is higher in current earnings yield and also whether the fundamentals will support the growth of EPS at high compounded rate of growth or not resulting in the increase in earnings yield.

For example, for illustration purposes. let's say the current earnings yield of ABC company is 5% based on the price you paid to buy it's shares. It is able to double it's EPS in 5 years time. Then you will be having a future earnings yield of 10% on your initial investment in ABC company. A 10% earnings yield is quite good already. And if the company can continue to double it's EPS again for another 5 more years, then the future earnings yield after 10 years will be 20% on your initial investment.

And even if the company cannot grow meaningfully anymore after 10 years and just grow their EPS at a terminal growth rate of 3% thereafter in line with inflation cost, the company may now become a mature stalwart giving out a high dividend payout. At a high dividend payout ratio of 75% while only remaining 25% of earnings to be retained for some maintenance capex, the dividend yield in future for this illustrated example will be 15%. And maybe the share price would have also grown in line with the EPS growth and perhaps also quadrupled. Thus, one will be getting a multi bagger stock plus a decent high dividend yield of 15% after 10 years.

This is the best goldilocks region to be in to initially discover and invest in stocks with visible high growth prospects for the foreseeable future and buy them at high earnings yield (better done during bear markets when such goldilocks region presents both combination of cheap valuation and high growth rate of business and thus high return rate for the investor who capitalise on getting in during goldilocks timing).

What if the EPS decline instead of growing?

What action will you do?

 : That's why we want the growth prospects to be visible, the more visible the better. If any drop in eps, we have to gauge whether it is temporary or permanent. That is why we need to also constantly monitor the fundamentals of the business. If permanent deterioration in business fundamentals, we may consider to exit the investment.

Not a call to buy or sell.

Please do your own due diligence.

Trade/Invest base on your own decision .

Sheng Siong

Sheng Siong Group’s net profit grew 6.6% yoy to S$18.3 million for 1Q2018

Revenue increased 5.1% yoy to S$228.3 million in 1Q2018 mainly contributed by new stores and comparable same store sales

 Gross profit margin improved to 26.2% in 1Q2018 from 25.2% in 1Q2017

 Continue with our efforts in expanding the network of outlets in Singapore especially in areas where our potential customers reside


Revenue increased by 5.1% yoy in 1Q2018 but excluding China, revenue from the Singapore operations grew by 4.3%. The seven new stores and comparable same store sales contributed 6.7% and 5.6% respectively to the increase in revenue, but the closure of the Verge and Woodlands Block 6A stores in FY2017 lowered revenue growth by 8.0%.


The 5.6% improvement in comparable same store sales came from the recovery in consumers’ sentiment which began in the second half of FY2017, the expansion of the store at Block 506 Tampines Central 1, pickup in sales in the Loyang store after it re-opened in February 2017 and customers migrating to the Jalan Berseh and Woodlands Block 301 stores after the closure of the Verge and Woodlands Block 6A stores respectively.


EPS rises from 1.14 to 1.22 cents . An increase of 6.1% . Another set of good result.

Gross margin improved to 26.2% in 1Q2018 compared with 25.2% in 1Q2017, mainly because of a higher sales mix of fresh products which command a higher gross margin versus non-fresh products, and suppliers’ rebates as a result of marketing efforts. Consistent with seasonal trends, gross margin was lower than 4Q2017’s gross margin of 26.5%, as the industry tends to push for volume during the Chinese New Year festive season


Administrative expenses increased by S$4.0 million in 1Q2018 compared with 1Q2017 but excluding China, the increase attributable to Singapore operation was S$3.6 million. After deducting an adjustment of S$0.5 million reclassified from cost of sales in 1Q2017, the increase was S$3.1 million. The increase was mainly because of the increase in staff cost due to more headcount needed to operate the new outlets, higher provision for bonus because of better financial performance, increase in depreciation as well as increase in rental because of the seven new stores opened during August 2017 to 31 March 2018.


 Cash generated from operating activities before working capital changes and payment of tax amounted to S$25.8 million in 1Q2018, which is in line with the higher level of activities. Free cash flow of S$5.1 million was generated in 1Q2018, after paying for capital expenditures amounting to S$9.2 million consisting mainly of payments for the construction of the warehouse extension of S$2.0 million, renovation to the new outlets and purchase of IT and other equipment for Singapore’s supermarket operation totalling S$6.1 million, maintenance capital expenditures of S$0.3 million for the distribution centre in Mandai and capital expenditures of S$0.8 million relating to the supermarket in Kunming, China.

The Group’s balance sheet remained healthy with cash of S$78.6 million as at 31 March 2018.

Business Outlook 

The industry is expected to remain competitive. Besides competitive pressures, gross margin would be affected if input cost is increased because of food inflation which could be caused by disruption to the supply chain or changes to prices caused by nations imposing trade tariffs.

The Group has successfully bid for two new stores at Bukit Batok Block 440 (5,900 sq. ft) and Yishun Block 675 (5,320 sq. ft). Subject to the grant and execution of the leases with the HDB, these two new stores should be operational in 2Q2018. The Group will continue to look for retail space in areas where our customers reside and will continue to bid, in a rational manner for new HDB shops in re-developed and new neighbourhoods, and at the same time look for retail space in existing HDB estates where the Group does not have a presence.


The Group will continue to nurture the growth of the new stores, rejuvenate the old stores and build on the lessons learnt from the e-commerce project.

 The Group will promote the “Sheng Siong” brand in Kunming China through the operations of the supermarket and is mindful that brand building requires time.

(http://infopub.sgx.com/FileOpen/SSG_1Q2018_MediaRelease_27Apr2018.ashx?App=Announcement&FileID=501782)

looking through the Financial numbers for the past 5 years, diluted EPS is slowly increasing but at a low single digit diluted EPS.

I have worked out the Potential Earnings Yield = diluted EPS / share price

Potential Future Earnings Yield = 0.04 ( much higher than 3.5 cents indicated on the financial nos / 1.05 = 0.04 x 100% = 3.8% which is much lower than the CPF SA.

I think investor may want to wait for a good a lower price when the yield has fallen to minimum 4.5% and above.

not a call to buy or sell.
Please do you own due diligenct.

Trade/invest base on your own decision.

TA wise, looks bullish !

Looks like it may likey re-capture $1.04 and trend higher towards $1.10.

Genting Sing

Genting Sing - On Friday the Casino bill approved by Japan govt, heads to Diet. Fabulous News! This may likely drive the price higher seems positive to me!

XD on this Monday 30 April .Let's see it will be able to maintain or close unchanged as per Friday closing price of $1.18.

The Japanese government endorsed on Friday a bill setting the broad regulatory framework for the establishment of a casino industry in the country. The document – known as the Integrated Resorts (IR) Implementation Bill – will now be submitted to the Diet, the country’s parliament, for voting. quote:

https://www.ggrasia.com/casino-bill-approved-by-japan-govt-heads-to-diet/

 Also CIMB says : “We estimate 1Q18 adjusted EBITDA was $297.6 million (up 5% y-o-y and up 17% q-o-q) on the back of higher FY17 average market share of 40% for both the VIP and mass markets,” says lead analyst Cezzane See in a flash note on Thursday.

https//www.theedgesingapore.com/genting-singapore-likely-report-better-1q-higher-market-share-cimb

Genting Sing (17th April)- A nice attempt to take-out the psychological price level of $1.20, Looks rather positive. The bullish patterns was being triggered from 6th April 2018 whereby we have witnessed a super wide thrust bar couple with high volume. It manged to close well + higher of 6 cents to touch $1.14 on 6 April. This is generally positive and may likely continue to drive the share price higher.

The momentum has continued to play out and we have managed to see the price rises to hit $1.20 today - 17 April 2016.

Macd has been nicely rising and it may likely provide further indication that the share price may continue to trend higher.

Short term wise, I think it may likely re-conquer $1.20 level. Crossing over of $1.20 with ease + good volume that may propel to drive the price higher towards $1.25 then $1.30 with extension to $1.35 and above.


NAV of 60.7 cents.
Rolling EPS of 5.2 cents.
Rolling PE of 24 times.
Dividend of 3.5 cents.
Yield of 2.94%.

I think the price may continue to trend higher towards XD date of 30th April.


Also any winning or good news about the Japan casino license may likely provide the next catalyst to drive the share price higher.

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

Trade/Invest base on your own decision.




Genting Singapore PLC, an investment holding company, engages in the development, management, and operation of integrated resort destinations in Asia. Its integrated resort destinations comprise gaming, hospitality, MICE, leisure, and entertainment facilities. The company primarily owns Resorts World Sentosa, a destination resort, which offers a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore Theme Park, MICE facilities, hotels, Michelin starred restaurants, and specialty retail outlets. It is also involved in the operation of casinos; and provision of sales and marketing support services to leisure and hospitality related businesses, as well as in the investment activities. The company was formerly known as Genting International PLC and changed its name to Genting Singapore PLC in April 2009. Genting Singapore PLC was incorporated in 1984 and is headquartered in Singapore. Genting Singapore PLC is a subsidiary of Genting Overseas Holdings Limited.

HrNetGroup

HrNet Group - From TA point of view, it has managed to stage a good recovery from the low of 70.5 cents and rises higher to close well at 77.5 cents. This is quite bullish!

CD of 2.3 cents . XD 4th May , pay date 17th May. Yield is about 2.9% . Not too bad!

Immediate resistance is at 80 cents.
Crossing over with ease, that may drive the price higher towards 83 cents then 87 cents.

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

Trade/Invest base on your own decision.

HRnetGroup Limited, an investment holding company, engages in the recruitment agency business in Asia.

The company operates in two segments, Professional Recruitment and Flexible Staffing.

It offers permanent recruitment, and temporary and contracted staffing services for financial institution, retail and consumer, information technology and telecommunication, manufacturing, healthcare life science, insurance, and logistic industries, as well as functions, such as human resource, finance and accounting, and legal and compliance industries.

The company also provides other services comprising payroll processing, human resources consulting, and corporate training services. In addition, it offers management consulting and advisory services.

HRnetGroup Limited provides its services under the HRnet One, Recruit Express, PeopleSearch, SearchAsia, RecruitFirst, PeopleFirst, RecruitLegal, YesPay!, HRnet Performance Consulting, and Young Talent brand names.

The company was founded in 1992 and is headquartered in Singapore. HRnetGroup Limited is a subsidiary of SIMCO Ltd.


 NAV of $0.309. Rolling EPS of 4.1 cents. PE 18.22 times.

 Dir has been recently buying back some of the share .

You may refer to sgx/announcement.

 Total revenue has been generally increasing for the past 3 years from $324m in 2014 to $391m in 2017. This is quite positive.

Strong Balance sheet with Net Net position as can be seen from the financial nos,

 Total Current Assets of $373m is more than 6 times of the Total Liabilities of $54.69m.

 The cash flow has been generally quite healthy.

 The Return of Assets is maintaining above 12.8% which is rather impressive.
 Similarly, Net Income margin has been constantly achieving above 10% which is rather positive.

 I have attached below a write-up from HRnetGroup's corporate website about Heliconia's investment in it. Heliconia is a wholly owned subsidiary of Temasek Holdings. I also took a look at their corporate information on HRnetGroup's website about them. It seems that they have grown much over the past 25 years to become a leading player in the Asian regional recruitment industry.

 As EDMW_Capital pointed out, there were the various plans under the 123GROW plan where new shares were issued upon IPO listing. I looked up the IPO prospectus that the aggregate total amount of all the shares that will be issued under the 123GROW plan represents about 1.99% of the enlarged issued share capital immediately following the IPO Offering and the issue of the Cornerstone Shares, assuming that the Over-allotment Option is exercised and maximum number of shares issued under the various plans. Thus, whatever dilution effect from these plans would have already been completed by now after the IPO since this exercise was undertaken upon IPO. However, there is another plan under 123GROW plan which is HRnet GROW Plan which will be ongoing always which is a share reward scheme to reward good performance and encourage loyalty of employees of HRnetGroup.

 This may from time to time create minor dilution of shares for shareholders of HRnetGroup. The idea of this is to sort of make employees like a co-owner of the company whereby they can receive shares of the company to reward them for their performance and encourage their loyalty towards the company. Many companies also award such share reward or performance scheme. As long it is not too aggressively done without good basis, I feel such share reward scheme can be virtuous for the company to spur more ownership and performance in the employees of a company.

For example, Raffles Medical Group, ST Engineering and Nestle Malaysia Berhad also offer similar share option or share reward scheme to their employees. Therefore, I think the dilution effect to shareholdings of shareholders for most part of the 123GROW plan has already been factored into the trading of the shares after 9 months since they have been public listed around middle of last year without much unpleasant surprises going ahead.

 I (quote ; jeremyowtaip) did a rough calculation of the diluted earnings yield (inverse of P/E ratio) an investor would be getting from HRnetGroup based on investing at current share price of $0.74.

The current earnings yield an investor would be getting is about 5.5%. This is better than parking money in special account of CPF which only gives 4.5% interest yield.

Earnings yield = Diluted EPS / Share price

Earnings yield = 0.0456 / 0.82 = 0.055 x 100% = 5.5%

The P/B ratio at current share price is about 2.4. At such traded P/B ratios of above 2, investors are expecting the company should be a moderate to high growth company. Based on their IPO prospectus, HRnetGroup has grown at impressive CAGRs over past decades but their CAGR has slowed down in recent few years. If I assume they may still grow conservatively at their recent CAGR of 10% in their diluted EPS attributable to shareholders over the next 7 years, using my method of estimation, their fair share price would be around $1.16.

 I also looked at the cashflows of HRnetGroup, their capex requirement is very small as compared to net cash generated from operations.

This results in abundance of free cashflows that can be generated every year from their business model which does not require high capex to maintain and grow.

As always, if I am keen to invest in any new businesses I discovered, I prefer to invest slowly in stages as I continue to monitor their progress especially for such new IPOs even if it may seem to be a good investment. This is because I may not have a lot of information about newly IPOed companies available to know them very well unlike companies which already have been public listed for a good number of years which I can dig out so much information about them from their long history of being public listed. HRnetGroup: Announcement of Heliconia Investment : https://www.hrnetgroup.com/newsroom.php?id=announcement-of-heliconia-investment

quote : You may want to look carefully at their IPO prospectus, such as their 123GROW plan, which will result in dilution over the next few years from multiple arrows such as the Opp 1 Investment Shares, Opp 1 Loyalty Shares, Opp 1 Bonus Shares, GLOW Initial Shares, Opp 1 Investment Shares, Opp 2 Investment Shares, the Opp 2 Buy-in Shares, Top-up Issuance Shares and more Bonus Shares, etc... I think the company is on the hunt of for acquisitions to grow recruitment business regionally.

 Fundamentally I think it’s good but market doesn’t agree.

SingTel

SingTel - Finally, it has managed to cross over $3.40/$3.43 level and closed well at $3.49. Fantastic!

On Firday 27 April it has Gap up and closed with a Bullish Pin bar, looks rather positive !

G

It is also touching the 100 days Moving Average at $3.49/$3.50.

MACD has a bullish divergence and may likely provide further indication for price to rise further.

Looking good for it to rise towards $3.60 level which is also coincide with it's 200 days Moving Average.

Not a call to buy or sell.
Please do your due diligence.

SingTel - (12th April)from TA point of view , it is being stucked in a consolidation mode chart patterns! Currently , the trading price is $3.35.

PE of 14.92 , EPS of 23.6 cents, rolling EPS of 34.6 cents. NAV of $1.811. Dividend of 17.5 cents excluding any special dividend , yield at 5.22% looks pretty attractive!



In fact , the yield is much higher than ComfortDelGro . ComfortDelGro & M1 price has began to rise , I don't see any reason or obstacle why SingTel price is not heading higher!

It will need a nice breaking out of $3.40 in Order to rise higher towards $3.50 and above .

Looking through the past years financial results , we can notice that singtel Total Revenue is maintaining within the range of 16.8B to 17.5B.

Fluctuation is rather small. Diluted EPS is slightly lowered from 18.2 cents to 16.7 cents.

Return Of Assets is rather Low grow at the rate of 3.65%.

Ops cash flow seems strong/pretty healthy , fluctuating between 5.25B to 5.89B.

Returnss of Equity is pretty good at 19.86%. A double digits grow.

I think Current price Seems attractive at 5.22% yield.


Not a call to buy or sell.

Please do your own due diligence .

Trade/invest base on your own decision .




Thee Singtel Group is Asia's leading communications group. We provide a diverse range of services including fixed, mobile, data, internet, TV, infocomms technology (ICT) and digital solutions. Headquartered in Singapore, Singtel has more than 130 years of operating experience and played a pivotal role in the country’s development as a major communications hub. Optus, our subsidiary in Australia, is a leader in integrated telecommunications, constantly raising the bar in innovative products and services. We are also strategically invested in leading companies in Asia and Africa, including Bharti Airtel (India, South Asia and Africa), Telkomsel (Indonesia), Globe Telecom (the Philippines) and Advanced Info Service (Thailand). We work closely with our associates, leveraging our scale in networks, customer reach and extensive operational experience to lead and shape the communications industry. Together, the Group serves over 655 million mobile customers around world. Singtel is one of the largest listed Singapore companies on the Singapore Exchange by market capitalisation. The Group has a vast network of offices throughout Asia Pacific, Europe and the USA, and employs more than 23,000 staff worldwide.