ThaiBev

ThaiBev - 2Q 2018 result Net Profit decrease 3.2% to 6,346 million Baht( exclude non-recurring expenses relating to business acquisition).

EPS is down 3.8% to 0.25 Baht .

1st Half 2018 EBITDA is down 11.67% to 17,487 million Baht.

First Half 2018 Net profit is down 27% to 10,451 million Baht.

First Half EPS is down 35.1% to 0.37 Baht versus 0.57 Baht last year.

NAV is also lowered from S$0.22 to S$0.21.

Dividend has been cut from 20 cents Baht to 15 cents Baht.(a decrease of 25% )

Looking through at the Interest Bearing debts:



They have to allocate 16,784 million Baht for Mar 2019 interest loan.

The 2nd year i.e. After one year but within two years (Mar 2020), the debt amount is super high at 163,766 million Baht.

After two years , 53,967 million Baht.

Total 234,517 million Baht.

I think the debts may likely affect the profitability for the next financial years as well as the following years whereby the interest bearing has more than 10x of year 2019.



It is good to be extra cautious when dealing with this counter.

Not a call to Buy or sell.

Please do your own due diligence.





The recent Acquisitions :

• In the second quarter ended 31 March 2018, the Company completed an acquisition of

• 75% shareholding interest in Havi Logistic Co.,Ltd. (Havi), which operates logistic businesses for food services in Thailand, by Thai Beverage Logistics Co.,Ltd., a wholly owned subsidiary of the Company on 28 February 2018.



• The Company has included the assets and liabilities of Havi in the consolidated statements of financial position and the results of operations and cash flows in the consolidated statement of income and cash flows respectively from March 2018 onwards.

• Havi’s operations were recognized under the food business segment.

• In the first quarter ended 31 December 2017, the Company completed 4 acquisitions of

1. a 76% shareholding interest in Spice of Asia Co.,Ltd. (SOA) on 3 October 2017 to operate 10 stores of restaurants serving hotpot and Thai food



2. a 75% shareholding interest in Myanmar Supply Chain and Marketing Services Co.,Ltd. and Myanmar Distillery Co.,Ltd. (MSC & MDC), which incorporated in the Republic of the Union of Myanmar, on 12 October 2017 to operate spirits business in Myanmar

3. 252 existing KFC stores in Thailand by The QSR of Asia Co.,Ltd. (QSA), a wholly-owned subsidiary of the Company on 1 December 2017



4. a 53.59% shareholding interest in Saigon Beer – Alcohol – Beverage Joint Stock Corporation (Sabeco), a company incorporated in The Socialist Republic of Vietnam and currently listed in Ho Chi Minh Stock Exchange (HOSE), on 29 December 2017 to operate mainly in beer business

Yanlord

Yanlord - These are my thoughts on Yanlord Land.

NAV $2.252 PE of 5.735x dividend of 6.8 cents.XD 18th May

Yield is about 4%

Current price $1.67

YANLORD PROFIT FOR THE PERIOD RISES 22.4% TO RMB1.796 BILLION

 Revenue in 1Q 2018 rose 13.7% to RMB7.188 billion on higher average selling price (“ASP”) achieved. Underscored by the continued delivery of higher grossprofit-margin projects across the Group’s core markets, gross profit in 1Q 2018 rose 28.1% to RMB4.004 billion while gross profit margin expanded to 55.7% in 1Q 2018 compared to 49.5% in 1Q 2017.



 Healthy market sentiments in the PRC propelled the Group’s pre-sale accumulation in 1Q 2018. Accumulated pre-sale pending recognition as at 31 March 2018 was RMB18.197 billion with advances received for pre-sales properties of RMB16.602 billion.

 The Group continues to maintain a healthy financial position with cash and cash equivalents position of RMB16.235 billion as at 31 March 2018.



 Subsequent to the end of the period, Yanlord announced its homecoming to Singapore with the successful joint bid for the freehold Tulip Garden development for S$906.9 million. The Group has also entered into a strategic collaboration with a state owned enterprise to oversee the project management of approximately 1,740 rental housing units in Shanghai.

Yanlord Land is moving towards retaining more properties they have developed for recurring rental income. This should help to stabilize their profitability better over time as property developers tend to experience lumpy revenues and earnings due to the timing of recognition of revenues and earnings on developed properties.

I looked at the growth of Yanlord over the past 6 years period from 2011 to 2017. The revenues have grown at a CAGR of 19.09% over this period.

The operating profits have grown at a CAGR of 23.31% over this period. The diluted EPS have grown at a CAGR of 15.34% over this period.

 The various profit margins have fluctuated through the period under consideration. However, last year 2017 was a good year for Yanlord with high margins property projects locked in their sales and thus the various margins have improved significantly y-o-y.

The challenge is whether such high profit margins done last year can be repeated this year as well or not. They do have many property projects on hand this year and their chairman guided this year they should be able to perform well too with the current growth in the property development industry in China with many cities in China still undergoing development.



Yanlord Land is also moving into more property projects in tier-1 and tier-2 China cities where these projects carry higher profit margins.( quote : jeremyowtaip)

 I shall not look at the cashflows trend as the cashflows can swing between positive and negative in any single year due to the movement of cash according to the amount of cash outflows on properties under development in any year and amount of cash inflows from sales of completed properties which either item could be a huge amount affecting the cashflows significantly in any single year.

 This makes determining an accurate growth for the cashflows difficult. However, generally speaking, the amounts of net operating cashflows and free cashflows have grown over this period. Yanlord had a debt to equity ratio of 70% in 2011. Their debt to equity ratio is 105% in 2017.

 They seem to have geared up for last year. However, if we look at their net debt to equity ratio, it was 52% in 2011 and in 2017 was 51%. They seem to have maintained their net debt to equity ratio at about this level. Perhaps this is a good safe level to them to maintain their net debt to equity with some cash and equivalents on hand despite taking on a higher debt position in 2017 for expansion and growth.



 The average asset turnover for Yanlord has improved from about 0.19 to 0.26 over this past 6 years period. The returns on assets were maintained at slightly over 3%, returns on equity improved from 10 over % to 14 over % while returns on invested capital have improved marginally from slightly over 6% to now about close to 7%.

 If we just look at Yanlord alone as it is, it seems that it has performed well over the past 6 years with double digits CAGR in revenues, operating profits and diluted EPS. I shall compare Yanlord with two other China property developers on some of the metrics

I use above over the same past 6 years period.



 The two other China property developers are China Vanke and China Overseas Land & Investment Ltd.

 Selected comparison metrics between Yanlord Land (YL), China Vanke (CV) and China Overseas Land & Investment Ltd (COLI)

Revenue CAGR = YL (19.09%), CV (22.53%), COLI (20.77%)

 Operating profit CAGR = YL (23.31%), CV (20.54%), COLI (16.25%)

 Diluted EPS CAGR = YL (15.34%), CV (19.3%), COLI (13.76%)

 Debt to equity ratio (FY17) = YL (105%), CV (102%),



COLI (65%) Average asset turnover (FY17) = YL (0.26), CV (0.24), COLI (0.27)

 ROA (FY17) = YL (3.22%), CV (2.81%), COLI (6.7%)

 ROE (FY17) = YL (14.69%), CV (22.8%), COLl (16.71%)

 ROIC (FY17) = YL (6.67%), CV (10.2%), COLI (9.91%)



 Yanlord Land seems to stack up well against the other two well known reputable China developers even though the former maybe much smaller in scale of operations. The only thing Yanlord Land seems to fall behind is the return on equity and return on invested capital.



However, Yanlord Land has improved it's returns on equity and returns on invested capital over the past few years. This seems to suggest it has shown an ability to generate improving returns over the past few years to catch up with other larger competitors in China. In conclusion, I find Yanlord Land is worth considering as an investment in China property industry.

The growth in China property market seems evident as these few China property developers are enjoying good double digits CAGR in their profitability and generating good returns. Based on last closed share price of $1.68, Yanlord Land is now at EV/EBITDA of about 3.6x which is undervalued (Any value 5x and below is cheaply attractive).



 It's P/B ratio is about 0.7. Since Yanlord Land has already improved it's ROE from single digits to above 10% since 2016 and 2017, trading at a P/B ratio of 0.7 is pricing it too cheap. Therefore, I think at current share price of $1.68, Yanlord Land could be viewed as undervalue. This is especially true should it continue to produce a good set of results this year same as last year too. Not a call to buy or sell. Please do your own due diligence.



 Yanlord Land Group Limited, an investment holding company, engages in the property development activities in the People's Republic of China. The company operates through Property Development, Property Investment, and Others segments. It develops residential properties comprising apartment complexes and villas; and commercial and integrated properties, such as offices, serviced apartments, and shopping malls for sale and lease.



The company also offers property management services for residential properties, including security, building, equipment maintenance and repair, facilities management, child-care, and other ancillary services, as well as organizes social and residential community functions. In addition, it is involved in the management of hotels and serviced apartments; trading of building materials and hardware; operation of restaurants and Kindergarten; and installation, maintenance, sale, and repair of elevators. Further, the company engages in the provision of landscaping and gardening, management and investment, city redevelopment, food and beverage, tourism investment, asset management, leisure and fitness, education and training, and construction engineering services, as well as tourism and travel services. Yanlord Land Group Limited was founded in 1993 and is based in Singapore.

Ying Li Intl

Ying Li - 1st Quarter result just out today . Total comprehensive profit of RMB 3.319m versus last year loss of -$7438.

The profit was achieved due to lower foreign currency translation differences of RMB -1.5m versus RMB -28.74m .

If not, result would be quite bad .



NAV of 32 cents.
Rolling PE of 17x.

Cash flow seems to be in negative outflow . I think investor might want to study further into the details of their cash flow level.

From TA wise, it is trading in a consolidation mode . Would this result be able to bring cheers to the price !

It would need a nice break out of 14.2 cents in order to rise higher towards 15 cents and above .



Not a call to buy or sell

PlwPle do your own due diligence.



Ying Li International Real Estate Limited, an investment holding company, engages in the development, sale, rental, management, and ownership of commercial and residential properties under the Ying Li brand in the People’s Republic of China. It operates through Property Investment, Property Development, and Others segments. The company primarily develops residential, office, retail mall, storage and car park, and other projects. It also engages in the provision of property consulting, selling, marketing, management, and leasing services, as well as car parking services; and purchase of construction material and equipment. The company has a strategic cooperative partnership with China Everbright Limited. Ying Li International Real Estate Limited was founded in 1993 and is based in Singapore

StarHub

StarHub - looking through their financial nos, Net Income has been dropping from 370M of 2014 to 238m in 2017.

Dividend has been cut from 20 cents to 16 cents.

The latest 1Q 2018 result also shown a drop of 13% for the Net profit down from 72m to 63m.

Net profit is still dropping and not sure when will we be able to see a good improvement for the company to boost their Net income revenue!

Business Outlook:


➢ Revenue: Maintain service revenue to be 1% to 3% lower YoY

➢ Service EBITDA*: Expect service EBITDA margin to be between 27 - 29% after adoption of SFRS(I) 15

➢ CAPEX: Maintain cash capex to be about 11% of total revenue (excludes spectrum and building payments)

➢ Dividend: Declare an interim quarterly dividend of 4.0 cents per ordinary share for 1Q2018 Intend to pay a quarterly cash dividend of 4.0 cents per ordinary share for FY2018


*Service EBITDA refers to EBITDA less equipment margin (Sales of Equipment less Cost of Equipment)

Free Cash flow has also been drifting lower as reflected on the chart below:

From TA point of view, it is on a long term down trend mode as reflected on the chart.

After going ex-dividend 2 days ago, it has continued to drop lowered from $2.26 to close at $2.18 level. The dropping of 8 cents is more than the 4 cents dividend . This is rather negative.

Short term wise , it is still rather weak and we may see further selling down pressure.
Immediate resistance is at $2.10. Breaking down of $2.10 level with high volume, it may likely continue to slide down further towards $2.00 with extension to 1.91.



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

SingPost

SingPost - Looking through their financial nos for the past 5 years, we can notice that Total revenue has risen from $868m in 2014 to $1522m in 2018. But Net Income has been dropping from $191m in 2014 to $126m in 2018. If you take a look at the Net Income for FY 2016, which is $249m , this is almost 50% lowered as compare to FY 2016.

In my opinion, it is still on a early stage of turning around their total net income.
The 4th quarter result has shown great improvement of Net profit 23,946m as compare to last year Net Loss of 69m.


Total dividend of 3.5 cents is still almost half from the golden years of 7 cents .
It is quite surprising that they are declaring a 2 cents dividend for final dividend. Shareholder would be happy for the increase of dividend being declared.

Full year ended 31 March 2018.

Revenue for the year increased 8.6 per cent to S$1.46 billion on growth in eCommerce-related activities across the Postal and Logistics segments.

Net profit attributable to equity holders rose 278.4 per cent to S$126.4 million, largely due to the absence of one-off impairment charges. Excluding exceptional items, underlying net profit declined 9.2 per cent to S$105.0 million. While the eCommerce and Property segments saw improved performance, Logistics and Postal operating profits fell.

For the fourth quarter ended 31 March 2018, revenue grew 13.5 per cent to S$367.5 million. Net profit attributable to equity holders improved to S$23.9 million, from a loss of S$65.2 million, which reflected impairment charges in exceptional items. Operating profit, excluding exceptional items improved 18.0 per cent. Lower contributions from associates and increased tax provision however resulted in underlying net profit for the quarter declining 28.6 per cent to S$15.3 million.

Revenue grows on higher eCommerce-related activities

Postal revenue rose 15.0 per cent driven by higher eCommerce deliveries. Operating profit declined 4.0 per cent with a change in margin mix.

Logistics revenue increased 4.3 per cent across the Group, driven by growth in last mile eCommerce delivery volumes, as well as increased freight forwarding volumes. Operating profit declined as margins were impacted by continued investment in the business, and pricing pressures in North Asia.

Revenue of the eCommerce segment was stable despite the loss of two major customers the prior year, and accelerated by 15.7 per cent in the fourth quarter. Operating loss was reduced by more than 50 per cent on improved performance due to TradeGlobal’s turnaround business plan.

Rental and property-related income increased 29.9 per cent on higher rental income from the SingPost Centre retail mall. Committed occupancy rose to 95.6 per cent. 

Free cash flow improves significantly

For the full year ended 31 March 2018, free cash flow grew to S$136.1 million, from S$0.3 million the previous year. This was due to reduced capital expenditure, following the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall. 

Final dividend

For the fourth quarter of FY2017/18, the Board of Directors is recommending a final dividend of 2.0 cents per ordinary share (tax exempt one-tier). This would bring the annual dividend for the financial year to 3.5 cents per share, representing a payout ratio of 76 per cent of underlying net profit. The proposed dividend is subject to shareholders’ approval at the Annual General Meeting in July 2018.

Mr Coutts added: “We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”

(https://www.singpost.com/about-us/news-releases/singpost-full-year-net-profit-2784-cent-s1264-million)

From TA point of view, it has managed to cross over $1.35 which is the immediate resistance. The volume is not very impressive as compare to previous wide candlestick up bar as reflected on the chart.

Two major overhead Resistance which is $1.40 & $1.42. It would be quite a big challenge to re-attempt these two major Resistance.

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

Singapore Post Limited provides postal, e-commerce logistics, and retail services in Singapore and internationally. The company operates through three segments: Postal, Logistics, and eCommerce. The Postal segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. Its international mail service includes handling of incoming and outgoing international mail. This segment also provides ePost hybrid mail services, which integrate electronic data communication with traditional mail; and agency services and financial services. The Logistics segment offers a range of logistics solutions, including freight, warehousing, domestic and international distribution, and delivery services. Its services include e-commerce logistics, warehousing, fulfilment and distribution, and other value-added services; and parcel delivery, freight forwarding, and self-storage solutions and management services. The eCommerce segment provides front-end e-commerce solutions. The company is also involved in the online sale of luxury products; provision of management and consultancy services to related entities, as well as business mail solutions and distribution of mail, and global sale and marketing services; and real estate activities. In addition, it provides electronic platform and recyclable lockers for merchandise distribution, as well as customs brokerage services; and acts as a trading company and purchases organization for ocean freight services. Further, the company is involved in the courier activities other than national post activities; and provision of freight collections transshipments, logistics management, and aviation services. Singapore Post Limited was founded in 1819 and is headquartered in Singapore.

Venture

Venture - The share price has managed to bounce-off from the low of $18.50 and rises above it's 200 days moving average at about $20.00 level.

With the recent bompcom buying back share , looks like price has more or less stabilize and hover above $21.00.

It will need to re-capture the recent high if $22.30 in order to continue to trend higher.


Crossing over 22.30 with ease plus good volume it may likely drive the price higher towards $23.00 then $23.50 level which is also coincide with it's 20 days moving average.


Not a call to buy or sell.

Please do your own due diligence.



Venture Corporation Limited, together with its subsidiaries, provides technology services, products, and solutions in the Asia Pacific. The company operates through Electronics Services Provider, Retail Store Solutions and Industrial, and Components Technology segments. It offers manufacturing, product design and development, engineering, and supply-chain management services to the electronics industry. The company also designs, manufactures, assembles, distributes, and trades in electronic, mechanical, and computer related products and peripherals; manufactures and sells terminal units; develops and markets color imaging products for label printing; designs, integrates, and trades in electronic security systems; and develops and supports information systems. In addition, it engages in the provision of manufacture, design, engineering, customization, and logistics and repair services; manufacture, design, fabrication, stamping and injection, metal punching, and spraying of industrial metal parts, tools, and dies; and design, customization, and marketing of tool-making and precision engineering solutions. Further, the company manufactures plastic injection molds and moldings with secondary processes and subassembly; and provides manufacturing services to electronics equipment manufacturers, as well as offers management services. Additionally, it imports and exports electronic parts, components, equipment, devices, and instruments. Venture Corporation Limited was founded in 1984 and is headquartered in Singapore.