SIA

SIA - FULL-YEAR NET PROFIT RISES TO $893 MILLION

 Operating profit surpasses $1 billion, fuelled by improved performance in both passenger and cargo business segments 

 Outlook for travel demand robust, but fuel prices trending higher and strong competition persists

 Three-year transformation programme showing good progress and yielding early results

 Final dividend of 30 cents per share

 The Group reported a net profit of $893 million for the 2017/18 financial year, an increase of $533 million, or 148.1%, from the same period last year. The increase was mainly attributable to a higher operating profit (+$434 million), absence of SIA Cargo’s provision for competition-related matters (+$132 million) and impairment of the Tigerair brand and trademarks (+$98 million) last year, partially offset by the absence of SIA Engineering’s gain on divestment of its 10.0% stake in Hong Kong Aero Engines Services Ltd (HAESL) and special dividends received from HAESL (-$178 million).



Operating profit for the Group rose to $1,057 million, $434 million (+69.7%) higher than the last financial year.

Group revenue rose $937 million year-on-year to $15,806 million (+6.3%), with revenue improvements in all business segments. Passenger flown revenue was $428 million (+3.6%) higher, as traffic growth (+6.3%) outpaced the decline in passenger yield (-3.1%). Cargo revenue was up $266 million on higher freight carriage (+5.3%) and yield (+8.9%). Engineering services revenue grew $52 million (+12.0%), largely attributable to line maintenance activities. Higher incidental income was chiefly contributed by adjustments arising from changes in estimated breakage rates and member benefits for the KrisFlyer programme ($178 million), and higher compensation for changes in aircraft delivery slots ($65 million).

 Group expenditure increased $503 million to $14,749 million (+3.5%). Net fuel cost rose by $152 million (+4.1%) as average jet fuel prices were up 18%, partially offset by a hedging gain versus a loss last year (+$439 million). Ex-fuel costs were up $351 million (+3.3%), partly due to expansion by SilkAir and Scoot.

With this set of good financial result, tomorrow we may likely see its prices heading higher to re-capture the recent high of 11.29 .

From TA point of view, it is rather bullish!
The current price of 11.14 is hovering above its 20 days moving average, 50,100 & 200 days MA.
Looking good to rise higher to re-attempt 11.29 then 11.50 with extension to 11.80.

Not a call to buy or sell.

Please do your own due diligence.

SingTel

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.

AEM

Update 18 May :AEM XB today and the price has been adjusted for 3:1 including the Bonus share of 3.

Which means to says for every 1000 share you owned holding till XB, you will get additional 3000 share. Total 4000 share. The extra 3000 share will be credited to your CDP ON 4 June.
So, please take note of this important date .Don't trade with the wrong quantity..

17 May 2018 - Tomorrow is the last day to secure the Dividend of 6.5 cents + Bonus Share of 3:1( meaning for every 1 share you have, you will be alloted 3 extra share . So , if you have 500 share, it will become 2000 share once the XB date of 18 May and the extra bonus share being credited to your CDP account on 4 June.


With Dow turning positive + 35 points now ,will this counter make the final leap to re- capture the recent high of 6.37 .
Perhaps it may make the final attempt to cross the hurdle at 6.40 level.


Not a call to buy or sell.

Please do your own due diligence.

I think Dir bought back 25,000 share recently on 11 May @ $5.64 per share .
http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast3MonthsSecurity&F=CJ5FE7YAROVWB19E&H=1a60e5675c811ccda0d90c61c313e77a8ba592eed280f5b654594f22047c32a9



 AEM’s  1Q2018  net  profit doubles to  S$8.2  million  year-onyear on  strong sales and  higher  profit margins 

 1Q2018  revenue  increases  55.9%  to  S$65.7  million  on  growing  sales orders for  its test  handlers  and pans/kits  from  its major  customer 

Net  profit  margin  improved  from  9.8%  in  1Q2017  to  12.5%  in  1Q2018  on cost  reduction initiatives and  cost  efficiency 



Reiterate  guidance  for  FY2018  of  at  least  S$255  million  sales  and  S$42 million profit  before  tax

 Singapore,  24  April  2018  –  AEM  Holdings  Ltd  (“AEM”  or  “the  Group”),  a  global  provider  of equipment  systems  solutions  and  manufacturing  services,  reported  an  increase  of  98.6%  year-on-year  (“YOY”)  to  S$8.2  million  in  its  net  profit  for  its  first  quarter  year  ended  31  March  2018 on  higher  revenue  and  better  margins.



We  expect  orders  for  our test  handlers  from  our  major  customer  to  remain  positive  and  our  business  to  continue  to  be cash-generative  as  per  our  guidance  for  FY  2018. 

As  AEM’s  handlers  get  installed  and  become  a larger  proportion  of  our  customer’s  fleet,  we  do  expect  seasonality  to  enter  our  business  with Q2  and  Q3  representing  typical  peaks  quarters.    The  initial  ramp  phase  will  transition  to  a  more operational  replacement  phase  of  our  customer’s  older  fleet  over  many  years. 



We  do  also expect  the  sustaining  elements  of  our  business,  field  services  and  consumables,  to  start  to  grow in  late  FY  2018.” On  the  Group’s  growth  plans,  Mr.  Loke  elaborated,  “We  have  added  significantly  to  our engineering  talent  pool  over  the  last  12  months.  They  are  busy  with  enhancement  and sustaining  projects  with  our  key  customer,  as  well  as  working  on  new  projects  brought  in through  our  recent  acquisitions. 



On  our  acquisitions,  we  are  in  the  process  of  integration  and the  various  teams  are  already  working  on  collaborative  projects  and  joint  marketing  efforts.

ThaiBev update

THaiBev - this is the sharing gather from our IN FA expert comments after THaiBev released it's 1Q 2018 result : Quote : Jeremyowtaip

here it goes my thoughts on their latest results.

I can sense that their 2Q18 results is getting slightly better than 1Q18 results.

However, they are still running in the cost of acquisition of the various new businesses and also higher finance costs due to chalking up huge debts. 

I also sense that their operating environment for most of their business segments are still challenging especially their top two revenue and earnings contributors in spirits and beer are still facing decline in profitability even if we exclude the non-recurring costs and expenses related to the acquisitions.

 I think this is something investors in Thai Beverage ought to find out why is there a decline in profitability in theses two top segment contributors even after the mourning period for their Thai King is over. Perhaps their domestic beverage industry is still continuing to face headwinds resulting in sustained decline in profitability though the decline in 2Q18 is not as steep as in 1Q18 as a general whole for Thai Beverage buffered by new contributions to the top line and bottom line through the various new acquisitions. 

Or perhaps some of the new acquisitions have not managed to pull in a good showing yet in their results.

Based on their published results, these are their performance as follows.

2Q18 vs 2Q17
Revenue = +34.3%
Profit attributable to shareholders (excluding non-recurring expenses) = -3.2%
Diluted EPS (excluding non-recurring expenses) = -3.8% 

Profit margin attributable to shareholders = 13% (2Q17) vs 9.3% (2Q18)

1H18 vs 1H17
Revenue = +16.5%
Profit attributable to shareholders (excluding non-recurring expenses) = -17.9% 

Diluted EPS (excluding non-recurring expenses) = -17.9% 

Profit margin attributable to shareholders = 14.7% (1H17) vs 8.1% (1H18)

Breakdown on performance of individual business segments according to their attributable profits (losses) as follows.

2Q18 vs 2Q17 

Only spirits, food and F&N/FPL increased their profits. Food segment though a small contributor of profits increased very significantly in it's profits. Spirits segment which is the most important top contributor only increased profits by 2.8%. The second important profit contributor beer segment decreased significantly in profits by 66.7% while non-alcoholic beverages segment suffered deepening losses.

1H18 vs 1H17
Only food segment increased significantly in profits. All other segments decreased in profits over this period y-o-y. Top most important profit contributor spirits segment decreased by 10.5% in profits. Second important profit contributor beer segment decreased in profits by 40.2%.

In conclusion, I sense that Thai Beverage is still facing challenges in most of it's business segments notably the non-alcoholic segment. 

The top two most important profit contributors the spirits and beer segment also seen a decline in their profitability. But on a general whole, Thai Beverage seemed to see a less steep decline in profitability in 2Q18 than 1Q18 buffered by contributions to top line and bottom line through the various new acquisitions made.

The huge amount of debts they now carry seem to be still a big concern to take note of. However, given the strong generating cashflows in it's businesses, Thai Beverage may still be able to manage this huge debt they now carry.

 They just need to be careful to reduce the debts over time to a manageable level and not do anything stupid to blow things up. The dividends may be reduced in future to allow channeling more retained earnings and cashflows towards reducing debts over time.

On the valuation side at a share price of $0.80, Thai Beverage is now trading at EV/EBITDA of about 16.5 which makes it now super expensive to own due to the huge amount of debts it has taken up.

 The current P/B ratio of about 3.8 also suggest it is expensive to own Thai Beverage based on an average ROE of about 24% (over the past 5 years) and the prospects of ROE falling due to declining profitability in the short to mid-term.

I think It would be better to wait out for their debts to be reduced and earnings to continue to grow from their new acquisitions over time and/or share price to fall to a lower level before it becomes attractively cheap to own.

Maybe that is where a TA view may shade some lights about current share price What is price entry point  whereby the support will be strong and worth considering to accumulate shares of Thai Beverage. But 
on a FA side, I certainly stand by my view that a lower share price at this current point is more attractive than current price to pay for their current fundamentals. I think the market is currently pricing in optimism that things will be running smooth for Thai Beverage going forward meaning that their debts will be reduced and profitability and cashflows will increase going forward. That is what I see now based on the current price support given Thai Beverage by Mr Market.

 The strong support is at 79.5/80. Once broken it may retest the recent low of 78. A rebound may likely happen ! If it cannot hold then it may go down again ! I think Yield will be cut and going lower with higher interest bearings for next 1-2 years . Yield could be hovering at 2.5% or lower . Not attractive as compare to Sheng Siong.

Not a call to buy or sell.

Please do your own due diligence.

Cosco

Cosco - 1Q 2018 Net Profit of $2.8m.
If you look further into their financial report, it stated "Other gains for Q1 2018 were mainly due to foreign exchange gain of $3.0 million".

Also the Share of profit of an associated company of $0.6 million was mainly due to share of profit from newly acquired 40% shareholdings in PT Ocean Global Shipping.

I think is still too early to see how the company will perform well for the next 1-3 quarters.
As also mentioned, the shipping revenue was decreased owing to reduce fleet of 3 bulk carriers.

I think investor may want to look further into their cash flow statement.
I think the cash flow is still showing negative cash in flow.

I think the company recently has taken on a loan of about $300+m.

NAV of 23.07 cents.

Not a call to buy or sell.

Please do your own due diligence.


Highlights: 

• The Group recorded net profit attributable to equity holders of $2.8 million for Q1 2018 as compared to a loss of $78.9 million for Q1 2017. In Q1 2018, the Group transformed into one of Singapore’s leading logistics management service providers with the acquisition of 100% interest in the equity of Cogent Holdings Limited.



• Group turnover from continuing operations increased by 256.1% to $40.6 million for Q1 2018 as compared to Q1 2017 mainly due to turnover of $32.1 million from newly acquired logistics businesses.

• Turnover from shipping revenue decreased owing to a reduced fleet of 3 bulk carriers.



• The increase in cost of sales, distribution, administrative and finance expenses were mainly due to the newly acquired logistics businesses.




COSCO SHIPPING International (Singapore) Co., Ltd., an investment holding company, provides integrated logistics management services in South and Southeast Asia. Its logistics services include transportation management, container depot management, automotive logistics management, warehousing, and property management services. The company also offers ship repair and marine engineering services. In addition, it transports dry bulk cargos comprising grains, iron ore, coal, steel, cement, and fertilizers through operating three bulk carriers. Further, the company engages in the property rental activities. The company was formerly known as COSCO Corporation (Singapore) Limited and changed its name to COSCO SHIPPING International (Singapore) Co., Ltd. in April 2017. COSCO SHIPPING International (Singapore) Co., Ltd. was incorporated in 1961 and is based in Singapore. COSCO SHIPPING International (Singapore) Co., Ltd. is a subsidiary of China Ocean Shipping (Group) Company.

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