SingHaiyi

SingHaiyi rounds off FY2018 with 3.9% increase in net attributable profit as revenue soars to S$458.8 million

 Proposes a final cash dividend of 0.3 Singapore cent per share for FY2018, representing 40.0% of the year’s net attributable profit

 Strengthens balance sheet with cash and cash equivalents of S$194.0 million as at 31 March 2018 

 Well-positioned to capitalise on the recovering property sector in Singapore with the recent land acquisitions

NAV of 15.22 cents.
EPS of 1.097 cents
PE of 9.5x
Yield of 3.1%

Looks quite attractive.

Not a call to buy or sell.

Please do your own due diligence.


 SINGAPORE - 24 May 2018 - SGX-listed SingHaiyi Group Ltd. (“SingHaiyi” or the “Group”), a fastgrowing, diversified real estate company focused on property development, real estate investment and property management services, today announced higher revenue for the financial year ended 31 March 2018 (“FY2018”).


 Group Managing Director Mrs Celine Tang said, “The strong growth in the Group’s revenue during the year stands as a testament to the strong demand for our EC project, The Vales. Our focus on quality property developments over the years has helped us to establish a strong reputation in the market and won us the confidence of homebuyers who have bought homes from us. We will continue to place a premium on building quality and affordable developments that cater to the demands of the market.


 “Moreover, our continued efforts to maximise efficiency in our operations have also paid off as the Group recorded higher net profit during the year. This was despite the absence of a one-off disposal gain of S$30.5 million from the divestment of the Group’s 20.0% interest in TripleOne Somerset in FY2017, as well as a share of loss from equity accounted investees of S$1.3 million that was mainly due to the Group’s interest in ARA Harmony Fund III.”


  Cash on hand 


During the year, the Group strengthened its balance sheet with cash and cash equivalents of S$194.0 million as at 31 March 2018, up from S$51.7 million as at 31 March 2017, while gearing ratio stands at a healthy 30.9%, down from 54.1% a year ago.

To reward shareholders, the Board has proposed a final one-tier tax exempt dividend of 0.3 Singapore cent, which represents 40.0% of FY2018’s net attributable profit.


 Mrs Celine Tang said, “FY2018 has been a year of many achievements for SingHaiyi starting with our transfer from the Catalist to the Mainboard of the SGX-ST in May 2017, which is a validation of our hard work and successful growth strategy. We also ramped up our presence in Singapore with the expansion of our land bank which has put us among the top 4 developers in Singapore in terms of landbank inventory1 ,while our US properties are in the midst of transformations that we believe will lay the groundwork for their future success. Meanwhile, we also strengthened our geographic exposure and income stability via a strategic investment in Australia’s Cromwell Property Group. These initiatives place SingHaiyi in a strong strategic position to grow and we look forward to reaping the fruits of our labour in time to come.”


Looking ahead, the Group is well-positioned to capitalise on the recovering property sector in Singapore, given its recent land acquisitions. In the US, the Group will continue to focus on delivering its pipeline of development projects against the backdrop of a stable real estate market.
quote : http://infopub.sgx.com/FileOpen/SHG_Press_Release_FY2018.ashx?App=Announcement&FileID=507332


About SingHaiyi Group Ltd. 

SingHaiyi Group Ltd. (“SingHaiyi” or the “Group”) is a fast growing, diversified company focused on property development, investment and management services. With strategic support from its major shareholders, the Group is led by a board and management team, including esteemed businessmen Mr Gordon Tang and Mr Neil Bush, which has deep insights and strong connections that enable access to unique and rare investment opportunities. Apart from an established track record in residential property development, the Group also holds a diversified portfolio of income-generative assets in the commercial and retail sectors, with geographical reach into the US and widening exposure in Asia.

StarHub

StarHub :  Today has broken down the recent low of $2.08 but manage to bounce-off and close higher at $2.12 .

Looks like it it still not out of the wood yet and may likely retest $2.08 again.

Breaking down of $2.08 with high volume that may likely see it sliding further down  towards $2.00 then $1.91.



Current trend is down trend.

Do exercise with great care.

Not a call to buy or sell.

Please do your own due diligence.



 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:

SingTel

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.

Today had lunch at Nana's Green Tea

Had lunch at Plaza Sin for a change and I find the food is really value for money.

Total damage is $35.66 for 2.
Is a weekday set lunch promo that come complete with main meal,soup & drink.

Nice and fulfilling Japanese meal !

Nice ambience.

Nom Nom!

THaiBev

THaiBev - it has tested 78 cents again! Will it be able to hold at this support level ?

 Failing which , it may likely go down to test 75 cents then 70 cents.

 Not a call to buy or sell.

 Please do your own due diligence. T

haiBev - 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

Venture

Venture - it has managed to bounce-off from the oow if $18.50 and rises higher to fill up the Gap if 60 cents dividend, this is rather bullish!

Current price of $21.88 has managed to stay well above it's 200 days moving average,this is rather positive.

Looks like it may move up to tetest $22.30. Crossing over with ease + good volume that mat drive the price higher towards 22.90.

Not a call to buy or sell.

Please do your own due diligence.

A few weeks ago!

Venture - It share price tumble more than 12% from $28.82 to close at $25.29.



This could be due to:

" Shares in the cigarette giant plunged as much as 18 percent after its latest earnings report showed that $4.5 billion spent on four new products are failing to win over new customers. Sales growth of the iQos, a device that heats a tobacco plug without setting it on fire, has been slowing after initial success in Japan.

Philip Morris, which sells Marlboros outside the U.S., reported revenue excluding excise taxes of $6.9 billion, less than the $7.03 billion projected by analysts in a Bloomberg survey. The share decline, to as low as $83.50, was the biggest since the company split from Altria Inc. in 2008. The stock had fallen 4 percent this year through Wednesday’s close of trading. "

quote : https://www.bloomberg.com/news/articles/2018-04-19/philip-morris-sales-disappoint-as-cigarette-demand-slips-further

I think Venture could be one of the contract manufacturer for this iQos product for Philip Morris. I think the declining grow rate for this iQos product may affect their future earnings.

Looking through their financial numbers for the past 5 years, we can notice that the company has been able to consistently growing its Total Revenue from 2,329.551m in 2013 to 4,004.539m in 2017.
This is quite impressive.

Next , we take a look at the Net Income figure which has also been increasing from 131.13m in 2013 to 372.82m in 2017. An increase of almost more than 200%. 

EPS has also been growing at CAGR of 31% from $0.319 in 2013 to $0.943 in 2017. This is growing at a high double digits growth rate which is pretty encouraging.

The Total Assets has also been growing /increasing from 2013 to 2017 as per the table below:

This is a Net Net Position company as can be seen the total current Assets of 2,276.156m is more than sufficient to cover its Total Liabilities of 976.141m. Generally, the company has no problem to service it debts.

Ops cash flow is also very healthy which is clocking at CAGR of 40% as can be seen from the table below, the Ops cash flow in 2013 was 106.5m versus 448.5m in 2017. 

Return of Assets and Return of Equity has also been generally increasing from a low single digit grow to a high single digits grow of 9%. And 7.2% to 18% in 2017..This show that the company is capable of demostrating and enhancing the business value.

I have roughly workout the EPS intrinsic value using CAGR of 31% for past 4 years (2013 to 2017) and a discount factor of 12% ( MOS) , the fair value turns up to be around $24.65 .

Interestingly, i have also tried to workout the Ops cash flow intrinsic value using CAGr of 40% for past 4 years ( 2013-2017) , a discount factor of 12% , the fair value is about $24.00.

Therefore, in my view, the current price of $25.29 is trading at a premium level/ above it fair value.

Also the declining sales for iQos may also affect their rev going forward and it may also impact their fair value.

I think investor has to gauge for themselves whether to lock in profit or exit and wait for further insight for next few quarters results.

Dividend has increased marginally from 50 cents to 60 cents in 2017. Yield is about  2.03%

NAV of $7.08 ,  P/B is 3.38 times.


rolling EPS of 0.994, rolling PE of 24.08 times.

Not a call to buy or sell.

Please do you own due diligence.

Trade/Invest base on your own decision.

quote: Jeremyowtaip,I also dug through some historical financial information on Venture Corp. It gives me the impression that it's operating environment is challenging as revenues, operating profits, net profits have dipped over the past decade but recovered in recent years and especially the most recent FY17, the revenue, operating profit and net profit broke new record high.

The big question is whether going forward, can this global giant leader in the electronics and manufacturing service provider continue to grow and break even more record highs. By the outlook painted by the chairman and CEO in their FY17 annual report, it seems that they are positioning themselves in various areas they serve to foster growth. Their chief financial officer also mentioned in one of the article link below that their clients which are global leaders in electronics and manufacturing industries rely on Venture Corp for their strong R&D capabilities while the clients can focus on what they do best in their own businesses. Thus, the business model of Venture Corp is such that the various clients they serve will be sticky to Venture Corp. However, the chairman and CEO did pointed out that 2018 maybe a volatile year for them.

I am not sure what the chairman and CEO means by year 2018 maybe volatile. We do see a recent news of Philip Morris, one of the many clients which Venture Corp serves which is involved in selling IQOS (I Quit Ordinary Smoking) devices revealed in it's recent earnings call that their sales of IQOS may fall short of their ambitious expectations. According to Venture Corp's FY17 annual report based on the CIMB article link below, only one client accounts for more than 10% of Venture Corp's FY17 revenue of which CIMB thinks it is not Philip Morris. Therefore, this recent negative news will still impact Venture Corp's revenue this year 2018, but it is likely not a significant impact since the potential contribution to Venture Corp's revenue is not more than 10% of it's total revenue.

Venture Corp has strong balance sheet in a net cash position. It has been generating good amount of positive operating cashflows for the past decade. And it's required capital expenditures (capex) every year have been small resulting in high amount of free cashflows generated for the past decade every year. The small amount of capex requirement every year could be so as Venture Corp is more of a service provider for it's clients rather than a manufacturer, therefore it need not expend high capex to purchase a whole lot of plants and equipments.


I also checked up the compounded annual growth rate (CAGR) of it's diluted EPS over the past 5 years since it's profitability has improved over the past 5 years. Venture Corp has grown it's diluted EPS at a CAGR of 20.68% over the past 5 years. Since Venture Corp's latest FY17 performance was an exceptional year and I am not sure whether it can parallel such exceptional performance continually for the next 7 years of a business cycle, I will take a very conservative stance and estimate that it can only grow it's diluted EPS at CAGR of 6% for next 7 years upon it's current record breaking diluted EPS factoring in that the chairman and CEO mentioned before that 2018 is likely a volatile year for them. Therefore assuming this CAGR of 6% for it's diluted EPS going forward, using my method of estimation, I work out the fair share price of Venture Corp to be around $26.65. Based on one of the article link below by CIMB Research, their target price for Venture Corp is $30.81.

Venture Corp last closed at $25.29. Thus, I believe we are about there in terms of a fair share price for it. If an investor is worried whether the share price still has room for falling, then my suggestion is to wait for further price weakness to get it even cheaper or wait for the price to stabilise before buying. The cheaper one gets it below the estimated fair share price, the larger margin of safety one will receive to cushion the impact from Philip Morris affecting Venture Corp. Any further selling of the shares based on what I can see could be an over-exaggerated reaction to the impact from Philip Morris on Venture Corp's performance this year.

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.