SembCorp Marine

Sembcorp Marine posted 1Q 2018 gross profit of $43 million and operating profit of $20 million. Net profit for the quarter was $5.3 million, compared with $37 million in 1Q 2017 (restated for accounting changes on adoption of SFRS (I)).

 The decrease was mainly due to the one-off gain on disposal of Cosco Shipyard Co., Ltd recorded in 1Q 2017; lower contributions from Offshore Platforms; offset by higher profit recognition on rigs delivery in 1Q 2018 on adoption of SFRS(I) 15.

Excluding the effects on the adoption of SFRS(I) 15, net loss for 1Q 2018 would have been $33 million.

Looking through their 1Q2018 reuslt, Net profit is down 86% to $5.3m,.

NAV of $1.157.

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

PE is rather high at current price of $2.08 that is a PE of 46x ( estimated full year PE of 4.5 cents).
The current price of $2.08 is running ahead of its financial fundamentals.

 Net debt remained stable, with net debt to equity at 1.14 times as at 31 March 2018 compared with 1.13 times as at end FY2017. Cash flow from operating activities (before working capital changes) was $67 million in 1Q 2018. Cash generated from operations was $31 million, mainly due to working capital for ongoing projects, offset by receipts from ongoing and completed projects Outlook Global exploration and production (E&P) spending trend continue to improve due to firmer oil prices in the first quarter of 2018.

However, recovery in rig orders is expected to take some time as most of the drilling segments remain oversupplied, with day rates and utilisation under pressure. The offshore production segment has improved with the FID of several projects.

We continue to respond to an encouraging pipeline of enquiries and tenders for innovative engineering solutions. Repairs and upgrades business is increasingly competitive, although demand for LNG carriers and cruise ships remains strong.

Regulations on ballast water treatment requirements coming into force in the foreseeable future will further underpin the potential of this segment. However, the offshore segment for upgrades and repairs remains weak.

  The overall industry outlook remains challenging. Despite improvement in E&P CAPEX spending outlook, it will take some time for this to translate into new orders. Margins remain compressed with intensifying competition. Based on existing orders, overall business volume and activity is expected to remain low, and the trend of negative operating profit may continue. We continue to actively manage our costs to align with business volume. We continue to prudently manage our cash flows through securing projects with milestone progress payments to minimise working capital requirements.

Sembcorp Marine will continue to actively pursue the conversion of enquiries into new orders, execute existing orders efficiently and position itself well for the industry recovery.

TA wise, looks rather bearish!

Breaking down of $2.06 may see it sliding further down towards testing $1.88 price level with extension to 1.76.

Not a call to buy or sell.

Please do your own due diligence.

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

Best World

Looking through thier 1Q2018 result, Net profit is down 40.3% to $5.7m .
Total revenue is also down 43.3% to $25.3m,

EPS is down 40.7% from 1.77 cents to 1.05 cents.

This could be the reason why the share price has tank from $1.56 to a low of $1.22 .

NAV of 24.74 cents.
P/B is 5.17X , seems quite expensive.

Presuming a full year EPS of 4.5 cents , PE of 22.2x seems expensive.

Cash flow seems quite healthy as they have managed to increased their Net Cash flow from Operating activities.

Overview

In line with management’s commentary in Section 10 of the Group’s last results announcement, Group Revenue for 1Q2018 was 43.3% lower compared to the same period last year, primarily due to minimal export to China as the Group commenced its conversion from the Export segment to the new China Wholesale segment.

Quarter-on-quarter, Gross Profit margin remains stable at 69.3% while Net Profit Margin improved to 22.8% in 1Q2018. This was mainly due to the following factors:

• Other Operating Income which the Group charges its China Agent for market support activities, product trainings and IT services as a function of the Agent’s sales for the 1Q2018, increased by 165.7% to $3.9 million;

• In line with revenue decrease in 1Q2018, Distribution Costs which comprises freelance commissions, annual convention expenses and other sales related costs decreased by 32.1%;

• Administrative Expenses for the Group decreased from $8.9 million in 1Q2017 to $6.6 million in 1Q2018 as a result of lower professional fees, management and staff costs as well as lower amortisation expenses;

• Net Other Losses of $0.2 million in 1Q2018 was mainly attributable to Unrealised Foreign Exchange Losses recorded during the period due to revaluation of the Group’s financial assets denominated in US Dollars from a depreciating USD as well as Unrealised Foreign Exchange losses recorded by our Indonesia Subsidiary as Indonesia Rupiah weakened against the Singapore Dollar and offsetting the reversal of unaccounted cash written off previously announced in February 2015, concerning BWL Health & Sciences Inc. of $0.7 million. The amount was in respect of tax payments for which had been finalised and paid;

• The Group’s Income Tax Expenses decreased from $2.5 million in 1Q2017 to $1.4 million in 1Q2018 due to a decrease in Profit Before Tax recorded by the Group.

As a result, Profit Attributable to Owners of the Parent Company declined 40.3% from $9.6 million in 1Q2017 to $5.7 million in 1Q2018.

Outlook:

Although the Group’s top and bottom line has been impacted in 1Q2018 due to the conversion of its business model from Export to China Wholesale and since actual demand for the Group’s brand offerings in China is still growing, barring any unforeseen circumstances, management is cautiously optimistic that the China Wholesale segment will contribute to the growth in the bottom line for the Group in 2H2018.

Factors that may affect the Group’s performance in the next reporting period and for the next 12 months are as follows:

• To set the Group’s growth path moving forward, management constantly explores M&A opportunities. In the course of assessing these opportunities, regardless of success or not, professional fees and other related expenses may be incurred; 16

• Higher Administrative expenses for FY2018 compared to FY2017 due to an increase in management and staff in certain Regional Centres (RCs), depreciation expenses related to the Group’s Tuas facility and machineries/equipment for the factory and establishment of our Changsha RC;

• As strategies implemented are not expected to gain traction immediately, management is cautiously optimistic that revenue from Taiwan will be stable when compared to FY2017, primarily led by events, campaigns and product launches in 2H2018.

• The conversion of Export to the new China Wholesale segment is expected to extend into 2Q2018 as export agent continues to deplete its inventory. Revenue from the Export Segment in 2Q2018 is also expected to be lower than that of 2Q2017. The Group’s China subsidiary BWCP may be able to register its first revenue contribution for the China Wholesale segment in 2H2018;

• Upon conversion to China Wholesale, some or all of the following items, amongst others may be affected: 1. Increase in Revenue and Gross Profit as a result of revenue recognition at a price higher than export price; 2. Increase in Administrative Expenses due to management and staff costs as well as lease expenses of our new Changsha RC; and 3. Decline in Other Operating Income due to lower service fees charged to the Group’s Export Agent, and

• Fluctuating currencies of key markets which the Group operates in against the SGD may positively or negatively impact the Group’s performance. Management will undertake measures to mitigate any potential risks the Group is exposed to. Other ongoing factors that affect the Group’s performance include, timeline required for product registration in various markets, natural disasters, local direct selling regulations, product regulations and market competition.


TA wise, it is on a down trend mode chart patterns!

The current price of $1.28 is staying below its 20, 50, 100 & 200 days moving average, this is rather bearish.

Short term wise, looks like it may go down to re-test 1.22.
Breaking down of 1.22 with high volume, that would be super bearish and may see the price sliding down further towards 1.01 price level.

The estimated PE of 22.2x seems expensive, I would rather wait for a reasonable price level of PE 15-16 x that is 70-72 cents.

Not a call to buy or sell.

Please do your own due diligence.

YZJ Ship

A nice rebound has taken place after hitting the low of 90 cents and rises to touch $1.04.
It has since taking a breather and it may likely retest the critical level at 1.00.

Breaking down of $1.00 would be rather bearish and may likely see further selling down pressure.
Immediate resistance is at 1.04 and the next resistance level is at 1.08.
The support would be at 95.5 follow-by 90 cents.

Not a call to buy or sell.

Please do your own due diligence.



30 May 2018

Dow jumps more than 300 points after banks rebound; small caps hit new record.

The company bought back 5m share at 90-91.5 cents, looks like we may see a strong rebound today especially with Dow gaining 300+ points overnight.

• The Dow Jones industrial average rose more than 300 points, with Boeing, Chevron and Home Depot leading the blue-chip stocks higher. The Russell 2000 hit a new high.
• The euro recovers much of its previous losses with a 1.1 percent climb against the greenback to $1.166.
• An uptick in rates push the big banks upward, with Goldman Sachs, J.P. Morgan, Citigroup, Morgan Stanley, Bank of America and Wells Fargo all finishing up more than 1 percent.
• Crude oil futures settled higher Wednesday, with West Texas Intermediate (WTI) up $1.48, or 2.22 percent. (Cnbc.com)

Chart wise, we have witnessed the price Gap down from 95 cents to touch the low of 90 cents . It has manage to bounce-off from this level and closed higher at 92.5 cents .



Looks like we are seeing a hammer shape candlestick bar is appearing on the chart, seem like bull is able to take control of the situation.

Short term wise, we may likely see a reversal play taking place it it is able to overcome 97.5 cents and rises back to $1.00 and above .

Not a call to buy or sell.

Please do your own due diligence.

NAV of $1.29.
Dividend of 4.5 cents

Yangzijiang Shipbuilding (Holdings) Ltd., an investment holding company, operates in the shipbuilding activities. The company operates through Shipbuilding, Investments, Trading, and Others segments. It produces a range of commercial vessels, such as containerships, dry bulk carriers, oil tankers, and liquefied natural gas (LNG) carriers. The company also engages in the production and processing of steel structures. In addition, it facilitates the sale and export of ships for the ship builder; trades in ship related equipment and shipbuilding related materials/supplies; provides microcredit to enterprises and individuals; invests in held-to-maturity financial assets; and supplies marine equipment and materials. Further, the company is involved in the ship demolition and vessel owning activities. It primarily serves ship owners in the United States, Canada, the United Kingdom, Germany, France, Greece, Norway, Argentina, Turkey, Bulgaria, Poland, Australia, Japan, South Korea, Singapore, India, Thailand, Bangladesh, Mainland China, Hong Kong, Taiwan, etc. The company was founded in 1956 and is headquartered in Jingjiang, China.

Sino Grandness

NAV is about RMB$3.20 which is about S$0.66.
EPS is about RMB 4.4 cents. Which is about S$0.09 .

Let say full year EPS is about S$0.04 cents , PE is about 6.25x base on current price of 25 cents.

SINGAPORE – 15th May 2018 – Mainboard-listed Sino Grandness Food Industry Group Limited 中华食品工业集团有限公司 (“Sino Grandness” or “the Company” and together with its subsidiaries, the “Group”), a Shenzhen, China based integrated producer and distributor of own-branded juices and canned fruits and vegetables today reported its unaudited results for the first three months ended 31 March 2018 (“1Q18”)

 In 1Q18, net profit attributable to shareholders for the Group decreased 18.3% to RMB 43.1 million compared with RMB 52.8 million in the same period last year (“1Q17”). The decrease in net profit was mainly due to higher distribution and selling expenses and lower gross profit margin in 1Q18 when compared to 1Q17.

Earnings per share (“EPS”) in 1Q18 decreased to SGD 0.9 cents from SGD 1.6 cents in 1Q17 while net asset value (“NAV”) per share increased to SGD 67.5 cents as at 31 March 2018 from SGD 66.5 cents as at 31 December 2017. (EPS calculations in 1Q18 and 1Q17 based on weighted average number of ordinary shares of 979,410,000 and 691,801,000 respectively. NAV calculations based on 979,410,658 shares. Exchange rate used SGD1=RMB4.74)

 Chairman and CEO of Sino Grandness said, “I am pleased to see that demand for our own-branded products have remained strong in 1Q18, especially our beverage segment which reported double-digit growth in sales. In order to extend and diversify our product range, we have continued to invest resources to develop and launch new beverage products such as mango juice, coconut milk, apple vinegar and lactobacillus drinks. These efforts have yielded positive results as we now derive sales from a wider range of beverage products in addition to loquat juices.”

  “Our net profit in 1Q18 was impacted by lower gross profit margin and higher advertising and promotion expenses as we need to continuously invest in growing our distribution channels, brand value and brand visibility. However, we exited the quarter with a stronger balance sheet with cash and cash equivalents rising to RMB 924.0 million as at 31 March 2018 from RMB 693.6 million as at 31 December 2017 due to positive net cash generated from operating activities in 1Q18.”

The Group’s gross profit in 1Q18 increased by 6.6% to RMB 265.0 million from RMB 248.5 million in 1Q17 as a result of higher sales in 1Q18. Gross profit margin (“GPM”) for the Group in 1Q18 decreased by 2.7 percentage points to 36.4% from 39.1% in 1Q17 due to a decrease in GPM of beverage and overseas canned products segments, partially offset by an increase in GPM of domestic canned products segment. The decrease in GPM of beverage segment in 1Q18 was mainly attributable to the change in product mix and lower average selling prices for a limited range of products as a result of our price adjustment exercise to maintain market competitiveness. The increase in GPM of domestic canned products segment was mainly due to lower cost of raw materials in 1Q18 when compared to 1Q17.

Outlook

 To capitalize on the growth opportunities ahead, the Group will continue to invest in various advertising and promotional activities as well as sales and marketing initiatives in order to enhance its brand visibility and expand its online and offline distribution network.


In March 2018, the Company entered into a strategic agreement with Baixianwang Intelligent Technology (“深圳市百鲜网智能科技有限公司”) and Tomcat Culture (“深圳市 童猫文化产业有限公司”) to distribute the Company’s full range of own-branded products, including 鲜绿园 (“Garden Fresh”) beverage product, 振鹏达 (“Grandness”) canned food and 福食特 (“First”) snack food through a distribution network using intelligent technology. This include unmanned convenience stores which offers convenience and are highly visible and accessible to consumers. Barring unforeseen circumstances, the Group remains optimistic about its operating performance in FY2018.

TA wise, looks bullish!
It is on a nice reversal play after touching the low of 19 cents in 3rd April 2018.
The current price of 25 cents is staying above its SMA line which is rather positive and may likely see it re-attempt the recent high of 25.5 cents.

Breaking out of 25.5 cents with east + good volume that may drive the price higher towards 28 then 30.5 cents.

Not a call to buy or sell.

Please do your own due diligence.

DBS

Looks like local bank counter may rally due to Dow overnight gaining +300 points and managed to recapture 25000 level. This is rather bullish!

Looks like Bull might be taking control and DBS may likely see it rises from $28.80 to retest the immediate resistance at $29.50 level. Breaking out of $29.50 level with good volume that may reverse this downtrend and moving up the channel.

 The next target would be likely testing $30.00 again !

 Not a call to buy or sell.

 Please do your own due diligence.

Stocks rose on Wednesday as bank shares rallied on higher interest rates, while Boeing rose. The Dow Jones industrial average closed 346.41 points higher at 25,146.39 with Boeing rising 3.2 percent and contributing the most to the gains. J.P Morgan and Goldman Sachs were also among the biggest contributors of gains. The Dow also closed above 25,000 for the first time since mid-March.

 The S&P 500 gained 0.9 percent to finish at 2,772.35 as financials rose 1.9 percent. The benchmark 10-year Treasury note yield rose to 2.98 percent on Wednesday, following yields in Europe after the European Central Bank hinted at winding down its asset-purchasing program.

 Shares of J.P. Morgan Chase, Bank of America and Morgan Stanley all rose more than 2 percent, while Goldman Sachs advanced 1.7 percent. The SPDR S&P Bank exchange-traded fund (KBE) gained 2.1 percent, marking its best day since March 26 (cnbc.com)

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

Raffles Medical

From TA wise, it is on a down trend mode. The current price of 1.06 is hovering near the support at 1.04.

Looks like it has driven into oversold territories! It may likely see a rebound happening soon and take it higher towards 1.10 then 1.18 level .

I think current price level may attract some bargain hunter interest.

Trade / invest base on your own decision.

 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 to me.

not a call to buy or sell. Please 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.