Food Empire

3 in 1 coffee powders . Is indeed one of the Best option to have a hot and nice coffee in the morning to give us the daily vitamin to keep us going..

The drive and inspiration to give us the boost in Facing the new day challenge. The dir has again bought back share. I think this could be viewed as a boost of confidence or the price could be undervalue.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementToday&F=LJ71OLME7Z2BPMFB&H=e7af034f2988ed248df92fc3692b5c09587ba807b7132438cc4b528ff666cba6

 Dir bought back 50,000 share at an average price of 66.2 cents.

Chart wise, if it is able to re-conquer 70.5 cents and crossed over with ease + good volume that may likely propel to drive the price higher to 75.5 then 80 with extension to 85 cents .

Not a call to buy or sell.

Please do your own due diligence.

 Food Empire - AGM on 24th April 3pm at Four Points by Sheraton Singapore, Riverview Jubilee Ballroom, 4th Storey, 382 Havelock Road, Singapore 169629. 0.6 cents dividend .EX date 27th April. Pay date 18th May 2018. EGM date is also being set on the same day - 24th April , mainly to pass the The renewal of the Share Buyback Mandate. I think this may likely help to support the price and increase its NAV .. Seems a good move to me.

 Food Empire’s products include a wide variety of beverages, such as regular and flavoured coffee mixes and cappuccinos, chocolate drinks and flavoured fruit teas. It also markets instant breakfast cereal, potato crisps and assorted frozen convenience foods. Coffee Beverages - Food Empire Holdings caters to different consumer tastes by offering a wide variety of beverages. We manufacture regular and flavoured coffee mixes and cappuccinos, instant chocolate, flavoured fruit teas and cereal drinks.

 Our core product – instant coffee beverages – is marketed mainly under the MacCoffee, Klassno, FesAroma and Bésame brands using some of the finest coffee beans. Frozen Foods - Complementing our beverage business is our food product range that includes frozen finger food and confectionery. Our mouth-watering, ready-to-cook frozen convenience food, marketed under OrienBites and Klassno, are inspired by the unique delights of Oriental cuisine and the convenience of Western fast food. The selection comprises exotic delicacies like Tail-on Shrimp Dumplings etc Snack Foods -Our Snack Food segment was launched in 2003. Kracks, the brand name for the range of snacks, comprises Potato Crisps, Apple chips and Rice Crackers. All the snacks are high on taste as well as health aspect.

The potato crisps come in seven different delicious flavours from exotic to traditional, each catering to different palates and cravings. MacFood, comprises mainly seafood snack food. Looking through their financial results for past 4 years , we can notice that the Total Revenue has been generally rising from $249m in 2014 to $269M in 2017 .

This is quite positive. Net Profit has also been a great improvement from a Loss of $13.6m in 2014 to a Profit of $13.3m. NAV value has also been rising from US$0.2594 to US$0.31.45.

This is rather encouraging and knowing that the company is growing and also increasing the Book value for the company. Cash flow has been quite healthy as can be seen from the table below , it has risen from $6.05m in 2014 to $39.89m in 2017. Return of Assets has been generally improving from 3.8% in 2013 to 7.6& in 2017. Which is rather positive. Return of Equity has also been rising from 6.9% in 2013 to 8.3% - a high single digit grow rate in 2017. FY2017 Net profit would be even higher if not because of the one-time divestment loss of 7.6m ( impairment of associate/goodwill etc). I think this is a turning around company that has shown great improvement in bringing the company back to profitable condition and also generating a pretty good sets of Total net income to achieve an EPS of 3.9 cents ( excluding divestment loss, if not, rolling EPS would be 5.9 cents), PE of 16 times is pretty impressive.

 This is a Net Net Position company as can be seen the Total Current Assets of $186.6m is more than enough to cover the Total Liabilities of $106.7m. I have roughly workout the DCF cash flow intrinsic value for Food Empire, using a CAGR of 30% , discount factor of 20 %, I have derived a fair value of 82 cents. I think the average industry PE for F&B is about 22 times , which may likely arrive a Target Price of 86 cents. Which is also quite close to the cash flow fair value. I think the dir recently has been buying up share. Not a call to buy or sell. please do your own due diligence.


SGX Mainboard-listed Food Empire Holdings (Food Empire) is a global branding and manufacturing company in the food and beverage sector. Its products include instant beverage products, frozen convenience food, confectionery and snack food. Food Empire’s products are sold to over 50 countries, in markets such as Russia, Ukraine, Kazakhstan, Central Asia, China, Indochina, the Middle East, Mongolia and the US. The Group has 24 offices (representative and liaison) worldwide. The Group operates nine manufacturing facilities in India, Malaysia, Myanmar, Russia, Ukraine and Vietnam. Food Empire’s products include a wide variety of beverages, such as regular and flavoured coffee mixes and cappuccinos, chocolate drinks and flavoured fruit teas. It also markets instant breakfast cereal, potato crisps and assorted frozen convenience foods. Food Empire’s strength lies in its proprietary brands – including MacCoffee, Petrovskaya Sloboda, Klassno, Hyson, OrienBites and Kracks. MacCoffee – the Group’s flagship brand – has been consistently ranked as the leading 3-in1 instant coffee brand in the Group’s core market of Russia, Ukraine and Kazakhstan. The Group employs sophisticated brand building activities, localized to match the flavor of the local markets in which its products are sold. Since its public listing in 2000, Food Empire has won numerous accolades and awards including being recognized as one of the “Most Valuable Singapore Brands” by IE Singapore, while MacCoffee has been ranked as one of “The Strongest Singapore Brands”. Forbes Magazine has twice named Food Empire as one of the “Best under a Billion” companies in Asia and the company has also been awarded one of Asia’s “Top Brand” by Influential Brands.

Suntec Reit

From TA point of view, it is on a downtrend mode chart patterns.
It would be nice to wait for it to stabilize before taking further action.

Personally, I think it might be ok to monitor to see if 1.61 price level is it managed to hold up well.
If 1.61/1.60  cannot hold then next price level may go down to 1.57 with extension to 1.50.

At 1.50, yield is about 6.6% that would be quite attractive and also is trading at a good discount in terms of its NAV of about $2.1.

Not a call to buy or sell .

Please do your own due diligence.

To ride on the return to better profitability going forward......Let me also do a comparison against Suntec REIT to see how Suntec REIT pits against both CapitaMall Trust and Starhill Global REIT for the past 11 years. Then there is also Mapletree Commercial Trust also another touted good performer which is also a retail-office hybrid landlord to compare against. I am getting quite excited here.

I have tabulated Suntec REIT and Mapletree Commercial Trust's (MCT) growth performance to compare against Starhill Global REIT and CapitaMall Trust (CMT). However, for MCT, it was only listed from April 2011 onwards. As such, I have taken only the period from 2012 to 2017, a five year period of growth for MCT to compare against the rest.

Net property income CAGR for 11 years (5 years for MCT)
CMT = 7.42%
Starhill Global = 9.2%
Suntec REIT = 6.23%
MCT = 18.7%

Distributable income CAGR for 11 years (5 years for MCT)
CMT = 8.02%
Starhill Global = 7.2%
Suntec REIT = 9.71%
MCT = 25.5%

Value of investment properties CAGR for 11 years (5 years for MCT)
CMT = 6.1%
Starhill Global = 7.29%
Suntec REIT = 9.87%
MCT = 16.56%

The current gearings for these four REITs are quite close hovering around 35% plus minus 1 to 2 % points. Thus, they are financially geared about similar levels currently after rendering their respective historical CAGR growths in the past period considered.

If we ignore the duration of period considered, clearly the winner here is Mapletree Commercial Trust (MCT). But, it would not be a fair comparison since the period considered for MCT is only most recent 5 years which the retail and office markets long way back and recent 5 years may have seen changes thus affecting the growth rates at different periods in time. The big question is whether going forward can MCT continue to grow at current CAGR? This is because the property asset size of MCT is also by no means smaller than some of the rest in this comparison. Thus, to give it some fairness even if the period of growth considered is only recent 5 years, it really has made impressive double digits CAGRs on it's various metrics on a large property asset base.

Suntec REIT seems also quite good in terms of growing it's distributable income and value of investment properties at close to 10% CAGR over the past 11 years winning over Starhill Global REIT and CMT by a large margin. The only thing is that the net property income CAGR for Suntec REIT loses out to the latter two despite having grown faster in it's distributable income and value of investment properties. Perhaps, it is worth investigating further for interest why Suntec REIT did not grow it's net property income at higher CAGR over the past 11 years? Is it a matter of difficulty in keeping property expenses low? Is it the gross revenue are not growing as fast due to generally lower rental income rates on it's properties over the years?

In conclusion, I see Mapletree Commercial Trust as experiencing strong growths in net property income, distributable income and the value of their investment properties even though their growth considered is only most recent 5 years. If it can continue at current or close to current CAGR for these various metrics over next few years, it may really become a clear winner in this segment of retail-office landlord space. Starhill Global REIT may not be a stark winner against it's peers in this comparison. However, it is definitely also not a loser trailing behind it's peers in terms of growth performance.

My picks as follows according to their growth performance.
1st = MCT
2nd= Suntec REIT
3rd (tie up) = Starhill Global REIT and CMT

Reasoning as follows: I like MCT for it's current high growth rate. I look forward to it's future developments whether it can continue to maintain the current high growth rate from it's future growth strategies. If it can do so, this is really one of the best performer in this retail-office landlord space.

Suntec REIT I like how it has rewarded unitholders well over time in terms of it's high growth rate in distributable income and growing it's property asset base through itself and also forming joint ventures with others. The only thing I would wish they could improve upon is to grow their net property income in step with their overall growth. If I am considering Suntec REIT, I will watch their future net property income closely for signs that they are growing their rental income on their properties well and also managing their property expenses more efficiently.

Starhill Global and CMT are lagging slightly behind the above two picks. If their growth going forward can be more exciting with their ongoing growth strategies, then I will upgrade my opinion on either or both of them to be on par or higher than MCT or Suntec REIT.

These are the unit price, NAV per unit and distribution yield for these four comparisons currently.

Unit price vs (NAV per unit)
MCT = $1.57 vs ($1.37)
Suntec REIT = $1.69 vs ($2.119)
Starhill Global REIT = $0.675 vs ($0.91)
CMT = $2.07 vs ($1.92)

Distribution yield
MCT = 5.77% (annualised based on 9M results)
Suntec REIT = 5.21%
Starhill Global REIT = 5.99% (annualised based on 1H results)
CMT = 5.64%

In terms of trading at cheap valuations, this is the ranking I give based on unit price vs NAV per unit and also their current distribution yield.

1st = Starhill Global REIT
2nd (tie up) = Suntec REIT and CMT
3rd = MCT

This proves the point that good things do not come cheap. MCT may rank as best growth performer in it's various important metrics considered earlier, it also comes with a not so cheap price tag. But, a thing worth considering is that if MCT can continue to grow at current growth rates, perhaps at an annualised distribution yield of 5.77% is still worth some nibbling.

If a bear market should come soon, at least one will now know which are the strong growth performers that can be snapped up at a rare discounted price. There are certainly more REITs to compare against these few whether in similar retail-office landlord sector or other REIT sectors and I am sure this is not the end to the comparison in this REIT universe as one may just be surprised that there maybe even better performers out there than MCT.

PS: I will hope a bear market comes soon and then shopping for REITs will be a real bargain as discounts will be everywhere even for excellent REITs. My target buy-in prices will be the lower the better for these few REITs mentioned. {

jeremyowtaip}

Starhub

It has broken down and hit the Target price indicated on the below mentioned post.

Currently, it is taking a pause and may likely retest the pivot low of $1.82.

Breaking down of 1.82/1.80 would be super Bearish and might see further selling down pressure towards $1.60 with extension to $1.40 level.

Not a call to buy or sell.

Trade/invest base on your own decision.

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.

KepCorp

As mentioned on my earlier post on 29th May, it is on a bearish downtrend mode chart patterns.

 True enough, it has broken down $7.80 follow-by broken down of critical support level at $7.50 level.

Today closed lower at $7.48 plus quite a slightly higher volume doesn't bode well for the price .Looks super Bearish and it may likely move down to test $7.30 then $7.10 with extension to $6.82. 

Not a call to buy or sell.

Please do your own due diligence.

Oil prices mixed as OPEC warns the market outlook for 2018 is uncertain

• Oil prices pared earlier gains, but volatility subsided to its lowest in weeks as caution builds ahead of a key OPEC meeting.
• OPEC warned there's a high degree of uncertainty hanging over the global oil market this year.
• Saudi Arabia reported that the country increased oil output to a little more than 10 million bpd in May.

(Cnbc.com)

Brent crude futures were down 30 cents, or nearly half a percent, at $76.16 a barrel by 10:24 a.m. ET (1424 GMT), while U.S. West Texas Intermediate crude futures were up 17 cents at $66.27.

Keppel Corporation Limited, an investment holding company, engages in the offshore and marine, property, and infrastructure businesses in Singapore, China, Brazil, other Far East and ASEAN countries, and internationally. It constructs, fabricates, and repairs offshore production facilities and drilling rigs, power barges, specialized vessels, and other offshore production facilities; researches and develops deepwater engineering works; engineers, constructs, and fabricates platforms for the oil and gas sector; undertakes shipyard works and other general business activities; and procures equipment and materials for the construction of offshore production facilities. The company is also involved in the trading and installation of hardware, industrial, marine, and building related products; provision of leasing services; sourcing, fabricating, and supply of steel components; ship repairing, shipbuilding, and conversion activities; marine contracting and ship owning business; painting, blasting, and process and sale of slag; property investment, management, and development activities; fund management; golf and hotel ownership and operation; development of marina lifestyle and residential properties; trading of construction materials; development of district heating and cooling systems; electricity generation and supply, and general wholesale trade businesses; purchase and sale of gaseous fuels; and trading of communication systems and accessories. In addition, it offers jacking systems, and heavy-lift equipment and related services; project management and procurement, towage, financial, real estate investment trust management, logistics and supply chain, warehousing and distribution, data center facilities management, travel agency, and metal fabrication services; housing services for marine workers; and technical consultancy for ship design and engineering works, as well as solid waste treatment solutions. The company was incorporated in 1968 and is based in Singapore.

M1

This is the 3rd time it has hit the support at $1.68. With several attempt hitting the support level , it may soon breakdown and goes down to revisit 1.59 level with extension to 1.50/1.495.

Dividend of 11 cents yield of  6.55% looks attractive.

I would rather wait to see if $1.68 is it able to hold or not. Failing which , we would be an opportunity to get it at a much cheaper price.

Not a call to buy or sell.

Please do your own due diligence.

Trade/invest base on your own decision.

M1 Limited, together with its subsidiaries, provides mobile and fixed communications services to consumers and corporate customers in Singapore. It offers various voice, data, and value-added postpaid and prepaid mobile services on 4.5G/long term evolution advanced and 3G/high speed packet access; and international direct dial services to mobile and fixed-line customers. The company also trades in wholesale voice minutes with other international and local service providers, as well as provides dark fiber services to carriers and data centers. In addition, it offers various fiber broadband service plans, including fixed voice and other value-added services for residential customers; and a suite of mobile and fixed services, including symmetrical connectivity solutions, managed services, cloud solutions, cybersecurity solutions, Internet of Things, and data center services for corporate customers. Further, the company is involved in the retail sale of telecommunication equipment and accessories; provision of customer and remittances services; licensing of intellectual property rights; and provision of mobile malware detection solutions. It serves approximately 2.03 million customers through 11 M1 shop outlets and distributors, as well as online. The company was formerly known as MobileOne Limited and changed its name to M1 Limited in 2010. M1 Limited was founded in 1994 and is headquartered in Singapore.

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.