KepCorp & Sembcorp Marine

Looks like we may see a rebound happening on a Friday !

Three major indexes higher.

The Dow Jones Industrial Averagerebounded 98.46 points to finish at 24,216.05 after briefly falling 100 points earlier in the session, with Boeing as the best-performing stock in the index. The S&P 500 closed 0.62 percent higher at 2,716.31 as financials, technology and telecoms outperformed. The Nasdaq composite finished up 0.79 percent at 7,503.68 as Amazon rose 2.4 percent after buying an online pharmacy.

oil prices rose to a three-and-a-half year high on Thursday, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from Iran.

U.S. West Texas Intermediate (WTI) crude futures settled at $73.45 a barrel, up 69 cents, or 0.95 percent. It reached $74.03 earlier in the session, highest since Nov. 26, 2014.

The United States this week demanded all countries halt imports of Iranian oil from November, a hardline position the Trump administration hopes will cut off funding to Tehran.(cnbc.com)

https://www.cnbc.com/2018/06/28/oil-markets-well-supplied-despite-strong-demand-outages.html

26 June 2018

US crude surges 3.6%, settling at $70.53, after State Dept says oil buyers must cut Iranian imports to zero

• Oil prices spiked after the State Department signaled the Trump administration will take a hardline approach to cutting off Iran's oil exports.
• A State Department official told reporters the administration expects oil buyers to completely cut off purchases of Iranian supplies in early November.




• Oil prices were already facing upward pressure due to declining production in Venezuela and elsewhere at a time of high global demand.(cnbc.com)

With oil price crossing the $70 mark again, looks like it may attract investor investing in Oil drilling business and hence may boost the demand for new Rigs order.

This may likely benefit both Sembcorp Marine & Keppel Corp.

With this piece of good news, I think Sembcorp Marine may Gap up and retest $2.10 then $2.20 level. 

Keppel Corp may retest $7.20 then $7.40 .

Sembcorp Marine:

NAV of $1.157.

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

PE is rather high at current price of $2.03 that is a PE of 45.1x ( estimated full year PE of 4.5 cents).

I think The current price of $2.03 is running ahead of its financial fundamentals.

Dividend of 2 cents per annum.

Yield is rather low at 0.98%.

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.

 KepCorp - Looking through their financial results for the past 5 years , we can notice that the Total revenue has been declining substantially from 13,282.979m in 2013 to 6,185.668 in 2017.

 I think it is still quite far away for them to grow and increase their total revenue to hit the 10B value. Similarly , the Total net income has also been decreasing from 1,884.798m in 2013 to 301.668m in 2017.

 Diluted EPS has also been going downhill from 0.504 in 2013 to 0.231 in 2017.

 Dividend is almost below half of what has been declared in 2013 of 0.48 versus 0.22 in 2017.

 Diluted EPS of 0.231 , PE is about 35.2 times. I think it is still quite a little bit high as compare to its usual PE of about 13-15 times.

Looking at the latest 1st quarter result which was being released on 

Singapore, 19 April 2018 – Keppel Corporation Limited (Keppel) reported a net profit of S$337 million for the first three months of 2018, 34% higher than the S$252 million net profit for 1Q 2017, bolstered by higher contributions from the Property Division. 

The Group achieved revenue of S$1,470 million for 1Q 2018, which was an improvement of S$222 million or 18% over 1Q 2017. The increase was underpinned by higher revenues achieved by the Property and Infrastructure divisions, which mitigated the impact of lower work volume in the Offshore & Marine Division.

I think the total net profit has also factored in the divestment gain of 289m from the property division.

I think without this divestment gain, net profit may be about the same level as in 1st quarter 2017.

So my observation is that, it may still take quite sometimes for the company to achieve the same level of  net profit as in year 2013.

The current price of $7.09 seems to be trading at a premium level as compare to its NAV of $6.311.

On a positive note , the total order book has generally increased to 4.3B as per the table below:

Another piece of good news is that they have been able to secure a first newbuild drilling rig order in 3 years.

Not a call to buy or sell.

Please do your own due diligence.

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.

Ascendas Hospitality Trust

Ascendasas Hospitality Trust (“A-HTRUST”) has on 15 June 2018, via Ascendas Hospitality Real Estate Investment Trust, agreed to acquire a portfolio of three hotels in Osaka, Japan for JPY10,290.0 million (S$126.1 million) (the “Acquisition”). The acquisition of the three hotels, Hotel WBF Kitasemba West, Hotel WBF Kitasemba East and Hotel WBF Honmachi (collectively the “Hotels”), will deepen A-HTRUST’s presence in Osaka, the third largest city in Japan with a population of 2.7 million

 1 . The aggregate purchase consideration represents a 2.9% discount to the latest valuation of the Hotels of JPY10,600.0 million. The Acquisition will be fully funded by debt and is expected to be accretive to distribution per stapled security (“DPS”). On a pro forma basis, the DPS for FY2017/18 would have increased by 4.3% to 6.11 cents

 2 . The acquisitions of Hotel WBF Kitasemba West and Hotel WBF Kitasemba East are expected to be completed by September 2018, while the acquisition of Hotel WBF Honmachi is expected to be completed by January 2019.

Another fantastic acquisition by this trust that is dpu accreditation.

Current price of 77.5 cents yield will be 7.89% if dpu is going to rise to 6.11 cenrs.

Current price is trading below it's fair value ..

Not a call to buy or sell.

A-HTrust : from TA point of view, it is looking rather bearish!
After hitting the high of 90.5 cents on 1st Feb 2018, it has since retreated sharply and continue to go on a down hill to touch the current low price of 78.5 cents.

The price is hovering below most of the SMA lines such as 20,50,100 & 200 days MA.Doesn't look rosy as it has broken down again the recent low of 79 cents.

Short term wise, I think it may likely go down to test 73.5 cents with extension to 70 cents.



Not a call to buy or sell.
Pls do you own due diligence.

Looking through the Financial results for past few years, the Total Revenue seems to be generally increasing from 214.28m (2013) to 224.43m in 2017.

Net income is not consistence as in 2013 it was generating  16.68m and has been drifted lower to 8.10m in 2017.You may want to look further into the detail for this declining net income figure.

Gearing looks fine which is below 35%.

Cash flow has also been generally declining .

Average dividend of 5.48 cents.
Yield is about 6.5%

NAV of 85.6 cents.

I have roughly workout the fair value using DDM and derive the value of about 87 cents.

Trade/Invest base on your own decision.

Quote : Jeremyowtaip -

1. Recent sale of China hotel properties at good premium to unlock value for unitholders.

2. NAV per share after divestment of China properties is increased thus leading to an attractive P/B ratio below 1.

3. Some possible ways the trust may utilise the divestment proceeds include paying higher distributions or a one-off special distribution seen as a return of capital to unitholders. Also, the trust may utilise the proceeds to pare down debts and decrease gearing. The trust may also utilise the proceeds for AEIs of existing properties and/or for new acquisitions. Or can channel the proceeds into all of the above mentioned with different weightings for each depending on the manager.

My take is that no matter which ways the divestment proceeds are utilised, the manager should provide a sound basis to their unitholders why it chooses certain way to use the proceeds.

For example, if it chooses to do a new acquisition that is not so attractive as compared to previous China hotel properties it has divested paying too high a price for the new property which has less attractiveness. Then, we ask ourselves this question. Why exit the China hotel properties at a premium only to re-enter another new property with less attractive future prospects? This would be doing one good decision followed by one bad decision to negate the previous good effect.

If it chooses to pare down strategically some of the existing debts to increase the average weighted length of time to debt expiry in view of potential rise in interest rates. Maybe this is a good decision.

If it chooses to reward unitholders with higher one-off distributions, it is a neutral option depending how they do it. If most of the proceeds are used towards rewarding unitholders, it may help to boost their unit price higher on a short term basis when a higher distribution attracts investors to this trust. But when the buffett has already ended, what comes after next? Any more growth? If not, then it is just a short term fever with no longer term positive effects of increasing distribution on a one-off basis.

Do not get me wrong. I am not saying rewarding unitholders is always wrong. But overdoing it just to boost up the unit price on a shorter term basis may not be as optimal compared to growing the trust on a long term basis providing sustainable increase in distributions over time. Unitholders will be happy only for a short while with a buffett treat as compared to a trust or REIT which really can sustain their growth in distributable income for a very long time to come giving out better and better treats (which may not be buffett standard but still relatively good standard treats).

In conclusion, AHT has done an impressive job with the divestment of the China hotel properties at good premium gains. Let's see how they use the divestment proceeds. I believe this is more important to watch for than the ongoing price movements of this trust. Of course, if the trust proves it can use the proceeds in a very good and sound way, then buying it at the current price now is good. If otherwise, even if one can supposedly get it cheap at less than P/B ratio of 1, think again is it really a great wonderful catch.

Dyodd

Ascendas Hospitality Trust (“A-HTRUST”) was listed in July 2012 as a stapled group comprising Ascendas Hospitality Real Estate Investment Trust (“A-HREIT”) and Ascendas Hospitality Business Trust (“A-HBT”), established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate used predominantly for hospitality purposes, as well as real estate related assets in connection with the foregoing. The asset portfolio comprises 11 quality hotels with over 4,000 rooms geographically diversified across key cities in Australia, China, Japan and Singapore; and located close proximity to central business districts, business precincts, suburban centres, transportation nodes and iconic tourist landmarks. A-HTRUST is managed by Ascendas Hospitality Fund Management Pte. Ltd., the manager of A-HREIT, and Ascendas Hospitality Trust Management Pte. Ltd., the trustee-manager of A-HBT. A-HTRUST is sponsored by Ascendas Land International Pte Ltd, a wholly-owned subsidiary of Ascendas Pte Ltd.

Sembcorp Marine & Kepcorp

US crude surges 3.6%, settling at $70.53, after State Dept says oil buyers must cut Iranian imports to zero

• Oil prices spiked after the State Department signaled the Trump administration will take a hardline approach to cutting off Iran's oil exports.
• A State Department official told reporters the administration expects oil buyers to completely cut off purchases of Iranian supplies in early November.




• Oil prices were already facing upward pressure due to declining production in Venezuela and elsewhere at a time of high global demand.(cnbc.com)

With oil price crossing the $70 mark again, looks like it may attract investor investing in Oil drilling business and hence may boost the demand for new Rigs order.

This may likely benefit both Sembcorp Marine & Keppel Corp.

With this piece of good news, I think Sembcorp Marine may Gap up and retest $2.10 then $2.20 level. 

Keppel Corp may retest $7.20 then $7.40 .

Sembcorp Marine:

NAV of $1.157.

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

PE is rather high at current price of $2.03 that is a PE of 45.1x ( estimated full year PE of 4.5 cents).

I think The current price of $2.03 is running ahead of its financial fundamentals.

Dividend of 2 cents per annum.

Yield is rather low at 0.98%.

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.

 KepCorp - Looking through their financial results for the past 5 years , we can notice that the Total revenue has been declining substantially from 13,282.979m in 2013 to 6,185.668 in 2017.

 I think it is still quite far away for them to grow and increase their total revenue to hit the 10B value. Similarly , the Total net income has also been decreasing from 1,884.798m in 2013 to 301.668m in 2017.

 Diluted EPS has also been going downhill from 0.504 in 2013 to 0.231 in 2017.

 Dividend is almost below half of what has been declared in 2013 of 0.48 versus 0.22 in 2017.

 Diluted EPS of 0.231 , PE is about 35.2 times. I think it is still quite a little bit high as compare to its usual PE of about 13-15 times.

Looking at the latest 1st quarter result which was being released on 

Singapore, 19 April 2018 – Keppel Corporation Limited (Keppel) reported a net profit of S$337 million for the first three months of 2018, 34% higher than the S$252 million net profit for 1Q 2017, bolstered by higher contributions from the Property Division. 

The Group achieved revenue of S$1,470 million for 1Q 2018, which was an improvement of S$222 million or 18% over 1Q 2017. The increase was underpinned by higher revenues achieved by the Property and Infrastructure divisions, which mitigated the impact of lower work volume in the Offshore & Marine Division.

I think the total net profit has also factored in the divestment gain of 289m from the property division.

I think without this divestment gain, net profit may be about the same level as in 1st quarter 2017.

So my observation is that, it may still take quite sometimes for the company to achieve the same level of  net profit as in year 2013.

The current price of $7.09 seems to be trading at a premium level as compare to its NAV of $6.311.

On a positive note , the total order book has generally increased to 4.3B as per the table below:

Another piece of good news is that they have been able to secure a first newbuild drilling rig order in 3 years.

Not a call to buy or sell.

Please do your own due diligence.

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.

CapitaCom Trust

$CapitaCom Trust(C61U.SI) I think very high chance of breaking down 1.61 and head lower towards 1.50 level then 1.46 with extension to 1.40 level.

NAV of $1.76.
P/B of 0.93.

Average DPU of 8.6 cents .

Yield of 5.2%.

I think this is still not attractive. I Would like to wait till the yield is minimum of 5.5% or more .

It would be interesting to take a look when it is trading at around $1.50 and below to achieve a  min Yield of 5.7% ..

Looking at their financial numbers for the past 5 years , Total Revenue has generally risen from 262m in 2014 to about 344m in 2018. Looks quite consistence .

DPU has generally been fluctuating from 8.5 cents to 9.1 cents. Average DPU us about 8.7 cents. Quite stable .

Gearing is about 32% looks pretty good.

I think the fair value is toughly around $1.40 level.

In order to have a bigger MOS, one would like to get it below $1.40. Perhaps $1.20 level could be
Quite a good accumulation point.



Not a call to buy or sell.

Please do your own due diligence.

 CapitaLand Commercial Trust is Singapore’s first and largest commercial REIT with a market capitalisation of approximately S$6.6 billion. CCT aims to own and invest in real estate and real estate-related assets which are income producing and predominantly used, for commercial purposes. The total value of CCT’s deposited properties is approximately S$10.7 billion as at 31 March 2018 comprising a portfolio of 10 prime commercial properties in Singapore. The properties in Singapore are Capital Tower, CapitaGreen, Asia Square Tower 2, Six Battery Road, Raffles City (60.0% interest through RCS Trust), One George Street (50% interest through OGS LLP), HSBC Building, Twenty Anson, Bugis Village and CapitaSpring (45% interest through Glory Office Trust and Glory SR Trust), an upcoming 51-storey integrated development in Raffles Place. CCT has been a constituent of FTSE4Good Index Series (FTSE4Good), a series of benchmark and tradable indices derived from the globally recognised FTSE Global Equity Index Series. FTSE4Good is designed to track the performance of companies meeting international corporate responsibility standards and forms the basis for over 70 different funds and investment products. CCT is also a constituent of other widely recognized benchmark indices such as MSCI, the SGX Sustainability Index and FTSE Straits Times Index. CCT is managed by an external manager, CapitaLand Commercial Trust Management Limited, which is an indirect wholly owned subsidiary of CapitaLand Limited, one of Asia’s largest real estate companies headquartered and listed in Singapore.

STI

One word , downtrend! The STI index is on the down trend mode after touching the high of 3641.65 on 2nd May 2018, it has since retreated sharply and continue to head lower.

The index is trading below it's 20, 50 , 100 & 200 days moving average, this is rather bearish.

Today it has again broken down the recent low of 3270, this is quite negative and may likely continue to see the index sliding further down towards 3200 with extension to 3100 level.

 Not a call to buy or sell.

 Please do your own due diligence.

If you happen to take a look at the 3 local bank counters - DBS,UOB & OCBC and property stock counter such as Citydev, UOL & Capitaland etc are are having the similar chart patterns, that is downtrend.

The local bourse is also being clouded by the trade war .Uncertainty would usually affect the market sentiment.

STI market has indeed entered into BEAR mode, therefore, please exercise with great care and trade with extra cautious!

AEM

After hitting the high of $1.68 on 18th May 2018 ( after the Bonus issue of 3:1), it has since retreated sharply and went down to touch 98.5 cents on 19th June 2018.

The selling down was overly done and it has indeed staged a rebound to close higher at $1.15 on 22nd June , this is quite bullish.

The current price of $1.15 has manged to reclaim the 200 days moving average which is viewed as rather positive.

Short term wise, I think it may likely head higher towards $1.30 level which is also coincide with its 20 days moving average. Breaking out of 1.30 with ease + good volume , that may propel to drive the price higher towards 1.48 then 1.60 with extension to 1.72.


Not a call to sell or buy.
pls do you own due diligence.

Looking through the Financial nos for AEM Holdings, it has generally quite impressive with the greater magnitude of  boosting their total net income.

Total net income has increased from $6.4m ( 2016) to $29.5m (2017) , an increase of 360%.

EPS has also been generally rising for the past 4 years from 2013 to 2017.

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.

Borrowing money for business all along to me is a double edge sword. If use well you grow fast and prosper. Some industries are highly capital intensive so borrowing lots of money is the only way to be in business or for expansion.

Debt/Equity ratio has seen a great improvement from 2.46% in 2013 to 0.012% in 2017.

Lower values of debt-to-equity ratio are favorable indicating less risk. Higher debt-to-equity ratio is unfavorable because it means that the business relies more on external lenders thus it is at higher risk, especially at higher interest rates. A debt-to-equity ratio of 1.00 means that half of the assets of a business are financed by debts and half by shareholders' equity. A value higher than 1.00 means that more assets are financed by debt that those financed by money of shareholders' and vice versa.

An increasing trend in of debt-to-equity ratio is also alarming because it means that the percentage of assets of a business which are financed by the debts is increasing.

Total Revenue - is the sum of cash inflows, increase in operating accounts such as receivables and occasionally, unrealized gains generated in the course of Company's Business activities.

Total Revenue has greatly increased from $47m in 2013 to $221.87m (2017)

Current ratio = 2.18 (2013) vs 1.81 (2017) . It measures the company's ability to cover current debts with current assets.It it calculated by dividing total current assets by total current liabilities.

It seems to be able to maintain at a healthy level.

The company is in a total Net Net Position as can be seen the total current Assets $105.45m is greater than the total Liabilities $58.85m.

Final dividend of 6.5 cents (XD 18 May 2018) + interim dividend of 2.5 cents, total dividend of 9 cents which is only translate into a yield of 1.5% does not looks so attractive for an investor looking for a higher yield counter.

I have roughly workout the EPS intrinsic value using the CAGR of 40% for past 4 years, discount factor of 25% and the fair value came up to be about $7.00.



Let us factor in another discount of 5% , $7.00 x 0.95 = $ 6.65.

The normal EPS of 47.85 cents, PE of 12.6 times base on current price of $6.03. The upwards potential of  62 cents which may translate to a gain of 10%

Let say we are going to workout the target price base on average PE of 14 times, that may give us a TP of $6.70.

Not a call to buy or sell.

Trade/invest base on your own decision.




AEM Holdings Ltd, an investment holding company, provides solutions in equipment systems; and precision components and related manufacturing services for various industries. The company operates through Equipment Systems Solutions and Precision Component Solutions segments. It provides high density modular test handlers, wafer handling systems, hot spot testers, and smartcard backend handlers for use in semiconductor, solar cell, and smartcard manufacturing facilities, as well as related tooling parts; and designs, develops, and manufactures precision engineering products, such as test sockets, device change kits, stiffeners, golden units, holding jigs, preventive maintenance kits, and precision mechanical assembly modules for use in the electronic, life science, instrumentation, and aerospace industries, as well as offers engineering services. The company offers its products through a network of sales offices, associates, and distributors in Asia, Europe, and the United States. AEM Holdings Ltd is headquartered in Singapore.