KepCorp

2Q2018 result:
looks like a good set of financial result.
EPS of 32.2 cents for 1H 2018 an increased of 38% , looks rather impressive.

Estimated whole year EPS of 64.4 cents. Current price of $6.96 would be having a PE of 10.9x. Looks quite attractive.

Interim dividend increased of 2 cents to 10 cents + a Special dividend of 5 cents. Total 15 cents.
Shareholders would be more than happy to see dividend increasing.

Short term wise, we may see a boost in share price given a good set of financial nos.

Not a call to buy or sell.

Please do your own due diligence.

Net profit was S$583m  EVA was S$275m

 Annualised ROE was 9.9%

 Free cash inflow of S$886m in 1H 2018, vs inflow of S$204m in 1H 2017

 Net gearing was 0.40x at end-Jun 2018 vs 0.46x at end-Dec 2017

 Declared interim dividend of 10.0 cents per share and special dividend per share of 5.0 cents for 1H 2018

1H 2018 net profit S$583m, up 38% yoy

Multiple Earnings Streams 

 Recurring income was S$130m or 22% of net profit for 1H 2018

Marine & Off-shore Net Loss of 40m.
Net loss due to lower work volume and associate contributions, and higher overseas taxes

 Lower overheads contributed to S$14m operating profit in 1H 2018

 1H 2018 new contracts of over S$1.2b including S$680m in 2Q 2018:

 Two new jackup orders from Borr Drilling as part of five-rig deal worth US$745m

 Two dual-fuel dredgers from Van Oord and a dual-fuel tanker from Sinanju

Net order book of S$4.6b as at end-Jun 2018

Property

1H 2018 net profit S$603m, up 214% yoy

Infrastructure 

1H 2018 net profit S$66m, up 16% yoy

Key Highlights  Keppel Infrastructure continues to deliver steady earnings

 Keppel Marina East Desalination Plant (KMEDP) close to 50% completed

 Hong Kong Integrated Waste Management Facility (HKIWMF) in design and engineering phase

 Recurring revenue of ~S$70m from Infrastructure Services in 1H 2018

 KMEDP and HKIWMF to boost recurring revenue when operational

Investments

1H 2018 net loss $46m.

Hi-P

From TA point of view ,  the current price of $1.25 is still trading above its 20 days moving average but below 50MA at sbout $1.31 level. It will be quite positive if it is able to move up to re-captured $1.31 level. 

Breaking out of $1.31 with ease + good volume, that may propel to drive the price higher towards $1.40 level then $1.50 with extension to $1.57.

The Nasdaq Composite hit a record high on Tuesday as strong gains in Amazon and a rebound in Netflix shares led to a big comeback in tech stocks.

The tech-heavy Nasdaq rose 0.6 percent to 7,855.12, after falling as much as 0.7 percent, as Amazon reached an all-time high. Meanwhile, Netflix closed just 5.2 percent lower after falling as much as 14.1 percent earlier in the session.(cnbc.com)

Hopefully, this may help to drive the price higher!

I think director bought back quite a huge share transaction /married deal of about 72+m share . This is rather positive. A boost of confidence.

quote : http://infopub.sgx.com/FileOpen/_MAS%20Form%201_Yao%20Hsiao%20Tung.ashx?App=Announcement&FileID=511404

NAV of 65.4 cents.
Rolling EPS of 15 cents.
PE of less than 10X
Dividend of about 10 cents.
Yield is 7% which is rather impressive.

Not a call to buy or sell.

Please do your own due diligence.

Latest 1Q result for your reference. Gross Profit increased 13% to reach 37.8m. 
Net Profit increase marginally of 1.3% to 12.1m after factoring the foreign exchange loss of 13m..

Hi-P International Limited operates as an integrated contract manufacturer serving the telecommunications, consumer electronics, computing and peripherals, lifestyle, and medical and industrial devices industries. The company operates through three segments: Precision Plastic Injection Molding; Mold Design and Fabrication; and Provision of Sub-Product Assembly and Full-Product Assembly Services. It manufactures and sells molds and special tools, related housing appliance plastic components and equipment, and water treatment equipment; plastic components and plastic product modules; mold base and components; electric components and electronic communication equipment; in-mold decoration lenses; precision stamped metal components and precision tools; and metal and non-metal stampings, as well as provides spray painting, engineering support, maintenance, and technology consultation services. In addition, the company engages in the manufacture, wholesale, import and export, and sale of electronic telecommunication devices, housing appliances, automated equipment, and related components. Further, it manufactures and sells trays, mobile phones, telecommunication products, digital cameras and related electronic products, and electric toothbrushes; assembles coffee machines and parts, as well as provides related maintenance and after-sales services; and offers investment and management consulting services. Additionally, the company engages in the assembly and provision of ancillary value-added services, primarily surface finishing services. It has operations primarily in the People's Republic of China, Singapore, Malaysia, Thailand, Europe, the United States, the rest of Americas, and internationally. The company was founded in 1980 and is headquartered in Singapore.

First Reit

First REIT’s 2Q DPU edges up to 2.15 cents

Yield is about 6.5% base on closing price of $1.33.

Looks pretty stable and decent DPU that may likely provide another form of fixed income portfolio.
I think yield is much better than PW Life reit which is about 4.8%.

I think still has room for it to rise further towards a yield of 5.5% for a Target price of $1.56.


SINGAPORE – 17 July 2018 – Bowsprit Capital Corporation Limited (“Bowsprit”), the Manager of First Real Estate Investment Trust (“First REIT” or the “Trust”), today reported a 0.5% year-on-year (“y-o-y”) rise in distribution per unit (“DPU”) to 2.15 Singapore cents for the second quarter ended 30 June 2018 (“2Q 2018”), on the back of distributable income increasing 1.6% y-o-y to S$16.9 million.

 For the quarter under review, gross revenue rose 5.3% y-o-y to S$28.9 million, while net property income (“NPI”) increased 5.0% to S$28.5 million. For the six-month period, gross revenue and NPI grew 5.5% and 5.4% to S$57.6 million and S$56.9 million respectively, while distributable income edged up 1.7% to S$33.8 million. As at 30 June 2018, First REIT’s gearing stood at 34.2% with interest cover at 4.9 times.

 The Trust remained prudent with its capital structure and is exploring various financing options for its refinancing needs.


  Key highlights in 2Q 2018

• DPU up 0.5% to 2.15 Singapore cents compared to 2.14 Singapore cents in 2Q 2017

• On an annualised basis and based on closing price of S$1.33 as at 29 June 2018, the latest distribution translated to a yield of 6.5%

• Secured a S$100 million term loan facility from CIMB Bank Berhad, Labuan Offshore Branch, with a tenure of six months and an option to extend for another six months. The loan was fully drawn down to refinance First REIT’s S$100 million Fixed Rate Notes due on 22 May 2018

Outlook

 Indonesia’s gross domestic product grew 5.06%1 year-on-year in the first quarter of 2018, at a slower pace compared to the previous quarter, due mainly to sluggish consumption. To reduce reliance on domestic consumption, the Indonesian government has implemented several deregulation measures to attract more investment. Last year, Indonesia recorded 8.5% more foreign direct investment in Rupiah terms than in 2016.2 Meanwhile, rising interest rates in the US have weakened the Rupiah in recent weeks, causing Bank Indonesia to raise interest rates to support the Rupiah. However, this has no impact on the Trust’s borrowings as its loans are originated in Singapore and denominated in Singapore dollars.

BMI Research reported that healthcare spending in Indonesia amounted to Rp403.9 trillion in 2017 and projects it to rise to Rp1,224 trillion by 2027, and that healthcare spending per capita will more than double between 2017 and 20273 . Against this trend, together with the growing nationwide adoption of the national health insurance scheme, private healthcare demand will continue to rise. As such, First REIT remains well-positioned for further growth, with a strong acquisition pipeline of around 40 hospitals in Indonesia from its Sponsor, PT Lippo Karawaci Tbk

Distribution Reinvestment Plan ("DRP") The DRP will not be applicable for this quarter.

 All Unitholders will be receiving 2Q 2018 DPU of Singapore 2.15 cents in cash, payable on 24 August 2018. The Manager may consider applying the DRP at a later date and Unitholders will be notified accordingly.

TA wise, MACDd & Stoch is showing sign of a positive divergence and it may likely continue to rise higher.

Looks like the same chart patterns may likely repeat itself and rises higher towards $1.40 when nearer to ex.dividend date of 23rd July 2018.
Pay date on 24th August 2018.

Keppel Corp

US crude sinks 4.2%, settling at $68.06, after Treasury Dept eases market's Iran sanctions fears

• U.S. Treasury Secretary Steve Mnuchin said some oil buyers could get waivers to continue buying Iranian supplies despite American sanctions on the Middle Eastern country.
• Concerns about the aggressive U.S. policy to remove Iranian barrels from the market have raised oil prices in recent weeks.
• Oil prices slipped earlier on Monday as concerns about supply disruptions eased and Libyan ports reopened.(cnbc.com)

From TA point of view, it is yradtra below it's 20 , 50 , 100 and 200 days moving average, this is rather bearish.

Short term wise, it may likely go lower to revisit the recent low of $6.56. Breaking down of this price level would be quite negative and may see the price sliding further towards $6.46 then $6.35 with extension to $6.20.

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.

Sembcorp Ind

From TA point of view , it has again broken down the recent low of $2.61 level, this is super Bearish.

Short term wise, it may likely go down to revisit $2.50 then $2.44 with extension to $2.40.

Looking through their financial numbers for the past 5 years , Total revenue has been declining $10.8b in 2014 to $8.9b in 2018.

Net Income has seen a greater declined from $801m in 2014 to $191m in 2018. A drop of almost 300+%. Doesn't looks good!

Diluted EPS has also been declining from 26 cents in 2014 to 11 cents in 2018.

Dividend has seen a greater cut from 16 cents in 2014 to 5 cents in 2018 .
Yield is about 1.93% base on current price of $2.59. I think is not attractive.

Net Income margin has been declining from 7.35% in 2014 to 2.12% in 2018. Another weak factor that you may want to take note of .

Not a call to buy or sell.

Please do your Own due diligence.

Sembcorp Industries Ltd engages in the utilities, marine, and urban development businesses. The company’s Utilities segment provides energy, water, on-site logistics, and solid waste management services to industrial, commercial, and municipal customers. Its activities in the energy sector include power generation and process steam production, as well as natural gas importation and retail; and water sector comprise wastewater treatment, and production and supply of reclaimed, desalinated, and potable water, as well as water for industrial use. This segment has approximately 11,000 megawatts of gross power capacity; and manages facilities that provide approximately 9 million cubic meters per day of water. Its onsite logistics and services include service corridor, chemical storage, and terminalling facilities, as well as hazardous waste incineration and industrial gases supply services; and solid waste management services, such as municipal, industrial and commercial, construction and demolition, and bio-hazardous waste collection services, as well as post-collection treatment and waste-to-resource services. The company’s Marine segment provides integrated solutions for the marine and offshore industry, such as rigs and floaters, repairs and upgrades, and offshore platforms and specialized shipbuilding. Its Urban Development segment owns, develops, markets, and manages integrated urban developments comprising industrial parks, as well as business, commercial, and residential spaces. The company’s Others/Corporate segment includes businesses relating to minting, design, and construction activities; and offshore engineering and others. It operates in Singapore, China, India, rest of Asia, the Middle East, Africa, Europe, Brazil, the United States, and internationally. The company was formerly known as Minaret Limited and changed its name to Sembcorp Industries Ltd in July 1998. The company was incorporated in 1998 and is headquartered in Singapore.

Raffles Med Shield Plan

16  July  2018  –  Singapore,  RafflesHealthinsurance  (RHI),  a  fully  owned  subsidiary  of RafflesMedicalGroup,  announced the  launch  of  Raffles  Shield,  making  it  the  seventh  player to  enter  the  industry.  Raffles  Shield  is  the  first  Integrated  Shield  Plan  (IP)  developed  in collaboration  with  RafflesMedicalGroup  and  a  Medisave-approved  IP  providing  coverage for  hospital  and  surgical  expenses.

“As  a  health  insurance  specialist  and  as  part  of  a  healthcare  group,  we  have  the  unique advantage  of  understanding  the  business  of  both  healthcare  and  insurance. 

We  have  been studying  the  Shield  market  for  a  while  now  and  appreciate  the  challenges  that  it  faces.  We are  confident  that  we  can  now  offer  a  product  that  meets  the  changing  needs  of  the  market,” shares Ms  Christine  Cheu,  General  Manager,  RafflesHealthinsurance. The  plan  comprises  MediShield  Life,  a  national  health  insurance  plan  administered  by  the Central  Provident  Fund  Board,  and  an  additional  private  insurance  coverage  administered  by RafflesHealthinsurance  which enhances  the  basic  coverage  provided by  MediShield Life.   RafflesHealthinsurance  has  observed  that  many  who  purchase  IPs  are  keen  to  have private  hospital  coverage  without  overly  expensive  premiums,  and  would  like  to  have  more flexibility  to  manage  their  premiums.  In  response  to  this,  Raffles  Shield  offers  two  attractive options  –  the  Raffles  Hospital  Option  and  the  High  Deductible  Option. On  top  of  this,  there  are  two  riders  that  policyholders  can  add  on  to  enhance  their  coverage.

The  Premier  Rider  provides  additional  benefits  such  as  immediate  family  accommodation and  Traditional  Chinese  Medicine  coverage.  The  Key  Rider  reduces  the  amount  that policyholders  co-pay.  It  is  in line  with MOH’s  co-payment  requirement  for  new  riders.   RafflesHealthinsurance  is  also  ready  to  offer  unique  coverage  to  individuals  with  certain pre-existing  conditions  and  work  with  them  through  the  Raffles  Care  Management Programme  to  improve their  overall  well-being. 



After touching the low of 98 cents, it has staged a strong rebound and rises higher to touch the high of $1.06 today, this is rather bullish.

Today the share price rises also accompany with high volume which is a healthy sign that the momentum may continue to head higher.

Short term wise, likely to move up to retest $1.10 with extension to $1.15 .

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.