QAF

Anyone care to share your opinion about Gardenia Breads ? Their famous product of manufacturing and selling Gardenia breads.

Primary product of selling Airport.

 After hitting the high of $1.575 in 2017, it had since retreated and continue to slide down towards 85.5 cents today , this is rather bearish.

 Super oversold and value is surfacing for this profitable company although the net profit has been declining from $45m in 2014 to $20m in 2018.

 Diluted EPS has been dropping from 7.3 cents to 3.2 cents in 2018. Dividend for the past 5 years has been maintaining at 5 cents per share. Yield is about 5.83% base on current price of 85.5 cents.

 NAV of 93.9 cents . P/B 0.91x. It is now hovering near 85 cents which was last seen in 2014.

 It seems that the same chart patterns may repeat itself.

 Not a call to buy or sell.

 Please do your own due diligence.

 QAF Limited, an investment holding company, engages in the manufacture and distribution of bread, bakery, and confectionery products in Australia, the Philippines, Singapore, Malaysia, and internationally. The company operates through four segments: Bakery, Primary Production, Trading and Logistics, and Investments and Others. It is also involved in the production, processing, and marketing of meat; and feedmilling and sale of feeds and related ingredients. In addition, the company trades in and distributes food and beverage products; and provides warehousing logistics services for food items. Further, it engages in the operation of supermarkets; leasing investment activities; and share trading and investment activities, as well as operates as a purchasing agent for bread, confectionery, and bakery products. The company was formerly known as Ben and Company Limited and changed its name to QAF Limited in 1984. QAF Limited was incorporated in 1958 and is based in Singapore.

Sunningdale Tech

TA wise , looks bullish as it has managed to cross over $1.42 with ease and closed well at $1.43.

The current price of 1.42 us staying above it's 20 & 50 days moving average, this I'd rather positive.

Short term wise, I think likely to continue to move up to retest $1.46 then $1.50 with extension to $1.61.

I think the company would be releasing it's half year result in Aug. Another 2.5 cents of dividend may be on the way.

Not a call to buy or sell.

Please  do your own due diligence.


Quote: Jeremyowtaip

I saw an article written by The Edge Singapore and also went through their 1Q financial results announcement.

From both the article by The Edge Singapore and also from Sunningdale's 1Q results, I noticed three things affecting Sunnningdale's 1Q 18 results y-o-y as compared to 1Q 17.

1. Adverse foreign exchange losses due to weakening of USD versus other currencies such as RMB, RM and SGD affecting both revenue and net profit. I noticed that the amount of forex losses registered can be quite substantial to cause a significant decrease in net profit.

2. Increase in competition and labour cost has caused a decrease in net profit y-o-y. I noticed their administrative expenses has increased y-o-y reflecting this increase in labour cost.

3. Advancing of orders for consumer/IT segment in 1Q17 and comparatively lesser work orders received and completed in 1Q 18. Thus, the revenue for consumer/IT segment has decreased y-o-y and dragged down overall revenue.

However, from their commentary on the outlook for the second half of the year, they are optimistic there will be a ramp up of orders for their newly built Penang manufacturing plant which has started some pilot runs for mass production for consumer/IT segment. Despite this, the company expects their performance for the rest of the year to be affected by volatile forex movements, keen competition and increase in labour cost. The company is still overall optimistic that their business model is resilient and sustainable and should be able to weather this current challenging operating environment.

My take is to continue to monitor their progress for the rest of the year which hopefully as what the management has mentioned, second half of the year should be better. However, if one notice that there are any significant deterioration in it's businesses such as winning even lesser orders going forward from new and existing customers, then one has to investigate whether the company is starting to lose it's competitive edge versus it's competition especially in the consumer/IT segment which is the one which is currently impacted. For now, just monitor their progress going forward.

Raffles Med

Market seems to be in favour of this new development.
Today we have witnessed bthe share price surge 4 cents higher and closed well at $1.14. Looks rather bullish!

Chart wise, looks like it may likely continue to live up to retest $1.18/$1.20 level !

Breaking out of $1.20 level with high volume that may propel to drive the price higher towards $1.30 level.

The company will be releasing it's coming quarter result on 6 Aug before Trading commence.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast12MonthsSecurity&F=J066EFFM9XA7NH6V&H=330193b735c232a3d913255c4414bc40f292df98b750236e23a57992ae531db8

Not a call to buy or sell.

Please do your due diligence.

 NTUC Income  Partners  RafflesHealthinsurance   to Launch the  IncomeShield  Private  Specialist  Panel   Singapore,  24  July  2018  –  NTUC  Income  (Income)  and  RafflesHealthinsurance  (RHI),  a wholly-owned subsidiary  of  RafflesMedicalGroup  (the  Group),  announced today  a  strategic partnership to  introduce  the IncomeShield Private  Specialist  Panel  (the  Panel).   In addition  to offering  IncomeShield  policyholders  access  to  over  200  medical  specialists  in private practice  spanning across  different  specialty  areas  via the  Panel,  RHI  will also  extend clinical  indicator  assessment  to  Income  as  part  of  the  partnership.  The  assessment  ensures that  the  Panel  delivers  appropriate and  high  quality  healthcare to  IncomeShield  policyholders sustainably.   Additionally,  RHI  will  also ensure that  the Panel  offers  equitable representation of  medical specialists from  within and outside  the  Group,  whom  are of  good reputation  and experience in the industry,  to  meet  diverse healthcare and  medical  needs.  More significantly,  through the  combined  scale  of  Income  and  RHI,  the  strategic  partnership  aims  to  lend  strength  to  the curation of  quality  medical  specialists  in private practice  for  the Panel.   The  introduction  of  the  Panel  demonstrates  Income’s  commitment  to  ensure  that  its  health insurance remains  accessible,  affordable and sustainable  for  everyone  in Singapore.  It  is also aligned  to  the  Health  Insurance  Task  Force’s  (HITF)  recommendation  for  all stakeholders  in  the  healthcare  ecosystem  to  collectively  play  an  active  and  collaborative  role in managing  medical  care  and health insurance  costs  in Singapore.  This  is  particularly important  in  view  of  Singapore’s  ageing  population and  rising healthcare  costs. Commenting on  the  strategic  partnership with RHI,  Mr  Andrew  Yeo,  Income’s  General Manager  for  Life  and  Health  Insurance,  said:  “RHI  stands  out  as  a  strategic  partner  for  us  as it  allows  Income  to  tap  its  in-house  medical  expertise  and  ready  network  of  practitioners  in and  beyond  the  RafflesMedicalGroup.  The  latter  is  the  only  healthcare  institution  in Singapore  that  subscribes  to  the  Institutional  Group Practice  Model.  It  advocates  physicians to render  patients  quality-assured  medical  services  that  are  peer  reviewed  and  medically audited.” 

SembCorp Marine

From TA point of view, we had witnessed a Gapped down yesterday + high volume and closed lowered at $1.83, this is rather negative.

The current pric of $1.83 is hovering near the major support at $1.80/$1.81.
If this level is broken down, then it would be super bearish and may continue to slide down further towards $1.75 then $1.70 with extension to 1.60 level.

The company has started buying back share yesterday. 300,000 share bought back at an average price of $1.845.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast12Months&F=VB64DDHNBB2R9SDW&H=449a854ad4e71919b41a0fed34f32334f01d3989639662211572fe679024f6d1

quote from DBS : Earnings revisions. Headline losses amounted to S$50m in 1H18. We had expected SMM to be in the red for 1H18 but it seems like revenue and margin recovery will take longer than expected. There is also a lack of visibility for the write-back of cost overruns for disputed variation orders in 2017 (which we estimated to be around S$100m) as negotiations with customers continue. As such, we have lowered our EBIT margin by 1.4ppt in FY18 and pushed back revenue recognition in FY19 given the slow contract wins in 1H18. Our net profit forecast for FY18-19 is reduced from S$54-126m to S$16-64m.

 SMM secured S$730m new orders in 1H18. The contract value for Shell Vito’s Floating Production unit clinched in May2018 was lower than expected at c.S$250m (vs our estimate of S$400m) as customer decided to procure some of the equipment themselves

 1) Potential first customer for SMM’s Gravifloat LNG exporting Terminal - Poly-GCL has reached an agreement with Djibouti on plans for a cross-country pipeline in May. This indicates positive progress of the gas development project and a step closer to finalisation of the Gravifloat contract that is expected to worth c.S$1bn;

2 Seaone’s preliminary study for compressed gas liquid carrier is near completion. Once customer decides to proceed with FID, SMM could secure contract for two such carriers worth a total of S$800m;

 3) Chevron is expected to award the contract for newbuild FPSO that could worth up to US$2bn for its Rosebank project off UK by 3Q18. SMM is competing against the other three Korean peers for the job.

 https://www1.dbsvonline.com/DBSVReport/2018/07/20180723134817_SMM%20-%201H18.pdf

Valuation: Our target price of S$2.50 is based on 2.1x FY18 P/BV, pegged to 0.75SD below its mean valuation since 2004. SMM’s book value has already been written down after the massive S$609m provisions taken in FY15.

 Key Risks to Our View: Key downside risks are sustained low oil prices which would affect rig count and newbuilding activities, execution risks in new product types, and corruption allegations in Brazil that, if found guilty, could lead to financial and reputational loss. Upside risk could come from privatisation or M&A activities, as well as the write-back of provisions from successful deliveries or vessel sales

Looking through their financial numbers for the past five years, Net Income has been declining substantially from $560m in 2014 to a LOss of (78m).

Diluted EPS has been dropping from 19.2 cents to a negative 3.6 cents. This is rather bearish.

Short term wise, would not likely to see any much improvement in terms of their FY2018 result unless they are able to secure huge order to boost their revenue and net income level.

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.

SGX

TA wise, looks bullish!
I think likely to see it re-captured $7.52 and continue to trend higher towards $7.60 then $7.70 with extension to $7.75.

Full year financial result for 2018 would be out on 27th July 2018 after trading hours.
Dividend of 13 cents may likely declare for the final dividend.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast12MonthsSecurity&F=CDEZFN5SILEP94VP&H=587b7d5900d1d0c3a63baa28eb4863009f9131120f3e69ef2d7af6684f667ea9

EPS is about 34 cents, PE is about 22x seems floating at a reasonable trading level. If market is bullish than we may likely see it rises towards PE25-28x.

Not a call to buy or sell.

Please do your own due diligence.

Looking through their financial numbers for past 5 yeas, Total revenue has been rising from $686m in 2014 to $839m in 2018. This is rather impressive. Similarly, diluted EPS has also been rising from 22 cents in 2014 to 25.5 cents in 2018. A nice and consistence increasing of total revenue cum rising in diluted EPS. Looks positive.

Dividend of 28 cents has been declared for past 5 years from 2014 to 2018. The current price of $7.49 is giving a yield of 3.7% which is pretty attractive.

Net Income has also been generally rising from $320m in 2014 to $364m in 2018. What a great achievement for this Singapore Exchange authority.

I would monitor this counter and consider when the trading opportunity surfaced/triggered.

Trade/invest base on your own decision.

Singapore Exchange Limited, together with its subsidiaries, operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It operates through Equities and Fixed Income; Derivatives; and Market Data and Connectivity segments. The company provides issuer, securities trading and clearing, post trade, membership and collateral management, derivatives trading and clearing, and market data and connectivity services. It also offers counterparty guarantee, and depository and related services for securities transactions; bond trading services; front-line regulatory functions; and computer services and software maintenance services, as well as consultancy services. In addition, the company provides and distributes bulk freight market indices and information; and operates regulated freight derivatives trading facility and electricity market. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.

SembCorp Marine

Sembcorp Marine results for second quarter and half year 2018

Key highlights:

For the six months to June 30, 2018

 Group revenue of $2.81 billion, including sale completion of West Rigel rig for US$500 million

 Net loss of $50 million, including $27 million loss recognised from sale of West Rigel

 $730 million in new contracts secured in 1H 2018

 Net orderbook of $7.27 billion as at 1H 2018

Interim Dividend 

After due deliberation, the Board has adopted a prudent approach to conserving cash in light of the challenging business environment. As such, no interim dividend has been declared for 1H 2018. For 1H 2017, a 1.0 cent dividend per share had been declared.

TA wise, it is looking rather bearish!
The price is staying below its 20,50,100 & 200 moving average.

I think short term wise, the recent low of $1.91 would be likely breaking down and continue to slide down further towards 1.81 with extension to $1.71 level.

On a segmental basis: 

 Turnover for Rigs & Floaters was $2.41 billion in 1H 2018, compared with $643 million in 1H 2017. The higher revenue was related to recognition of the Borr Drilling and BOTL jack-up deliveries, sale of West Rigel, as well as higher floaters revenue on percentage recognition of the ongoing Johan Castberg FPSO and Shell Vito FPU projects, and ongoing recognition of revenue from the Transocean drillships.

Offshore Platforms revenue was $147 million in 1H 2018, lower than the $473 million in 1H 2017 due to fewer contracts on hand. During the second quarter, revenue from the remaining work for the three topside modules for the Culzean platform topsides was booked and delivered on schedule in June 2018.

 Revenue from Repairs & Upgrades totalled $205 million in 1H 2018 compared with $232 million in 1H 2017 on fewer ships repaired. A total of 158 ships and other vessels were repaired or upgraded in the first half compared with 239 units in 1H 2017. Average revenue per vessel was higher on improved vessel mix of relatively higher-value works.

The Group posted 1H 2018 operating loss of $33 million and a net loss of $50 million. This compares with a net profit of $42 million in 1H 2017, which was mainly due to a gain of $47 million from the sale of Cosco Shipyard Group. 1H 2018 loss was due to (i) lower overall business activities with key orders secured in 2015 substantially completed while new orders secured since end 2017 are at early execution stage; and (ii) sale of West Rigel, which was completed and recognised in 2Q 2018 at a loss of $27 million.

Balance Sheet and Cash Flow 

Net debt remained relatively stable at $2.99 billion, with net debt to equity at 1.26 times as at 30 June 2018 compared with 1.13 times as at end FY2017. Operating cash flow generated before working capital changes was $66 million in 1H 2018. Cash used in operations in 1H 2018 was $38 million, mainly due to working capital for ongoing projects, offset by receipts from ongoing and completed projects.

Outlook CAPEX spend on global exploration and production (E&P) continues to improve with firmer oil prices in the first half of 2018. However, offshore rig order recovery will take some time as the market remains oversupplied, particularly for jack-up rigs. There are some pockets of initial demand for mid and deep water rigs. The majority of new orders have been for offshore production projects. This trend is expected to continue and Sembcorp Marine is responding to an encouraging pipeline of enquiries and tenders for innovative engineering solutions. Competition in the repairs and upgrades segment remains intense. The segment will be underpinned by regulations that require ballast water treatment systems and gas scrubbers to be installed over the next two to five years.

The overall industry outlook remains challenging. While improvement in E&P CAPEX spending is projected to continue, it will take some time before we see a sustained recovery in new orders. The Group’s transformation efforts to move up the value chain have resulted in new business opportunities but they require significant time and effort in project co-development with potential customers before orders are secured. Such new-build engineering, procurement and construction (EPC) projects have detailed engineering and construction planning phase, which may take as long as six to twelve months before main construction activities and corresponding revenue recognition can take place. Margins remain compressed with intense competition. Overall business volume and activity for the Group is expected to remain low for the immediate quarters. The trend of negative operating profit will continue in the near term. Our cash resources remain sufficient and we will prudently manage our costs and cash flows to align them with business volume and potential opportunities. We will actively pursue the conversion of as many enquiries into new orders, execute existing orders efficiently and position the Group well for the industry recovery.