Fraser HTrust

DPU is decreasing 9.3% to 1.12 cents for 3rd quarter 2018 financial result .

9M DPU is down 5.9% to 3.54 cents. Looks like the current price of 70.5 cents may go lower due to DPU weaken .

 Looks like price may slide down towards 68 cents and below .

 Not a call to buy or sell.

 Please do your own due diligence.

 SINGAPORE, 26 JULY 2018 Frasers Hospitality Trust (“FHT”), a stapled group comprising Frasers Hospitality Real Estate Investment Trust (“FH-REIT”) and Frasers Hospitality Business Trust (“FH-BT”), today announced that for the third quarter ended 30 June 2018 (“3Q FY2018”), its GR and NPI were S$38.2 million and S$28.5 million respectively, down 1.8% and 2.8% year-on-year (“yoy”).

 The declines were mainly due to weaker performance from its Australia and Malaysia properties. The soft performance of the Australia portfolio was attributed to the more competitive trading environment in Sydney.

However, Novotel Sydney Darling Square performed better yoy with the return of its full room inventory compared to last year when the number of available rooms was affected by renovation.

The Westin Kuala Lumpur reported lower room and food and beverage revenue due to significant reduction in business and government activities leading up to and after the general election in Malaysia. Softer demand from the Middle East also contributed to the hotel’s lower revenue.

 In contrast, the Singapore portfolio recorded stable performance on the back of increased operating efficiencies at both properties, and stronger food and beverage revenue at the InterContinental Singapore.

The UK properties performed better yoy due to higher room rates and occupancies arising from increased leisure demand. DI decreased by 8.1% yoy to S$21.1 million on the back of lower NPI and higher finance costs. As a result, DPS was 1.1226 cents, 9.3% lower yoy.

Ms Eu Chin Fen, Chief Executive Officer of the Managers1 said, "We turned in weaker performance this quarter primarily due to the significant decline in revenue at The Westin Kuala Lumpur and a more competitive trading environment in Sydney. Our hotel in Kuala Lumpur was much affected by significant pullbacks in business and government spending prior to and after the Malaysia general election which saw the unexpected election results adding uncertainty to businesses and major project. Review of Portfolio’s Performance In 3Q FY2018, the Australia properties reported lower gross operating revenue (“GOR”) and gross operating profit (“GOP”) as the trading environment in Sydney has been more competitive due to softer corporate demand. However, Novotel Sydney Darling Square performed better yoy as it benefited from having its full room inventory compared to last year when there was renovation. Novotel Melbourne on Collins continued to perform well in this quarter, with strong revenue per available room (“RevPAR”) growth of 11.6% yoy. The portfolio RevPAR rose only by 2.0% yoy on the back of higher occupancy. The Singapore portfolio recorded stable performance, with GOP increasing 4.2% yoy despite a drop in GOR of 1.5%. The higher GOP was attributed to increased operating efficiencies at both properties and stronger food and beverage revenue at the InterContinental Singapore.

The portfolio RevPAR declined 3.8% yoy as Fraser Suites Singapore pursued a volume strategy by lowering its average daily rates (“ADR”). GOR and GOP of the UK portfolio grew yoy by 3.1% and 4.0% respectively due to ADR and occupancy gains arising from increased leisure demand. ANA Crowne Plaza Kobe’s GOR declined 4.9% yoy due to softer banquet performance. However, the decline in its GOP was lower at 3.2% due to productivity and efficiency gains achieved by its food and beverage division.

 The Westin Kuala Lumpur’s GOR and GOP declined yoy by 13.5% and 35.7% respectively as a result of consequential pullbacks in business and government spending leading up to and after the Malaysia general election which saw the unexpected election results.

While the hotel maintained its market share vis-à-vis its peers, its revenue was affected by weak market demand, with corporate and government spending stalled on the back of uncertainty surrounding businesses and projects. Demand from the Middle East has also weakened for the quarter.

 Market Outlook Tourism Australia reported a yoy increase in international arrivals of 6.1% for the first five months of 2018, with Chinese visitors growing by 10.5%. A relatively large number of new rooms is anticipated to enter the Sydney market over the next three years but continued strong demand is expected to offset the supply increase. Stable occupancy and anticipated increases in ADR are likely to continue to support RevPAR growth in the city 2.

 The Melbourne hotel market, on the other hand, is expected to stay muted. 3 growth has been hard to come by and with a glut of new supply in 2018 and 2019, this is anticipated to remain the case for some time3. Singapore Tourism Board (STB) reported a yoy growth of 6.9% in visitor arrivals for the first five months of 2018. China and Indonesia were the top source markets for tourism, accounting for 35.3% of total visitor arrivals. In the near term, hotel demand is expected to remain strong due to continued arrivals growth while limited hotel supply should reduce supply-side pressure.

 Hotel trading performance is anticipated to pick up in 2H2018. Increased marketing efforts by STB and the positive outlook in Asia-Pacific tourism should continue to drive visitor arrivals growth 4. In the UK, weaker economic growth is expected to persist in 2018 as considerable uncertainty still relates to Brexit. While stronger global growth could help cushion inbound business and leisure travel to the UK, the weaker economic growth of the country is likely to depress ADR growth. The weak British pound that has made the UK more affordable for inbound tourists may also ‘fizzle out’ 5. For January to June 2018, Japan National Tourism Organization recorded 15.6% growth in foreign visitors.

While growth of inbound tourism continues, high supply levels may concern hoteliers. But new regulations on minpaku (home-sharing type of accommodation) and strong demand fundamentals could mitigate the negative impact of heightened competition6.

Despite tourist arrivals declining 3.0% yoy to 25.9 million, tourist receipts still inched up 0.1% to RM82.2 billion last year. Tourism Malaysia targets to achieve 33.1 million tourist arrivals and RM134 billion in tourism receipts for 2018. It reported a yoy decline of 3.4% in tourist arrivals for January to April 2018. In Kuala Lumpur, hotel room rates are expected to remain stagnant in the near future, in view of the new room supply that has entered the market since last year.

 This would deter the existing hotels from raising their rates in order to stay competitive7. For January to May 2018, the Federal Statistical Office of Germany recorded a yoy increase of 5.0% in the number of domestic and foreign overnight stays8. In Dresden, the total number of domestic and foreign visitors rose 8.9% yoy for January to May 20189. Dresden, the capital city of the Free State of Saxony, continues to grow its pipeline of MICE events for 2018 and 2019 including Bauen Kaufen Wohnen, Florian, Borsentag Tag Dresden, HAUS, Sachsenback and Green and Sustainable Chemistry Conference.

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.