Keppel Corp

Oil market braces for ‘a major supply shock’ — and it could propel crude prices skywards, analysts say

• "Venezuela's ticking time bomb together with the return of Iran's oil industry to the sanctions era has all the makings for a major supply shock," Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Friday.
• Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners.
• On Friday, Brent crude traded around 0.1 percent lower at $73.44.

Oil prices could soon rally above $90 a barrel amid growing concerns over the prospect of steep declines in Iranian crude, according to industry analysts.

Brent crude was on track to post a fourth week of declines in five on Friday, with the global oil benchmark poised to slip more than 1 percent amid continued volatility in the energy market.

Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners.

https://www.cnbc.com/2018/08/03/oil-market-braces-for-a-major-supply-shock-analysts-say.html

I think Keppel Corp may tend to benefit with oil price heading higher and the potential of winning more new rigs orders..

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 $6.73 would be having a PE of 10.45x. 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.

SingPost

l SINGAPORE, 3 August 2018  – Singapore Post Limited (“SingPost”) today announced its results for the quarter ended 30 June  2018.

Revenue for the quarter  increased 3.3 per cent  to  S$372.6  million, as  international  mail and last-mile deliveries grew, driven by eCommerce, and property rental income rose.

Net profit attributable to equity holders declined  40.4 per cent to S$18.7  million, due mainly to an exceptional fair  value loss  on warrants from an associated  company, reflecting changes  in  the market  value of the  financial  instrument, and higher  tax. Excluding one-off items, operating profit  rose 1.2 per  cent to S$39.2 million. Underlying net  profit was down 9.8 per cent  to  S$24.7 million, as the  improved operating profit  before exceptional  items was offset by lower contributions from associates investing for growth and increased tax.

 SingPost reports first quarter net profit of S$18.7 million

•  Net profit impacted by  exceptional items arising from changes to fair value of associated company  warrants, and higher tax

•  For the first quarter ended 30 June 2018, revenue increased 3.3 per cent to S$372.6 million on growth  in international mail and last-mile deliveries, driven by eCommerce, as  well as  rental income

•  Interim dividend of 0.5 cent per share declared

SIA

After hitting the high of $11.50, it had since retreated sharply and continue to slide down to close at $9.67 today .

The big fall was attributed to ex.dividend of 30 cents.

I think price is hovering near the major support level at $9.60 level.

It might be a golden opportunity to take a second look at this price range of $9.57 to $9.70 level for it to rise back above $10..

NAV $11.78.
EPS is about 67 cents.
PE is about 14.3x

Not a call to buy or sell.


Please do your own Due diligence.


Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services in East Asia, the Americas, Europe, South West Pacific, West Asia, and Africa. The company also offers engineering services, air charters, and tour wholesaling and related services, as well as trains pilots. In addition, it engages in the provision of aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; and aviation insurance services. Further, the company is involved in the repair and overhaul of aircraft and cabin components/systems; providing and marketing cargo community systems; marketing and supporting portal services for the air cargo industry; and reservation service systems. As of March 31, 2018, its operating fleet consisted of 186 aircraft, which included 179 passenger aircraft and 7 freighters. The company was founded in 1947 and is based in Singapore. Singapore Airlines Limited is a subsidiary of Temasek Holdings (Private) Limited.

Hi-P Update

 Hi-P reports S$12.3 million net profit for 2Q2018;  enters into production ramp-up phase for a seasonally stronger second half   Higher sales volume drives an 8.0% yoy increase in revenue to S$302.0 million  Gross profit margin declines from 12.2% to 9.8% due to a change in product mix and more competitive pricing  Underpinned by a strong net cash position of S$62.4 million, the Group is actively exploring opportunities for mergers and acquisitions along with aggressive new business initiatives to further diversify its customer base and capture prevailing market trends  Singapore – 1 August 2018, SGX Mainboard-listed Hi-P International Limited (Bloomberg Ticker: HIP SP, “Hi-P”, “赫比国际有限公司” or “the Group”), a global contract manufacturer of smart phones, tablet computers and other consumer electronics, has announced its financial results for the second quarter (“2Q2018”) ended 30 June 2018. 

Not sure how will Market react to the latest result!

Looks like Hi-P price may edge higher with the good set of financial results from Apple.

It would be positive if price can move up to re-conquer $1.34 smoothly. Breaking out with ease + good volume that may propel to drive the price higher towards $1.43.

NAV of 68.4 cents.
EPS of 15 cents.
PE of less than 10.
Yield may be more than 7%.

Not a call to buy or sell/

Please do your own due diligence.


Forward-looking guidance: Apple guided toward fourth-quarter revenue between $60 billion and $62 billion, edging out Wall Street predictions of $59.47 billion, according to StreetAccount.

Apple reported strong results for the fiscal third quarter Tuesday, posting big beats on earnings per share and average iPhone selling price.

Here's how the company did compared with Wall Street projections:

• EPS: $2.34 vs. $2.18, according to Thomson Reuters consensus estimates
• Revenue: $53.3 billion vs. $52.34 billion, according to Thomson Reuters consensus estimates
• iPhone sales: 41.3 million vs. 41.79 million, according to StreetAccount

The quarterly report comes after a market rout for major tech stocks. Silicon Valley giants Facebook and Twitter each shed 20 percent after disappointing reports last week.

Shares of Apple rose 3 percent in extended trading, after the company fell right in line with analyst projections of strong upsides for the quarter that ended June 30. EPS grew by 40 percent year over year, and revenue grew by 17 percent year over year.

Many were hanging high hopes on Apple's flagship handset and its climbing average selling price (ASP). The 41.3 million iPhones shipped during the third quarter is basically flat from the year-ago period, but the ASP of $724 is a notable jump from the year-ago period. That ASP bump is likely be because of the pricey iPhone X, which starts at $999.(www.cnbc.com)

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.

Hi-P

Looks like Hi-P price may edge higher with the good set of financial results from Apple.

It would be positive if price can move up to re-conquer $1.34 smoothly. Breaking out with ease + good volume that may propel to drive the price higher towards $1.43.

NAV of 68.4 cents.
EPS of 15 cents.
PE of less than 10.
Yield may be more than 7%.

Not a call to buy or sell/

Please do your own due diligence.


Forward-looking guidance: Apple guided toward fourth-quarter revenue between $60 billion and $62 billion, edging out Wall Street predictions of $59.47 billion, according to StreetAccount.

Apple reported strong results for the fiscal third quarter Tuesday, posting big beats on earnings per share and average iPhone selling price.

Here's how the company did compared with Wall Street projections:

• EPS: $2.34 vs. $2.18, according to Thomson Reuters consensus estimates
• Revenue: $53.3 billion vs. $52.34 billion, according to Thomson Reuters consensus estimates
• iPhone sales: 41.3 million vs. 41.79 million, according to StreetAccount

The quarterly report comes after a market rout for major tech stocks. Silicon Valley giants Facebook and Twitter each shed 20 percent after disappointing reports last week.

Shares of Apple rose 3 percent in extended trading, after the company fell right in line with analyst projections of strong upsides for the quarter that ended June 30. EPS grew by 40 percent year over year, and revenue grew by 17 percent year over year.

Many were hanging high hopes on Apple's flagship handset and its climbing average selling price (ASP). The 41.3 million iPhones shipped during the third quarter is basically flat from the year-ago period, but the ASP of $724 is a notable jump from the year-ago period. That ASP bump is likely be because of the pricey iPhone X, which starts at $999.(www.cnbc.com)

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.

SGX

Dividend power! Dividend of 15 cents, ex-dividend on 26th Sept 2018. Looking good to ramp up further towards 7.60 !

SGX declared Final dividend of 15 cents ,increased by 2 cents from 13 cents . I think shareholders would be happy to boost their dividend income.

Likely to continue to head higher!


21st July 2018:
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.