YZJ Update

YZJ had a nice Gap up yesterday and couple with high volume + closed well at 99 cents, this is rather bullish!

Likely to pause for a moment as yesterday seem to be overly extended.  I think after this short pause, it may likely move up to re-challenge the $1.00 level and head higher towards $1.04 then $1.10 level.

Not a call to buy or sell.

Please do your own due diligence.


7th Aug 2018:
Yangzijiang reports 38% increase in 2Q2018 earnings to RMB995 million

Revenue increased by 110% yoy to RMB8.0 billion in 2Q2018, supported by the delivery of several large-size vessels

 Core shipbuilding gross margin at 21%, compared to 20% for 2Q2017


Group secured new orders for 22 vessels from January to July 2018 with total contract value of USD982 million

 Outstanding order book stood at USD4.1 billion as at 7 August 2018, will keep the Group’s yard facilities healthily utilized up to 2020

Group’s financial position strengthened further during 1H2018. Gross gearing decreased from 18.4% as at 31 December 2017 to 13.7% as at 30 June 2018, and the Group remained in a net cash position. Net asset value per share increased to RMB6.72 as at 30 June 2018 from RMB6.52 as at 31 December 2017. Group’s cash & cash equivalents and restricted cash increased from RMB6.2 billion as at 31 December 2017 to RMB7.9 billion as at 30 June 2018, or approximately SGD1.58 billion2 , compared to Yangzijiang’s market capitalization of SGD3.59 billion as of 7 August 2018.

REVIEW / OUTLOOK/ FUTURE PLANS


Supported by improving global seaborne trade volume and higher charter rates for several major vessel categories, the shipbuilding market continued to recover in 2018. According to Clarksons Research3 , global containership orderbook to fleet ratio stood at a historically low level of 12%4 , and “the fundamentals (in the containership sector) look set to remain supportive of further market improvements in 2018-19”. On the dry bulker side, the strong demand from China for iron ore and coal, as well as the relaxation of import restrictions at a number of ports in China, will continue to support global seaborne dry bulk trade. In terms of supply, bulk carrier fleet is “projected to expand at a relatively subdued rate of 2.5% in both 2018 and 2019”, and there is “potential for further gradual improvements to balance of fundamentals”, indicating fleet growth gradually catching up with the shipping demand growth.

With regard to the escalation of the trade war, the Group’s existing order book has no exposure to the sectors on the US’ tariff list, and the Group doesn’t see the tariff list directly impacting its future order flow. Various studies suggest limited impact of the protectionism and trade wars on the global trade volume. However, the Group is mindful of the uncertainties and the potential risks to the shipping and shipbuilding demand and will closely monitor the situation.


Year to date, the Group secured new orders for 22 vessels with total contract value of USD982 million. These new orders include 10 units of 82,000DWT, 2 units of 180,000DWT, 2 units of 208,000DWT bulk carriers, 2 units of 2,400TEU and 5 units of 12,690TEU containerships, and 1 unit of 83,500DWT combination carrier. As at 7 August 2018, with an outstanding order book of USD4.1 billion for 114 vessels, Yangzijiang was ranked no. 1 in China and no. 4 in the world. These orders will keep the Group’s yard facilities at a healthy utilization rate up to 2020 and provide a stable revenue stream for at least the next 2.5 years.

From TA point of view,it is on a consolidation mode. It will need to breakout 94 cent then 96.5 cents in order to reverse this downtrend and head higher towards 1.00 with extension to 1.08 level.

Not a call to buy or sell.


Please do you own due diligence.

SingTel

1Q2018 result is out.

Looks like quite a decent set of result !

Singtel posts resilient results with strong growth in Australia Quarter ended 30 June 2018  

Operating revenue stable at S$4.13 billion, up 2% in constant currency terms

 Underlying net profit fell 19% to S$733 million due to lower associates’ contributions, higher withholding taxes on dividend receipts and adverse currency movements 

 Net profit down 7% to S$832 million, down 4% in constant currency terms 

 Free cash flow up 13% to S$1.47 billion on higher dividends from associates

Singapore,  8  August  2018  –  Singtel’s  first  quarter  results  were  resilient  despite  keen competition.    Australia  performed  strongly,  registering  higher  customer  growth  across  both  the consumer  and  enterprise  segments,  while  mobile  data  remained  a  key  growth  driver. Operating  revenue  was  up  2%  and  EBITDA  was  stable  in  constant  currency  terms.  Underlying net  profit  fell  19%  due  to  weaker  results  from  Airtel  and  Telkomsel,  reduced  economic  interest in  NetLink  NBN  Trust 1 ,  an  increase  in  withholding  taxes  from  higher  dividends  and  adverse currency  movements.  Net  profit  declined  7%  to  S$832  million  and  would  have  been  down  4% in constant  currency  terms.

 “This  quarter’s  results  reflect  the  resilience  of  our  core  business  against  intense  competition and  increasing  business  headwinds.  The  Group  continued  to  record  data  growth  and  Optus made  gains  in  both  the  consumer  and  enterprise  markets,  bolstered  by  our  quality  networks, differentiated  content  and  comprehensive  ICT  capabilities.  Our  overall  focus  on  digitalisation and  automation  has  also  improved  customer  engagement  and  delivered  productivity  gains and  cost  savings,”  Ms  Chua  Sock  Koong,  Singtel  Group  CEO,  said.  “We  start  the  year  with 23%  of  Group  revenue  from  ICT  and  digital  businesses  and  we  expect  contributions  from these  businesses  to  rise  further  as  we  continue  to  build  capabilities  in  these  new  growth  areas. Our  digital  marketing  arm  Amobee  recently  acquired  the  assets  of  Videology,  an  ad-tech platform  provider  for  advanced  TV  and  video advertising.”

 Mobile  data  continued  to  grow  strongly  for  the  Group’s  regional  associates.  However,  in  the key  markets  of  India  and  Indonesia,  intense  competition  faced  by  Airtel  and  Telkomsel  led  to a  decline  in  regional  associates’  overall  profits.  Airtel’s  results  were  also  affected  by  mandated cuts  in  mobile  termination  rates  in  India  although  Africa saw  continued  growth  momentum.  In July,  Airtel  announced  plans  to  list  its  African  unit,  Airtel  Africa,  and  started  preparations.  In Indonesia,  Telkomsel’s  earnings  were  impacted  by  intense  price  competition  particularly during  the  mandatory  registration  of  prepaid  SIM  cards.  This  exercise  has  since  been completed  and  the  pricing  situation  has  improved  towards  end  June  and  after  the  Lebaran national  holiday.  In  the  Group’s  other  two  markets,  AIS  and  Globe  continued  to  perform

strongly.  AIS  registered  robust  growth  from  revenue  improvement  and  cost  control.  Globe  also posted strong earnings  growth,  driven  by  strong  data  revenue  growth and  cost  management. Ms  Chua  said,  “While  competition  remains  keen  in  Indonesia  and  particularly  India,  both Telkomsel  and  Airtel  have  nonetheless  gained  market  share.  We  have  started  to  see  revenue stabilise  on  a  sequential  quarter  basis  for  India.  As  leading  operators  in  their  markets,  all  our regional  associates  continue  to  ride  the  growth  in  data  and  we  are  positive  on  their  long-term growth  potential. 

As  a  Group,  we  continue  to  invest  in  content,  networks  and  spectrum  to maintain  our  lead  in  customer  experience  and  better  engage  our  more  than  730  million customers  across  21  countries.”             The  Group  has  established  a  5G  Centre  of  Excellence  in  Singapore,  and  aims  to  prepare  for the  communications  ecosystem  for  5G  services  as  standards  are  progressively  introduced. Singtel  will  launch  Singapore’s  first  5G  pilot  network  later  this  year  while Optus  and  Globe  will introduce  fixed  wireless solutions  for  homes  in early  and mid-2019  respectively. To  create  new  forms  of  digital  content  for  customers  across  its  footprint  in  the  Asia  Pacific region,  the  Group  also  announced  the  launch  of  PVP  eSports  Championship,  a  multi-title  and regional  league  which marks  its  first  foray  into  the  fast-growing  esports  and  gaming  market.   The Group’s cash position  remains  strong.  Free  cash  flow  rose  13%  to  S$1.47  billion  on  higher dividends  from  associates  and lower  capital  expenditure  by  Optus.

Best World

2Q2018 result is out. Net profit sink 23.6% to $9m.

Half year net profit sink 31.1% to $14.1m.

 EPS decline 23.5% to 1.66 cents versus 2.17 cents last year.

 Overview 

 In line with Section 10 of the Group’s 1Q2018 Results Announcement, the Group’s transition to the new Franchise Segment in China extended into 2Q2018, resulting in lower Export Segment revenue as compared to 2Q2017. Group revenue for the reporting period ended 30 June 2018 declined 39.6% vis-à-vis the same period last year primarily due to the aforesaid transition which delays revenue recognition to 2H2018. Quarter-on-quarter, the Group’s gross profit margin improved to 76.2%, which is comparable to the margins typically achieved by the Group before the Export Segment in China, which has a lower gross profit margin, became a major revenue contributor to the Group.

 Net Profit Margin also improved to 26.1% in 2Q2018, mainly due to the following factors:

 Other Operating Income, which the Group charges its agent in China for market development activities, product training and IT services to support the agent’s sales in 2Q2018, increased by 58.3% vis-à-vis the same period last year.

For 1H2018, Other Operating Income increased 95.4% in line with strong market demand in China; In 2Q2018, Interest Income increased 87.2% from $0.08 million to $0.16 million due to higher income earned from higher fixed deposits placed with financial institutions; Distribution Costs which comprises freelance commissions and other sales related costs decreased by 6.7% in 2Q2018 as compared to 2Q2017 mainly due to lower annual convention expenses and commissions paid out in 2Q2018;

 Administrative Expenses for 2Q2018 declined by 5.0% as compared to 2Q2017 mainly due to lower professional fees, management and staff costs as well as amortization and depreciation; In 2Q2018, Net Other Gains of $0.9 million was mainly due to reversal of slow moving stocks and Unrealised Foreign Exchange gains from the revaluation of the Group’s financial assets denominated in US dollars of certain subsidiaries, offsetting Realised Foreign Exchange losses due to weakened Indonesia Rupiah against Singapore Dollar in 2Q2018. In aggregate for 1H2018,

 Net Other Gains of $0.7 million was largely attributable to reversal of unaccounted cash written off in a certain subsidiary (as previously mentioned in 1Q2018 results announcement) and reversal of slow moving stocks, offsetting Foreign Exchange losses of certain subsidiaries;

 and The Group incurred Income Tax Expenses of $1.7 million due to profitability on certain subsidiaries during 2Q2018.

From TA point of view, will it breakdown of $1.23 level and continue to slide down towards 1.20 with extension to 1.15 level.

Not a call to buy or sell.

Please do your own due diligence.

YZJ

Yangzijiang reports 38% increase in 2Q2018 earnings to RMB995 million

Revenue increased by 110% yoy to RMB8.0 billion in 2Q2018, supported by the delivery of several large-size vessels

 Core shipbuilding gross margin at 21%, compared to 20% for 2Q2017

Group secured new orders for 22 vessels from January to July 2018 with total contract value of USD982 million

 Outstanding order book stood at USD4.1 billion as at 7 August 2018, will keep the Group’s yard facilities healthily utilized up to 2020

Group’s financial position strengthened further during 1H2018. Gross gearing decreased from 18.4% as at 31 December 2017 to 13.7% as at 30 June 2018, and the Group remained in a net cash position. Net asset value per share increased to RMB6.72 as at 30 June 2018 from RMB6.52 as at 31 December 2017. Group’s cash & cash equivalents and restricted cash increased from RMB6.2 billion as at 31 December 2017 to RMB7.9 billion as at 30 June 2018, or approximately SGD1.58 billion2 , compared to Yangzijiang’s market capitalization of SGD3.59 billion as of 7 August 2018.

REVIEW / OUTLOOK/ FUTURE PLANS

Supported by improving global seaborne trade volume and higher charter rates for several major vessel categories, the shipbuilding market continued to recover in 2018. According to Clarksons Research3 , global containership orderbook to fleet ratio stood at a historically low level of 12%4 , and “the fundamentals (in the containership sector) look set to remain supportive of further market improvements in 2018-19”. On the dry bulker side, the strong demand from China for iron ore and coal, as well as the relaxation of import restrictions at a number of ports in China, will continue to support global seaborne dry bulk trade. In terms of supply, bulk carrier fleet is “projected to expand at a relatively subdued rate of 2.5% in both 2018 and 2019”, and there is “potential for further gradual improvements to balance of fundamentals”, indicating fleet growth gradually catching up with the shipping demand growth.

With regard to the escalation of the trade war, the Group’s existing order book has no exposure to the sectors on the US’ tariff list, and the Group doesn’t see the tariff list directly impacting its future order flow. Various studies suggest limited impact of the protectionism and trade wars on the global trade volume. However, the Group is mindful of the uncertainties and the potential risks to the shipping and shipbuilding demand and will closely monitor the situation.

Year to date, the Group secured new orders for 22 vessels with total contract value of USD982 million. These new orders include 10 units of 82,000DWT, 2 units of 180,000DWT, 2 units of 208,000DWT bulk carriers, 2 units of 2,400TEU and 5 units of 12,690TEU containerships, and 1 unit of 83,500DWT combination carrier. As at 7 August 2018, with an outstanding order book of USD4.1 billion for 114 vessels, Yangzijiang was ranked no. 1 in China and no. 4 in the world. These orders will keep the Group’s yard facilities at a healthy utilization rate up to 2020 and provide a stable revenue stream for at least the next 2.5 years.

From TA point of view,it is on a consolidation mode. It will need to breakout 94 cent then 96.5 cents in order to reverse this downtrend and head higher towards 1.00 with extension to 1.08 level.

Not a call to buy or sell.

Please do you own due diligence.

Raffles Medical

Net profit seems flat almost quite similar as last year.
EPs of 0.95 cents.
Dividend of 0.5 cents . XD on 27/8. Pay date on 6th September.

2Q2018 Financial  period  reported  on. The  Group’s  revenue  for  Q2  2018  was  steady  at  S$120.2  million.  Revenue  for  Healthcare  Services division  increased  by  5.4%,  offset  by  a  decrease  of  2.3%  in  the  Hospital  Services  division.  The  increase  in revenue  from  Healthcare  Services  division  was  contributed  by  the  addition  of  new  corporate  clients,  and  a new  contract,  awarded  by  the  Ministry  of  Health  and  Civil  Aviation  Authority  of  Singapore,  to  provide  Air Borders  screening  services.  The  decrease  in  revenue  from  the  Hospital  Services  division  this  quarter  was the  result  of  softer  than  expected  demand  from  the  foreign  patients,  even  though  local  patients  registered a  slight  increase. The  Group  recorded  a  profit  after  tax  of  S$16.8  million  for  Q2  2018,  an  increase  of  3.6%  from  S$16.2 million  in  Q2  2017.   The  Group  maintained  its  strong  cashflow  from  operating  activities  of  S$18.9  million  in  Q2  2018.  The strong  operating  cashflow  enabled  the  Group  to  support  its  investments  in  RafflesHospital  Extension, RafflesHospital  Shanghai  and  RafflesHospital  Chongqing.  These  investments,  together  with  capital expenditure  for  business  expansion,  amounted  to  S$16.5  million  in  Q2  2018.   The  Group  has  a  healthy  cash  position  of  S$108.4  million  as  at  30  June  2018. The  Directors  are  pleased  to  declare  for  the  financial  year  ending  31  December  2018,  an  interim  ordinary dividend  of  0.5  Singapore  cents  per  ordinary  share.  The  dividend  will  be  paid  on  6  September  2018. RafflesMedical  has  also  successfully  implemented  its  e-Commerce  service,  since  the  pilot  in  October 2017,  to  allow  patients  to  conveniently  purchase  their  health  screening,  vaccination,  health  supplements and  other  medical  services  online  before  they  turn  up  at  the  respective  medical  centres. RafflesMedical’s  5-year  partnership  with  the  Ministry  of  Health  (MOH)  and  the  Agency  for  Integrated  Care (AIC)  was  launched  in  January  2018.  Since  then,  quite  a  number  of  patients  have  been  assisted  to  better manage  their  chronic  conditions.

Genting Singapore

2Q2018 financial result is showing a great improvement of Net Profit growth of 38% for Half year ended on 30th June 2018. The total comprehensive income for first half year is $394.6m.
EPS for 2Q2018 leaped 24% to 1.47 cents.

Dividend of 1.5 cents is being declared. Payment will be made on 20th Sept 2018.

Looks like they are able contain costs well and heighten their total comprehensive income.

A yearly dividend of 3.5 cents that translate to a yield of 2.84% of which I think is quite decent.

The anticipating of the bidding and winning of the Japan casino license would likely provide the next income driver and catalyst to boost the share price higher.

Not a call to buy or sell.

Please do your own due diligence.

For the second quarter of 2018, the Group reported revenue of $560.3 million and adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) of $265.9 million. Resorts World Sentosa (“RWS”) continues to be at the forefront of Singapore’s leisure and entertainment industry, attracting visitors from all around the world. Our signature attractions performed well during the second quarter of 2018 with average visitation exceeding 18,000 daily. Hotels continued to outperform industry with average occupancy of over 91% for the quarter. In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour. On a hold-normalised basis, RWS would have generated an Adjusted EBITDA of approximately $293 million.

For the half year ended 30 June 2018, our Group delivered a steady performance with growth in both the gaming and non-gaming businesses. The Group recorded revenue of $1,235.4 million and Adjusted EBITDA of $624.8 million, growing 4% and 8% respectively, as compared to the previous year. We achieved significant net profit growth of 38%, excluding the prior year one-off gain of $96.3 million on disposal of the Group’s interest in an integrated resort in Korea.


Resorts World Sentosa (“RWS”) is proud to be winners at the recent Singapore Tourism Awards 2018 organised by Singapore Tourism Board. We received awards in two categories, including Best Dining Experience for CURATE restaurant and its first Exceptional Achievement Award for our signature Halloween Horror Nights at Universal Studios Singapore (“USS”) as the Best Leisure Event for three consecutive years (2015-2017). USS continuously seeks to enhance visitor experience through refreshing and innovative offerings such as the marquee events Trollstopia and Jurassic World: Explore and Roar. In the MICE space, we saw good growth momentum and attracted high calibre international events such as the Alibaba Global Course that we hosted in April 2018, a signature series of public lectures presented by the Chinese e-commerce giant, that was attended by over 2,000 participants.

 A step up from previous RWS theatrical productions, our mandarin musical “Super Mommy” was warmly received during its six-week run. From 30 June to 15 July, RWS turned up the heat with “RWS Football Fever 2018”, one of the key highlights included broadcast of live matches on super-wide 270° screens to create Singapore’s most immersive spectator experience of World Cup 2018 for our guests, an entertainment extravaganza which drew an immense turnout. As Asia’s premier lifestyle destination, RWS will stage a series of exciting gourmet and lifestyle events. Following the popularity of the gastronomic events last year, over the next two months, we will be bringing back the “RWS Street Eats” featuring iconic street eats from Southeast Asia and “The Great Food Festival”, Singapore’s largest curated food and lifestyle event led by international celebrity chefs.

 In Japan, the anticipated Integrated Resorts (“IR”) Implementation Bill was enacted by the Japanese Diet on 20 July. The Group has been gearing up for this expansion opportunity and has been hiring a new team of Japanese nationals in different disciplines to prepare for the bid.