Keppel Corp

Oil prices slip after Trump criticizes OPEC

It is still hovering at $71.27 level. cnbc.com ( 20th Sept 2018)

Today Keppel Corp has a very nice run-away Gap up candlestick reflected on the chart. Couple with rather high and impressive volume and closed well at 6.80 , this is rather bullish!

Short term wise, I think it may likely move up to retest $7.00 then $7.20 with extension to $7.40 level.

Oil prices surge past $70 mark and close well at $71.12. Looking good to continue to rise further.

Keppel Corp may likely rise to retest 6.80 then 7.00.

Not a call to buy or sell.

Pls dyodd.

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.

Valuetronics

Another day of selling down for this counter. I think the selling down is overly done and could be due to the Flooding at Danshui Plant caused by Super Typhoon Mangkhut.

The company says All employees are safe from the hazards caused by the Typhoon, and the majority of the production facilities at Danshui Plant are not affected. However, the flash flood has caused power outages and this has resulted in temporary work stoppages at the Danshui Plant.


The management is currently trying to assess the full impact of the flooding on its production lines at its Danshui Plant and plans to resume production expeditiously.

The Group's insurance company has been notified and will be assessing the claim and damages in due course.


 I think this is an unwarranted event and most probably a once-off case !

 At the current price of 63 cents, yield is pretty solid at 7.5% base on yearly dividend of 4.73 cents (HK$0.27) .

 PE of 7.5x. I think Net cash per share 30.5 cents ..Zero debts. NAV 45.3 cents.


From TA point of view, it is on a Downtrend mode patterns, looks rather bearish!

Today the volume bar seems to be high and could be an indication that Supply could be exhausted!

Short term wise, likely to see a throw-back reaction to take it higher to cover the Gap at 66 cents. Resistance is at 70/73 cents .


Immediate Support is at 63 cents . Next support is at 60 cents .

I think fair value is about $1.10. Let say we factor in another 20% discount that will be giving us a value of 88 cents .

Not a call to buy or sell.

Please do your own due diligence.

Simple and Good Investing Idea

I think good investing does not require too many fanciful ideas and strategies. Just one simple no-brainer strategy that can work effectively through time and allow us to sit back and relax to enjoyr the reward of the investment that is working effortlessly to achieve our investment goal of getting 8-10% gain( passive income).


This simple strategy is to invest in a low cost ETF( Exchange Traded Fund)  such as the STI ETF (ES3.SI) or NIKKO AM STI ETF(G3B.SI) 


This method of operation is to buy into STI ETF whenever it is in an oversold condition and to sell off and take profits whenever it is in an overbought condition. 
For example, one may use the  indicator such as the Relative Strength Index (RSI) to determine overbought ( above 70 ) or oversold condition( below 30).

One may plan to buy and selling of units in several batches whenever in oversold or overbought conditions in order to get the best average price.


For example you may plan to buy in at different interval or whenever the Oversold situation happen .

In any one year, there will be three to four such window opportunities of overbought or oversold conditions to operate by buying or selling units of the ETF. At the same time, we can also kept some units always to receive dividend income and for their long term growth in price appreciation.

With discipline and patience , one should be able to get good average returns per year in excess of certain % by this one simple strategy of investing in one single ETF .I think This simple one strategy is safe and allow one to sleep soundly at night without worry of negative news affecting individual stocks in one's portfolio which could crash the share price of the particular stock the next day. This is because even if one or two of the component stocks in STI ETF of blue chips should collapse in share prices, there will be 28 others to diversify away the risk of the entire portfolio collapsing at anytime.

As for younger folks who just started out working and does not have enough cashflows and savings , one may start to spread out the different batch of buying or applying the Dollar-cost-averaging method by investing $1000 at 6-8 different batches that would be able to achieve  lower average costs per unit. 

the example are as follows:-


1. When the index price is $2.00, your $1000 will be able to buy 500 shares.
2. When the index price is $2.50, your $1000 will be able to buy 400 shares
3. When the index price is $2.90, your $1000 will be able to buy 344 shares
4. When the index price is $1.66, your $1000 will be able to buy 625 shares
5. When the index price is $3.00, your $1000 will be able to buy 333 shares
6. When the index price is $3.20, your $1000 will be able to buy 312 shares
7. When the index price is $3.50, your $1000 will be able to buy 285 shares

Total = $7000 / 2799 shares = $ 2.50 average cost per unit.

By using this method, you will be able to make a profit once the stock market rises above this low average price.


Just sharing.

Not a call to buy or sell.

Please do your own due diligence.

Sembcorp Ind

Nice Uptrend mode patterns!
Higher High & Higher Low chart patterns, looks rather bullish!

After touching the low of $2.58 on 16th July 2018, it had since stage a nice recovery and rises Higher to hit $2.97 , this is rather positive.


Short term wise , it has retreated a little and closed lowered at $2.89. After this break, it may likely continue to trend Higher to re-attempt $2.97 then $3.00 with extension to $3.10.


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.

SingTel

This Telco has a well-diversified portfolio with 50 percent of pre-tax profits coming from regional associates. Its indicative dividend yield also looks attractive at 5.6 percent base on closing price of $3.15.


 Furthermore, consensus expects earnings to rebound by FY2020 driven by potential earnings recovery of its Indian associate Bharti Airtel .

 Singtel has been showing significant recovery since hitting its low of $3.02. Friday it has a nice breaking out moment to conquer the Resistance at $3.13 level and close well at $3.15.


Volume has slightly pick-up which is quite positive.

 Likely to move up to fill up the Gap at $3.17 and rises higher to retest $3.20 then $3.25 with extension to $3.35 level.

 Not a call to buy or sell.

 Please do your own due diligence.


 Singapore Telecommunications Limited provides a portfolio of communication and technology, and infotainment services to consumers and businesses in Asia, Australia, and Africa. It operates through three segments: Group Consumer, Group Enterprise, and Group Digital Life. The Group Consumer segment engages in the carriage business, including mobile, pay TV, fixed broadband, and voice, as well as equipment sales. The Group Enterprise segment offers mobile, equipment sales, fixed voice and data, managed, cloud computing, cyber security, and IT and professional consulting services. The Group Digital Life segment is involved in the digital marketing, regional OTT video, and advanced analytics and intelligence businesses. The company also operates a venture capital fund that focuses its investments on technologies and solutions; and offers ICT solutions and marketing technology services. In addition, it offers inSing.com that provides hyper-local content, user reviews, and editorials, as well as business or service information; and Trustwave that enables businesses fight cybercrime, protect data, and reduce security risk. The company is headquartered in Singapore.

KrisEnergy

On 12th September 2018, we had witnessed the nice breaking out movement of 9.7 cents and close well at 10.8 cents. It has broken out of the consolidated zone of 8.6 cents to 9.7 cents, this is rather bullish!

We would like to take advantage of this white thrust bar /beautiful white soldier presented on the chart to ride on this bullish momentum to re-visit 11.1 cents then 11.8 cents with extension to 12 cents and above.


Do take note that this an ultra penny counter. It would be good to take extra cautious when dealing with this kind of counter.

Not a call to buy or sell.

Please do your own due diligence.



KrisEnergy Ltd., an independent upstream company, focuses on the exploration, development, and production of oil and gas in Southeast Asia. The company holds working interests in four producing oil and/or gas fields, including three oil and/or gas fields in the Gulf of Thailand and one oil and/or gas field in onshore Bangladesh. It also participates in 13 blocks in various stages of development, appraisal, and exploration in Bangladesh, Cambodia, Indonesia, Thailand, and Vietnam. In addition, the company is involved in the charter and sub-charter of mobile offshore production unit; and provision of management support services. The company was formerly known as KrisEnergy Holdings II Ltd. and changed its name to KrisEnergy Ltd. in July 2012. KrisEnergy Ltd. was founded in 2009 and is based in Singapore.