Friday, 18 August 2017

Sector Watch: Food, Beverage and Tobacco

Larger Caps


Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia’s leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.

Shares are currently trading at 10.6 times its earnings and 1.0 times its book value. Dividend yield is currently at 2.1% and debt is at 7.1 times its earnings.


Golden Agri-Resources is one of the largest palm oil plantation companies in the world. Their plantations are located in Indonesia and they manage more than 480,000 hectares of palm oil plantations (including smallholder farmers). They are a leading seed-to-shelf agribusiness—from growing oil palms with farmers to producing food for the present and future.

Shares are currently trading at 10.7 times its earnings and 0.9 times its book value. Dividend yield is currently at 1.7% and debt is at 4.4 times its earnings.


Fraser and Neave, Limited had its origins, more than a century ago, in the spirited decisions of two enterprising young men, John Fraser and David Neave, who diversified from their printing business to pioneer the aerated water business in Southeast Asia in 1883. From a soft drinks base, F&N ventured into the businesses of beer in 1931, dairies in 1959, property development and management in 1990 and publishing & printing in 2000. In 2012, the Group divested a substantial part of its beer business. In 2013, as F&N celebrated its 130th year of operation, it also welcomed its new majority shareholder, the TCC Group, which is engaged in food and beverage, real estate, industrial trading and consumer products, insurance and agriculture. In January 2014, through a distribution in specie and re-listing of Frasers Centrepoint Limited by way of introduction on the Singapore stock exchange, the Group demerged its Properties business.

Shares are currently trading at 2.7 times its earnings and 1.2 times its book value. Dividend yield is currently at 1.8% and debt is at 8.5 times its earnings.


Established in 1992 and listed on the Singapore Exchange since 2007, First Resources is one of the leading palm oil producers in the region, managing over 200,000 hectares of oil palm plantations across the Riau, East Kalimantan and West Kalimantan provinces of Indonesia.

Shares are currently trading at 12.4 times its earnings and 2.2 times its book value. Dividend yield is currently at 1.7% and debt is at 1.4 times its earnings.


Bumitama Agri Ltd. is one of the leading producers of palm oil (PO) & palm kernel (PK), with oil palm plantation in Indonesia. Listed on the Singapore Exchange since 2012, their primary business activities are cultivating oil palm trees, as well as harvesting and processing fresh palm fruit bunches (FFB) into PO and PK, which they sell to refineries in Indonesia. Their Group also owns a biodiesel plant in Gresik, East of Java.

Shares are currently trading at 10.1 times its earnings and 1.7 times its book value. Dividend yield is currently at 2.1% and debt is at 2.0 times its earnings.

Smaller Caps

Japfa Ltd. (UD2)

They are a leading, pan-Asian, industrial agri-food company dedicated to feeding emerging Asia with essential proteins. Headquartered in Singapore; they employ over 30,000 people across an integrated network of industrial farms, processing and distribution facilities in Indonesia, China, Vietnam, India and Myanmar.

Shares are currently trading at 13.6 times its earnings and 1.1 times its book value. Dividend yield is currently at 1.9% and debt is at 3.0 times its earnings.

Yeo Hiap Seng Limited (Y03)

With more than a hundred years of history & rich heritage, YEO’S has successfully established itself as a well-loved household brand not only in Singapore, but also in many countries around the world.

Shares are currently trading at 4.7 times its earnings and 1.1 times its book value. Dividend yield is currently at 1.6% and the company currently has no debt.

QAF Limited (Q01)

QAF Limited is a leading multi-industry food company listed on the main board of the Singapore Exchange. Their core businesses are Bakery, Primary Production, and Trading and Logistics.

Shares are currently trading at 6.8 times its earnings and 1.3 times its book value. Dividend yield is currently at 4.2% and debt is at 1.1 times its earnings.

Friday, 11 August 2017

Sector Watch: Food and Staples Retailing

Larger Caps

Olam International Limited (O32)

They are a leading agri-business operating from seed to shelf in 70 countries, supplying food and industrial raw materials to over 23,000 customers worldwide. They grow, source, process, manufacture, transport, trade and market 47 different agri-products. Their team of 70,000 full-time, seasonal, contract and temporary employees work to bring essential agricultural products to homes around the globe everyday.

Shares are currently trading at 16.5 times its earnings and 1.0 times its book value. Dividend yield is currently at 3.1% and debt is at 12.9 times its earnings.


Established in 1985 and listed on the Singapore Exchange in 2011, they are one of Singapore’s largest retailers with over S$764 million in revenue for FY2015, and they are principally engaged in operating the Sheng Siong Groceries Chain, in 43 locations all across Singapore as at October 2016.

Shares are currently trading at 21.9 times its earnings and 5.5 times its book value. Dividend yield is currently at 2.0% and the company currently has no debt.

Smaller Caps

Khong Guan Limited (K03)

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products primarily in Singapore, Malaysia, and China. It operates through three segments: Trading Of Wheat Flour and Consumer Goods, Investment Trading, and Investment holding. The company is involved in the wholesale of wheat flour, general goods, biscuits, consumer goods, and related products, as well as animal feed. In addition, it trades in shares listed in Singapore, Malaysia, and Hong Kong. The company was formerly known as Khong Guan Flour Milling Limited and changed its name to Khong Guan Limited in November 2016. Khong Guan Limited was incorporated in 1960 and is based in Singapore, Singapore.

Shares are currently trading at 85.2 times its earnings and 0.9 times its book value. Dividend yield is currently at 1.4% and the company currently has no debt.

Friday, 4 August 2017

Uptrend This Week



Singapore Exchange Limited (S68)

Singapore Exchange is Asia’s leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards. As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and 75% of listed bonds originating outside of Singapore.

Shares are currently trading at 24.0 times its earnings and 7.0 times its book value. Dividend yield is currently at 3.0% and the company currently has no debt.


Silverlake Axis Ltd (5CP)

Silverlake Axis creates technologies to enable the Digital Economy. What sets them apart is the foundation for their computing principles, which are grounded on mathematical models. Through the years, Silverlake Axis has evolved using mathematics to refine, expand and invent technologies, broadening into new industries and markets at the same time.

Shares are currently trading at 5.8 times its earnings and 4.0 times its book value. Dividend yield is currently at 6.8% and debt is at 0.3 times its earnings.