Friday, 9 June 2017

Sector Watch: Commercial and Professional Services

Larger Caps


CITIC Envirotech Ltd is a leading membrane-based integrated environmental solutions provider which specialises in water and wastewater treatment, water supply and recycling. It also provides solutions in sludge and hazardous waste treatment as well as river restoration. CITIC undertakes both turnkey and investment projects as well as provides plant operation and maintenance services in water and environmental projects.

Shares are currently trading at 21.9 times its earnings and 1.2 times its book value. Dividend yield is currently at 1.3% and debt is at 3.1 times its earnings.

Smaller Caps

Riverstone Holdings Limited (AP4)

Riverstone Resources is established in year 1989, and still growing in their industry. With a history spanning close to 30 years, Riverstone has accumulated a huge network of stakeholders and expertise in their making. Being one of the leading manufacturers of cleanroom and medical industry, they manufacture top of the line healthcare gloves, nitrile gloves, finger cots, face masks, packaging bags etc.

Shares are currently trading at 19.0 times its earnings and 4.1 times its book value. Dividend yield is currently at 2.0% and debt is at 0.2 times its earnings.

VICOM Ltd (V01)

VICOM Ltd is Singapore's leading provider in technical testing and inspection services. A pioneer in vehicle inspection, we were incorporated in 1981 and publicly listed on Singapore's stock exchange in 1995. Since then, they have greatly expanded to provide a comprehensive range of inspection and testing services in fields including mechanical, biochemical, civil engineering and non-destructive testing, in both Singapore and the region. VICOM constantly stays on the cutting edge of testing and inspection technology. Since its inception, VICOM has been winning prestigious awards and accreditation for their service excellence and business practices.

Shares are currently trading at 18.1 times its earnings and 3.2 times its book value. Dividend yield is currently at 4.7% and the company currently has no long term debt.


800 Super Holdings Limited (5TG)

They are an established environmental services provider for public and private sectors in Singapore. Their operations are based in Singapore. Their environmental services include waste management, cleaning and conservancy and horticultural services. Waste management services include residential, commercial and industrial waste collection services, as well as recycling services. Cleaning and conservancy services comprise street cleansing services and contract cleaning services which are provided to residential, industrial, commercial and institutional customers. Horticultural services comprise landscaping, grass cutting and tree pruning services which are provided to residential, commercial and institutional customers.

Shares are currently trading at 12.9 times its earnings and 3.1 times its book value. Dividend yield is currently at 2.6% and debt is at 1.6 times its earnings.

Monday, 5 June 2017

Sector Watch: Capital Goods

Larger Caps


With a global footprint in more than 20 countries, Keppel is a multi-business company providing robust solutions for sustainable urbanisation, to meet the growing need for energy, infrastructure, clean environments, high quality homes and offices, and connectivity.

Shares are currently trading at 14.3 times its earnings and 1.0 times its book value. Dividend yield is currently at 3.1% and debt is at 9.9 times its earnings.

Singapore Technologies Engineering Ltd (S63) 

As a global defence and engineering group, ST Engineering draws on the innovation, agility and creativity that exists uniquely in their engineering capabilities to meet tomorrow’s challenges.

Shares are currently trading at 24.0 times its earnings and 5.1 times its book value. Dividend yield is currently at 4.0% and debt is at 1.4 times its earnings.

Sembcorp Industries Ltd (U96)

Sembcorp Industries is a leading energy, water, marine and urban development group operating across five continents worldwide. With facilities of around 11,000 megawatts of gross power capacity and close to 9 million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in offshore and marine engineering, as well as an established brand name in urban development.

Shares are currently trading at 15.4 times its earnings and 0.8 times its book value. Dividend yield is currently at 2.5% and debt is at 8.0 times its earnings.

Yangzijiang Shipbuilding (Holdings) Ltd. (BS6)

Jiangsu Yangzijiang Shipbuilding Group Limited is a large corporate group, with shipbuilding and offshore engineering as its core business and with four additional sections: financial investment, metal trading, real estate and shipping combined  ship-leasing as supplementary business. The Group history can be traced back to 1956: it was firstly a combined ship- repairing and shipbuilding company, and after factory relocated in 1975, share reformed in 1999, new factory constructed in the opposite side of Yangtze river in 2005, and company listed in Singapore stock market in 2007. The Group now has become the first Chinese shipbuilding company listed in Singapore. 

Shares are currently trading at 12.1 times its earnings and 1.0 times its book value. Dividend yield is currently at 3.1% and debt is at 1.4 times its earnings.

Sembcorp Marine Ltd (S51)

Sembcorp Marine provides innovative engineering solutions to the global marine and offshore industry, drawing upon more than 50 years of track record. Their customers include major oil companies, drilling contractors, shipping companies as well as owners and operators of floating production units.

Shares are currently trading at 55.4 times its earnings and 1.4 times its book value. Dividend yield is currently at 1.5% and debt is at 12.8 times its earnings.

United Engineers Limited (U04)

Founded in 1912, United Engineers Limited is one of Singapore’s pioneer companies that played an integral role in the country’s physical and economic transformation. Building on its early engineering roots, the Group evolved into a dynamic corporation with key business activities in Property Rental and Hospitality, Property Development, Engineering and Distribution, as well as Manufacturing today.

Shares are currently trading at 69.0 times its earnings and 0.9 times its book value. Dividend yield is currently at 4.3% and debt is at 10.6 times its earnings.

CWT Limited (C14)

CWT is a leading provider of integrated logistics and supply chain solutions.

Shares are currently trading at 17.0 times its earnings and 1.5 times its book value. Dividend yield is currently at 1.3% and debt is at 6.4 times its earnings.


Smaller Caps

Sarine Technologies Ltd. (U77)

Established in 1988, Sarine™ has become the worldwide leader in the development and manufacturing of advanced evaluation, planning, cutting, shaping, polishing and grading systems for diamond and gemstone production.

Shares are currently trading at 24.9 times its earnings and 5.2 times its book value. Dividend yield is currently at 3.6% and the company currently has no long term debt.

Bonvests Holdings Limited (B28)

Founded in 1982, Bonvests Holdings Limited is listed on the main board of the Singapore Exchange. The Group, with over 25 years of experience, has established a sound reputation for quality and service in each of its core businesses. The Group’s three core businesses are property development and investment, hotel ownership and management, waste management and contract cleaning of buildings.

Shares are currently trading at 10.0 times its earnings and 0.6 times its book value. Dividend yield is currently at 2.0% and debt is at 2.5 times its earnings.


Low Keng Huat (Singapore) Limited (F1E)

Low Keng Huat (Singapore) Limited is a builder established since 1969. Today, its business has grown to encompass building construction, property development, hotels and investments.

Shares are currently trading at 9.2 times its earnings and 0.8 times its book value. Dividend yield is currently at 5.8% and debt is at 28.2 times its earnings.

Sunday, 28 May 2017

Singapore Telecommunications Limited (Z74)

Technical Analysis


The 20-day MA crossed the 50-day MA most recently in April 2017, indicating a short term down-trendThe 50-day MA crossed the 200-day MA most recently in November 2016, indicating a long term down-trend.

Company Performance and Dividends


Cash flow from operations has been positive through the past five years. It is on an overall down-trend through the same period.

The compounded annual growth rate of the Earnings Per Share (EPS) is at 1.9% through the last five years.

Debt is currently at 2.2 times of the company's earnings. Long term debt is on an overall up-trend through the last five years.

Dividends per share is on an overall up-trend through the past five years. In twelve months (May 2016 to May 2017), the company pays $175.00 per 1000 shares invested, attributing to a dividend yield of 4.7% against the current price. The payout ratio is at 73.1%.

Valuation

Share price is currently trading at 15.6 times the company's earnings and 2.2 times its book value. Comparing to the growth rate, the share price is over-valued by 8.2 times.

About

Singapore Telecommunications Limited provides integrated infocomm technology solutions to enterprise customers primarily in Singapore, Australia, the United States of America, and Europe. The company operates through Group Consumer, Group Enterprise, and Group Digital Life segments. The Group Consumer segment is involved in 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 services, cloud computing, cyber security, and IT and professional consulting services. The Group Digital Life segment engages in digital marketing, regional video, and advanced analytics and intelligence businesses. The company also operates a venture capital fund that focuses its investments on technologies and solutions. Singapore Telecommunications Limited is headquartered in Singapore.

Major shareholders include
Temasek Holdings (Private) Limited
Central Provident Fund Board
Capital Research and Management Company
Capital Income Builder
Franklin Resources, Inc.

Recently

Rising competition in Singapore Telecommunications Ltd.’s key markets across Asia has prompted one of the world’s biggest independent money managers to sell the stock.

https://www.dealstreetasia.com/stories/rising-competition-for-singtel-prompts-henderson-to-sell-71519/

Data and Graphics credits:
YAHOO! FINANCE
SGX