Friday, August 26, 2016

Singapore Business Review - News

Singapore Business Review - News


Landlords urged to inject assets into data centres in Singapore

Posted: 26 Aug 2016 02:26 AM PDT

Case Study: 
No

This bright spot is expected to be robust amidst Singapore's Smart Nation dreams.

Amid the plummeting occupancy rates and weak demand, the industrial sector still has remaining tricks up on its sleeves as it sees new opportunities with the city-state’s Smart Nation initiative.

According to DBS Research, there is an apparent change in the needs for industrial space in the city-state, with the increasing demand for build-to-suit (BTS) facilities.

read more

Why Singapore’s medical tourism threats don’t hurt Raffles Medical

Posted: 26 Aug 2016 02:14 AM PDT

Case Study: 
No

It banks on foreign patients searching for critical care.

Despite looming threats from medical tourism on Singapore’s private healthcare, Raffles Medical Group (RMG) has not yet felt any impact, thanks to a diversified international patients mix.

OCBC revealed that RMG has been receiving lower volume of patients from countries like Indonesia, but this has been offset by an influx of patients from China and Indochina.

read more

Singapore business turnovers creep up 1.1% in 2Q16

Posted: 26 Aug 2016 01:26 AM PDT

Case Study: 
No

Thanks to well-performing recreation and business services industries.

Singapore’s overall services industries business receipts improved 1.1% QoQ in 2Q16 compared to the immediately preceding quarter. On a yearly basis, revenue of the services industries also inched up 0.4%.

read more

Industrial spaces to bear the brunt of flailing manufacturing industry

Posted: 26 Aug 2016 01:24 AM PDT

Case Study: 
No

Vacancy rate will spike to 11-12%.

Given the lacklustre manufacturing growth numbers of the city-state, the industrial sector is bound to be doomed as demands for industrial spaces continue to weaken.

According to DBS Research, the industrial sector is more than likely to be affected by the manufacturers struggling to maintain their market share with the intensifying competition.

Based on a recent report, the total manufacturing performance of the city-state for the month July dipped 3.6%. This is mainly due to falloffs in all of industrial clusters.

read more

Singapore’s manufacturing output dips 3.6% in July 2016

Posted: 25 Aug 2016 11:43 PM PDT

Case Study: 
No

Blame it on output declines in almost all clusters.

Singapore’s total manufacturing performance in July 2016 slipped 3.6% largely due to falloffs in almost all of industrial clusters. On a seasonally adjusted month-on-month basis, output went down 4.0%.

read more

Differentiation can make or break Singapore brands as competition heats up

Posted: 25 Aug 2016 11:38 PM PDT

Case Study: 
No

Consumers are hungry for novelty, innovation.

Tight competition online and a tough operating environment have pushed many offline retailers—especially in the footwear and apparel sub-sectors—to downsize or flee Singapore.

However, RHB noted in a report that brands that are able to spin unique selling point will weather the sector headwinds well, as consumers continue to be attracted to novelty and differentiated experience.

read more

Bring it on: ST Engineering braces itself for $300m capex

Posted: 25 Aug 2016 10:46 PM PDT

Case Study: 
No

It eyes adding 4-5 units per year in its aircraft leasing arm.

After posting a slight decrease in its profit before tax (PBT) the recent quarter compared to last year, Singapore Technologies Engineering Ltd. (STE) is ready to do all that it takes to keep their business at the top of its game.

According to a report by UOB Kay Hian, STE is already geared up to brace higher capex of $300 million as it invests in its passenger-to-freighter (PTF) business, as well as its aircraft leasing businesses and further inroads for Terrex carriers.

read more

Find out the four ways ST Engineering keeps raking in the big bucks

Posted: 25 Aug 2016 09:58 PM PDT

Case Study: 
No

The business’ market cap sits at a whopping $10.2b.

Singapore Technologies Engineering Ltd (ST Engineering) is an engineering conglomerate with business interests in various sectors, and it is by no means a small business, according to Motley Fool.

Worldwide, ST Engineering has 23,000 employees in over 100 subsidiaries and associated companies. Revenue in 2015 clocked in at $6.34b, while market capitalisation sat at a whopping $10.2b.

read more

New rail financing scheme is the only way to save SMRT’s $2.8b capex woes

Posted: 25 Aug 2016 09:38 PM PDT

Case Study: 
No

Even if it means limiting its earnings potential.

It seems like SMRT is willing to sacrifice everything on the altar of sustainability just to get rid of its skyrocketing capital expenditures--even its earnings.

However, it is understandable for SMRT to support the new rail financing framework (NRFF) as it was a case of any port in a storm. With its plummeting profitability under the current rail financing framework (CRFF), SMRT has no choice but to go with the flow.

read more

Here's why co-working spaces will be the next big thing in the local office market scene

Posted: 25 Aug 2016 09:13 PM PDT

Case Study: 
No

The Singapore startup surfeit is expected to fuel demand.

There's a gold mine waiting to be tapped amid the booming growth of startups that need office space in Singapore. As such, partnerships with co-working operators or establishing facilities within existing properties could help landlords hit the motherlode.

According to a report by CBRE Research, landlords wouldn't even need a huge investment as the move could involve allocating just one or two floors for such a purpose.

read more

Singapore’s workplace safety should shift to preventive mindset: MOM

Posted: 25 Aug 2016 08:03 PM PDT

Case Study: 
No

Tracking of minor injuries and near-misses is a must.

While focusing on fatal and major injuries, Singapore’s ministry of manpower (MOM) was urged by the International Advisory Panel to keep an eye on the need for companies to recognise the importance of tracking and analysing minor injuries and near-misses.

According to a press release by the MOM, Singapore should continue to explore avenues across the construction supply chain to shape the safety and health culture of suppliers and sub-contractors to influence better WSH behaviours on the ground.

read more

SharesInv.com

SharesInv.com


Markets Nervy Before Yellen’s Speech

Posted: 26 Aug 2016 02:53 AM PDT

It has been a rather lacklustre fortnight of trading, as the Dow Jones Industrial Average (DJIA) and the S&P 500 failed to lift global markets. Ending at 18,576 points two Fridays ago on 12 August, the DJIA ended almost flat at 18,448 on 25 August while the S&P, which fell slightly from record territories, dropped merely 12 points from 12 August to close at 2,172 points.

Plaguing the global markets recently, which is also a reflection of investor sentiment for large parts of this year, has been whether the US Federal Reserve will or will not raise rates as well as the dilemma faced by China and most Asian economies on how to boost economic growth without letting inflation rear its ugly head.

While recent US economic data suggests an ever-improving labour market, economic data in most parts of Asia are not responding well to the low interest rate environment, the stimulus measures introduced by the Shinzo Abe government and the Chinese government’s efforts in allowing loans growth to increase.

Add to the concern that Fed Chairwoman Janet Yellen will be speaking at the annual monetary policy symposium on 26 August, investors have more reasons to stay away from the stock markets this fortnight. As most do not expect Yellen to raise interest rates at next month’s Fed meeting, the uncertainty is causing worries among market observers that the Fed could be behind the curve as US jobs market improve.

As more deals are helping to boost the global oil & gas industry to US$11 billion in July, the highest level this year, there are signs that problems in the ailing industry are easing. But crude prices rising back to almost US$50 per barrel are not helping the share prices of oil & gas companies listed on the Singapore Exchange. Are investors worried about possible bankruptcies in the industry?

Such concerns are weighing on an already-weary Singapore market, with the benchmark Straits Times Index retreating from last fortnight’s 2,867.4 points to a low of 2,836 points before staging a negligible rebound to close the fortnight at 2,857 points.

SGX Yield Stocks

SGX Yield Stocks


August 2016

Posted: 26 Aug 2016 02:59 AM PDT

Results Anoouncement

  • 3 Aug 16 : StarHub (Q216) – EPS 6.3ct vs 5.7ct (Q215) ; 11.6ct (1H16) vs 10ct (1H15) ; FCF 7.9ct vs 6ct (Q215) ; Div 5ct (same)
  • 4 Aug 16 : SingPost (Q117) – EPS 1.49ct vs 1.996ct (Q116) ; FCF 0.66ct vs -0.76ct (Q116) ; Div = 1.5ct (same – but Dividend Policy Under Review)
  • 8 Aug 16 (AM) : DBS (Q216) – EPS $1.67 vs $1.78 (Q215) ; $1.79 (1H16) vs $1.81 (1H15) ; Div 30ct (same)
  • 8 Aug 16 : SMRT (Q117) – EPS 1.02ct vs 1.32ct
  • 11 Aug 16 (AM) : SingTel (Q117) – EPS 5.93ct vs 5.91ct (Q116) ; FCF 7.73ct vs 6.11ct (Q116)
  • 11 Aug 16 : SBSTransit (Q216) – EPS 2.34ct vs 1.97ct (Q215) ; 4.96ct (1H16) vs 3.51ct (1H15) ; Div 2.35ct vs 1.65ct (1H15)
  • 12 Aug 16 : ComfortDelgro (Q216) – EPS 3.96ct vs 3.77ct ; 7.37ct (1H16) vs 6.93ct (1H15) ; Div 4.25ct vs 4ct (1H15)
  • 12 Aug 16 : STEng (Q216 Results) – EPS 4.1ct vs 4.01ct (Q215) ; 7.65ct (1H16) vs 8.19ct (1H15) ; Div 5ct (same)
  • 12 Aug 16 : HLFin (Q216) – EPS 9.95ct vs 12.58ct (Q215) ; 11.53ct (1H16) vs 13.31ct (1H15) ; Div 3ct vs 4ct (1H15)

 

 

 

STI = 2857.65 (-19.28)

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SGX

FY16 (Jun)

$7.650

28.00

3.660%

32.60

23.47

Q1, Q2, Q3 5ct ; Q4 5ct +8ct

SingPost

FY16 (Mar)

$1.365

7.00

5.128%

10.86

12.57

Q1, Q2, Q3 1.5ct ; Q4 2.5ct

SPH

FY15 (Aug)

$3.790

20.00

5.277%

20.00

18.95

Interim 7ct ; Final 8ct + Special 5ct

 

 

Aviation Services

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SATS

FY16 (Mar)

$4.820

15.00

3.112%

19.90

24.22

Interim 5ct ; Final 10ct

SIA Engineering

FY16 (Mar)

$3.850

14.00

3.636%

15.74

24.46

Interim 6ct ; Final 8ct

ST Engineering

FY15 (Dec)

$3.250

15.00

4.615%

17.05

19.06

Interim 5ct ; Final 5ct + Special 5ct

 

 

Transport

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SBSTransit

FY15 (Dec)

$2.290

2.70

1.179%

5.41

42.33

Interim 1.65ctct ; Final 1.05ct

ComfortDelGro

FY15 (Dec)

$2.840

9.00

3.169%

14.07

20.18

Interim 4ct ; Final 5ct

SMRT

FY16 (Mar)

$1.640

4.00

2.439%

7.17

22.87

Interim 1.5ct ; Final 2.5ct

 

 

TELCO

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SingTel

FY16 (Mar)

$4.220

17.50

4.147%

24.29

17.37

Interim 6.8ct ; Final 10.7ct

M1

FY15 (Dec)

$2.690

15.30

5.688%

19.10

14.08

Interim 7ct ; Final 8.3ct

StarHub

FY15 (Dec)

$3.730

20.00

5.362%

21.50

17.35

Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct

 

 

Banking & Finance

Stock

Period

Mkt

NBV

DPS

Yield

EPS

PE

Div Breakdown

DBS

1H16 (Jun)

$15.10

$16.48

$0.60

3.974%

$1.790

8.44

Interim 30ct ; Final 30ct

FY15 (Dec)

$15.82

$1.710

8.83

OCBC

1H16 (Jun)

$8.62

$8.19

$0.36

4.176%

$0.835

10.32

Interim 18ct ; Final 18ct

FY15 (Dec)

$8.03

$0.952

9.05

UOB

1H16 (Jun)

$18.05

$18.16

$0.70

3.878%

$1.890

9.55

Interim 35ct ; Special Anniversay 20ct ; Final 35ct

FY15 (Dec)

$17.84

$1.940

9.30

Hong Leong Fin

1H16 (Jun)

$2.25

$3.79

$0.11

4.889%

$0.0995

19.51

Interim 4ct ; Final 7ct

FY15 (Dec)

$3.80

$0.1642

13.70

Note : Banks Added from May-16 ; EPS are Annualised Figures ; DPS + Breakdown are FY15 Figures

 

 

Infrastructure

Stock

Period

Mkt

DPS cts

Yield

NAV

Div Breakdown

AusNetServices

2H – Mar16

$1.775

A4.265

4.963%

A$0.82

1H16 A4.265ct ; 2H16 A4.265ct

* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (A$1 : S$1.0327) fm Yahoo

NOTES :

  • Mkt Price is as on 26-Aug-16
  • HLFin : 1H15 (Jun) – 3ct
  • ST Engg : 1H16 (Jun) – 5ct
  • ComfortDelgro 1H15 (Jun) – 4.25ct
  • SBSTransit : 1H16 (Jun) – 2.35ct
  • SingPost : Q117 (Jun16) – 1.5ct
  • StarHub : Q216 (Jun) – 5ct ; Q116 (Mar) – 5ct
  • SGX : Q416 (Jun16) – 5ct + 8ct ; Q316 (Mar16) – 5ct ; Q216 (Dec15) – 5ct ; Q116 (Sep15) – 5ct ; Dividend Policy No Less than 5ct/Q or 80% of Annual NPAT, whichever is Higher
  • SATSvcs : 2H16 (Mar16) – Final 10ct ; 1H16 (Sep15) – Interim 5ct
  • AusNet : 1H16 (Sep15) – A4.265ct (Franked) ; 2H16 (Mar16) – A4.265ct (Franked)
  • SingTel : 2H16 (Mar16) – Final 10.7ct ; 1H16 (Sep15) – Interim 6.8ct
  • SIAEC : 2H16 (Mar) – Final 8ct ; 1H16 (Sep15) – Interim 6ct
  • SMRT : 2H16 (Mar16) – Final 2.5ct ; 1H16 (Sep15) – Interim 1.5ct
  • SPH : 1H16 (Feb) – Interim 7ct
  • M1 : 2H15 (Dec) – Final 8.3ct ; 1H15 (Jun) – Interim 7ct
  • StarHub : FY16 Div Guidance – 5ct/Q
  • SPAus : FY16 Guidance = A8.53ct Gross
  • SingPost : Dividend Guidance for FY16 (Mar) = 7ct
  • ST Engg : Dividend Payout Reduced from 90% to 80% for FY13 & Will Be Further Reduced to 75% from FY14
  • SingTel : Div Policy – 60% to 75% of Underlying Net Profit