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4 SINGAPORE DIVIDEND STOCKS WITH INCREASING DIVIDENDS FOR THE LAST 10 YEARS. THIS STREAK COULD CONTINUE IN 2020 (Guest Post)

4 SINGAPORE DIVIDEND STOCKS WITH INCREASING DIVIDENDS FOR THE LAST 10 YEARS. THIS STREAK COULD CONTINUE IN 2020 (Guest Post)

It is pretty rare for Singapore stocks to have a consistent track record of paying dividends. Unlike in the US where there are hundreds of companies classified as Dividend Aristocrats (companies that have increased their dividend payments for 25 consecutive years or more) and a handful of Dividend Kings (companies that have increased their dividend payments for 50 consecutive years or more), Singapore stocks typically do not have a good track record of consistent dividend payments.

4 Singapore dividend stocks with increasing dividends for the last 10 years. This streak could continue in 2020

This post was originally posted here. The writer, Royston Tan is a veteran community member and blogger on InvestingNote, with username known as Royston_Tan.

https://newacademyoffinance.com/singapore-dividend-stocks/

(For those interested, you can check out the site for the graphical representation of their dividend track record)

It is pretty rare for Singapore stocks to have a consistent track record of paying dividends. Unlike in the US where there are hundreds of companies classified as Dividend Aristocrats (companies that have increased their dividend payments for 25 consecutive years or more) and a handful of Dividend Kings (companies that have increased their dividend payments for 50 consecutive years or more), Singapore stocks typically do not have a good track record of consistent dividend payments.

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What You Need to Know about Mapletree Commercial Trust’s FY2019/20 Annual Report (Guest Post)

What You Need to Know about Mapletree Commercial Trust’s FY2019/20 Annual Report (Guest Post)

Retail and office REIT, Mapletree Commercial Trust (SGX:N2IU), which is also a component of Singapore’s benchmark Straits Times Index, have released its latest annual report for the financial year 2019/20 ended 31 March 2020, along with details of its upcoming annual general meeting (AGM).

5 reasons why I plan to never sell Mapletree Commercial Trust ...

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241  followers.

As a unitholder, I have gone through the report to learn about the REIT’s latest developments and in this post, you will find all the notes I have taken (which I feel that as a unitholder, you need to take note of), along with my personal thoughts to share…

Letter to Unitholders by Non-Executive Chairman and Director Tsang Yam Pui, and Executive Director and Chief Executive Officer Sharon Lim

Impact of Covid-19 on VivoCity:

  • As a result of the Covid-19 pandemic in Singapore, VivoCity’s 4Q FY2019/20 performance has been negatively impacted (as a result of a reduced footfall and tenant sales, along with approximately 3.5 months of rental assistances over March to July 2020 which the REIT has rolled out to support the tenants)
  • While there remains uncertainty as to when normalcy can resume, the REIT have decided to exercise prudence by retaining S$43.7m of distribution in the fourth quarter

Acquisition of Mapletree Business City (MBC) II:

  • The REIT completed the acquisition of MBC II on 01 November 2019 at an agreed property value of S$1.55b
  • The acquisition was funded through a fund raising exercise, which received a resounding support from both its existing and new investors, along with securing a S$670.0m of green loan facilities
  • Together with MBC I, it forms one of the largest premium campus-style environment with Grade A building specifications in Singapore

Asset Enhancement Initiative (AEI) Works in VivoCity:

  • In 2Q FY2019/20, the REIT completed its fifth AEI in VivoCity, comprising the changeover of the hypermarket (from Giant to NTUC FairPrice Xtra), and partial recovery of anchor space to accommodate new and expanding tenants
  • The entire exercise delivered a positive rental uplift and approximately 40% of annual return on investment

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Singapore Savings Bonds SSB August 2020 Issue Yields 0.93% for 10 Year and 0.27% for 1 Year (Guest Post)

Singapore Savings Bonds SSB August 2020 Issue Yields 0.93% for 10 Year and 0.27% for 1 Year (Guest Post)

Here is a safe way to save your money that you have no idea when you will need to use it, or your emergency fund.

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 1051  followers.

The 10-yr and 1-yr Singapore Savings Bonds Rate since the first issue in Oct 2015

The August 2020’s SSB bonds yield an interest rate of 0.93%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS)

However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 0.27%/yr.

$10,000 will grow to $10,946in 10 years.

This bond is backed by the Singapore Government and its available to Singaporeans.

A single person can own not more than SG$200,000 worth of Singapore Savings Bonds. You can also use your Supplementary Retirement Scheme (SRS) account to purchase.

 

You can find out more information about the SSB here.

Note that every month, there will be a new issue you can subscribe to via ATM. The 1 to 10-year yield you will get will differ from this month’s ladder as shown above.

Last month’s bond yields 0.80%/yr for 10 years and 0.30%/yr for 1 year.

Here is the current historical SSB 10 Year Yield Curve with the 1 Year Yield Curve since Oct 2015 when SSB was started (Click on the chart, move over the line to see the actual yield for that month):

The Application and Redemption Schedule

You will apply for the bonds through the month. At the end of the month, you will know how much of the bond you applied was successful.

Here is the schedule for application and redemption if you wish to sell:
Click to see larger schedule

You have 02 to about 25th of the month (technically the 4th day from the last working day of the month) to apply or decide to redeem the SSB that you wish to redeem.

Your bond will be in your CDP on the 1st of the next month. You will see your cash in your bank account linked to your CDP account on the 1st of next month.

How does the Singapore Savings Bonds Compare versus SGS Bonds versus Singapore Treasury Bills?

Singapore savings bonds is like a “unit trust” or a “fund” of SGS Bonds.

But what is the difference between you buying SGS Bonds and its sister the T-Bills directly?

Both the SGS Bonds and T-Bills are also issued by the Government and are AAA rated.

Here is an MAS detailed comparison of the three:
Click to see bigger comparison table

 

Once again, this article is a guest post and was originally posted on Kyiths profile on InvestingNote. 

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SPH REIT’s 3rd Quarter Update for FY2019/20 – A Summary and My Thoughts (Guest Post)

SPH REIT’s 3rd Quarter Update for FY2019/20 – A Summary and My Thoughts (Guest Post)

Time flies, the first half of 2020 is beyond us. We’re now into the second half of the year. Hope you’ve had a great one so far. Starting July till the end of August, as investors, we can look forward to another round of updates by Singapore-listed companies, with most of them reporting their performances for the first half of the year ended 30 June 2020.

SPH Reit to extend reliefs for tenants; SPH allows students in UK ...

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241  followers.

SPH REIT (SGX:SK6U) provided a business update for the third quarter ended 31 May 2020 (the REIT has a financial year ended 30 August 2020), and as a unitholder, I went through the REIT’s presentation slides to learn about the latest updates.

In the REIT’s latest updates, there weren’t any financial statistics being reported. They only provided updates on its portfolio occupancy and debt profile, along with distribution for the quarter, all of which you can find below (with my personal thoughts to share):

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The Complete Guide To Breakout Trading (Guest Post)

The Complete Guide To Breakout Trading (Guest Post)

Do you trade breakouts? Then you know breakout trading can be exciting. The price quickly moves in your favor and make it seems like you’re printing money. However,  breakout trading can also be painful.

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 457 followers.

For example:

You notice the price breaking above Resistance.

The candles are big and bullish, so you go long.

But suddenly, the price does a 180-degree reversal.

And before you know it, you bought the highs and now you’re bleeding in the red.

Ouch.

So now you’re probably wondering:

“How do I filter for high probability breakout trades and know which are the ones to avoid?”

Well, that’s what you’ll discover in today’s post.

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Key Summary of CapitaLand Mall Trust’s AGM on 26 June 2020 (Guest Post)

Key Summary of CapitaLand Mall Trust’s AGM on 26 June 2020 (Guest Post)

Retail REIT CapitaLand Mall Trust (SGX:C38U) held its AGM for FY2019 on Friday, 26 June 2020, at 4pm. Due to the ongoing Covid-19 outbreak, along with the safe distancing measures implemented by the Singapore government, the meeting was held online.

image-55-min

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241  followers.

I have attended the meeting as a unitholder and in this post, you will find a summary of the most important pointers of CEO Tony Tan Tee Hieong’s presentation to take note of (which I have compiled for the benefit of unitholders who did not manage to attend the meeting):

Key Highlights of FY2019:

  • Distributable income have grew steadily over the years, and in the latest financial year under review (i.e. FY2019), it saw a 7.5% year-on-year (y-o-y) improvement to S$441.6m. Correspondingly, the REIT saw its distribution per unit increase by 4.1% compared to the previous financial year to 11.97 cents/unit
  • Annual shopper traffic saw a 1.4% y-o-y improvement due to stronger performance from suburban malls, while its tenants’ sales per square foot dipped by 1.4% in the same time period due to lower sales from the REIT’s home furnishing and electrical and electronics tenants
  • In terms of the REIT’s overall portfolio occupancy rate, at 99.3% as at 31 December 2019, Mr Tan highlighted that it is above Singapore’s average portfolio occupancy for retail malls (which is 92.9% for suburban malls, and 92.0% for Orchard Road malls)
  • With regard to CapitaLand Mall Trust’s debt maturity profile as at 31 December 2019, Mr Tan updated while there is S$310.2m of debt that will be expiring in the year 2020, there are bank facilities in place to refinance the entire amount. On top of that, Mr Tan also added that there are no foreign exchange risks as all the REIT’s debts are swapped to the Singapore dollar

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Sembcorp shareholders’ hands are tight (Guest Post)

Sembcorp shareholders’ hands are tight (Guest Post)

It has been more than a week since the submission of a proposal to SGX by Sembcorp Industry and her subsidiary Sembcorp Marine (SCM) to raise fund of $2.1b for the SCM, and for the demerger between the two entities.

This post was originally posted here. The writer, Brennen Pak is a veteran community member and blogger on InvestingNote, with username known as BrennenPak and has 3543  followers.

As mentioned in the proposal, the extraordinary general meetings (EGM), for the SCI and SCM shareholders, are likely to convene on the same day in end August/early September. While there may be several resolutions to be tabled at the two EGMs, the success of the whole proposal depends on three items that are inter-conditional:

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Investing vs. Trading – What are the Similarities and Differences? (Guest Post)

Investing vs. Trading – What are the Similarities and Differences? (Guest Post)

The reason why I’ve decided to write about similarities as well as differences between investing and trading today is because, of late, I have noticed many newbies mix up between the two – some of them are looking to buy companies to hold for the long-term (but refer to them as “trading”), while there are some who are looking for short-term profits (but refer to them as “investing”.)

image-50

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1230  followers.

I hope that, after reading through this simple post, you will have a better understanding about both investing as well as trading:

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HYPHENS PHARMA: IS THIS PHARMA COMPANY UNDERVALUED? (Guest Post)

HYPHENS PHARMA: IS THIS PHARMA COMPANY UNDERVALUED? (Guest Post)

The company was founded in 1998 and was listed on the Singapore Exchange’s Catalist board back in 2018. Hyphens’ share price performance was rather lackluster since its listing, hovering significantly below its IPO price of S$0.26 and hit a low of S$0.18 during the recent March COVID-19 pandemic driven sell-down.

Preview Image

Hyphens Pharma revs up digital push amid Covid-19, Companies ...

This post was originally posted here. The writer, Royston Tan is a veteran community member and blogger on InvestingNote, with username known as Royston_Tan.

However, following a strong set of 1Q20 results, the company’s share price subsequently rebounded to hit an all-time high of S$0.39 in June 2020. Is there potentially more share price upside for the company? Let’s take a closer look.

Hyphens Pharma (Hyphens) is Singapore’s leading specialty pharmaceutical and consumer healthcare group. The company operates in three business segments:

Specialty Pharma Principals which is the largest contributor of both revenue and earnings to the Group. The company boasts more than 30 products in its portfolio and this figure is consistently increasing.

Proprietary Brands currently comprise of dermocosmetic products marketed under Ceradan® and TDF® brands as well as health supplement products marketed under their Ocean Health® brand. While this segment generates the lowest profitability among the three segments due to heavy investments in brand building, it has the highest revenue growth potential as well as earnings longevity.

Medical Hypermart and Digital is a B2B model where the company engages in the wholesale of pharmaceuticals and medical supplies in Singapore through Pan-Malayan. This segment is the second-largest revenue and earnings contributor to the Group but we note the potential lumpiness in revenue/earnings from one-off large tenders.

STEADY FINANCIAL PERFORMANCES OVER THE PAST 3 YEARS
INCOME STATEMENT

The company’s past 3-years financials painted a picture of earnings stability but not one that is truly exciting. While its reported net profit declined from S$6.1m in 2017 to S$5.4m in 2018, this was due to one-off IPO expenses amounting to c.S$0.9m. Its adjusted net profit was S$6.3m in 2018, representing a 3.6% YoY growth. In 2019, earnings grew by a similar 3.5%, a rate likely deemed too low by the market to justify a share price re-rating.

However, despite widespread business standstill in 1Q20 due to COVID-19, the company reported a strong set of 1Q20 financial results with Group revenue growing by 16.4% YoY, spearheaded by its proprietary brand segment. Coupled with slower growth in expenses, Hyphens’ 1Q20 operating margins improved by 1.6ppt and consequently grew its net profit by 48.6% YoY to hit S$2.1m.

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Wirecard AG – Best and Worst Case Scenario (Guest Post)

Wirecard AG – Best and Worst Case Scenario (Guest Post)

If you have not heard by now, the latest scandal involving a blue chip payments aggregator company, Wirecard has sent its shares plunged down by nearly 62% after the company revealed that for the third time they are unable to publish its annual report for FY2019 on time.

image-42

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and has 2169  followers.

Unlike the previous two sessions, this time round the findings are a lot more serious when its auditor EY refused to sign off the audited statement after casting doubts that up on the €1.9b of cash equivalent and security deposits they are currently reporting in the balance sheet.

The seismic shock has sent an ultimate blow to the company and also the entire Germany’s financial market as it rocked over the going concern and fraudulent event that will be remembered as one of the darkest days in the Germany’s financial history.

What is worse for them is they have another €2b loan covenant due by this Friday and that the banks can call up this loan if the company failed to produce a signed audited statement.

In the last reporting figure, the company revealed that they held cash equivalent of €3.3b so after taking into account the two events added together, it would put serious doubt over their liquidity position as a going concern.


Wirecard Chief Executive, Markus Braun commented in the after hours of trading that it cannot rule out the fact that Wirecard AG has become the aggrieved party in the case of a potential fraud of considerable proportions. The company has also taken decision to remove board member and COO, Jan Marsalek with immediate effect, replacing him with Dr. James Freis, who is appointed the new compliance board with immediate effect to oversee the case.

So what does this means for investors then.

I’ll try to pull out some best and worst case scenarios for the company at this point given the amount of limited information the public has involving the scandal.

Best Case Scenario:

Wirecard plays victim to a fraudulent incident involving individual party/parties, pointing all fingers and incident to the person or trustees involved and seek legal protection over the loan covenants callable by this week.

By doing this, not only will the company be able to delay and potentially recover the loan covenants but also protect the reputation of the company and its board members.

After this scandal event has blown over, the company can start afresh and rebuild on its corporate governance. The company still has a good business model working with many solid companies that’s still growing.

Base Case Scenario:

Wirecard still plays victim to the fraudulent incident, get through this dark event, but somewhat managed to pull off by surviving with sufficient liquidity to continue, providing auditor is willing to sign off with an emphasize matter on the corporate governance issues.

The company may have to replace its board members and management with new faces and start rebuilding its reputation again from scratch and to convince both partners and merchants that the company still has a good business model to work with.

Worst Case Scenario:

The most serious case, if this dragged on for much longer will be a total loss of confidence from both its merchants and customers who are partnering with Wirecard.

If major card partners such as Visa, Mastercard and Amex decide to withdraw their agreement with Wirecard, it would be detrimental to the company’s survival as they would become redundant as an aggregators.

If financial regulator BaFin (similar to MAS) withdraws Wirecard’s banking license, it would also be game over for the company.

I think both scenarios are unlikely to happen at the moment given that the ongoing case is still pending an outcome so this will likely kick in when we know the results and emphasis matter from the auditor itself.

Conclusion

This is almost like a casino roulette for now.At the current valuation, the company is trading at a price to earnings multiple of only 9x, which fares across its other competitors (E.g Adyen)in the same region who’s trading at 190x.
The company can go from the current share price of €40 back to €100 or it can go straight down to €0 if the worst scenario takes place.
To think that the recent fraudulent sales allegations involving Luckin is big enough, this time round it’s even larger and more serious repercussion with Wirecard being a fintech company, which would surely put an alert for more due diligence revolving the financial industry moving into digital world.

Thanks for reading.

Once again, this article is a guest post and was originally posted on 3Fss profile on InvestingNote. 

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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