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Tencent – Dishing Out Another Special Dividend This Quarter

Tencent – Dishing Out Another Special Dividend This Quarter

I wanted to quickly run through my thoughts on the Tencent latest Q3 earnings announced yesterday.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has close to 2500 followers.

First up, operating metrics – monthly active users (MAU) is still up year on year and quarter on quarter for both Weixin + Wechat as well as Mobile QQ but as you can see, they are approaching the matured 1.3b numbers so inevitably growth is slowing down on this front.

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SEA Limited’s Q3 & 9M FY2022 Results

SEA Limited’s Q3 & 9M FY2022 Results

Unless you have been living under a rock, I’m sure you should know about all the negativity surround SEA Limited (NYSE:SE) at the moment – as a result of the economic headwinds, and with the company sinking deeper into a net loss position, it has made the painful decision to undergo a few rounds of retrenchment exercises.

The company’s top management have also made the decision to forgo their salaries until it achieves ‘self-sufficency.’ Additionally, the CEO Mr Forrest Li, also said the company will be changing its focus from growth to achieving net profit.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Yesterday evening (15 November), the company have made available its results for the 3rd quarter, as well as for the first 9 months of the financial year 2022, and as a shareholder of the NYSE-listed company (with my average price at US$191.87), you will find my review (where I will be highlighting the good and bad) about its latest financial performance, cash flow statement, along with comments from its CEO. 

SEA Limited derives its revenue from 3 business segments:

i. Digital Entertainment – Through Garena, a leading online games developer and publisher with games such as League of Legends, Call of Duty, Arena of Valor, Free Fire, and Speed Drifters;

ii. E-commerce & Other Services – Through Shopee, a leading e-commerce platform in Southeast Asia and Taiwan, along with SeaMoney, a leading digital payments and financial services provider in Southeast Asia (one of them is Shopee Pay.)

iii. Sales of Goods – Where revenue is generated from the sales of products on the Shopee platform which SEA Limited purchases from manufacturers and third parties. 

Financial Performance (Q3 FY2021 vs. Q3 FY2022)

SEA's Q3 FY2021 vs FY2021 Financial Performance
SEA’s Q3 FY2021 vs FY2021 Financial Performance

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Manulife REIT: Buy at 14% Dividend Yield?

Manulife REIT: Buy at 14% Dividend Yield?

Manulife REIT (MUST) shares tanked 43% since the start of this year, which makes this “pure-play” US office Singapore REIT really attractive.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 120 followers.

What’s more today, MUST’s market cap trades at just half of what its assets are truly worth – MUST shares trade at just 0.55x P/NAV.

Why are investors so bearish about this Singapore REIT? Because of COVID? Because of rising rates? I mean, MUST shares trade like investors don’t want to be in US offices anymore.

Is that really the case? Let’s find out.

My previous article on Manulife REIT can be found here.

Background — What is Manulife REIT?

At US$666 million market cap, Manulife REIT (MUST) was the first US office REIT to be listed in Singapore, during 2016.

MUST owns freehold, class-A office assets across prime areas of US cities, including Washington DC, Los Angeles, Atlanta and so on. Back then, MUST overall occupancy rate was 96.5% — which was above average US offices’ occupancy rate.

Manulife REIT's Asset Under Management (AUM)
Manulife REIT’s Asset Under Management (AUM)

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Is The Worst Over For SG Tech Stocks AEM, UMS And Frencken?

Is The Worst Over For SG Tech Stocks AEM, UMS And Frencken?

With inflation figures finally showing signs of cooling in the last few days, we have seen a spike in many share price of technology stocks that have been heavily sold down since beginning of the year.

What about AEM, UMS and Frencken which are some of the most popular stocks in Singapore?

Is the worst really over? Or can it be just a dead cat bounce?

This post was originally posted here. The writer, Joey Choy is a veteran community member and blogger on InvestingNote, with a username known as @JoeyChoy and has close to 5300 followers.

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SGX drops for 12th consecutive day, longest losing streak since IPO! (20 Oct 22)

SGX drops for 12th consecutive day, longest losing streak since IPO! (20 Oct 22)

Since 4 Oct 2022, SGX has fallen for 12 consecutive sessions, logging its longest losing streak since IPO in 2000! Over the past 12 sessions, SGX has lost a total of 12.5%, or $1.19 to close at $8.33 on 20 Oct 2022. It is noteworthy that STI has only fallen 3.7% over the same period. In addition, SGX’s RSI closed 13.3, the lowest since 2008!

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as @el15 and has close to 600 followers.

Some noteworthy points below

a) Average analyst target: $10.08

Based on Bloomberg (see Fig 1 below), average analyst target price is around $10.08. If consensus is right and assuming that analysts do not change their target prices, SGX offers a potential capital upside of around 21%. Coupled with an estimated dividend yield of around 3.9%, total potential return is around 25%.

For the eagle eye readers, you will have noticed that since 10 Oct, there have been mixed analyst calls. To some extent, the recent decline can be attributed to the recent sell calls on SGX with target prices ranging from $8.00 – 9.25.

Figure 1: Bloomberg compilation of analyst target prices for SGX

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Boot Barn Holdings Inc. ($BOOT) – What You Need to Know about the Largest Lifestyle Retail Chain in the United States

Boot Barn Holdings Inc. ($BOOT) – What You Need to Know about the Largest Lifestyle Retail Chain in the United States

Founded since 1978, and currently with 273 stores in 36 states, Boot Barn Holdings Inc. (NYSE:BOOT) is currently United States’ largest lifestyle retail chain devoted to western and work-related footwear, apparel, and accessories.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2000 followers.

Some of the brands (which Singaporeans are probably familiar with) you can find in the company’s retail and online stores include Carhartt, Dickies, Wrangler, and Timberland Pro.

In this post, you’ll learn about some of the key performances by the company over the past 8 years (between FY2014/15 and FY2021/22 – the company has a financial year ending every last Saturday of March), such as its financial performances and its debt profile. I’ll also be sharing whether or not the company’s current traded price is considered ‘cheap’ or ‘expensive’ based on its current vs. its 8-year valuation.

Let’s begin:

Total Revenue & Net Profit:

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New Oriental Education – This Company Grows at 138% In The Past 12 Months (Guest Post)

New Oriental Education – This Company Grows at 138% In The Past 12 Months (Guest Post)

This is a company that has returned 138% in the last 12 months for investors as the company is looking to grow even more in the next few years which spells opportunities if you are looking into a growth play.

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 1800+ followers.

The company last closed at it’s historical high at $122.72 and it is continuing to grow at a very fast double digit topline growth in the next few years.

Company Overview

Founded in 1993, New Oriental Education & Tech Group (NYSE: EDU) is the largest provider of private educational services in China. The company has an extensive network of over 1,261 learning centres that span across 56 different cities. New Oriental was the first successful Chinese educational institution to be listed in the New York Stock Exchange through their public offering back in 2016 and it has a market capitalization of over USD14 billion today.

The company has a substantial presence in Beijing, Shanghai and Wuhan, where combined they have a total presence of 245 learning centres, or close to 20% of their entire portfolio.

Beijing: Beijing has one of the fastest growing population in China, as the number of people living in the city grew from 13.5m in 2000 to 20.1m in 2019 (source: worldpopulationreview). In terms of GDP per capita, Beijing has also outperformed the rest of the cities by growing at more than 8% per annum, despite the ongoing Trade Wars threatening the slowdown of their growing nation.

Shanghai: Shanghai currently ranks first in terms of population density as the modern revolutionized city appeals to International expats and locals to come to Shanghai for both work and live. It currently houses a population of about 26m but has the infrastructure capacity to double its living population in the city to 50m by 2050 (source: shine.cn) through their urbanization transformation in the region and strong economic growth.

Wuhan: Wuhan is a surprise inclusion because of its strong economic growth and infrastructure transformation over the years, the city has recorded one of the highest rate of historic population growth over the years (source: wiki-wuhan). To date, their population stands at about 10.6m, which is about half the population size of Beijing.

Financial Performance

Revenue has increased by 26.5% year on year from $2.4m in FY2018 to $3.1m in FY2019 and has grown at a CAGR of 19.8% over 5 years.

This is mainly due to both the organic aspect of growth (152 new facilities and learning centres added in FY2019) as well as inorganic growth through the successful implementation of the optimization strategy coming in from the K-12 After-School Tutoring division and U-Can Middle School, which grow by 28.5% and 27.2% respectively.

Gross Profit margins continued to remain resilient at 55.5% in FY2019, despite coming in slightly lower than the 5-year average of 57.3%.

As the company seek to embark on its expansion plan, the company has correspondingly incurred higher costs for marketing and other SG&A related costs such as salary and rent as there are higher headcounts to account for.

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3 Dirt Cheap Companies With High Dividends

3 Dirt Cheap Companies With High Dividends

Everyone loves to shop for cheap stocks but wouldn’t it be fantastic that you buy dirt cheap stocks and yet still enjoy high dividends while waiting for your capital gains to come?

 

sg

We happen to find 3 stocks with such characteristics; check them out below:

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia, with more than 500 followers.

#1 Willas-Array Electronics Holdings Ltd (SGX: BDR)

Willas-Array with major markets in China, Hong Kong and Taiwan is principally engaged in the distribution of electronic components for use in various industries as well as the provision of engineering solutions.

It also has long standing relationships with 20 internationally reputable principle suppliers and carries a wide product mix over 10,000 product items and cater to over 3,000 customers.

The company has declared a final dividend of HK$0.42 on 30 May 2018 for the financial year of 2017. The dividend yield based on the price of SGD$0.595 equates to whopping 12%. The company has been distributing out dividends from 2015 to 2018 with an exception of 2016.

Year 2015 2016 2017 2018
Dividend Yield 6.43% 5.34% 12.05%

From a valuation stand point, the company is cheap valuing at P/E 5.04x and Price to Book Value of 0.44x.

That said, the high dividend might not be sustainable given the cashflow used in operating activities for the past 2 years (2017 & 2018) have been negative. Furthermore, the debt to equity ratio for the company is 2.11 and on the high side.

#2 Ossia International Ltd (SGX: 008)

Ossia has started as a footwear manufacturer but has grown into a regional distributor and retailer of lifestyle products in the Asia Pacific region.

The company has exclusive distribution, license and franchise rights for the Fashion apparels e.g. Elle, Bags/accessories e.g. Tumi, Hedgren etc and Sports apparels e.g. Columbia. The company also has a 19.8% stake in Pertama Holdings Pte Ltd which owns the Harvey Norman retails stores in Singapore and Malaysia.

The company has declared dividend of 4 cents on 31 July and 6 cents on 5th December 2018. Based on the current share price of $0.10, the dividend yield is a high 10%. The company has not distributed any dividends from 2015 to 2017 as net income is negative during this period.

Year 2015 2016 2017 2018
Dividend Yield 10%

The company is cheap valuing at P/E ratio of 4.72x and having a Price to Book ratio of 0.64x.

The company has no track record distributing dividend consistently and 2019 results has not been good so far. However, with the closure of under performing brands and disposal of properties, there might be a chance for the company to dish out yet another fat dividend.

#3 Serial System Ltd (S69)

Serial System is involved in the distribution of electronic and electrical components, and trading and distribution of fast-moving consumer goods, photographic and timepiece products.

The company has been consistently distributing cash dividends from 2015 to 2018 and the dividend yield ranges from 8.09% to 10.12% for the previous financial year.

Year 2015 2016 2017 2018
Dividend Yield 8.09% 4.76% 2.80% 10.12%

The company’s valuation is cheap with P/E ratio of 3.39x and a Price to Book ratio of 0.42x.

The cashflow from operating activities has been mixed for the past the few years. Moving forward, we are cautiously optimistic that the company will continue the dividend distributions but the dividend yield will vary depending on the company profit and free cashflow.

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

He also does premium analysis on a monthly basis, so check it out here.

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Best. January. Ever.

Best. January. Ever.

January 2019 is making the -8.8% in 2018 feel like a distant memory.

January sign lettering

Since my last post, I’ve received some queries asking about my specific positions. With the CNY break around the corner, I’ve some time to put all this up. Some have asked me why I’m no longer putting up my extensive writeups on stuff that I’ve done DD on. Well, that’s cos I’m mostly working on global equities, particularly US ones, and I don’t think there’s much appetite for that here.

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as ThumbTackInvestor, with more than 2,000+ followers.

And anyway, I did put up in fact:

11% Returns In A Single Day. Thank You Blue Orca Capital!

TTI: “I’m Sorry, It’s All Over Between Us. I’m Breaking Up With You”

OK, I can’t find the one on DIS right now, but I’m sure it’s somewhere around.

This post is specifically on the US portion of my portfolio, excluding the SG and the bond portions.

Since my last post (1st Post Of 2019.), things have gotten… even better. MUCH better.

I’d have taken a 22.11% return and ended 2019 right there and then. Yet, TTI’s US portfolio continued outperforming S&P and other index benchmarks massively.

 

As of end Jan 2019, the ROI shot up to 28.36%.

NAV rose from USD 441,055.43 to USD 550,988.57, and that’s after a withdrawal of USD 14,716.20 made.

Net quantum gain in Jan 2019 alone was thus USD 124,649.34.

The best 1 day return was on the 04th Jan 2019, when the portfolio gained 7.32% in a single day, while the worst was on the 03rd Jan 2019, when the portfolio fell 4.45% in a single day.

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ISOTeam trades near 4 year low despite record order books and bright outlook (10 Jan 19) (Guest Post)

ISOTeam trades near 4 year low despite record order books and bright outlook (10 Jan 19) (Guest Post)

ISOTeam (“ISO”) caught my attention. Despite sitting on a record order book, ISO has tumbled approximately 44% from an intra-day high of $0.385 on 10 Apr 2018 to close near a four year low at around $0.215 on 10 Jan 2019. The share price decline was attributable in part to its 4QFY18 surprise loss announced in Aug 2018 (financial year ends in Jun). Nevertheless, my gut feel is that 4QFY18 should mark the trough in earnings and results should improve on a quarter on quarter basis in the next few quarters.

Image result for isoteam

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as el15, with more than 200+ followers.

As this company is a potential turnaround play, I have arranged a 1-1 meeting with Mr Anthony Koh, Executive Director and Chief Executive Officer and Mr Richard Chan, General Manager (collectively, “Management”) last month. First, a description of ISO…

Description of ISO

ISO has grown from a company doing repairs and redecoration (“R&R”) & addition and alteration (“A&A”) projects in 2014 (when I first met them) to a multi-disciplinary company which provides complete solutions to the built environment. See Figure 1 below for its business segments.

Fig 1: ISO complete solutions provider

Source: Company

Key takeaways from the meet-up

1.4QFY18 loss was due to several factors, some of which are unlikely to be repeated

ISO reported a 4QFY18 net loss of S$2.0m in Aug 2018. Overall, FY18 net profit dropped 71% from S$6.4m in FY17 to S$1.9m in FY18. This drop was mainly attributable to the following factors, some of which are likely to be one off:

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