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Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

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.

Frasers Centrepoint Trust (SGX:J69U) is a pure-play Singapore REIT, where its portfolio comprises 9 retail malls (all located in heartland locations across the country), along with an office property.

Following the conclusion of REIT’s annual general meeting (AGM) last Tuesday (17 January) for the financial year ended 30 September 2022 (i.e. FY2021/22), it have made available its business update for the first quarter of the financial year 2022/23 ended 31 December 2022 shortly after market hours this evening (26 January 2023.)

As the REIT have switched to half-yearly reporting of its financial statements, for the current quarter under review, it only made available its portfolio occupancy and debt profile – both of which I will be looking at in this post, along with my thoughts.

Let’s begin:

Portfolio Occupancy Profile (Q4 FY2021/22 vs. Q1 FY2022/23)

When it comes to reviewing a REIT’s portfolio occupancy, I always review the statistics reported for the quarter under review against that reported in the previous quarter 3 months ago.

Hence, in this section, you’ll find my review of Frasers Centrepoint Trust’s portfolio occupancy profile for Q1 FY2022/23 ended 31 December 2022, compared against the previous quarter ended 30 September 2022 (i.e. Q4 FY2021/22) to find out if it has continued to remain strong:

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Will SATS Pay a Dividend Ever Again?

Will SATS Pay a Dividend Ever Again?

SATS will go ahead to buy Worldwide Flight Services – a global cargo handling business with presence across 18 countries in five continents.

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 130 followers.

At first glance, I thought this acquisition made much sense — SATS/WFS deal would push the combined companies to become a global cargo handling player.

In fact, SATS would eventually diversify revenues across Asia, Europe, the Middle East and Africa, and North America.

key trade routes and network coverage of the SATS Group and WFS Group

Source: SATS/WFS Prospectus 3 Jan 2023

Yet SATS shares have fallen more than 30%.

And even after the deal was approved last week, shares were still stuck in the bargain bin.

If the SATS/WFS deal had so much growth potential, why is the market still undervaluing its SATS shares?

And more importantly, will SATS still pay a dividend ever again?

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ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 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 550 followers.

‌Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.‌

Possible reasons to be bullish

A) Still a recovery play

CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies re-open. China’s abrupt easing of its Covid measures will likely facilitate more commuting and travelling in China and outside China.

‌Based on Bloomberg, the consensus from analysts is still projecting CD to post a year-on year (“y-o-y”) net profit growth of 30% in FY22F; 16% in FY23F; 7% in FY24F. Thus, suffice to say that CD is still a recovery play and is likely to post year on year profit growth. Much cannot be said for some companies as they may report a y-o-y drop in net profit in FY23F especially if their FY22F is an exceptional year.‌

B) Valuations are incredibly low; 2.0x standard deviations below its average 10Y P/BV

Based on Bloomberg, CD trades at 2.0x standard deviations below its average 10Y P/BV of 1.9x. With net profit expected to rise in FY22F, FY23F and FY24F (see point A above), it does not seem justifiable to trade at such depressed valuations.

‌C) Net cash $647m; easily can finance M&A & 5-6% dividend yields

Based on some of the analyst reports which I have read, CD’s balance sheet has emerged stronger after the pandemic. CD has net cash amounting to $647m in 3QFY22 vs $520m in 4QFY21. In other words, 26% of market cap is backed by net cash. Such strong balance sheet should be able to support its dividends and any acquisitions. Furthermore, generally speaking, in a rising interest rate environment, having net cash is better than being in debt.

‌D) 14-year low price since 29 Oct 2008

During the height of the pandemic, CD traded to a low of around $1.30 – 1.31. At that time, the economy and human traffic come to an almost standstill and plagued with uncertainties on how the pandemic will pan out. It is difficult to see how its operations can be worse now compared to the pandemic. Granted that analysts have cut their profit estimates for CD, the consensus net profit still expects CD to post a 30% rise in FY22F; 16% in FY23F; 8% in FY24F.

‌E) Total potential upside is around 43% if the consensus is right

Based on Bloomberg, average analyst target price is $1.56; FY23F estimated div yield is at 6.0%. If the consensus is right, CD presents a total potential return of around 43%.

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COSCO Shipping Holdings Co., Ltd – What You Need to Know

COSCO Shipping Holdings Co., Ltd – What You Need to Know

Listed on the Stock Exchange of Hong Kong since 30 June 2005 (under the ticker symbol SEHK:1919), and subsequently on the Shanghai Stock Exchange since 26 June 2007 (under the ticker symbol SHA:601919), COSCO Shipping Holdings Co., Ltd ($COSCO SHIP HOLD(1919.HK)) is in the business of providing container shipping, managing, and operating container terminals, along with other terminal-related businesses. 

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.

Photo by Anja Bauermann on Unsplash

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HRnetGroup: What to Like and Dislike About its 6.5% Dividend Yield

HRnetGroup: What to Like and Dislike About its 6.5% Dividend Yield

Okay, at first glance, I never thought much about this Singapore stock.

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 130 followers.

Except for the fact it currently pays a 6.5% dividend yield.

Other than Singapore banks and REITs, you typically won’t see many Singapore stocks paying you that kind of dividend yield.

Yet, I was amazed how much cash HRnetGroup has. And almost zero debt.I mean, for a S$780 million market cap company, this is quite impressive.

Let’s take dive in, shall we?

HRnetGroup — a Background

HRnetGroup is an unassuming name.It’s easy to look pass this company. What struck me though, as I looked deeper, was how fast they grew.

Now, HRnetGroup was founded in 1992, then quickly expanded to Malaysia in 1994, and eventually got listed in 2017 — having raised S$174 million in an IPO. Even Temasek also took a stake during its pre-IPO.

Today, the recruitment giant has a stable of well-established businesses – including HRnetOne, Recruit Express, PeopleSearch, RecruitFirst , SearchAsia and PeopleFirst.

Even though it’s not a blue-chip, I found it remarkable HRnetGroup could dominate its market way before its IPO – beating other more prestigious recruitment companies.

Singapore-only revenues of key players in Singapore in FY2015 (in S$ million)
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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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