Monday, September 26, 2016

Singapore Business Review - News

Singapore Business Review - News


Will Singapore's GDP be doomed by the flat manufacturing output?

Posted: 26 Sep 2016 07:48 PM PDT

Case Study: 
No

Output has dropped -1.3% in July-August 2016.

Despite the slight improvement in the city-state's industrial production, its real GDP is feared to endure more downward pressure as slower growth unfolds in 2H16.

According to a report by Maybank Kim Eng, Industrial Production (IP) dropped -1.3% YoY in July-August, in sharp contrast to the 1.4% growth in the the second quarter.

The report said this suggests a downward pressure on real GDP growth in 3Q16.

read more

Singapore banks on unlikely electronics growth as pharma manufacturing declines

Posted: 26 Sep 2016 07:25 PM PDT

Case Study: 
No

It’s expected to contract by 0.2% in 4Q.

The city-state’s bleak manufacturing could possibly register flat growth for the year if electronics sustains its growth in the following month.

According to a report by OCBC, this is a less adverse scenario from an expected 0.6% drop in growth.

"This would shade our 3Q16 GDP growth forecast to 2.0% yoy (+0.8% qoq saar), versus 1.8% yoy previously, and in turn our full-year 2016 GDP growth forecast a tad higher to 1.9% yoy (1.8% previously),” the report noted.

read more

Will the downshift in growth outlook push MAS to tweak its monetary policy?

Posted: 26 Sep 2016 06:58 PM PDT

Case Study: 
No

The semiannual policy will be announced on 14 Oct.

While downshifts are plaguing Singapore’s growth outlook currently, analysts are pessimistic that they will be large enough to constitute a stepdown in GDP levels.

According to a report by Citi, while weak upstream cost pressures may lead analysts to downplay the oil-price-driven lift in MAS’s core CPI forecast in Jul, the higher inflation forecast in itself is an important signal that MAS is reluctant to ease.

read more

Should Sheng Siong fear Lum Chang's acquisition of The Verge?

Posted: 26 Sep 2016 06:52 PM PDT

Case Study: 
No

Its lease is set to expire by March 2017.

Lum Chang Holdings' planned acquisition of The Verge commercial site might be bad news for Sheng Siong Group as its branch in the mall is feared to close.

It was recently reported that a joint venture between Lum Chang Holdings and a fund of LaSalle Investment Management Asia had signed an agreement to buy The Verge.

According to OCBC Investment Research, Sheng Shiong has stores in The Verge which has a lease slated to expire by March 2017.

read more

Malaysia listed firm to buy Singapore-based facilities management company for $185.9M

Posted: 26 Sep 2016 06:27 PM PDT

Case Study: 
No

If successful, it will turn the company a regional market leader.

Total asset solutions provider UEM Edgenta Bhd is proposing to acquire Asia Integrated Facility Solutions, which indirectly owns UEMS, for S$185.9 million (RM563 million).

UEMS is a 25-year old facilities management company based in Singapore and serving over 60 public and private hospitals in Malaysia, Singapore and Taiwan.

Amongst its clients in Singapore are Changi General Hospital, St. Luke's Hospital, Tan Tock Seng Hospital as well as Sengkang Health @ Alexandra Hospital.

read more

Chart of the day: Check out Singapore’s weak nominal GDP in Q2

Posted: 26 Sep 2016 06:13 PM PDT

Case Study: 
No

It recorded the worst growth in the region.

Despite the respectable growth of Singapore in terms of real GDP, its nominal GDP is the worst in the southeast Asia region, recording the only contraction among its peers.

According to a report by BNP Paribas, Singapore nominal GDP in Q2 sits around -1%. It followed Taiwan, with a recorded expansion in the nominal GDP around 2%.

To recall, the city-state managed to achieve a 2.2% real GDP growth in Q2.

read more

Daily Markets Briefing: STI down 0.25%

Posted: 26 Sep 2016 06:06 PM PDT

Case Study: 
No

Brace for more losses today.

According to OCBC, ontinued weakness on Wall Street overnight could weigh on the local bourse today, potentially extending the STI’s 0.25% dip in the previous session.

Here’s more from OCBC:

We peg the immediate support around 2825, ahead of its next support at 2800; on the upside, we peg the initial hurdle at 2865, ahead of its next resistance level at 2880.

read more

Daily Briefing: Otto Marine’s Australian units face court action; Ezra rebound seen as fleeting

Posted: 26 Sep 2016 06:03 PM PDT

Case Study: 
No

And foreign factors benefit luxury home market in Singapore.

A Singapore-listed builder of ships that service offshore oil and gas facilities said some creditors are seeking to wind up its subsidiaries in Australia, adding to signs of strains in an industry beset by energy price declines. Otto Marine Ltd. said three creditors filed three such applications with the Supreme Court of Western Australia to wind up Go Inshore Pty and Go Marine Group Pty. Read more here.

read more

Singapore emerges as the healthiest place to live in the world

Posted: 26 Sep 2016 06:02 PM PDT

Case Study: 
No

It shared the top spot with two other countries.

Singapore is amongst the healthiest place to live in the world along with Iceland and Sweden, according to figures from the United Nations.

The three countries cliched the top spot after scoring the maximum points of 85 on indicators such as disaster, war, water, sanitation, malaria and neglected tropical diseases.

read more

Here's why Vietnam is a safe haven for Singapore property developers

Posted: 26 Sep 2016 05:43 PM PDT

Case Study: 
No

CapitaLand just acquired $70M prime site here.

CapitaLand announced on Monday (Sept 26) that is that it has acquired for US$51.9m (~S$70m) a 0.5 hectare prime site in Ho Chi Minh City, Vietnam as it remains confident about the country's economy and healthy home demand.

According to the management, residential sales in the country were strong in 1H2016 with about 460 units sold (worth about S$80m), which translates to a 20% YoY growth in terms of sales values and volume.

read more

Singapore government to roll out family-friendly transport initiatives

Posted: 26 Sep 2016 05:23 PM PDT

Case Study: 
No

Nursing rooms are something to look forward to.

The Land Transport Authority (LTA) on Monday (Sept 26) has announced that it is working together with public transport operators (PTOs) to launch several initiatives to enhance the commuting experience for all, including families and those with special needs.

Among the initiatives are listed below:

Prams in buses

read more

SGX's takeover of Baltic Exchange approved by shareholders

Posted: 26 Sep 2016 05:07 PM PDT

Case Study: 
No

The deal is worth $154M.

SGX's pursuit of the Baltic Exchange proved successful after the latter's shareholders approved on Monday an 87 million pound (S$154M) takeover deal. The deal gives Singapore's local bourse an access to the multi-billion-dollar freight derivatives market.

During months of talks to acquire one of the London's olderst institutions as the global shipping industry grapples with poor market conditions, SGX offered Baltic shareholders 160.41 pounds (S$283.1)  per share.

read more

Here's why CDL's Gramercy Park is selling like hotcakes

Posted: 26 Sep 2016 02:24 AM PDT

Case Study: 
No

36 out of 40 units released were sold-to-date.

Gramercy Park, a high-end project located along Grange Road in the prime residential area near Orchard Road, will be a test of market appetite for luxury condominiums of larger size and absolute price tags, says MayBank KimEng.

At a visit to Gramercy Park, Management told MayBank KimEng that that it has sold 36 out of the 40 units released for sale in the North Tower at around SGD2,600 psf.

Buyers have the option of buying a bare-shell unit or a fully-fitted one for about SGD150 psf more.

read more

Why it won't be easy for a new telco to enter the scene

Posted: 26 Sep 2016 02:15 AM PDT

Case Study: 
No

It would need a domestic roaming agreement.

For the three telco aspirants, locking horns with each other is but the first hurdle they have to overcome as the lack of domestic roaming agreement poses a bigger challenge.

According to the latest report by DBS Research, the absence of domestic roaming may push the new entrant to cover the entire island from scratch.

read more

Why it's high time to buy good class bungalows

Posted: 26 Sep 2016 02:01 AM PDT

Case Study: 
No

Prices fell by 2.5% to $1,318 psf.

The Good Class Bungalow (GCB) market continued to attract special interest in the 1H of 2016. Data from URA show a total of 14 GCBs were sold during the period which amounted to $298.36M. This compares with the 18 GCBS that were sold in 2H2015 at $377.18M.

With owners' price expectations moderating, CBRE notes that some buyers are seeing a window of opportunity to invest. Moreover, it notes that owners who bought GCBs several years ago have found it profitable to sell at today's prices rather than at a later date.

read more

SGX Yield Stocks

SGX Yield Stocks


September 2016

Posted: 26 Sep 2016 03:52 AM PDT

 

STI = 2849.94 (-7.01)

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SGX

FY16 (Jun)

$7.470

28.00

3.748%

32.60

22.91

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

SingPost

FY16 (Mar)

$1.465

7.00

4.778%

10.86

13.49

Q1, Q2, Q3 1.5ct ; Q4 2.5ct

SPH

FY15 (Aug)

$3.780

20.00

5.291%

20.00

18.90

Interim 7ct ; Final 8ct + Special 5ct

 

 

Aviation Services

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SATS

FY16 (Mar)

$4.930

15.00

3.043%

19.90

24.77

Interim 5ct ; Final 10ct

SIA Engineering

FY16 (Mar)

$3.730

14.00

3.753%

15.74

23.70

Interim 6ct ; Final 8ct

ST Engineering

FY15 (Dec)

$3.280

15.00

4.573%

17.05

19.24

Interim 5ct ; Final 5ct + Special 5ct

 

 

Transport

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SBSTransit

FY15 (Dec)

$2.320

2.70

1.164%

5.41

42.88

Interim 1.65ctct ; Final 1.05ct

ComfortDelGro

FY15 (Dec)

$2.760

9.00

3.261%

14.07

19.62

Interim 4ct ; Final 5ct

SMRT

FY16 (Mar)

$1.650

4.00

2.424%

7.17

23.01

Interim 1.5ct ; Final 2.5ct

 

 

TELCO

Stock

Period

Mkt

DPS cts

Yield

EPS cts

PE

Div Breakdown

SingTel

FY16 (Mar)

$3.960

17.50

4.419%

24.29

16.30

Interim 6.8ct ; Final 10.7ct

M1

FY15 (Dec)

$2.370

15.30

6.456%

19.10

12.41

Interim 7ct ; Final 8.3ct

StarHub

FY15 (Dec)

$3.390

20.00

5.900%

21.50

15.77

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

 

 

Banking & Finance

Stock

Period

Mkt

NBV

DPS

Yield

EPS

PE

Div Breakdown

DBS

1H16 (Jun)

$15.20

$16.48

$0.60

3.947%

$1.790

8.49

Interim 30ct ; Final 30ct

FY15 (Dec)

$15.82

$1.710

8.89

OCBC

1H16 (Jun)

$8.54

$8.19

$0.36

4.215%

$0.835

10.23

Interim 18ct ; Final 18ct

FY15 (Dec)

$8.03

$0.952

8.97

UOB

1H16 (Jun)

$18.77

$18.16

$0.70

3.729%

$1.890

9.93

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

FY15 (Dec)

$17.84

$1.940

9.68

Hong Leong Fin

1H16 (Jun)

$2.23

$3.79

$0.11

4.933%

$0.0995

19.34

Interim 4ct ; Final 7ct

FY15 (Dec)

$3.80

$0.1642

13.58

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

$1.695

A4.265

5.223%

A$0.82

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

* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (A$1 : S$1.0379) fm Yahoo

NOTES :

  • Mkt Price is as on 24-Sep-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

 

FT.com - Technology

FT.com - Technology


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