28 February 2013

Thai Beverages 4Q2012 Result Released 27 Feb 2013

Thai Beverages released its 4Q2012 result yesterday. Below is the snapshot of the financial results:

As you can see from the picture above, the net profit rose by 140% to 28B Thai Baht. This is a very good result partly due to:

  • No more deduction from loss from severe floodings in Thailand
  • Thai Beverages acquired stakes in F&N and increase its share of profit of associates to 13B Thai Baht. 
  • However, the finance costs rose to 208% to 1.4B Thai Baht compared to years ago. 
  • EPS rose 135% to 1.13Thai Baht from year ago. 
  • It declared a final dividend of 28cent Thai Baht to be paid on 22 May 2013. 
Balance Sheet wise, you may refer to the picture below:

We can find some financial ratio here:

  • Current Ratio => 1.5X, still a quite healthy figure. It dropped significantly compared to last year due to increase of Bank Overdraft and Short Term Borrowings to purchase stakes of F&N last year. 
  • Long Term Debt-To-Equity Ratio => 1.08X, a bit high Ratio. But it is due to long term loans from Financial Institution to purchase stakes of F&N last year. 
  • ROE (Net Profit / FY2012 NAV Value) => around 35%, a very encouraging figure, due to consolidation of shares of profit from F&N as well as Serm Suk. 
Cash Flow wise, we could have a clear picture by looking at the image below:

We can get the summary of the cash flow statement here:

  • CFO is 19.7B Thai Baht
  • CFI is -94.9B Thai Baht due to acquisition of F&N of around 90B Thai Baht 
  • CFF is 75B Thai Baht due to Long Term Loan of around 81.6B Thai Baht

The cash flow is still manageable due to Free Cash Flow of around 15B Thai Baht for last year if we excluded the one off investment of F&N. We also should take into consideration of increase of Interest Payment for next FY as well as future loan repayment. Nonetheless, The Company still propose a decent dividend of around

You may also see the comments from management for the market outlook as well as the last year performance below which I copied from the financial statement released yesterday:

In the year 2011, Thai Beverage Logistics Co., Ltd.(TBL), a direct subsidiary wholly owned by the Company, acquired Sermsuk Public Company Limited (Sermsuk), a Thai company currently listed on the Stock Exchange of Thailand. The Company has included the assets and liabilities of Sermsuk in the consolidated statements of financial position since 30 September 2011 and the results of operations and cash flows in the consolidated statements of income and cash flows respectively since 1 October 2011. Sermsuk¡¯s operations were recognized under the non-alcoholic beverages business segment. The consolidated financial statements for the year ended 31 December 2011 was restated to reflect the fair values of Sermsuk as at the acquisition date in accordance with Thai Financial Reporting Standard no. 3 per independent appraisal report which was finalized in the third quarter of 2012. Goodwill from the acquisition per previously assessed and reported at Baht 4,100 million was restated to Baht 3,975 million. Details of the restatement were disclosed in the note 5(a) to the financial statements of this year.

For the year ended 31 December 2012, the standard corporate income tax in Thailand has been reduced from 30% to 23% in an effort to promote the competitiveness on the global market.

Starting from 1 April 2012, the 300-baht daily minimum wage was implemented in seven provinces of Thailand, Bangkok, Nonthaburi, Pathum Thani, Samut Prakarn, Samut Sakhon, Nakhon Pathom and Phuket. The wage increased between 35.7 to 39.5 percent. The minimum wages in other provinces went up between 39.5 to 40 percent but was still lower than Baht 300 and will be further increased to Baht 300 with effective on 1 January 2013. Total effects to the Company salary and wages in FY2012 were about Baht 100 million.

The Ministry of Finance declared an increase in the excise taxes of certain categories of alcoholic beverages with effect from 22 August 2012 onwards. The excise tax is imposed by one of two methods, whichever is higher: an ad valorem rate or a specific rate. The ad valorem rate is a percentage of the ex-factory price. The specific rate is an amount in Baht on every one litre of pure alcohol of the product. For white spirits, the specific rate rose from Baht 120 to Baht 150 per litre of pure alcohol and was higher than the ad valorem rate which did not change. For compounded spirits, the specific rate rose from Baht 300 to Baht 350 per litre of pure alcohol and was higher than the ad valorem rate which did not change. For brandy, the ad valorem rate rose from 48% to 50% of ex-factory price and was higher than the specific rate which did not change. There were no changes of excise taxes to beer and other special spirits. The new excise taxes caused a rise in the Company¡¯s excise tax cost of white spirits, compounded spirits and brandy of about 25%, 16.7% and 4.2% respectively. However, the Company passed on the tax increase to its customers directly.

In the third quarter of 2012, International Beverage Holdings Limited (IBHL), a direct subsidiary wholly owned by the Company, acquired about 29% ordinary shares of Fraser and Neave, Limited (F&N), a Singapore company currently listed on the Singapore Exchange Securities Trading Limited. IBHL has transferred all shares of F&N to Interbev Investment Limited (IBIL), its wholly owned subsidiary, in the fourth quarter of 2012. The principal activities of F&N are: production and sale of soft drinks, dairy products, and beer; development of and investment in property; and printing and publishing which are carried out through subsidiary, joint venture and associated companies. The Company has recognized F&N operating results in the consolidated financial statements under the equity method by total instead of by business segments from the third quarter of 2012 onwards.

Outlook for 2013

The economy of Thailand in the first quarter of 2012 saw recovery from the flood disaster, resulting in the improved manufacturing sector, consumption, and investments. However, in the middle of the year, the sovereign debt issues of countries in the EURO zone affected export and manufacturing sectors, while consumption and investment of private sector saw continuous expansion due to the rise of minimum wages and salary of civil officers. In the third quarter of 2012, the Thai economy continued to expand mainly due to domestic spending. Export remained affected from the EURO crisis and the slowdown of China’s economy. Nevertheless, the last quarter of 2012 saw improved expansion of the Thai economy because of the increasing buying power and consumer confidence. The export sector still suffered the effect from the global economic slowdown; however, signals indicated certain stabilizing industries.
The domestic beverage business in the first quarter of 2012 saw recovery from the flood disaster. Facilities began to restore and resume the production process. During the first half of 2012, agents and stores were alarmed by the rumor on excise tax increase for alcohol beverages, resulting in the higher purchase orders for stocking purposes. Afterwards, when the government announced the excise tax increase in August, it was found that sales were impacted in the last quarter as consumers were adjusting to the increased price of the products.

1. Press Release on Economic and Monetary Conditions for January - December 2012 and the fourth quarter of 2012 by Bank of Thailand
2. Monthly Economic Report (January - December 2012) by the Fiscal Policy Office

Overall Business

In 2012, total sales revenue of the Company had satisfactory growth of 21.8% comparing YoY, attributable to the increase in sales revenue of all segments i.e. spirits, beer, non-alcohol beverage, and food. The group also saw strong growth in net profit of 140.3% from good performance in spirits and non-alcoholic business as well as F&N operating results.

Spirits Business

The spirits business of ThaiBev in 2012 has prepared for the excise tax increase by partly adjusting the product price in the first half of the year to reduce the impact. After the official announcement on excise tax increase in August, the Company made another price adjustment to cover such tax increase. This year, the Company maintained the leadership in the domestic spirits business. Sales of spirits business rose by 9.9 percent when compared to last year due to the selling price increase. Total sales volume of the spirits business increased by 3.3 percent from the growth of both white and brown spirits. Net profit of the spirits business in 2012 was Baht 18,744 million, an increase of 40.4 percent when compared YoY.

Beer Business

The beer business was rather flat although sales volume grew by 4.9 percent when compared to the previous year. However, the increase in costs of raw materials as well as advertisement and promotional spending resulted in the loss amount of Baht 1,162 million of the beer business in 2012.

Non-alcohol Business

The non-alcohol beverage business of ThaiBev encountered certain issues in early 2012 due to the flooded facilities in late 2011. Consequently, production of some products, especially those of Oishi, was interrupted and goods in certain packaging were not available in the market. The Company solved the issue by outsourcing production and relocated manufacturing to the production lines unaffected from the flood to relieve the product shortage. Consequently, production cost increased in the first half of 2012. However, the impacted production bases of Oishi resumed operations in the third quarter of 2012.

Sales of non-alcohol beverage in 2012 mainly derived from Sermsuk and Oishi. Sermsuk launched its carbonated soft drink under “est” brand, the trademark of which was registered by Sermsuk. “est” offered cola and flavored carbonated soft drinks through the distribution network of Sermsuk. In addition, the distribution network of Sermsuk was a key contributor to the expansion of Oishi green tea to the new market with its latest product i.e. “Returnable Bottle Oishi Green Tea”.

The non-alcohol business in 2012 saw sales of Baht 28,997 million, an increase of 167 percent YoY, mainly due to the integration of Sermsuk business after the acquisition of shares in October 2011. Sales volume of Oishi beverages and drinking water increased by 8.7 percent and 14.9 percent respectively, but sales volume of soda water decreased by 11.3 percent. Net profit of the non-alcohol business was Baht 417 million, or an increase of 189.9 percent when compared to the losses in 2011.

Food Business

The Company expanded its food segment as it entered the snack market via the launch of Japanese style fried seaweed under the brand “Onori” in April 2012. Investment was made in advertisement and promotional activities in the early period following the product launch to raise brand awareness.

Sales of the food business for the year 2012 were Baht 5,319 million, or an increase of 28.9 percent when compared to the previous year due to the expansion of food outlets and the increase in selling price. Oishi expanded a total of 44 outlets in 2012. Net profit of the food business was Baht 66 million, or a decrease of 38.3 percent due to the increase of raw material costs and the investment of “Onori” brand. In this regard, the performance of food business, exclusive of the new snack business, saw an increase in net profit of 57 percent.

International Business

In 2012, ThaiBev’s international business reported sales growth of 28%

The performance of business by geographic area:
• UK & Rest of the World - Sales revenue continued to grow 14% from Scotch whisky sales and other new products introduced into key markets
• Asia excludes China - Good performance was mainly driven by Chang Beer in ASEAN market, with an increase in sales value of 78%
• YLQ (Chinese spirits in China) - Sales and margin of Chinese spirits continued to improve from better mix of mid and high end products. Sales value grew by 8%
• USA - This region’s sales revenue continued to improve over last year by 15% mainly from the growth of Scotch whisky, other spirits & Chang Beer


We should monitor the synergies created from acquisition of F&N as well as its further expansion plan in Asia Pacific region. I believe now the group is focus more on Non-Alcoholic division to further boost its revenue to another record high as the Non-Alcohol division is going to take over Beer division as #2 Revenue Generator after Spirits business. Another thing we should take note is the demographic changes as well as consume behavior, as I noticed that more and more people turns to "healthier" drinks such as no-carbonated soft drinks. Nonetheless, I believe the group will still try to push its Chang Beers to Asean countries via F&N distribution networks in Asean region. I hope it can make a turnover within 3 years to further improve its valuation by research analysts and investors.

27 February 2013

Singapore Shares Market Daily Update - 27 Feb 2013

Stocks in Focus: Super Group, Petra Foods, Samudera Shipping Line, Sembcorp Industries, STX OSV, Dyna-Mac, First Resources, Yongnam, Ying Li, First Resources, Indofood Agri, Centurion, Keppel Corp, Boustead, Global Logistic Properties, HI-P

Super Group: Net Profit rose 29% to $82.6M in the back of Revenue $519.3M. Net profit for the financial year ended 31 December 2012 increased  by 29% to S$82.6m due mainly to higher sales revenue and higher gross profit margin (FY12: 35%, FY11: 32%) achieved in the current year. In view of the sterling set of results achieved by the Group, the Board of Directors has proposed a second and final dividend of 5.1 cents (FY11: 3.8 cents) per share.  Together with the interim dividend of 2.0 cents (FY11: 2.0 cents) per share paid in September 2012, total dividend for the current year amounted to 7.1 cents (FY11: 5.8 cents) per share.

Petra Foods: Strong performance achieved by Branded Consumer Division with net profit higher 38.6% Year-on-Year to US$54.5M and proposed Final cash dividend of 1.86 US cents, lifting total dividend for the year to 3.97 US cents. Commenting on the year’s performance, Petra Foods’ Chief Executive Officer, Mr John Chuang said, “With the proposed divestment of the Cocoa Ingredients business, this will be a significant change for Petra Foods.  We will now be able to focus exclusively on growing our
Branded Consumer business where the combined strengths of our market leading Brands, product innovation and distribution together with the growing regional markets will drive the growth.”

Samudera Shipping Line: The Group recorded 3% increase in revenue for the full year ended 31 December 2012 (“FY12”) to US$467.7M, compared to US$454.2M recorded in the previous year (“FY11”). This revenue growth was achieved by optimizing the fleet utilization in all segments. The Group recorded net profit attributable to equity shareholders of US$4.2 million, down from US$12.0 million in FY11. The subdued industry situation in 2012 looks likely to be extended into 2013, as sluggishness in the world’s major economies continue to hamper the recovery of global trade, and challenges relating to the vessel oversupply situation persist.

Sembcorp Industries: Recorded orderbook of $13.6b with deliveries stretching into 2019. But net profit fell 19% to $204.7m despite solid contributions from utilities business as its marine unit faced a margin squeeze from new design rigs. DPS shaved to 15¢ from 17¢ previously.

STX OSV: Hugely disappointing results with 4Q net profit sinking 81% to NOK124M. The group blamed its poor performance on low yard utilization in Norway, Vietnam and hiccups in Brazil, which dragged EBITDA margins down to 11.3% from 28% previously. No dividend was declared.

Dyna-Mac: FY12 results recorded net profit of $28.4M and revenue of $215.3M. This came on the back of higher volume of projects as its S’pore yard operated at full capacity as well as contributions from its newly acquired yard in Nansha, China. DPS of 2¢ proposed.

Ying Li: FY12 recorded net profit RMB377.2M. Earnings was boosted by revaluation gains of RMB378.3M vs RMB230m in FY11. Revenue growth was flat as lower property sales were offset by higher rental income. NAV stood at RMB1.47.

Yongnam: Booked net profit of $43.5M and revenue of $301.6M for FY12, which are in line with expectations. The weaker performance is due to lower contributions from structural steelworks arising from slower progress in certain ongoing projects as well as completion of major projects in 2011 and follows 6 consecutive years of record profits. Order book remained strong at $400.6M.

Bumitama Agri: FY12 results came in slightly above expectations. The group chalked up a 3% net profit growth to Rp787.9m despite incurring a Rp123m fall in fair value gains. Revenue jumped 26% to Rp3.5b, boosted by increase in sales volume of CPO and PK, which were partially mitigated by lower average selling prices.

First Resources: FY12 core net profit rising 25.5% to US$211.3M. Revenue grew 22% to US$603.4M, supported by increased sales volumes. Proposed final DPS of 2.75¢, taking FY12 total DPS to record 4¢.

*Indofood Agri: FY12 net profit recorded Rp1.05B despite revenue growing 10% to Rp13.8T, driven by contributions from its sugar operations and edible oils business. Gross profit declined 10% mainly attributable to lower average selling prices for plantation crops and higher cost of production.

 *Centurion: FY12 core net profit recorded $9.5M as revenue at $65.2M. Positive results were supported largely by recent expansion and acquisitions in its worker dormitory business. Final DPS of 0.4¢, bringing total FY12 DPS to 0.7¢.

Keppel Corp: Secures 2 contracts worth $200M from repeat customers; the first project is to integrate topside modules of a FPSO unit for MTOPS at its Brazilian yard and the second job is to fabricate an internal turret for a new build FPSO for SBM Offshore

*Boustead: Clinched a $30M contract to build a construct a condensate polishing plant to produce high grade boiler feed water for a thermal power plant in Taiwan.

*Global Logistic Properties: Signed agreement to lease 15,600 sqm at GLP Park Beijing (adjacent to Beijing Airport) to Cardinal Health, a leading global distributor of pharmaceuticals and medical supplies. This brings the total space leased to Cardinal Health to 29,300 sqm located across Beijing, Shanghai and Shenyang.

*HI-P: Offers guidance of a better performance in 2013 compared to 2012. For this yr, it flags a 1Q loss but expects an improved 2H to deliver higher full-year profit and revenue vs 2012 on the back of positive feedback for its new Blackberry 10.

26 February 2013

Upcoming Release Dates for Quarterly Earnings of Top Singapore-Listed Companies

SINGAPORE, February 26(Reuters) - Following is a list of the upcoming release dates for the quarterly earnings of top Singapore-listed companies.

DATE    COMPANY NAME                     RIC PERIOD

Feb 26  SembCorp Industries                      Q4
Feb 26  CSE Global Ltd                              Q4
Feb 26  HTL International Holdings Ltd       Q4
Feb 27  United Overseas Bank Group         Q4
Feb 27  Indofood Agri Resources Ltd         Q4
Feb 28  City Developments Limited             Q4
Feb 28  Venture Corporation Ltd                Q4
Feb 28  China Aviation Oil (S) Corp           Q4
Feb 28  Jardine Cycle & Carriage Ltd        Q4
Feb 28  UOL Group Ltd                            Q4 

Singapore Shares Market Daily Update - 26 Feb 2013

Stocks in Focus: OUE, Nam Cheong, ARA, Armstrong, Gallant Venture, Koon, Global Logistic Properties, Golden Palm Resources, Lee Kim Tah, Cordlife, UPP

OUE: Core earnings for FY12 broadly in line. Operating profit rose 31% largely driven by higher revenue from hospitality and property businesses but bottom line earnings plunged 76% to $90.1m due to smaller revaluation gains from investment properties ($32.5M vs $265.5M in FY11) and fair value losses of $40.6M from One Raffles Place. Final + special DPS pared to 8¢ from 11¢. NAV stood at $3.49.

Nam Cheong: Net profit soared 87% to RM49.3m as revenue surged 172% to RM379.2m on strong vessel sales, partially offset by weaker chartering revenue. Group boasts a strong orderbook of RM1.3b with deliveries stretching till 2015. DPS of 0.5¢ proposed.

ARA Asset Management: 4Q12 net profit rose 33% to $17.7M and FY12 earnings of $72.7M. Total assets under management jumped 12% to $22.1B. Company proposed a 1-for-10 bonus issue and final DPS of 2.7¢.

Armstrong: Turned in 4Q12 net profit of $1.4M (vs $0.9M in 4Q11) and FY12 earnings of $11.5M (+61%) on flattish revenue growth amid a weakened global HDD market and rising Sino-Japan tensions affecting Asia’s supply chain. DPS of 0.6¢ declared.

Gallant Venture: 4Q12 net profit of $17.1M was 47% higher than $11.1M achieved previous year due to higher realization of land sales, lower doubtful debts and a $4.1M FX gain. Outlook for its industrial park and utilities business remains challenging following the withdrawal of several tenants and low electricity consumption.

Koon Holdings: Recorded $3M (-60%) net profit on the back of 141% jump in revenue to a record $212.4M. The earnings drop was attributable to one-off gain on a property disposal and non-recurrent dividend income totaling $12.1M. To-date, the construction and precast divisions have outstanding orderbooks of $179M and $83M. Final DPS of 0.5¢ proposed. Separately, its 20% JV has been awarded a $40M contract to construct container berths and stacking yards at PSA’s Pasir Panjang Terminal.

Lee Kim Tah: 4Q12 results boosted by $10.2M revaluation gains from Jurong Point, lifting net profit to $14.9M and FY12 earnings to $31.5M. DPS of 1.5¢ maintained.

Global Logistic Properties: GIC reducing its stake to 37% from 49% through proposed sale of 595.7M shares at $2.60 apiece or 5% discount to last closing price.

Golden Palm Resources: Flagging a net loss for 4Q12 and FY12 due to changes in value of biological assets.

Cordlife: Entered into 3-year strategic alliance with CordLabs Asia to provide cord tissue banking services, widening market to S’pore, HK, Malysia, Indonesia, Philippines, Thailand and India.

UPP: Extended the long stop date for its JV agreement with Myan Shwe Pyi to engage in excavation, drilling and blasting activities in Myanmar till 30 Jun 2013.

25 February 2013

Woodlands - future waterfront metropolis

While we are having a very congested city in Singapore, most of us rely on public transport to commute to work. In order to reduce the traveling hour to work, government has put in effort to introduce few more regional centers out of CBD area, such as JURONG and Tampines. The latest now is Woodlands, which is known as the first ground for people who come from JB to work in Singapore.

The Singapore government just reviled the plan to transform woodlands / North Singapore to be another hub, so that the people work live there can have a chance to work closely to their neighborhood.

While we are already knowing that there will be a new MRT - Thompson Line ends at Woodlands North station nearby Republic Polytechnic, it is important to know that the government is trying to push for higher value creation for its limited supplied land in this small Island.

Woodlands town now has about 230K residents, and one of the regional libraries is located here, providing lot of facilities and convenience to the residents here. The government now is trying to push for higher technology business and let the labor incentive industries to do the business across the border.

You can come to http://www.ura.gov.sg/woodlands to find out more and give feedback on the plans.

24 February 2013

What Makes Your Investment Result Better?

Over the years, I learnt a lot of investment. Some prefers passive investment. They tend to rely on passive income and gradual capital gain. Some tend to have multiple time of capital gain by leveraging on their investment. I believe that everyone must have their own strategy to stay longer time in investment journey. I have some friends who believe more in their own business rather than putting their hard earned money to other investment products such as unit trusts, shares or real estate. They have their own mind to achieve financial freedom. To me, I believe in all the ways to achieve financial freedom. But what makes me feel more is that, I will still always stick to my current job, even if I already achieve financial freedom. It is a great pleasure for me to share my thought to others especially when we have different thought. To me, I can learn more from the rest when I share more of my thought here.

Few points that I think it can help you on your investment result are listed as below:

  1. Asset Allocation - In modern investment theory, I always believe in asset allocation. For example, if you always put your excess cash in Fixed Cash Deposit, you can only earn up to 1.x% in Singapore. But if you put your excess cash in Fixed Income, you may earn around 1%-5%. If you put it under REITs, you may earn more than 5% a year in long run. If you further put your additional cash under equities, you may earn around 5%-10% a year. Nonetheless, above is just "theory", you must have your own plan in actual world. 
  2. Circle of Competence - Most of us, who do not have any investment experience, would tend to avoid risky product, until we find out the ways to manage the calculated risk. The most critical risk I would think of is the risk of being innocent or ignorance of your investment. For example, if you are working in Oil & Gas sector, you do have a competitive advantage against the others in analyzing this sector. You may have a better chance of finding the hidden gem in this industry. 
  3. Margin of Safety - The factors that determine your investment result are the price you enter and the price you get out from the investment along with the dividend you receive during your investment period. So before you get into any investment, you must first figure out the margin of safety that you require. For example, if you believe that the intrinsic value of the stock price is 1 dollar, you may wait until the shares price fall below 70 cents. So you could have 30% margin of safety. It can help to reduce the possible losses of calculating intrinsic value wrongly along the investment. 
  4. Hardwork - The more hardworking you are in analyzing the shares, the more confidence you are with your investment, so you could hold for long term regardless of the volatility of the share prices until it reaches your intrinsic value. There are a lot of ways to do your homework, such as reading newspapers, annual reports, attend AGM and talk to Top Management, and of course you must know the entry price and exit price for all your investment. Always switch your investment only when you find out another better return investment. 
I hope this article can first setup your mind correctly that, to avoid you to fall into the trick " Investment = Gambling", you must think that investment is just like a business, that require your time and energy to build up. The more experience you have in this business, the better profit you would get in long run. 

22 February 2013

Singapore Shares Market Daily Update - 22 Feb 2013


- 4Q2012 core earnings from operations up 52% to US$401 million
- Satisfactory quarter with higher contribution from most key segments
- Oilseeds and Grains posted another profitable quarter
- Strong volume and profit growth in Palm & Laurics and Sugar


  • Revenue of RMB14.8 billion buoyed by contribution from investment segment and ship demolishing business
  • Preserved gross profit margin at 31% despite industry downturn
  • Proposed final cash dividend of 5.0 Singapore cents, translating into a dividend payout ratio of 27%

21 February 2013

High Speed Rail (KL - SG) 2020 Plan

From what I noticed from newspapers, the plan will be fully completed as early as year 2020. It could be a game changer for both countries, as it creates a better way for tourists and businessmen to travel around two cities. Not only that, it could further boost the property prices around the railways. If we look at the BTS (Bandar Tasek Selatan) station, it could easily increase the commuters volume around the station and nearby. I hope that the project can be completed by year 2030 so that I can see a significant result there. Below is the news I copied from nanyang.com for your reference. You may use a translator to translate it to English.

The stations would be at the sub-urb of Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Malaysia.

(布城20日讯)政府初步圈定,吉隆坡—新加坡高速铁路计划(High Speed Rail)(简称隆新高铁)将兴建5个站,分别位于芙蓉、爱极乐、麻坡、峇都巴辖及依斯干的郊区,将带旺高铁站周边的产业及经济发展。
需时实地研究 动工时间难定

20 February 2013

Singapore Stock Market - 20 Feb 2013

Stocks in Focus: AEI, Roxy Pacific, Sarin Technology, Soup Restaurant, 

AEI - AEI Group achieved revenue of $41.2 million for FY2012, a decrease of 28.2% from $57.4 million achieved last year. The decrease was mainly due to weak demand from the Group’s core business, Electronic and Precision Engineering segment. The Group’s gross profit increased by 117.1% from $1.8m in FY2011 to $3.9 million in FY2012. The increase in gross profit was mainly due to change in product mix and the easing of raw material cost in FY2012, as a result of the write-down of inventories to net realizable value arising from lower LME aluminum prices as at 2011 year end. Overall, the Group reported a net profit of $4.7 million attributable to shareholders in FY2012.

Roxy Pacific - ROXY-PACIFIC ACHIEVES RECORD NET PROFIT OF S$58.3 MILLION IN FY2012. Strong performance recorded in FY2012 and 4Q2012 largely due to higher revenue recognition from Property Development segment. Its Gross Profit Margin rose 6 percentage points from previous corresponding period to 40% in FY2012 . High earnings visibility with progress billings of approximately S$861.7million, to be recognised from 1Q2013 to FY2016. Strong financial flexibility with cash and cash equivalents of S$253.2million. Proposed a final cash dividend of 0.92 SGD cents per share. Total dividends paid and proposed of 1.59 cents (2011: 1.33 SGD cents) per share, 20% higher compared to prior year

Sarin Technology - For the year ended December 31, 2012, the Group reported record revenues of US$ 63.8 million, record profit from operations of US$ 24.5 million and record net profit of US$ 20.8 million, as compared to revenues of US$ 57.8 million, profit from operations of US$ 21.3 million and net profit of US$ 17.4 million for the year ended December 31, 2011. These record results were achieved despite a significant decline in industry activity during the months from June through September, during which manufacturing and trading activities dropped by some 40% in India and up to 20% in other industry centres, such as Belgium and Israel, a drop which significantly impaired the Group's results for Q3 2012. The Group's record results for the year stemmed from accelerated Galaxy™-related penetration and usage in 2012, overall positive business sentiment that existed through May 2012 and the upturn in sentiment in India and elsewhere in Q4.

Soup Restaurant Group revenue for the financial year ended 31 December 2012 ("FY12") was S$35.3 million, an increase of S$2.0 million or 6.1% as compared to S$33.2 million for last year ("FY11"). This was largely attributed by the additional full-year contribution from three new outlets which commenced operations in 2011 as well as improved revenue from the existing outlets by 2.3%. The increase in revenue was partially offset by the loss of revenue from the closure of two underperforming outlets during the year. The Group generated profit attributable to owners of the Company for continued operations of S$3.7 million which represented an increase of S$2.2 million or 126.9% as compared to FY11. Earnings per share increased more than doubled to 1.25 cents in FY12 from 0.55 cents as compared to FY11.

Price Booms in Iskandar Malaysia

Price booms in Iskandar Malaysia, with Nusa Idaman house easily starting at RM500K. You may read the news from News Straits Times to find out more. While I am not too sure if there is speculation in property prices, I do see a lot of property development by big boys such as Capitaland and Chinese developers. With more International developers joining this game, we will see a structural changes in Johor Bahru old town and Nusajaya new town. Nonetheless, let us see if there is any more upcoming news to further spur growth in Iskandar Malaysia zone. 

WHEN we first heard about Iskandar Malaysia back in 2006, there was a fair bit of skepticism. Many of us wondered, "Where is this Iskandar Malaysia?"

Today, the skepticism and doubts about Iskandar Malaysia have turned into confidence, to judge by the visible changes in the southern development corridor, the result of a feasibility study conducted by Khazanah Nasional, the government's investment arm, in 2005.
Formerly called the Iskandar Development Region and South Johor Economic Region, Iskandar Malaysia covers 2,217 sq km. It is three times bigger than Singapore and twice the size of Hong Kong.
According to KGV International Property Consultants executive director Samuel Tan, prices of residential properties have risen by an average 40 percent since 2006, in a city that used to suffer from a real estate overhang.
Tan said the prices, which had been sluggish after the 1997 Asian financial crisis, started to see a rising trend due to a combination of factors.
Johor, he said is starting to play catch-up with places like Kuala Lumpur and Penang, with the gaps in its prices of properties narrowing.
While this is certainly sweet music to the ears of developers and those to the property development sector, local folk will find it daunting to own property in Iskandar Malaysia.
The upward trend started in 2009, with the "quantum leap" occurring in 2011, when prices of upscale service apartments broke the ceiling of RM500 per sq ft and climbed into RM700 per sq ft.
Many Singaporeans saw property in Iskandar Malaysia as a good investment for a holiday home and for capital appreciation, and not so much for rental yield.
On Jan 11, the Singapore government announced the revised rates under the additional buyer's stamp duty (ABSD), applicable to purchases or residential property acquisitions. The ABSD had previously applied to Singaporeans buying their third residential property and permanent residents getting their second.
The latest measure will affect its citizens, permanent residents (PR) and foreigners who buy property in the island republic.
A check with the Inland Revenue Authority of Singapore revealed that foreigners who buy residential property in Singapore will now be subject to pay the ABSD of 15 per cent of the purchase price, up from the previous 10 per cent. Singaporeans buying their second homes will be hit with an ABSD of seven per cent, while those with permanent residency status will pay an additional stamp duty of five per cent on their first home purchase.
This development has also boosted interest in properties in Iskandar Malaysia.
Residential enclaves in Bukit Indah, Setia Eco Gardens and Setia Tropika, all developed by the SP Setia Bhd Group, for instance, have foreign owners who buy the properties to live in, and not on speculation, according the group divisional general manager M.L. Hoe.
Some are asking if the booming property market in Iskandar Malaysia is the result of hype.
I do not think as the changes and developments there can be seen by the eye. It's not all frivolous talk followed by nothing!
Look at the Western Coastal Highway that leads to Nusajaya, the Southern Link to Masai and the Eastern Dispersal Link from the Pandan Interchange to the Customs, Immigration and Quarantine complex in the heart of Johor Baru.
Given its well-planned infrastructures, amenities, catchment and accessibility, Iskandar Malaysia is a mine of low-risk investment opportunities. Of course, Investing in projects by a reputable developer is a vital factor.
Places of interest such as Legoland and the Puteri Harbour theme park, and the education hub Educity, are added draws for foreign investors.
Iskandar Malaysia is a 20-year-plan, and changes are slowly but surely taking place. It is up to the local authorities to monitor the property sector to ensure that there will not be an over-supply in the future.

Read more: Price boom in Iskandar Malaysia - Johor - New Straits Times http://www.nst.com.my/streets/johor/price-boom-in-iskandar-malaysia-1.220197#ixzz2LQCXNtpn

19 February 2013

Thai Beverages 18 Feb 2013 News - Mandatory cash offer for Fraser & Neave closes

Bangkok, Thailand, 18 February 2013 – Thai Beverage Public Company Limited (“ThaiBev” or the “Group”), notes Mandatory cash offer for Fraser & Neave closes that, as announced for and on behalf of TCC Assets Limited ("TCC Assets"), the mandatory cash offer (the "F&N Offer") for Fraser & Neave Limited ("F&N") has closed as of 5.30pm (Singapore time) on 18 February 2013 (the “Closing Date”).
Accordingly the F&N Offer is no longer open for acceptance and any acceptance received thereafter will be rejected. Resultant shareholding as at 5.30 p.m. (Singapore time) on the Closing Date, the total number of (i) F&N Shares owned, controlled or agreed to be acquired by TCC Assets and parties acting in concert with it, and (ii) valid acceptances to the F&N Offer, amount to an aggregate of  1,301,980,326 F&N Shares, representing approximately  90.32% of the issued share capital of F&N.

As at 5.30pm on the Closing Date, ThaiBev holds, through its wholly-owned subsidiary, Interbev Investment
Limited, 412,423,822 F&N Shares, representing approximately 28.61% of the issued share capital of F&N.
Mr. Thapana Sirivadhanabhakdi, President and Chief Executive Officer of ThaiBev said, “ThaiBev  is very
pleased with the outcome of the offer and the high level of acceptances gained from shareholders. We look forward to working with TCC Assets in  developing a  constructive  long-term relationship with F&N  management and employees and will explore all options in an effort to enhance value.”

This press release should be read in conjunction with the announcement for and on behalf of TCC Assets
issued on 18 February 2013 regarding the close of the F&N Offer.

Source: http://thaibev.listedcompany.com/newsroom/20130219_081857_Y92_FE2D8637472D027E48257B1600601C25.1.pdf

15 February 2013

My Investment Strategy - Hope Can Give You Some Ideas

I'm just nobody in this world. So what I am writing here would not be useful for you, but I just hope to give you some ideas on my investment strategy.

Not too long ago, I attended a seminar conducted by Thomson Reuters in Singapore office. It was about Japanese Yen Currency Policy changes made by new Japanese government. One of my friends made some fortune by betting on weakening yen and better Japanese Exporters shares price. I also knew that Soros just added another fresh 1B from his family office on betting a weakening yen.

Of course, I learnt it from CFA course. But in actual life, I never take any action on policy changes (Political Risk) made by the government. If we restrict ourselves on our region (e.g. Singapore / Malaysia), then we might miss a chance by putting ourselves in a better competitive edge.

Anyway, so to begin with my investment strategy, I would like to share with you on my ideal investment strategy plan:

  1. Cash - This is the important component. Be it in Foreign currency / local currency. Without cash, we could not purchase other asset classes. Of course, you may like to utilize on borrowing to get more assets under you, however, without this first step, we could not able to establish a good investment strategy plan. For most of us investors who are having a stable income job, you may like to fully utilize your "name" to get more cash to purchase more assets. You must decide when you want to have more cash or when you want to have more assets. These decision (asset allocation) by far is one of the important factors to determine your future investment return rate. 
  2. Your Asset Classes - This is another important component. Some of the investors still do not really understand what the risk is about. They only focus on the UP and DOWN of the prices of asset they are holding on, or focus on the future cash flow they forecast to get. However, I realize that the investment return rate is only base on two factors - your purchase price and your selling price. And of course the dividends / rental income you could receive every regular period. The traditional theory tells us the higher risk the higher potential return. But what I learnt from Graham was that, the "smarter" you are with the asset class that you are investing in, the better result you could get. Try to get more familiarize with the asset class. Just treat them as your girl friends / boy friends and fall in love with them. I do not really convinced a guy can get rich through investment / business if he does not like to spend most of his time in his investment / business. The more hard work you are (of course you must pose correct way of doing correct thing), the better result you could get. 
  3. You Yourself - Human factor is part of the behavioral finance I learnt from CFA course. Anyway, if you really like to know more about yourself on managing your personal finance, you could just go and meet any financial adviser / fund manager / financial consultant. I believe they can give some ideas to you on your risk/return behavior. 

Singapore Stock Market Daily Update - 15 Feb 2013

Stocks in Focus: OCBC, Tat Hong, China Minzhong, AusGroup, Mermaid Maritime, Aussino, Bukit Sembawang, AsiaTravel, STXOSV, Keppel Land

*OCBC: 4Q12 net profit was $663m. Net interest income fell 0.4% to $921m on 7% loans growth but NIM narrowed to 1.7%. Non interest income surged 32% to $757m, boosted by contributions from wealth management and insurance (GE). Provisions dropped 14% with NPL at 0.8%. Tier 1 CAR stood at 16.6% with NAV at $6.68.

*Tat Hong: 3Q13 results were in line with expectations with net profit +37% to $17.8m. The better performance was attributable to higher revenue contribution from crane rentals which yielded better margins compared to distribution and boosted by a $4m gain on disposal of fixed assets plus a $6.2m FX gain.

*China Minzhong: 2Q13  net profit +24% to Rmb215.8m. Revenue grew 32% to Rmb860.9m, driven by better sales in both cultivation and processed business segments.

*AusGroup: Dismal 2Q13 results with net profit tumbling 46% to A$2.8m on flat revenue growth, hit by poor timing/execution of low margin projects and additional costs incurred in the close-out of 2 contracts.

*Mermaid Maritime: Sharp turnaround in 1Q13 net profit to Bt20.7m from loss of Bt85.4m in 1Q12 as revenue jumped 41% to Bt1.6b, boosted by higher day rates from its subsea business, which more than offset the decline in its drilling activities due to a 4-month periodic maintenance on one of its vessels.

*Aussino: The bedsheet retailer has yet to stem the bleeding, incurring a 2Q13 loss of $1.1m amid a challenging retail business environment and store closures in China, HK, Korea and Malaysia. The corporate restructuring to transform the group into a downstream O&G player in Myanmar via a proposed RTO of Max Strategic for $70m is still in progress.

*Bukit Sembawang: 3Q13 net profit dropped 69% to $23.3m due to lower profit recognition on Paterson Suites and Verdure. Group plans to launch its landed project, Luxus Hills Phase 6 in 1H13. NAV stood at $4.38 as at Dec 12.

*Asiatravel.com: Records $1.1m loss for 1Q13 on 9% revenue drop as offline wholesale business was impacted by the closure of one of its top selling hotels for rebranding and core online reservation business faced intense competition and a slowdown in the travel industry. Company is working on several cost cutting measures and growth strategies to try and reverse the situation.

*STX OSV: Secures 3 contracts totaling some Nok2b – 2 Nok600m contracts to design and construct an offshore subsea construction vessel for Solstad Offshore (expected delivery in 2Q14) and Farstad Shipping (delivery in 1Q15) plus another (value not disclosed) for DOF Subsea (delivery 1Q15).

*Keppel Land: Entered into JV with its property fund management arm Alpha Investment Partners to acquired 34% indirect stake in LifeHub @ Jinqiao, a lifestyle retail mall (98,630 sqm retail & 16,102 sqm office space) in Shanghai’s Pudong district for $157m.

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