3 “Boring” Singapore-Listed Companies That Could Be Potential Winners
- Original Post from The Motley Fool Sg

Investing legend Peter Lynch, is well-known for investing in dull, depressing or disagreeable businesses such as funeral home operators and waste management firms. Such companies do not provide excitement, and therefore, could be severely mispriced by the stock market.

In Singapore, there are a number of such “boring” companies that could be great investments. Let’s look at three of them.

Company #1

800 Super Holdings Limited (SGX: 5TG)is a provider of waste management, cleaning and conservancy, and horticultural services to the public and private sectors in Singapore. It is a licenced Public Waste Collector, appointed by Singapore’s National Environment Agency (NEA).

Recently, 800 Super’s share price got whacked after posting a disappointing set of financial results. For the fiscal year ended 30 June 2018, revenue fell 3.7% to S$151.1 million while net profit plunged 46.7% to S$9.1 million.

Following the earnings announcement in late August, 800 Super’s share price fell from S$1 to a low of S$0.60 in short order. Some investors might feel that the steep decline in the company’s share price was unwarranted. Future growth for the company could come from its sludge treatment facility at Tuas South, which is expected to be fully operational by December 2018. 800 Super’s new waste-to-energy plant started operations in February this year, and could generate new revenue streams and cost savings for the company once it ramps up fully.

At its share price of S$0.775 on Friday, 800 Super has a price-to-earnings (PE) ratio of 16 and a dividend yield of 1.3%.

Company #2

Advancer Global Ltd (SGX: 43Q) is a workforce solutions and services provider in Singapore. It has three business divisions: employment services; building management services; and security services.

For the six months ended 30 June 2018, Advancer Global’s revenue rose 2.7% to S$32.8 million, but its net profit fell by 29.6% to S$1.6 million. The security services division saw revenue growth largely because of higher service income from new security projects and aggregate service fees charged from on-going security projects. A fall in the number of foreign domestic workers placed out to Singapore households, and the termination of some cleaning service contracts provided some offset.

In its earnings release, Advancer Global described its growth prospects:

“[T]he Group is exploring to develop and expand its employment business in Japan, in view of its strategic alliance with Fullcast Holdings Co. Ltd., a listed company in Japan who through its subsidiaries provides a range of human resource services to companies in Japan. These plans (if crystallised), will create additional sources of earnings and growth for the Group in the long term.”

At Friday’s share price of S$0.23, Advancer Global has a PE ratio of 17 and a dividend yield of 2.6%.

Company #3

VICOM Limited (SGX: V01) provides technical testing and inspection services mainly in Singapore. It owns seven vehicle testing centres here and is a market leader with a 74.5% market share.For the second quarter ended 30 June 2018, VICOM’s top line rose 2.4% to S$24.7 million due to higher business volumes. Net profit tracked up as well, climbing 2.9% from S$6.1 million to S$6.2 million.

VICOM could see some headwinds in the sector it operates in though. In its 2018 second-quarter earnings update, it said:

“The recent fall in Certificate of Entitlement (COE) prices to their lowest levels in nearly a decade has resulted in the premature deregistration of cars with higher COEs before the 10-year mark. This is expected to affect the demand for the vehicle testing business. The non-vehicle testing business continues to face intense competition but is expected to remain stable.”

However, income investors might like VICOM as it provides a high dividend yield of around 6% at its current share price of S$6.08. Its market leadership position in Singapore’s vehicular testing industry should ensure it continues to be a cash cow.

$Advancer Global(43Q.SI) $800 Super(5TG.SI) $VICOM(V01.SI)

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OCBC at 10.96. should i buy?


Reply to @chrisleong1 : WHY ASK .. YOU DUNNO WHAT UR DOING???

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These 3 Blue Chip Stocks Have Grown Dividends By More Than 50% In Last 10 Years
- Original Post from The Motley Fool Sg

Income investors would ideally like to invest in companies that have sustainable dividends.

Unfortunately, no one can accurately predict the future, which makes estimating the future dividends of a company potentially tricky. One way to help clear up some of the fog would be to look at a company’s history of paying dividends.

Over the past 10 years, the global economy has been through some really rough times, with the great financial crisis being the most jarring episode. It would thus mean that a company that can grow its dividends in the past decade has a business that has some stability and sustainability in the past – and that could be a great starting point for further research.

Here, we will look at three of these companies that have grown their dividends for dividend investors by more than 50% in the last 10 years.

We will start with Dairy Farm International HoldingsLtd(SGX: D01).

As a quick introduction, Dairy Farm is a conglomerate with four main business segments: Food, Health and Beauty, Home Furnishings, and Restaurants. In Singapore, Dairy Farm is the owner of stores such asGuardian,Cold Storage,Giant Hypermarket,and7-Eleven.

In the last decade, Dairy Farm has grown its dividend per share from US 14 cents in 2008 to US 21 cents in 2017, up by 50% during the period. At a current price of S$ 9.05 (as of writing), the company is trading at a dividend yield of 2.3%.

The next company on our list is ComfortDelgro Corporation Ltd (SGX: C52).

As a quick introduction, Comfortdelgro is a transport company with operations mainly in Singapore, Australia, the United Kingdom and China. Comfortdelgro did well in growing its dividend in the last decade.

Here are some numbers: dividend per share more than doubled from 5.0 cents in 2008 to 10.4 cents in 2017. In term of percentage, this is up by 108% during the period!

At a current share price of S$ 2.15 (as of writing), the company is trading at a dividend yield of 4.8%.

The next company is DBS Group Holdings Ltd (SGX: D05) or DBS in short, which is one of the three major banks based out of Singapore.

In the last 10 years, DBS Group grew its dividend per share from 65 cents in 2008 to 143 cents in 2017, up by 120% during the period. One thing that investor should note is that the company paid out a special dividend of 50 cents per share paid in 2017. Nevertheless, DBS Group still grew its dividend by 43% even after excluding the special dividend.

At a current share price of S$ 23.70 (as of writing), the company is trading at a dividend yield of 6.0% (including special dividend).


Income investors might want to take a look at these companies above due to their track record of growing dividends for dividend investors in the last decade.

And if you enjoy this article, read our next article for the next two companies.

$ComfortDelGro(C52.SI) $DairyFarm USD(D01.SI) $SBS Transit(S61.SI) $VICOM(V01.SI)

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The Best-Performing Blue Chip Shares In 2018 (Part 2)
- Original Post from The Motley Fool Sg

2018 was a challenging year for Singapore investors. TheStraits Times Index(SGX: ^STI), Singapore’s stock market barometer, was down by 9.8% in 2018.

Despite the market decline for the year, there are a number of stocks that delivered positive returns in 2018.

In this series of articles, I will look back into the year and identify six of the index’s biggest winners, as well as six of the largest losers.In this article, I will be covering the winners from the first to third position. The first part of the series can be found here and here.

The third best performer

In third place is ComfortDelgro Corporation Limited (SGX: C52), a transport company with operations mainly in Singapore, Australia, the United Kingdom, and China. It is also the majority owner of vehicle and non-vehicle testing and inspection outfitVicom Limited(SGX: V01)and bus and rail services operatorSBS Transit Ltd(SGX: S61).

In 2018, Comfortdelgro’s shares climbed by 8.6% in price.

For the first nine months ended 30 September 2018, Comfortdegro delivered a 5.0% year-on-year improvement in revenue. Yet, its profit after tax fell by 6.6% year-on-year mainly as a result of weaker performance in the taxi-related businesses.

Going forward, ComfortDelGro is setting up a US$100 million corporate venture capital fund to focus on incubation and investments in mobility technologies and solutions which will help complement the parent company’s existing land transport business. The fund will be called ComfortDelGro Capital Partners. Though there is no guarantee that such investments will bear fruits, investors should find some comfort knowing that the management is trying to adapt itself in the new operating environment.

The second best performer

We’re getting close to the winner now. In fact, second-placed Jardine Matheson Holdings Limited(SGX: J36) is closely related the winner. But before revealing the winner, let’s have a quick look at Jardine Matheson.

Jardine Matheson is a conglomerate with diverse business interests, mainly through its directly-owned subsidiaries and various investments. Its business activities range from properties, supermarkets, motors and many more.

In 2018, Jardine Matheson’s share price was up by 14.5%. In fact, its year-end share price of US$69.48 is hovering around its peak for the last five years. Moreover, its first six months performance for 2018 was ahead of that of 2017. Both revenue and underlying net profit rose 14% and 7%, respectively, as compared to last year. As such, it’s reasonable to see its share price improving over the same period as well.

The best performer

Finally, in the first place we have Dairy Farm International HoldingsLtd(SGX: D01), which saw its share price grew by 15.1%. In other words, it outperformed the index by more than 25% in 2018.

For those who are new to the company, Dairy Farm is a conglomerate with four main business segments: Food, Health and Beauty, Home Furnishings, and Restaurants. In Singapore, Dairy Farm is the owner of stores such asGuardian,Cold Storage,Giant Hypermarket,and7-Eleven.In fact, Dairy Farm is a subsidiary of Jardine Strategic Holdings Limited(SGX: J37) , which in turn, is majority owned by Jardine Matheson.

The positive performance in Dairy Farm’s share price is reasonable. For the first half ended 30 June 2018, Dairy Farm reported that sales grew by 8% from a year ago to US$5.9 billion. Similarly, profit attributable to shareholders was up 6% year-on-year.

$STI(^STI.IN) $ComfortDelGro(C52.SI) $DairyFarm USD(D01.SI) $JMH USD(J36.SI) $JSH USD(J37.SI) $SBS Transit(S61.SI) $VICOM(V01.SI)

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3 Singapore-Listed Dividend Companies That Are Perfect For Retirement
- Original Post from The Motley Fool Sg

Companies which are ideal to buy during retirement generally have strong businesses and excess cash to dole out to shareholders as dividends. With this in mind, let’s look at three Singapore-listed stocks that could give you a steady stream of dividend income in your golden years.

Company #1

VICOM Limited (SGX: V01) is a leading provider of technical testing and inspection services in Singapore. In 2017, the company had a 74.5% share of the vehicular testing market in our Garden City.

From 2013 to 2017, VICOM managed to grow its total dividend (including special dividends) at a remarkable annual rate of 12.5% from S$0.225 per share to S$0.36 per share. In the second quarter of 2017, VICOM adjusted its dividend policy to payout at least 90% of its net profit as a dividend; the previous ratio was 50%.

VICOM also raised its interim dividend by 2.6% from S$0.1312 per share in 2017’s second quarter to S$0.1346 per share in 2018’s second quarter. At VICOM’s share price of S$6.02 currently, the company has a trailing dividend yield of 6%.

Company #2

Next up is CapitaLand Mall Trust (SGX: C38U), the largest retail real estate investment trust (REIT) by market capitalisation in Singapore’s stock market. The REIT owns 15 shopping malls in Singapore, including Tampines Mall, Junction 8, and Plaza Singapura. REITs are required to pay out at least 90% of their taxable income to unitholders as distributions to enjoy tax benefits. As such, REITs typically have high distribution yields and are thus popular among retirees.

CapitaLand Mall Trust’s distribution per unit (DPU) has increased by 2.1% per year from S$0.1027 in 2013 to S$0.1116 in 2017. In the third quarter of 2018, the RETI’s DPU rose 5% year-on-year to S$0.0292. There is potential for more DPU growth for CapitaLand Mall Trust with the opening ofFunan in the second quarter of 2019; Funan is going to be Singapore’s shopping centre first online-and-offline shopping centre.

CapitaLand Mall Trust’s unit price is at S$2.22 right now, giving the REIT a trailing distribution yield of 5.1%.

Company #3

Singapore Exchange Limited (SGX: S68), or SGX in short, is the final company on my list. The company is the only stock market operator in Singapore and it provides listing, trading, clearing, settlement, depository, and data services.

SGX’s dividend has grown from S$0.28 per share in its fiscal year ended 30 June 2014 (FY2014) to S$0.30 per share in FY2018, which translates to an annual growth rate of 1.7%. To know more about the local bourse operator’s dividend, such as its dividend history, dividend policy, and dividend sustainability, you can head here.

At SGX’s current share price of S$7.22, the bourse operator has a trailing dividend yield of 4.2%.

$CapitaMall Trust(C38U.SI) $SGX(S68.SI) $VICOM(V01.SI)

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Now is Not The Time For You to Give Up On The Stock Market
- Original Post from The Motley Fool Sg

Fear is rampant in the stock market right now. Investors have taken it on the chin but it is not the time to give up.

Singapore’sStraits Times Index (SGX: ^STI) peaked in early May this year and proceeded to fall past the dreaded 10% mark in less than two months to enter correction territory. Today, more than six months after this year’s high, the STI is still down by around 16%.

As the downturn drags on, some investors are beginning to feel the strain. In some ways, fear has given way to exhaustion. After all, it’s been a tough year for any investor to eke out any sort of gain. Consider these statistics:

  1. Less than a quarter of the 30 companies that make up the Straits Times Index are showing positive returns for 2018.

  2. The average year-to-date return of a blue-chip stock is negative 9.7%.

Meanwhile, good news is in short supply. Instead, negative developments, such asAsian Pay TV Trust’s (SGX: S7OU) massive dividend cut, are dominating media headlines. At the face of all the mounting challenges, it is not surprising that some investors are feeling fearful — and tired too.

From the above, you can see why it is tempting to take the easy way out and give up. But you really, really shouldn’t.

Courage, Singapore Investors

Investors were feeling weary in April 2008 too.

Prior to that, the US-basedS&P 500index had peaked in October 2007 and had fallen into correction territory in less than two months. By mid-April 2008, there was no stock market recovery in sight and the index had been languishing in the doldrums for more than six months. As investors’ hearts started to waver, Motley Fool co-founders Tom and David Gardner implored our members to stay invested. In April 2008, they wrote in a memo:

“We are all touched by fear: fear of death, fear of failure, fear of what a bear market can wreak upon our retirement portfolios. But courage is forging ahead, taking action, being productive despite the fear that we feel.”

You see, our co-founders understood early on that investing is more than just numbers and a bunch of ratios. Much like today, fear was rampant in the stock market back in 2008. But as investors, we have to find the courage, despite the fear we feel, to invest.

With the benefit of hindsight, we can now see the wisdom in their timely words — that is if we had stayed invested.

From the start of April 2008, shares of companies such as local bankDBS Group (SGX: D05), airline catererSATS (SGX: S58) and vehicle test inspectionVICOM (SGX: V01) have delivered total returns of over 120%, 265%, and over 500%, respectively. Investors that exited the market back then would have missed out on these satisfying gains.

So, like Tom and David Gardner before me, I say to you:Courage, Singapore investor.

Our Promise to You

Even in uncertain markets, there is still a way to invest profitably. It’s about knowing where to find these opportunities.

We do not shy away when markets fall.

That’s why we can consistently offer our members one stock pick every month … Even as the stock market suffers from bouts of fear and exhaustion.

Since we started, we have 24 active stock recommendations. We think they will be able to weather through tough times and potentially make you wealthy over the long term.

If you want to find out what stocks to buy in these uncertain times, simply click here to get started.

$STI(^STI.IN) $DBS(D05.SI) $SATS(S58.SI) $VICOM(V01.SI) $S&P 500(^GSPC.IN)

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What Investors Should Know About VICOM Limited’s 2018 Third-Quarter Earnings
- Original Post from The Motley Fool Sg

VICOM Limited (SGX: V01)is a leading provider of technical testing and inspection services in Singapore. Yesterday, the company announced its earnings for the third quarter ended 30 September 2018. Let’s look at the main takeaways from the announcement here.

Financial highlights

Revenue for the reporting quarter grew 2.7% year-on-year to S$25.2 million, up from S$24.6 million a year ago. VICOM said the rise in revenue was due to “higher business volumes”.

Total operating costs rose 1.0% to S$17.3 million. Consequently, operating profit increased by 6.4% to S$8.0 million.

Net profit climbed from S$6.4 million last year to S$6.7 million in the 2018 third-quarter, improving 5.1%. As a result, earnings per share for the latest quarter was 7.58 cents, increasing from 7.21 cents in the corresponding quarter last year.

For the nine-month period, revenue went up by 2.2% year-on-year to S$74.4 million while net profit rose 3.4% to S$20.0 million.

As of 30 September 2018, VICOM had S$92.0 million in cash and cash equivalents with no debt. In comparison, as of the end of 2017, it had S$107.5 million in cash and cash equivalents with zero borrowing.

Operating cash flow for the reporting quarter slumped 37.6% year-on-year, from S$11.0 million to S$6.9 million, mainly due to adverse working capital changes. Capital expenditures in both 2018 and 2017 third quarters were somewhat similar.

Looking ahead

As for its outlook, VICOM commented:

“The Land Transport Authority recently announced that there will be more Certificates of Entitlement (COEs) for the three-month quota period starting from November 2018 compared to the preceding quota period due to premature scrapping of cars bought when the COE prices were high. This is expected to further dampen COE prices leading to more deregistration thereby reducing the demand for the vehicle testing business.

For the non-vehicle testing business, there are signs of recovery in some industries that we serve but competition remains intense. Demand is expected to remain stable.”

VICOM shares ended Wednesday at S$6.02 apiece, giving a trailing price-to-earnings ratio of 20 and a dividend yield of 6%.


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