These 3 Singapore-Listed Companies Are Trading Close To Their 52-Week Lows
- Original Post from The Motley Fool Sg

I’m a value investor. So, I like to search for companies that are trading at good value. A list of stocks that are near their respective 52-week lows is a good place to start my search for a good reason.


These are the stocks that are either neglected or beaten down by investors. And, some of these stocks can be bargains in relation to their actual economic worth because market participants can at times react too negatively to certain companies that have sound long-term prospects but have experienced some short-term stumbles.


As such, I will screen for stocks that are trading near 52-week lows nearly once every week. There are many stocks that pop up on my screen each time I run it. So what are the companies that have shown up on this week’s list? Here are three of them:



Source: SGX.COM, StockFacts


Fraser and Neave Limited (SGX: F99), or F&N, is the first company that we will look at. As a quick introduction, F&N is a consumer group with expertise in the food and beverage (F&B), and publishing and printing sectors.


For the full year ended 30 September 2018, F&N reported that revenue was up 1.5% year-on-year to S$1.9 billion. Similarly, EBIT (earnings before interest and tax) grew by 25.6% as compared to a year ago to S$213.5 million. As a result, net profit attributable to shareholders (excluding exceptional items) grew 46.3% year-on-year to S$121.7 million. The improvement in profitability was driven mainly by the dairy segment.


F&N proposed a final dividend of 3.0 cents per ordinary share. Including interim dividend paid, the total dividend per share for the 2018 full-year was 4.5 cents, unchanged from the previous year.


Koh Poh Tiong, chairman of the F&N board executive committee, said:


“F&N’s financial performance for FY2018 was creditable, taking into account the challenging business environment. Increasing input costs, declining consumer confidence as well as evolving consumer preference and behavior continued to impact the businesses this year. Nevertheless, our strong brands and focus on efficiency and cost control enabled us to remain competitive through these challenging times. Together with the advantages of a regional footprint, scale and distribution capabilities, these factors will continue to provide F&N with the firm foundation to build on the success in the years ahead.”


The next company here is a small cap company,Samurai 2K Aerosol Ltd (SGX: 1C3).As a quick introduction, Samurai 2K is an aerosol coating specialist with a focus on high performance coating solutions for the automotive refinishing and refurbishing industry, focusing on selling its own brands such as Samurai, Kurobushi, Khameleon and a few others. Its products are distributed mainly in Malaysia, Indonesia, Thailand , Philippines and United States.


For the first six months ended 30 September 2018, Samurai 2K reported that revenue was up by 12.8% year-on-year to RM 38.9 million. Similarly, profit before interest and tax jumped 32.4% year-on-year to RM 10.4 million. Consequently, net profit attributable to shareholders surged 30.8% to RM 8.4 million. The stronger performance was due to higher sales volume in Malaysia, as well as increase in average selling price by 12% in Malaysia and Indonesia.


Going forward, the group is exploring an expansion into India. Here’s what the company said:


“The Group is currently exploring expansion into the India market which is still an untapped market for aerosol spray paint. Every day there are 20 million new registered motorcycles on the road. The India market is about 5 times bigger than Indonesia market. The Company will make the necessary announcement on SGXnet as and when there are any material updates”


SPH REIT (SGX: SK6U) is the last company that we will look at in this article.As a quick introduction, SPH REIT is an owner of two retail malls in Singapore, namely, Paragon and The Clementi Mall. It also owns a leasehold interest in The Rail Mall. Newspaper publisher Singapore Press Holdings Limited (SGX: T39) is the sponsor, manager, and large unitholder of SPH REIT.


For the quarter ended 30 November 2018, SPH REIT reported that gross revenue grew marginally by 0.6% year-on-year to S$53.8 million. Yet, net property income fell by 1.0% to S$41.8 million. The weaker performance was due to lower revenue at Paragon, cushioned by higher contribution from The Clementi Mall and The Rail Mall. Distribution per unit (DPU) was flat as compared to a year ago at 1.34 cents.


Susan Leng, CEO of SPH REIT’s manager, said:


“We are pleased that SPH REIT continued to deliver steady distribution with overall positive rental reversion of 9.7% for 1Q 2019.


In line with our strategy of acquiring yield-accretive retail properties that provide sustainable returns to unitholders, SPH REIT completed the acquisition of 85% stake in Figtree Grove Shopping Centre, with our joint venture partner, Moelis Australia Limited holding the remaining stake. The property is an established sub-regional shopping centre in Wollongong, New South Wales, Australia and is a strategic fit with SPH REIT’s portfolio of quality assets. This acquisition provides SPH REIT with the opportunity to further create value and continue to deliver long term returns for unitholders. The full contribution from Figtree Grove Shopping Centre is expected in the second half of the year.”


$Samurai(1C3.SI) $F & N(F99.SI) $SPHREIT(SK6U.SI) $SPH(T39.SI) $ThaiBev(Y92.SI)

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1 Simple Number to Understand 3 Important Areas of Thai Beverage
- Original Post from The Motley Fool Sg

Thai Beverage Public Company Limited (SGX: Y92) is a food and beverage company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages.In this article, I want to dig deeper into Thai Beverage’s return on equity, or ROE.


The choice of ROE


Why ROE? That’s because the financial metric gives investors important insight into a company’s ability to generate a profit using shareholders’ capital.


An ROE of 20% means that a company generates $0.20 in profit for every dollar of shareholders’ capital invested. In general, the higher the ROE, the more profitable a company is. A high ROE can also be a sign that a company has a high-quality business.


That being said, it’s worth noting that the use of high leverage – which increases the financial risk faced by a company – can also increase a company’s ROE. So, that’s something to observe.


Calculating the ROE


The ROE can be calculated using the following formula, which is the way many investors do it:


ROE = Net Profit / Shareholder’s Equity


But, the ROE can also be calculated using a different approach shown below:


ROE = Asset Turnover x Net Profit Margin x Leverage Ratio


Doing so will reveal three important aspects about a company: How well it is managing its assets, how efficient it is at turning revenue into profit, and how much financial risk it could be taking on. You can find out more about this formula here.


With that, let’s turn our attention to the ROE of Thai Beverage.


The actual numbers


The asset turnover measures the efficiency of a company in using its assets to generate revenue. It’s calculated by dividing a company’s total revenue by its assets.


For Thai Beverage, it had revenue of THB 232.6 billion and total assets of THB 401.4 billion in its fiscal year ended 30 September 2018 (FY2018). This gives it an asset turnover of 0.58.


The net profit margin measures the percentage of revenue that is left as a profit after deduction of all expenses.In FY2018, Thai Beverage had a net profit margin of 8.9%, given its net profit of THB 20.7 billion and revenue of THB 232.6 billion.


Lastly, we have the leverage ratio, which shows the relationship of a company’s total assets to its equity. It is calculated by dividing total assets by equity. A higher ratio means that a company is funding its assets with more liabilities, hence resulting in higher risk. In FY2018, Thai Beverage had total assets and total equity of THB 401.4 billion and THB 140.6 billion, respectively. This gives it a leverage ratio of 2.85.


When we put all the numbers together, we arrive at an ROE of 15%.


The Foolish takeaway


Return on equity is a good metric to understand the quality of a business. We should be aware of all three components that make up the ROE. In general, I will pay more attention to asset turnover and profit margin since those two metrics better reflect Thai Beverage’s underlying business performance. We should also compare Thai Beverage’s ROE with its peers, as well as it historical ROE, to get a better overall picture.


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Acquisition-Led Growth for SPH REIT’s Second Quarter
- Original Post from The Motley Fool Sg

SPH REIT (SGX: SK6U) is a retail real estate investment trust (REIT) with interests in Paragon, The Clementi Mall and The Rail Mall in Singapore. At the end of 2018, the REIT ventured into Australia by acquiring an 85% stake in Figtree Grove Shopping Centre, a freehold shopping mall in Wollongong, New South Wales, Australia.


On Friday, SPH REIT announced its financial results for the second quarter ended 28 February 2019 (2Q2019). Here’s a quick rundown on the financial figures from the latest quarter:


1. Gross revenue for 2Q2019 grew 8.5% to S$58.1 million, up from S$53.6 million last year. SPH REIT’s gross revenue improved for the quarter largely due to contributions from The Rail Mail and Figtree Grove Shopping Centre, which were added to the portfolio on 28 June 2018 and 21 December 2018 respectively.


2. Net property income (NPI), likewise, increased by 8.5% to S$45.9 million.


3. Distribution per unit (DPU) inched up by 0.7% to 1.41 Singapore cents, up from 1.40 Singapore cents a year back.


4. For the REIT’s first half period, gross revenue improved by 4.5% to S$111.9 million, NPI grew 3.8% to S$87.6 million while DPU went up by 0.4% to 2.75 Singapore cents.


5. As of 28 February 2018, the net asset value (NAV) per unit stood at S$0.94.


6. SPH REIT had a gearing ratio of 30.1% at the end of the reporting quarter. The figure rose from 26.3% at the end of August last year due to new loans taken up to finance the acquisition of Figtree Grove Shopping Centre. The average cost of debt was 2.88% per annum with the weighted average term to maturity at 2.1 years.


7. The following chart shows SPH REIT’s debt maturity profile, which is well spread out:



Source: SPH REIT 2Q2019 earnings presentation


8. Occupancy at SPH REIT’s properties remained high at 99.2% at the end of the second quarter. The overall portfolio registered a positive rental reversion of 8.4% for new and renewed leases, with Paragon achieving an 8.6% rental reversion. The REIT manager added that tenant sales as a whole have “continued to register growth”.


9. Tenant sales at Figtree Grove Shopping Centre were around 48% higher than the benchmark for malls in the same category. The shopping mall’s major anchor tenants include a 24-hour Kmart, Coles and Woolworths supermarkets. The mall’s committed occupancy stood at 99.3%.


10. SPH REIT has a right of first refusal on Singapore Press Holdings Limited’s (SGX: T39) The Seletar Mall property, which has maintained a high occupancy rate since its opening. Singapore Press Holdings is a sponsor of SPH REIT. The REIT manager is also exploring “acquisition opportunities that will add value to SPH REIT’s portfolio and improve returns to Unitholders”.


At SPH REIT’s current unit price of S$1.07, it has a price-to-book ratio of 1.1 and a distribution yield of 5.2%.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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SPH REIT’s Share Price Is Close To A 52-Week Low: Is It Cheap Now?
- Original Post from The Motley Fool Sg

SPH REIT‘s (SGX: SK6U) share price of S$1.02 currently is just 4% higher than a 52-week low of S$0.98. For me, this raises a question: Is SPH REIT a cheap share at the moment? This question is important because if the REIT’s shares are cheap, it might be a good investment opportunity.


For a quick overview,SPH REITis an owner of three retail malls in Singapore: Paragon,Clementi Mall,and The Rail Mall. Newspaper publisher Singapore Press Holdings Limited (SGX: T39) is the sponsor, manager, and a large unitholder of the REIT.


There is unfortunately no easy answer to my question above. But, we can still obtain some insight by comparing SPH REIT’s current valuations with the market’s. The two valuation metrics I will focus on are the price-to-book (PB) ratio and distribution yield.


I will be using the average PB ratio and distribution yield for the 43 REITs that are currently listed in Singapore’s stock market (according to data from SGX Stock Facts)as the proxy for the market. The table below shows the valuation comparisons:




Source: SGX Stock Facts


We can see that SPH REIT’s PB ratio and distribution yield are both less attractive than that of the market – in other words, SPH REIT does not look cheap compared to the rest of its peers.


Stop worrying about the uncertain REITs market with our new Complete Guide To Buying The Best Singapore REITs. We give you 3 quick ways to easily value your REITs so you save tons of research time. Value your REITs today so you know exactly when to buy, sell or hold. Simply enter your email here and we will rush the 42-page PDF immediately to your inbox...for FREE!


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.


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Fraser and Neave Limited’s Latest Result: Net Profit Jumped 47.5%
- Original Post from The Motley Fool Sg

On Monday, Fraser and Neave Limited (SGX: F99), or F&N, reported its first-quarter result for the financial year ending 30 September 2019. As a quick introduction, F&N is a consumer group with expertise in the food and beverage (F&B) and publishing and printing sectors.


Here are 10 things investors should know about Fraser and Neave’s latest quarter:



  1. Revenue was up 0.4% year on year to S$464.4 million.

  2. EBIT (earnings before interest and tax) improved by 41.6% as compared to last year to S$71.0 million.

  3. Net profit attributable to shareholders grew 47.5% year on year to S$37.9 million.

  4. EBIT margin improved to 15.3% this quarter.

  5. Consequently, earning per share (EPS) was up by 44.4% year on year to 2.6 Singapore cents.

  6. Year to date, net cash inflow from operating activities was at S$32.5 million, higher than the S$12.3 million generated last year mainly due to an increase in profitability.

  7. As of 31 December 2018, the Group had cash and cash equivalents of S$326.5 million and total borrowings of S$ 662.2 million. This gives it a net debt position of S$335.7 million.

  8. Revenue performance for each segment (as compared to last year) is as follows: Beverage (+ 7.6%), Dairies (+0.1%), and Publication and Print (-8.4%).

  9. In the quarter, Dairies, Publication and Print, Beverages, and Others accounted for 101%, 1%, 0%, and -2%, respectively, of Fraser and Neave’s EBIT.

  10. The company provided the following outlook guidance:


“Consumer sentiments in the Food & Beverage segment is expected to remain challenging with continuing competition as well as volatility in foreign currency movements and commodity prices. In Malaysia, we are awaiting further details on the implementation of excise duty at 40 sen per litre on ready-to-drink beverages that contain sugar exceeding 5 grams per 100 millilitres starting 1 April 2019, as announced in the Malaysian Budget 2019. We will assess and closely monitor its impact on the Group. In the [meantime], we are prioritising efforts to accelerate innovation and the development of new product offerings. With the expiry of tax incentive on the profits of an overseas subsidiary in the current financial year, the Group will focus on improving operation efficiencies, expanding distribution network and maximising the benefits of recent capex projects to mitigate the increase in tax expenses. The Group will also continue to pursue new investment opportunities to further grow its beverages and dairies businesses.


Leveraging on our strength as a major international content provider, Publishing will continue to focus on international markets for growth opportunities. Printing will diversify into digital print and form strategic partnerships with other printers to help mitigate the fall in volume of our traditional print business. Retail & Distribution will sharpen its focus on delivering refreshing merchandise to our customers.”


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1 Simple Number for Understanding 3 Important Aspects of Fraser and Neave Limited
- Original Post from The Motley Fool Sg

Fraser and Neave Limited (SGX: F99), or F&N, is a consumer group with expertise in the food and beverage (F&B) and publishing and printing sectors. As of 12 December 2016, Thai Beverage Public Company Limited (SGX: Y92) had a 28.53% stake in F&N.


The choice of ROE


We’re using one metric — the return on equity, or ROE — to understand F&N’s business. This financial metric gives investors important insight into a company’s ability to generate a profit using the shareholders’ capital it has.


A ROE of 20% means a company generates $0.20 in profit for every dollar of shareholders’ capital invested. In general, the higher a company’s ROE, the more profitable it is. A high ROE can also be a sign that a company has a high-quality business.


It’s worth noting that the use of high leverage — which increases the financial risk faced by a company — can also increase a company’s ROE.


Calculating the ROE


ROE can be calculated using the following formula, which is the way many investors do it:


ROE = Net Profit / Shareholder’s Equity


ROE can also be calculated using a different approach, as shown below:


ROE = Asset Turnover x Net Profit Margin x Leverage Ratio


Calculating a company’s ROE will reveal three important things: How well a company is managing its assets, how efficient it is at turning revenue into profit, and how much financial risk it could be taking on.Click herefor more information about this formula for the ROE.


With that, let’s turn our attention toFraser and Neave’s ROE.


The actual numbers


Asset turnover measures the efficiency of a company in using its assets to generate revenue. It is calculated by dividing a company’s total revenue by its assets.


Fraser and Neave had total revenue of S$1,926.5 million and total assets of S$4,490.7 million in its fiscal year ended 30 September 2018 (FY2018). This works out to an asset turnover of 0.429.


Net profit margin measures the percentage of revenue that is left as a profit after deducting all expenses.In FY2018, Fraser and Neave had a net profit margin of 9.3% given its net profit of S$179.1 million and revenue of S$1,926.5 million.


Lastly, we have the leverage ratio, which shows the relationship of a company’s total assets to its equity. It is calculated by dividing total assets by equity.Ahigher ratio means a company is funding its assets with more liabilities, resulting in higher risk.In FY2018, Fraser and Neave had total assets and total equity of S$4,490.7 million and S$3,169.8 million, respectively. This gives a leverage ratio of 1.42.


When we put all the numbers together, we arrive at an ROE of 6% forFraser and Neave.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebookto keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.


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