4 Quotes That Vividly Describe How Singapore’s Retail Might Never Be the Same Again
- Original Post from The Motley Fool Sg

Singapore’s retail scene may never be the same again.
It is not a secret that retailers in Singapore have been facing a tougher time over the past few years. There might be several reasons for this. To find out more details, I took time recently to dip into the annual reports of major retailers in Singapore. I wanted to figure out what the retail scene in Singapore looks like from the eyes of the major players.
What I found were some vivid descriptions of the challenges that retailers face.
1. The shift to online shopping continues – click here
2. Few retail segments will be left untouched – click here
3. Bricks and clicks
Metro Holdings Ltd (SGX: M01) also believes that consumers are increasingly shopping online. In its latest annual report, the retailer said:
“Prospects of our Singapore retail operations remain challenging, as supply of new retail space continues to grow while consumers’ shopping behavior shifted increasingly towards online.”
The firm is also moving to embrace an omni-channel approach where customers can shop online, and collect it in-store:  
“With this understanding, Metro has undertaken to transform ourselves, both in developing fresh concepts to entice consumers with better shopping experience, as well as to develop an omni-channel marketing strategy to meet the evolving needs of our customers and support a complete online-to-offline (O2O) user experience.”  
4. Gone with the wind
The theme is clear – status quo will not work. Suntec Real Estate Investment Trust’s (SGX: T82U) chief executive of the manager, Chan Kong Leong, provided this statement during his SGX kopi-C interview:
“Gone are the days when all you have to do is open the store and customers will walk in to buy.”
Suntec REIT is the owner of Suntec City which has a major retail component. Chan added another interesting perspective on physical assets:
“The mall operates from 10am to 10pm. In other words, the asset sleeps when we do. But physical concrete doesn’t need rest, so the question is how do we raise utilisation rates during those periods?”
Increasingly, physical store retailers will have to figure out new ways to make full use of its existing assets, or risk being swept away by change.
$Metro(M01.SI) $SGX(S68.SI) $Suntec Reit(T82U.SI)

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3 Things You Need to Know About the Singapore Stock Market Today
- Original Post from The Motley Fool Sg

Welcome to a brand-new week, everyone. Here are three things about the local stock market and investing in general that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) rose to its highest level in more than 10 years once again. For the day, it closed at 3,569.43 points, up 19.07 points or 0.54% as compared to its previous close on Friday.
Out of the 30 index stocks, the biggest winner was Jardine Matheson Holdings Limited (SGX: J36). The conglomerate’s shares went up 4.8% to US$65.50.
On the other hand, Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) lost the most ground among the blue-chips, sliding 2.4% to S$1.60.
2. The earnings season has started.
Local bourse operator, Singapore Exchange Limited (SGX: S68), released its second-quarter financial results last Friday. For the latest quarter, revenue went up 2.7% year-on-year to S$205.1 million, but net profit was flat. You can learn more from the earnings coverage here.
Singapore Exchange ended the day at S$8.35, gaining 4.6% to come in as the second-best performer of the Straits Times Index.
3. Both M1 Ltd (SGX: B2F) and Noble Group Limited (SGX: CGP) attracted the attention of the Singapore Exchange after their shares prices increased more than usual.
When asked to explain the unusual price movements, M1 said that it was not aware of any information, other than those announced previously, that might explain the erratic trading. It added that it would be releasing its 2017 financial results after the market closes tomorrow.
As for Noble, it pointed out a Bloomberg report published today with the title, “China’s Cedar Said to Be Interested in Noble Group Purchase”. This news might have stirred some interest in the embattled commodity group.
It also said that as previously announced, it is still in talks with some potential strategic parties and that there is no guarantee that the discussions will bear fruit. However, Noble feels that the talks are “open and constructive” and that there is some progress made.
M1 closed at S$1.86 for the day, increasing 3.3%, while Noble’s shares ended the day at S$0.27, ballooning 31.7%.
$STI(^STI.IN) $M1(B2F.SI) $YZJ Shipbldg SGD(BS6.SI) $JMH USD(J36.SI) $SGX(S68.SI)

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What Investors Need to Know About Singapore Exchange Limited’s Latest Earnings
- Original Post from The Motley Fool Sg

On Friday, local bourse operator, Singapore Exchange Limited (SGX: S68), announced its financial results for the second quarter ended 31 December 2017. The company has three primary business segments – Equities and Fixed Income, Derivatives, and Market Data and Connectivity.
Here are 10 things investors should know from the latest earnings announcement:
1. Revenue went up 2.7% year-on-year to S$205.1 million. For the quarter, Equities and Fixed Income posted a fall in revenue while the other two segments saw revenue growth.
2. Equities and Fixed Income’s revenue fell 3.8% to S$97.5 million. Derivatives’ revenue rose 11.2% to S$83.3 million while Market Data and Connectivity’s revenue expanded by 3.9% to S$24.2 million.
3. Due to higher expenses year-on-year, operating profit inched up by only 0.6% to around S$103 million.
4. Profit attributable to shareholders stepped up by 0.1% to S$88.4 million.
5. Net profit margin dropped from 44.2% last year to 43.1% in the latest quarter.
6. Singapore Exchange’s diluted earnings per share (EPS) was flat at S$0.082.
7. As at 31 December 2017, the company had S$743 million in cash on the balance sheet with no debt. As a comparison, at the end of June last year, it had a higher net cash position of S$796.4 million.
8. Free cash flow for the reporting quarter was S$61.7 million (S$75.9 million in operating cash flow and S$14.2 million in capital expenditure). This was up 6.2% compared to a year ago when free cash flow was S$58.1 million (S$72.2 million in operating cash flow and S$14.1 million in capital expenditure).
9. An interim dividend of five cents per share was declared, unchanged from a year ago.
10. Singapore Exchange’s chief executive, Loh Boon Chye, gave the following outlook:
“Looking ahead, we aim to keep pace with the positive momentum achieved over 2017. Besides expecting more listings, we will strengthen our Asian derivatives foothold through new product offerings in equities, commodities and FX. Synergies with the Baltic Exchange are also coming through with more Asian members and a new LNG Index in the pipeline. As we continue to expand our business through strategic investments and collaborations, we intend to establish a Euro Medium Term Note programme to provide us with the flexibility to fund organic or inorganic growth, when the need arises.”
At the price of S$8.17 currently, Singapore Exchange is going at 25 times its trailing earnings and has a dividend yield of 3.4%.
$SGX(S68.SI)

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3 Big Risks Singapore Exchange Limited Is Facing, And How It Is Handling Them
- Original Post from The Motley Fool Sg

Singapore Exchange Limited (SGX: S68) is the only stock exchange operator in Singapore.
Any company, big or small, faces risks that could damage its business. In Singapore Exchange’s annual report for its fiscal year ended 30 June 2017 (FY2017), the company discussed the risks it has to deal with.
I thought it’d be very useful to share Singapore Exchange’s discussion. Understanding Singapore Exchange’s risks and how it is addressing them will help investors better evaluate the company’s future profitability.
Regulatory risks and reputational risks
Singapore Exchange is a regulator of the Singapore marketplace and public companies. As such, it has to “maintain the highest reputation for supervision and for adherence to regulation.” The company believes that failure to do so will result in market participants losing confidence in it; this could eventually lead to a serious impact on Singapore Exchange’s competitiveness.
To manage these risks, this is what Singapore Exchange is doing:
“SGX strives for high regulatory standards in the oversight of listed companies and member firms to enable the operation of a fair, orderly, transparent and efficient marketplace.
SGX admission and listing requirements are benchmarked to be comparable with established jurisdiction standards and to address risks arising from changes in the business landscape and global environment.
Our market surveillance system detects trading irregularities. Where appropriate, SGX issues public alerts to investors.
In operating a disclosure based regime, transparency is crucial to maintaining trust in our markets. This includes transparency on the part of the regulator. SGX therefore seeks to provide a high level of transparency regarding its regulatory philosophy and actions. Market participants are similarly subject to high levels of transparency. This promotes a well-educated and informed market.”
Market risks
Market risks refer to changes in market conditions that could affect Singapore Exchange’s financial assets.
The good news here is that the company’s financial assets are primarily in cash or cash equivalents (such as term deposits across multiple commercial banks in Singapore), and not investments in risky securities. So, the company is pretty well insulated from market risks, except in the event of a member default.
A Foolish conclusion
The above are three important risks, and how they’re managed, that Singapore Exchange shared in its FY2017 annual report.
Given that risks and the management of risks are part and parcel of running a company successfully, it is important that investors understand them before investing in any company.
$SGX(S68.SI)

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3 Things You Need to Know About the Singapore Stock Market Today
- Original Post from The Motley Fool Sg

Hello, everyone. Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI), ended Wednesday at 3,541.9 points, down 8.3 points or 0.2%.
The biggest loser among the blue-chip companies was Thai Beverage Public Company Limited (SGX: Y92), with its shares slumping 2.1% to S$0.92. On the other hand, Singapore Exchange Limited (SGX: S68), emerged as the best performer of the lot, adding 2.8% to S$7.78.
Yesterday, the local bourse operator announced that it is expanding its range of Daily Leverage Certificates (DLCs) that would be available to the market. This is after the initial successful launch of DLCs in July last year.
The six new DLCs will offer seven times long or short exposure to the daily returns of the underlying indices, such as MSCI Singapore, Hang Seng Index and Hang Seng China Enterprises Index. This new set of higher leverage DLCs will start trading on 24 January 2018.
Since its launch and up till the end of 2017, DLCs raked in a total turnover of S$1.6 billion and an average daily turnover of almost S$14 million.
2. The earnings season has started.
This morning, ESR-REIT (SGX: J91U) announced its financial results for the full year ended 31 December 2017. Gross revenue for the year came in at S$109.7 million, sinking 2.1% year-on-year, while distribution per unit tumbled 7.7% to 3.853 cents. You can find out more about the industrial REIT’s earnings here.
3. Singapore Kitchen Equipment Ltd (SGX: 5WG) announced this afternoon that it is looking to have a dual primary listing of its shares on the Stock Exchange of Hong Kong’s Growth Enterprise Market through a share offer.
The company feels that the dual listing will increase its market visibility, attract investors with different profiles, and widen its investor and shareholder base, improving share liquidity as a result.
The proceeds raised from the listing can be used to fund the commercial and industrial kitchen solutions provider’s expansion plans. Among its plans are 1) increase its factory capability to enhance its product offerings, 2) improve its positioning in the Hong Kong and China markets, and 3) expand into the hospitality sector.
Singapore Kitchen Equipment added that it has not made any application so far to the relevant authorities with regards to the proposed listing and that there is no guarantee that the listing would come to fruition.
Shares of the firm ended the day at S$0.195, rising 5.4%.
$ESR-REIT(J91U.SI) $SGX(S68.SI) $ThaiBev(Y92.SI)

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2 Reasons For You To Like Singapore Exchange Limited’s Dividend
- Original Post from The Motley Fool Sg

Singapore Exchange Limited (SGX: S68) is the only stock exchange operator in Singapore. But it does more than just run the local bourse – the company has three business lines, namely, Equities & Fixed Income, Derivatives, and Market Data & Connectivity.
At Singapore Exchange’s current stock price of S$7.59, it has a trailing dividend yield of 3.7%, which is higher than the market. In this article, I want to highlight two important reasons why investors should like the company’s dividend.
Track record of stable business performance
One important criteria that dividend investors should focus on in assessing a stock is how well its underlying business has performed.
A good track record of growth will provide assurance that the company has a high likelihood of being able to sustain its business growth, and by extension, its dividend payments.
As for Singapore Exchange, the company has a track record of producing stable business results over the past few years.

Source: Singapore Exchange annual report
As the table above shows, from FY2013 (fiscal year ended 30 June 2013) to FY2017, Singapore Exchange’s revenue had grown by 12% from S$714 million to S$801 million, while its profit attributable to shareholders had climbed slightly from S$336 million to S$340 million. Fluctuations in the company’s top-line and bottom-line have also been minimal.
Track record of stable dividends
A company’s business track record will mean little to dividend investors, unless it also pays its profits as dividends to its shareholders.
Singapore Exchange has done well on the dividend-front. The company has maintained its annual dividend at 28 cents per share from FY2013 to FY2017. What’s more, the dividend has been maintained at less than 93% of its earnings in that period, which indicates sustainability in the payouts.
A final word
Dividend investors may want to take a close look at Singapore Exchange given its track records of stable historical business performance and dividend payouts.
$SGX(S68.SI)

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