Here Are 3 Stocks Trading Near 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. In here, let’s look at three such stocks: Singapore Airlines Ltd (SGX: C6L), Singapore Post Limited (SGX: S08), and Singapore Press Holdings Limited (SGX: T39).

Source: SGX Stock Facts; Yahoo Finance
Singapore Airlines is most well-known for running its namesake full-service carrier, which is also the national airline of Singapore. Beyond Singapore Airlines, the company also has other airline brands under its banner such as Silk Air and the low-cost carrier, Scoot.
The company has a listed subsidiary in SIA Engineering Company Ltd (SGX: S59) as well. SIA Engineering specialises in providing aircraft maintenance, repair, and overhaul (MRO) services. It has over 80 international airlines as customers.
In early February, Singapore Airlines announced its third quarter results for its fiscal year ending 31 March 2017 (the reporting quarter was the three months ended 31 December 2016). During the quarter, Singapore Airlines’ revenue slipped by 2.5% year-on-year but operating profit managed to increase by 1.7%.
Regarding its future, Singapore Airlines commented in its earnings release that “2017 is expected to be another challenging year amid tepid global economic conditions and geopolitical concerns, alongside other market headwinds such as overcapacity and aggressive pricing by competitors.” The company added that “loads and yields for both the passenger and cargo businesses are projected to remain under pressure.”
Over the last 12 months, Singapore Airlines’ stock price has declined steadily and is down a total of 13%. The downward price movement has resulted in Singapore Airlines having one of the highest dividend yields among the Straits Times Index’s (SGX: ^STI) constituents at 4.5%.
The next company is Singapore Post, which provides postal and logistics services.
Singapore Post’s latest results, announced in early February, is for the third quarter of its fiscal year ending 31 March 2017. Revenue for the quarter rose 16.8% due to acquisitions in the company’s eCommerce business. But, net profit attributable to shareholders decreased by 27.9%, while underlying net profit (which strips away one-off items) was down 28.5%.
The bottom-line decline was due to operating losses in the company’s US-based eCommerce business, costs related to the new Regional eCommerce Logistics Hub, and a fall in domestic mail volumes.
In a similar manner to Singapore Airlines, Singapore Post’s stock price has also been on a general decline over the last 12 months. Since 23 March 2017, the postal and logistics services company has seen its stock price fall by 19%. The decline also gives Singapore Post a high trailing dividend yield of 5%.
But, investors should be mindful of the sustainability of the company’s dividend in light of its weakening profitability in the past few years.
Singapore Press Holdings is the last stock I have here. The company publishes many of Singapore’s major newspapers – such as The Straits Times and The Business Times – and counts real estate development and ownership as another important business segment. As part of Singapore Press Holdings’ real estate business, it is the majority owner and manager of SPH REIT (SGX: SK6U), a REIT that owns retail malls in Singapore.
In its latest fiscal first quarter results (for the three months ended 30 November 2016), Singapore Press Holdings reported a 6% year-on-year decline in operating revenue. The bottom-line picture was way worse however, as net profit attributable to shareholders fell by 43.8% partly due to an impairment charge. Even if the impairment was excluded, the company’s profit would still have declined by 12.4%
Singapore Press Holdings’ weak result is due to a continuation of a decline in its Media business. The company expects its business conditions to remain challenging.
A Foolish conclusion
It’s worth noting that not every company with a stock price near a 52-week low is a legitimate bargain. A declining stock price can decline yet further if the underlying business performance continues to weaken.
Nothing we’ve seen here about Singapore Airlines, Singapore Post, and Singapore Press Holdings should be taken as the final word on their investing merits. The information presented in this piece should be viewed only as a useful starting point for further research.
$STI(^STI) $SIA(C6L) $SingPost(S08) $SPH(T39)

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Stocks to Watch: Singapore Airlines Ltd and Raffles Medical Group Ltd
- Original Post from The Motley Fool Sg


Earnings season is upon us again. Singapore Airlines Ltd (SGX: C6L) and Raffles Medical Group Ltd (SGX: BSL) are two companies that will be releasing their results this week. Here’s what to look out for.


First steps in China…


Raffles Medical Group opened its first hospital in China — Raffles Hospital Chongqing — earlier this year. In the first quarter of 2019, the group’s revenue grew 6.7% but profit attributable to owners declined 13.7%.


The loss was expected due to gestational loss of the new China hospital. Executive chairman, Dr Loo remained optimistic about the group’s expansion into China, saying,


“The opening of RafflesHospital Chongqing marks the beginning of a bold new venture into the Chinese healthcare market of 1.4 billion people, and it will provide the Group with unlimited opportunities to expand its services.”


Besides Raffles Hospital Chongqing, another hospital in Shanghai is currently under construction and is expected to open in 2020. Preparatory works for commissioning and operational phase has already begun in Singapore.


The group, which also operates Raffles Hospital in Singapore, has taken up loans to fund its investments. However, its core business is still generating a healthy cash flow. In the first quarter of 2019, cash flow from operations was S$21.7 million, compared to its net debt position of S$14.2 million. The cash generated will provide the group with the financial muscle needed during its first steps into China.


Raffles Medical Group released its second-quarter results earlier today. Investors should look out for updates on losses incurred in China and whether the construction and opening of Shanghai Hospital are within schedule. Raffles Specialist Centre in Singapore was also officially opened on 12 March 2019. This should provide another revenue stream to the group.


Climbing new heights


Singapore Airlines was in the spotlight earlier this year when it issued bonds to raise funds to increase its fleet.The group has now spent over S$11 billion over the last two years on aircraft, spares and engines as it embarks on a major expansion phase.


This is part of a three-year transformation program, whereby Singapore’s flagship carrier is working to pivot to keep relevant in the highly competitive airline industry. One of its business initiatives is to upgrade Silkair’s fleet to eventually merge it with Singapore Airlines.The group is also pushing to transform Singapore Airlines into one of the world’s leading digital airlines.


However, investors need to keep an eye on the group’s financial position. The parent company of Scoot is now in a net debt position of more than S$3 billion, from a net debt position of under S$1 billion at the start of FY2018.While the group continues to generate healthy operating cash flows, its high net debt position has weakened its financial standing.


Investors will also need to keep an eye on the fuel prices, which can materially impact the group’s operating costs.Singapore Airlines will be releasing its results on Wednesday, 31 July 2019.


Want to better understand how to benefit from the investing landscape here in Singapore? Click here now for your FREE subscription to The Motley Fool’s investing newsletter. ‘Take Stock’ lets you know exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead here


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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore recommends shares of Raffles Medical Group Ltd. Motley Fool Singapore contributor Jeremy Chia owns shares of Raffles Medical Group Ltd.


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SingPost, Keppel Corp and Singtel Are Giving Out Dividends This Week
- Original Post from The Motley Fool Sg


Tracking companies that give out dividends might be a great way to generate investment ideas. In the next few days, a number of companies are going ex-dividend. So, let’s check out those companies.


(Note: “Ex-dividend” means that you have to own the company’s shares before a particular date (the ex-dividend date) if you wish to receive its dividends.)


Wednesday, 24 July 2019


Postal and logistics company Singapore Post Limited (SGX: S08) is pencilled in to go ex-dividend on Wednesday.


SingPost is dishing out 2.0 Singapore cents per share for its fourth quarter. For the full year ended 31 March 2019, revenue increased by 2.9% to S$1.56 billion, but net profit plunged 86% to S$19.0 million. The huge fall in the bottom-line was largely due to one-off impairment charges of its US businesses.


SingPost’s dividend has fallen from 6.25 Singapore cents in 2015 to 3.5 Singapore cents in 2019. Going forward, is there a risk of SingPost slashing its dividends further? You can get your answer from Royston Yang’s article here.


SingPost’s share price last ended at S$1.01 on Friday. At that price, it translates to a price-to-earnings (PE) ratio of 561 (based on reported earnings) and a dividend yield of 3.5%.


Thursday, 25 July 2019


On Thursday, Keppel Corporation Limited (SGX: BN4) is slated to go ex-dividend. Keppel Corporation is a widely-followed conglomerate with various business divisions, include offshore and marine.


The group is giving out 8.0 Singapore cents per share for its first half of 2019 (1H 2019). Revenue for the six months ended June 2019 grew 10.8% to S$3.32 billion. However, net profit declined by 39.3% to S$356.3 million. The fall in earnings was due to “lower contributions from en-bloc sales of property projects which amounted to S$416 million in H1 2018”.


A positive point in H1 2019 is that Keppel Corporation saw an improved performance at its offshore and marine division, which returned to profitability, compared to a net loss of S$40 million a year ago.


Keppel Corporation’s shares last traded at S$6.57 apiece on Friday, giving it a PE ratio of 17 and a dividend yield of 3.5%.


Friday, 26 July 2019


On the final trading day of the week, telco Singapore Telecommunications Limited (SGX: Z74) is set to go ex-dividend.


Singtel is paying 10.7 Singapore cents per share for its fourth quarter. For the 12 months ended 31 March 2019, the telco’s revenue increased by 4% to S$17.37 billion in constant currency terms due to growth in info-communications technology (ICT), digital services, and equipment sales from mobile connections in Singapore and Australia. Net profit, though, fell by 42% to S$3.10 billion, mainly on the back of a one-off gain seen last year. Excluding that, underlying net profit would have declined by 21%.


Just like SingPost, Singtel’s dividends have been falling in the past. If you are looking for companies that are paying rising dividends, you can jump in here.


Singtel’s shares last closed at S$3.54 each on Friday, translating to a PE ratio of 19 and a dividend yield of 4.9%.


Want to know one Singapore stock that’s set to keep growing its dividends and deliver growth? We reveal our FREE stock report for all our readers and why we think it will reward investors. Click here now to download the report now.


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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 Sudhan P doesn’t own shares in any companies mentioned.


$SingPost(S08.SI) $Keppel Corp(BN4.SI)

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Chart of the Week: SPH’s Dividend Track Record Not Pretty
- Original Post from The Motley Fool Sg


Singapore Press Holdings Limited’s (SGX: T39) latest financial performance made news recently (pun not intended). The media giant’s third-quarter revenue tumbled 1.6% to S$246.1 million while its net profit plunged 44.1% to S$26.2 million. To make things worse, SPH took a goodwill impairment of S$21.5 million for its Orange Valley aged care business.


All these have caused the company’s shares to fall 8.4% for the week to end Friday at S$2.28. Over the longer term of three years, SPH shares have delivered a loss of more than 30% for shareholders, after adjusting for dividends, as noted by my Foolish colleague Chong Ser Jing.


Speaking of dividends, the company’s dividend payout to shareholders has been on what seems like an unstoppable ride down. Total dividend per share in FY2010 (SPH has a 31 August year-end) was S$0.27 but that has fallen to S$0.125 for the trailing twelve months (TTM). With a dwindling free cash flow per share of S$0.493 in FY2010 to S$0.117 for TTM, it’s no surprise that dividends went south too.



Source: SPH annual reports (*Note: FY2013 total dividend per share excludes a special dividend per share of S$0.18 paid due to the spin-off of SPH REIT)


Want to know one Singapore stock that’s set to keep growing its dividends and deliver growth? We reveal our FREE stock report for all our readers and why we think it will reward investors. Click here now to download the report now.


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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 Sudhan P doesn’t own shares in any companies mentioned.


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5 Charts from Singapore Airlines Ltd’s Annual Report
- Original Post from The Motley Fool Sg


Singapore Airlines Ltd (SGX: C6L) had a mixed financial year, with revenue reaching new highs but earnings per share dropping by nearly 50%. The group, which counts Scoot, SIA Engineering Company Ltd (SGX: S59), and SilkAir as subsidiaries, released its annual report for the year ended 31 March 2019.


In it, there were five charts that highlighted some of the significant trends over the year.


Operating expenses



Source: Singapore Airlines 2019 Annual Report


The chart above shows the breakdown of operating expenses. As you can see, the biggest expense came from fuel costs, which made up 30.1% of total operating expenses.


Fuel price trend


The chart below shows fuel cost trends over the last eight quarters.



Source: Singapore Airlines Ltd 2019 Annual Report


The most obvious pattern is the steady increase in fuel prices starting from the second quarter of financial year 17/18, which has caused the group to suffer higher expenses. That said, fuel prices dropped in the fourth quarter of 18/19.


If fuel prices continue to decline, operating expenses could decrease this year.


5-year operating profit and margin


Another important chart is this one, showing the company’s operating profit and operating profit margin over the last five years.


Source: Singapore Airlines 2018/19 Annual Report


As you can see, operating profit and operating profit margin have been very erratic. This is not unusual for airline companies, which are highly susceptible to changes in fuel prices. However, one thing to note is that despite higher fuel prices this year, operating profit and margin held up well, and both were higher than in the three years prior to FY17/18.


Cash flow


Cash is the lifeblood of a company. This is especially so for a capital-intensive company like Singapore Airlines. The group has been quite consistent in this regard, generating healthy cash flow from operations each year. The chart below shows internally generated cash flow, which includes sales of assets.



Source: Singapore Airlines 2018/19 Annual Report


Net cash position


Lastly, it is essential to monitor the financial strength of a company. The chart below shows the net liquid assets, or net debt position, of Singapore Airlines over the last five financial years.



Source: Singapore Airlines FY18/19 Annual Report


Despite good operating cash flow in the past five years, Singapore Airlines’ financial position has deteriorated. Its net liquid asset position turned negative in 2018 and widened in 2019.


The weaker balance sheet is largely due to the group’s heavy capital expenditures over the last two years. In the two years, the group spent close to S$11 billion on aircraft, spares, and engines.


Putting it all together


The first things investors should have noticed from these charts is that Singapore Airlines, like other airline companies, is highly susceptible to changes in fuel prices.


Despite higher revenue this year, the group ended the year with lower profit and lower profit margins.


It also spent heavily on capital expenditures over the last two years, which weakened its balance sheet. However, the new aircraft, spares, and engines will hopefully serve to improve the company’s profit and cash flow generation over the next few years.


Investors will have to keep an eye on revenue, profit, and cash flow over the next few years to see if these investments have paid off.


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.


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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 Jeremy Chia does not own shares in any of the companies mentioned.


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2 Major Risks for Singapore Airlines
- Original Post from The Motley Fool Sg

Singapore Airlines Ltd (SGX: C6L), or SIA, is Singapore’s flagship airline engaging in passenger and cargo air transportation. It operates the following airline segments: Singapore Airlines, Scoot, Silkair, SIA Engineering Company Ltd (SGX: S59), and Singapore Airlines Cargo (SIA Cargo).


While SIA has managed to weather many downturns and storms since its formation in 1972, the airline is currently caught in a funk. While it reported record revenue of S$16.3 billion in its full-year earnings release last week, net profit plunged 47.5% year on year to just S$683 million from S$1.3 billion. A situation where revenue increases while profit plunges certainly warrants a closer look, and investors need to be mindful of risks on the horizon that may further cloud SIA’s prospects. I explore two of these risks below.


Macroeconomic environment


SIA’s current passenger load factor has hit an all-time high of 83% from 81%, while revenue per passenger kilometre rose 7% year on year. Load factor measures the utilisation rate of SIA’s aircraft — the higher the load factor, the better for SIA, as this means more of its aircraft is being utilised (remember that the fuel required to fly an aircraft stays constant whether it is empty or full). While these operating statistics are certainly encouraging, it could all change very quickly should the current trade war between the US and China escalate further.


The trade war would make goods and services more expensive, which then affects worldwide supply chains as producers and distributors pass the costs down to final consumers. As the higher prices trickle down to consumers, the effect would be for them to tighten their wallets and rein in their spending. Air travel would thus get hit as it is considered a discretionary expense for most people.


Fuel costs


Another major risk for SIA is escalating fuel costs. Higher net fuel costs contributed two-thirds of the total increase in expenditure for SIA for fiscal year 2019 (FY 2019), as there was a 21.6% increase in average jet fuel prices over the period. While hedging did mitigate some of the increase, it was unable to offset the full impact of the higher fuel costs.


With fuel being a major cost component of SIA’s operations, a sustained rise in oil prices could further crimp profits for the airline. Though SIA has hedged 64% of its fuel requirement for FY 2020, the airline is still exposed to rising prices that it is unable to fully mitigate.


Investors should adopt a cautious stance


With these two significant risks looming over SIA, investors should adopt a more cautious stance and monitor macro-developments and oil prices before deciding if they should invest in the airline.


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.


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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 Royston Yang does not own shares in any of the companies mentioned.


$SIA(C6L.SI)

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