The Trading Floor - 2019

Discussion in 'The Trading Floor' started by Amator, Jan 1, 2019.


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  1. nottibird

    nottibird Moderator

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  2. nottibird

    nottibird Moderator

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  3. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 21): CapitaLand, South-east Asia’s largest property group, is expected to have a better 2H19 now that assets under management have expanded to $129.1 billion after the acquisition of Ascendas-Singbridge (ASB).

    On Aug 12, CapitaLand reported lower profit after tax and minority interest (Patmi) for both 2Q19 and 1H19 ended June compared to a year ago, after the developer incurred a one-off transaction cost of $36 million for the ASB acquisition in 2Q19.

    In addition, Patmi for 1H19 fell 5.3% to $875.4 million from a year ago while Patmi for 2Q19 fell 4.2% to $579.8 million. Meanwhile, operating Patmi for 1H19 and 2Q19 fell 14.9% and 8.4% respectively, due to lower contribution from residential projects in Singapore and China, where fewer units were handed over compared to the same period a year ago.

    Operating EBIT for Singapore, Malaysia, Indonesia, Vietnam and International, was up 3.4%, thanks to contributions from newly acquired properties in the US and Germany, partly offset by lower Singapore residential and rental income.

    In 2Q19, CapitaLand sold 1,807 units in 2Q19, bringing 1H19 sales to 3,025 units or RMB6.4 billion. Sell-through rate continues to be good at 93% of units launched.

    In Vietnam, the group handed over $19 million worth of residential sales in 2Q19. According to a Aug 7 CGS-CIMB Research report analyst Lock Mun Yee expects 2H19 contributions to be supported by additional handover of $196 million of Vietnam residential sales even as the recently launched One Pearl Bank recorded a takeup rate of 26%.

    Operating ebit from its China operations -- excluding $125.1 million of divestment gains from the sale of two commercial properties and three shopping malls -- was 25% lower y-o-y at $167.5 million due to moderated handover of RMB2.26 billion worth of residential units.

    But Lock says the group is expected to settle a much larger RMB9.2 billion of residential sales in 2H19.

    In an Aug 7 report, analyst David Lum of Daiwa Capital Markets said CapitaLand’s 2Q19 earnings was 11% higher than its prorated 2019 forecast which which included assumed contributions from ASB in 2H19 as overall revaluation gains were higher than its forecast, driven by operating revaluations for most of the Raffles City integrated developments in China.

    However, Lum said the major takeaway from 1H19 results announcement was that although the net-debt-to-equity ratio increased to 0.73x, “there is embedded deleveraging in the coming quarters due to divestments exceeding investments”. Year to date, CapitaLand divested assets worth $3.4 billion while making gross investments of $3.3 billion, on a gross-value, 100%-ownership basis, said Lum.

    Lum added that management has guided that the divestment of assets is to maintain discipline even though it is under no pressure to sell assets, and he sees “potential opportunities for investment in its core markets if the current geopolitical uncertainties begin to affect the real estate markets”.

    “We tweak our FY19-21F EPS marginally post results and maintain our target price of $4.15, pegged to a 35% discount to RNAV,” says CGS-CIMB Lock who is maintaining its “add” rating. “Re-rating catalyst would come from accelerating growth across its expanded platform while downside risks include a slower macro outlook that could lead to slower recycling activities,” she adds.

    Lum of Daiwa is also reiterating its “buy” rating but leaving it earnings forecasts unchanged as CapitaLand is expected to be “well within striking distance of our full-year net profit forecast”.

    “We also maintain our 12-month target price of $4.10, pegged to a 20% discount to our changed NAV. Key downside risk: inability to reap tangible earnings and ROE improvements from the ASB acquisition,” says Lum.
     
  4. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 21): The African Swine Fever is spreading fast among the pig population in Asia and showing no signs of abating.

    Initially, famers in Asia thought they could contain the virus by quarantining and killing infected animals.

    But these all changed after the virus landed in China -- home to half the world’s pig population -- and later spread to Vietnam and Taiwan.

    While the virus is harmless to human, it is highly contagious and fatal to pigs and farmers are now very worried.

    Agri-business giant Wilmar International had also underestimated the impact of the African Swine Fever on soybean demand which is used as a feed for pigs.

    In fact, the African Swine Fever epidemic caused Wilmar’s core net profit in its latest 2Q19 results to drop by almost half to US$176.8 million from US$351.8 million in 2Q18, as it impacted crush margins.

    Fortunately, this was partially offset by strong performance from Wilmar's other segments like Consumer Products and Oleochemicals.

    In addition, Wilmar's plans to list its 99.99%-owned China subsidiary, Yihai Kerry Arawana (YKA), on the Shenzhen Stock Exchange, is progressing smoothly.

    YKA is one of the largest agribusiness and food processing companies in China. Its business activities include the processing and sales of kitchen food, feed ingredients and oleochemicals in China.

    In an Aug 16 report by UOB Kay Hian, analyst Leow Huey Chuen says, “A lot of concerns were raised on the possible delay of the listing to 2020, given that we are only 4.5 months away from 2020. Based on the progress and communication with authorities in China, management remains confident that the listing will take place by this year and regardless of market conditions, the listing will proceed.”

    On the other hand, RHB Research analyst Juliana Cai said although the African Swine Fever issue will take several years to eradicate, lowering China's hog production will be partially offset by strong growth in the poultry sector.

    In addition, the slowing economy, due partly to the US-China trade conflict, has not impacted the domestic food consumption in China. Instead, it is seeing stronger demand for better quality food products, as such the group is not overly concerned about the current external environment.

    Both UOB and RHB have “buy” calls on Wilmar with target prices of $4.40 and $4.50, respectively.

    In an Aug 13 report, CGS-CIMB Research analyst Ivy Ng Lee Fang says of YKA's IPO, “We raise our valuations for its oilseeds and grains as well as palm and lauric business to 1.2x P/BV, as we expect the listing will unlock value for the oilseeds and grains business. We continue to like Wilmar for its attractive valuations and proposed plan to list its China operations.”

    CGS-CIMB has an “add” recommendation on Wilmar with a target price of $4.58.

    Nevertheless, some other analysts are not as optimism. For instance, Maybank Kim Eng has downgraded Wilmar to “hold” with a lower target price of $3.89 from $4.21.

    In an Aug 14 report, analyst Thilan Wickramasinghe says, “Visibility of a full recovery from the African Swine Fever in China remains unclear creating downside risks.”

    Wickramasinghe believes that it will take years for a full recovery from the African Swine Fever, creating significant medium term margin visibility challenges. However, he expects the increase in palm oil demand in China and higher bio-diesel mandates in Indonesia to support growth and partially offsetting weakness in Oilseeds & Sugar.
     
  5. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 21): Oversea-Chinese Banking Corp (OCBC) is in talks with companies including Singapore Telecommunications about seeking one of the city-state's planned virtual bank licenses, according to people familiar with the matter.

    Singapore's second-largest bank would take a minority stake in any virtual-banking joint venture and sees it as a way to tap new customers and markets, the people said, requesting anonymity because the talks are confidential. For example, Singtel might have clients for its phone services that don't bank with OCBC, one of the people said.

    Banks worldwide face increasing competition from telcos and technology firms that are getting into financial services including payments and lending. But some are partnering, including in Hong Kong where Standard Chartered tied up with PCCW earlier this year to create a virtual bank.

    OCBC's discussions are preliminary ahead of more details on the conditions for the new license applications which the MAS is expected to issue later this month, the people said. The eventual choice of partners may change depending on licensing conditions, they added.

    "We are open to forging new partnerships and ventures that allow us to serve new segments and new markets," OCBC's head of digital and innovation Pranav Seth said in an emailed reply to questions, while declining to comment on any talks on a virtual license application.

    A Singtel representative declined to comment. The company's chief executive officer Chua Sock Koong said earlier this month that her company is studying the prospects for a virtual license.

    The Monetary Authority of Singapore (MAS) said in June it plans to issue as many as five new digital bank licenses to non-bank firms as part of efforts to strengthen competition in financial services. The UK and Hong Kong are among major economies that have allowed licenses for virtual banks, creating a new generation of rivals for traditional lenders.

    The MAS's initiative adds to the digital units that local lenders have been allowed to set up since 2000. The central bank said it will award up to two licenses for new retail banks and as many as three for lenders to small and medium-sized enterprises.

    Of the big three domestic lenders, OCBC is the only one that doesn't have a pure-play digital bank, though it has been using technology to facilitate services such as robo-investment advice and instant online account opening for SMEs. DBS Group Holdings operates a digital bank in India and Indonesia, while United Overseas Bank opened one in Thailand earlier this year.

    In Hong Kong, Standard Chartered holds a 65% stake in one of the territory's new virtual banks, with PCCW, HKT Trust & HKT and Ctrip Financial Management (Hong Kong) Co owning the balance.
     
  6. nottibird

    nottibird Moderator

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  7. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 20): Singapore is pushing up its plans to transform the Greater Southern Waterfront (GSW) into the next trendy place to live, work and play.

    First unveiled in March earlier this year, GSW will be redeveloped over the next five to 10 years, starting from the relocation of the PSA City Terminal in Tanjong Pagar to Tuas from 2027 onwards to help free up prime land.

    The GSW stretches about 30km of Singapore’s southern coastline, from the Gardens by the Bay East to Pasir Panjang. Spanning across 2,000ha of land, the GSW includes the PSA city terminals not just in Tanjong Pagar, but also at Keppel and Brani.

    “Each new generation will leave their mark on our city, as their predecessors have done,” said prime minister Lee Hsien Loong at this year’s National Day Rally on Sunday night.

    For new places to “live”, the government plans to redevelop the land where Keppel Club, the golf course, currently stands after the lease expires in 2021. The area has enough land to build about 9,000 housing units.

    The government also has plans to allow people to “work near where they live, and live near where they work”. Hence, more office space is expected to pop up in the GSW near Labrador Park, bringing in more jobs.

    As for “play”, the government plans to redevelop two old power stations in Pasir Panjang, just like how St James Power Station near VivoCity was turned into a nightlife destination. It also plans to develop Pulau Brani together with Sentosa, after Brani Terminal moves out.

    In an Aug 19 report by DBS Group Research, analyst Derek Tan reckons that VivoCity, the closest large retail mall located at the centre of the GSW masterplan, will be the bedrock of the rejuvenation of the GSW.

    “We believe there will be greater benefits to the mall over time with the expected increase in residential apartments, working population, and new tourism elements added to the GSW,” says Tan.

    Also with plans for a Downtown South resort mirroring NTUC’s Downtown East resort, the analyst believes that it will over time bring more holiday-goers, and families to the vicinity, driving visitations to both Sentosa and VivoCity.

    Meanwhile, with plans for more office space within the GSW, Tan believes that this will be positive for Mapletree Commercial Trust (MCT) which has office properties in the Alexandra precinct (Mapletree Business City Phase 1, PSA Building) and Harbourfront (Merrill Lynch Habourfront building) and will over time benefit from a wider pool of office tenants looking to relocate there while the increased live-in population within the GCW will fuel the attractiveness of the properties to occupiers over time.

    Arising from this development, besides MCT, some other potential beneficiaries could be Frasers Commercial Trust (FCOT), which owns Alexandra Point and Alexandra Technopark in the area, Keppel Corp as well as Genting Singapore from added revitalisation of the area.
     
  8. nottibird

    nottibird Moderator

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  9. nottibird

    nottibird Moderator

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  10. nottibird

    nottibird Moderator

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  11. plutus2

    plutus2 Well-Known Member

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    Good morning Snipers

    if 3 BIG RED candles in a roll... you know what to do... SELL SELL SELL
     
  12. nottibird

    nottibird Moderator

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  13. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 14): Sembcorp Industries reported earnings of $98 million for the 2Q19 ended June, 20% higher than the earnings of $82 million in 2Q18 a year ago, on improved performance from the Energy business.

    Basic earnings per share rose 26% to 4.98 cents from 3.94 cents a year ago.

    Turnover in 2Q19 fell 29% to $2.37 billion from $3.3 billion a year ago. Profit from overall operations rose 21% to $232 million.

    The Energy business reported an 8% rise in net profit to $92 million, driven mainly by good performance in Southeast Asia (ex-Singapore), China and India.

    The Urban business reported a 69% fall in net profit to $11 million with stable contribution from Vietnam and lower contribution from China.



    The Marine business saw net loss narrow 82% to $6 million from a loss of $34 million a year ago mainly due to continued lower overall business volume offset by margin recognition from newly secured production floater projects and the delivery of a rig.

    In June, Sembcorp also provided a $2 billion subordinated loan facility to Sembcorp Marine to strengthen its financial position.

    As at end June, cash and cash equivalents stood at $2.1 billion.

    For the 1H19 ended June, Sembcorp reported earnings of $191 million, up from $159 million in 1H18.

    Sembcorp’s board of directors has announced an interim dividend of 2 cents per share, which will be paid on Sept 4.

    In its outlook statement, Sembcorp says the Energy and Urban businesses continue to underpin the group’s performance. However, the market environment continues to be challenging for the offshore and marine sector and Sembcorp Marine is expecting full year losses.
     
  14. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 14): Yangzijiang Shipbuilding (YZJ) has confirmed that executive chairman Ren Yuanlin is “currently assisting in a confidential investigation” carried out by certain Chinese governmental authorities.

    This comes days after shares in Yangzijiang had plunged amid rumours swirling about certain publications that Ren was caught up in investigations by Chinese authorities for alleged corruption.

    Posts in certain stock investing forums had also alleged that Ren, a controlling shareholder of the company, had been “missing for over two months”.

    In response to a query from Singapore Exchange (SGX), Yangzijiang on Wednesday says Ren had “continued to have a decision-making role in respect of major matters of the company” up until Aug 8.

    The company adds that Ren has been granted a leave of absence by the board since Aug 9 to focus on the investigation.

    “The intention of the leave of absence is to expedite the completion of the Investigation so that he may resume his full-time duties with the group as soon as possible,” Yangzijiang says in a statement.

    In his absence, group CEO Ren Letian will assume Ren Yuanlin’s role as a director of the company.

    Besides Ren Yuanlin, Yangzijiang says none of its other directors and executive officers are involved in the investigation.

    It adds that the businesses and operations of the group are unaffected by the investigation and the executive chairman’s leave of absence.

    “The company reserves the right to commence any proceedings and take any actions for any and all causes of action arising from any falsehoods spread in order to protect the reputation of the group and its directors,” it warns.

    Yangzijiang before noon on Aug 8 had called for the trading of its shares to be halted, minutes after SGX posted a query about the company's unusual trading activity.

    By then, shares in Yangzijiang had tumbled 20% to $1.04, with nearly 84 million units changing hands – more than four times higher compared to its 30-day average volume of some 19 million units.

    In a separate announcement after market close on Wednesday, Yangzijiang requested for the lifting of the trading halt.

    “The board is of the opinion that sufficient information has been disclosed to enable trading in the company’s securities to continue in an orderly manner,” it says.

    For the 2Q19 ended June, Yangzijiang saw its earnings slip 6% to RMB 936.4 million ($185.7 million), as revenue fell 12% to RMB 7.03 billion.
     
  15. nottibird

    nottibird Moderator

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  16. Amator

    Amator Well-Known Member

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    Singapore Technologies Engineering Ltd. (S63.SG) said its second-quarter net profit rose nearly 18% on year in the second quarter because of higher contributions from its aerospace division.

    Net profit for the second quarter ended June was 138.16 million Singapore dollars ($100 million), ST Engineering said Wednesday.

    Revenue during the second quarter grew 8% on year at S$1.78 billion.

    ST Engineering said its order book at end June stood at S$15.6 billion, of which about S$3.8 billion is expected to be delivered in the remaining months of 2019.



    Div 5c ..... xd 21/Aug .....
     
  17. Amator

    Amator Well-Known Member

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    SINGAPORE (Aug 13): Wilmar International reported a 52.3% decrease in net profit from continuing operations to nearly US$150.9 million ($209.5 million) for 2Q19 ended June from US$316.4 million in 2Q18 a year ago.

    The agribusiness group said this was mainly due to lower crush margin for the quarter as the impact of the African swine fever outbreak on soybean meal demand was greater than previously expected. However, this was partially offset by strong performances from Consumer Products and Oleochemicals.

    Earnings per share on a fully diluted fell 52% to 2.4 US cents in 2Q19 from 5.0 US cents in 2Q18.

    There was a loss from discontinued operations of US$33.8 million recorded in 2Q19 and US$55.5 million in 1H19 was mainly due to operating losses and finance costs incurred by the Brazilian operations under Shree Renuka Sugars. Profit from continuing operations, net of tax, fell 49.6% to US$173.8 million

    Revenue for 2Q19 decreased 9% to US$9.78 billion from US$10.75 billion a year ago, due to lower commodity prices, partially offset by a 4% increase in sales volume.

    Tropical Oils (Plantation, Manufacturing & Merchandising) reported a 15% increase in pretax profit to US$177.3 million in 2Q19 from a year ago boosted by stronger performance from the manufacturing and merchandising business, on the back of higher sales volume during the quarter. This was partially offset by lower crude palm oil (CPO) prices and production yields, which reduced contributions from the plantation business.

    Oilseeds & Grains (Manufacturing & Consumer Products) registered a lower pretax profit of US$59.2 million in 2Q19, mainly due to the absence of strong crush volume and margins experienced in 2Q18.

    Sugar (Milling, Merchandising, Refining & Consumer Products) reported a pretax loss of US$69.4 million in 2Q19 mainly due to the consolidation of Shree Renuka Sugars which became a subsidiary in June 2018. The Australian and Indonesian operations performed better.

    Joint Ventures & Associates recorded lower contributions of US$21.9 million for 2Q19 from US$49.6 million a year ago, mainly due to weaker performance from the group’s China associates.

    As at end June, total assets stood at US$46.18 billion while shareholders’ funds was US$16.22 billion. Net debt decreased by US$1.01 billion to US$12.45 billion. Correspondingly, net gearing ratio improved to 0.77x in 1H19 from 0.84x in 1H18.

    For the 1H19 ended June, earnings decreased by 21.5% to US$407.9 million from a year ago while revenue declined 7.6% to US$20.2 billion.

    Wilmar’s board has proposed an interim tax exempt dividend for 1H19 of 3 cents per share which will be payable on August 30.

    In his outlook statement, Kuok Khoon Hong, Chairman and CEO, says, “We have submitted our application to list our China operations on the Shenzhen Stock Exchange. With the disclosure of our China operations in the Prospectus, there is now a better understanding and appreciation of the Group’s China operations...We have built similar operations in many countries including Indonesia, India, Vietnam and in many African countries. We strongly believe that these operations, when fully mature, will enjoy similar good returns in the future. We will continue to expand our operations in our core businesses as we believe the future for food demand is in Asia and Africa. Barring any unforeseen circumstances, we expect the margins of our crushing business and other segments to perform better in the remaining half of the year.”
     
  18. nottibird

    nottibird Moderator

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  19. nottibird

    nottibird Moderator

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  20. sotong11

    sotong11 Well-Known Member

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    good morning, snipers
     
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