The Trading Floor - 2019

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


Draft saved Draft deleted
  1. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 15): ST Engineering announced that its aerospace arm has secured about $450 million worth of new contracts in 4Q18 for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components.

    This bring the total worth of new contracts secured in FY18 to $2.06 billion.

    During the quarter, a number of new contracts secured were for airframe heavy maintenance checks to service both commercial aircraft and private jets.

    These include a contract from a major North American airline to carry out heavy maintenance services to their A321s, as well as a contract for an in-seat power supply, overhead bin and galley modification programme for the airline’s entire suite of 48 A320s.

    Multi-year contracts won in 4Q18 include a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of B737NG/MAX aircraft.

    Furthermore, ST Aerospace redelivered a total of 213 aircraft for airframe heavy maintenance and modification work in 4Q18. Also, a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were conducted.

    In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Authority of Malaysia to carry out base maintenance for the A320neo platform.

    In a media release issued on Tuesday, the group says that the above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings for the current financial year.
     
  2. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 15): Singapore’s aviation services-related stocks have been weighed down by a slowdown in Chinese visitor arrivals in 4Q18.

    However, Maybank KimEng says market worries are somewhat overblown.

    “We remain bullish on the sector for the secular longer-term trends of global fleet and regional passenger and cargo traffic growth,” says analyst Neel Sinha in a Monday report.

    Maybank has a “buy” for ST Engineering, SATS, SIA Engineering, in declining order of preference.

    China visitor arrivals dropped 10% y-o-y in November after posting growth for the first 10 months of 2018 from a slowing economy, a weaker RMB and falling consumer confidence.

    Greater China currently accounts for 24% of inbound tourists to Singapore with mainland visitors making up 19%.

    However, over the longer term, Chinese inbound arrivals hold significant growth potential given low passport penetration estimated at just c9%.

    IATA estimates China will be the fastest growing market globally over the next two decades, growing 1 billion passengers to 1.6 billion, surpassing the US as the world’s largest passenger aviation market.

    Despite newer generation aircraft having longer maintenance cycles, broader industry drivers remain positive for the aviation services sector in the region.

    Estimates by IATA, industry consultant and major OEMs like Airbus and Boeing point to global commercial aircraft fleets growing at 4.5-5% CAGR for Asia Pacific over the next two decades with the MRO market growth tracking similar levels with Asia Pacific, and accounting for the highest growth and largest share of cumulative industry revenues globally over this period.

    Putting the US-China trade war aside, cargo growth in Asean should also see low to mid-teens growth levels over the next few years given the sub-10% online-line retail penetration in these markets.

    Of the three aviation services companies, Maybank believes ST Engineering is best positioned in 2019 as its aerospace operations have limited exposure to Singapore flight frequency and visitor arrivals dynamics.

    SATS is its next pick as its geographic and business line diversification mitigates the exposure to a single market like China.
     
  3. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 15): CapitaLand on Monday announced it is acquiring all the shares in two subsidiaries of Ascendas-Singbridge (ASB) from Temasek for $11 billion to create the largest diversified property group in Asia.

    However, the deal is still subject to an extraordinary general meeting (EGM), which will be convened in 1H19.

    Analysts are maintaining a positive view on this transaction, with DBS Group Research calling a “buy” on CapitaLand with a target price of $3.62.

    Pricing new shares at a premium to the stock’s current share price is a positive, as it implies that the stock remains under-valued at 0.7 times P/NAV.

    In a Tuesday report, analyst Derek Tan says, “While we note that the issue price is below CapitaLand’s NAV, we do see the stock closing the gap post announcement of this deal.”

    The analyst also views this deal as more complementary than synergistic as both groups’ entities are fairly complementary with minimal overlaps.

    The widening of CapitaLand’s scope to include more “new economy” real estate sectors in the business parks and sectors could make the overall group more “future proof” as it navigates through the new world. ASB and AREIT are front runners in this space in Asia and will provide valuable experience.

    Upon a successful deal, the combined entity will make CapitaLand the leading REIT manager in Singapore, expanding its number of REITs and private equity funds to 31.

    “Most importantly, ASB will allow the group to expand its exposure and capabilities in fund management to new asset classes and geographies. Over time, we see more opportunities for differentiated products and mandates to be launched to attract new capital partners,” says Tan.

    OCBC Investment Research is also mantaining its "buy" call on CapitaLand with a fair value estimate of $3.96.

    In a Tuesday report, analyst Andy Wong Teck Ching says, "Although pro forma NTA per share would have declined 7.6% to S$3.88, we opine that this proposed transaction will significantly increase CapitaLand’s scale in its core markets, while allowing it to penetrate new growth geographies and sectors. This will enable CapitaLand to compete more effectively on the global real estate scene.

    Similarly, Phillip Capital is reiterating its “accumulate” recommendation on CapitaLand with a target price of $4.00.

    If the deal is on, CapitaLand will have new business vertical of industrial and logistics, which will diversify its revenue streams and bolster its recurring income, says Phillip.

    In addition, the group will increase its exposure in emerging markets, such as India, which it previously did not have an investment management platform, with the acquisition of Ascendas India Trust.

    In a Tuesday report, Phillip analyst Tara Wong says, “We have always favoured CapitaLand as it builds up its recurrent earnings (comprising close to 90% of its EBIT, for 9M18), which will be further boosted from this transaction, where operating PATMI from ASB will amount to about $300 million.”

    However, the transaction may be immediately accretive to EPS and RPE, this will dilute NAV to 4%. CapitaLand’s management has noted this concern and has expressed confidence in boosting its NAV, mainly through the combined fund management platform and development pipeline.

    CapitaLand is on track to meet its 2020 $100 billion AUM target ahead of time, which the analyst views as a positive in the long term. The group’s next step would deleveraging $3 billion to bring its balance sheet back to a 0.64 times leverage ratio by 2020, which is when more asset recycling could be seen.

    In an unrated report on Monday, analyst Krishna Guha of Jefferies believes the deal underscores the importance of scale and diversification in the real estate sector, while highlighting the growth potential and associated premium in new economy related sub-sectors, such as logistics and data centres.

    The research house has maintained its “buy” ratings on Ascendas REIT, Ascendas India Trust and CapitaLand Commercial Trust.

    As at 11.45am, shares in CapitaLand are trading 1.83% higher at $3.33 or 0.7 times FY19 book with a dividend yield of 4.3%.
     
  4. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 15): RHB is maintaining its “buy” call on ST Engineering (STE) with a $3.97 target price, which implies 4% yield.

    In a Tuesday report, analyst Shekhar Jaiswal says he expects STE to see a revival of profit growth due to increased capacity and capabilities in the Aerospace segment; delivery of smart city-related contracts both within and outside of Singapore; as well as defence-related contracts.

    A recent revival in Marine order wins and the completion of the group’s acquisition of Middle River Aircraft Systems (MRAS) would serve as re-rating catalysts going forward, he adds.

    “STE should be able to complete the acquisition of MRAS by end-1Q19. The acquisition, which will be fully-funded by USD-denominated debt, could lift our 2019F-2020F earnings by 4-5%. We have not factored the MRAS acquisition in our estimates yet,” notes the analyst.

    While much of RHB’s forecast for 16% earnings growth in 2019 is expected to be delivered by the Aerospace and Electronics business, Jaiswal believes an improvement in Marine profitability will also serve as a factor driving growth.

    He also remains positive on STE’s ongoing efforts to build its Aerospace capabilities, which he highlights as key to the group’s growth going forward.

    On the Marine front, Jaiswal believes recent order wins should alleviate some investor concerns as the segment’s earnings outlook improve.

    “In 3Q18, Marine secured c.$431 million worth of contracts including for its shipbuilding business, as well as the ship and rig repair segments. Yesterday, STE announced $560 million worth of contracts for Marine in 4Q18, revenue from which should start accruing during 2H19,” says the analyst.
     
  5. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
  6. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 14): ST Engineering says that its marine arm has secured $560 million worth of new contracts in 4Q18.

    The group was awarded a contract by the Ministry of Home Affairs for the design, construction and maintenance of Fast Patrol Boats for the Singapore Police Coast Guard. Construction of the boats is expected to commence in mid-2019.

    ST Engineering, along with Siemens, have jointly secured an order for a SCC-800 2X1C SeaFloat barge-mounted power plant from Seaboard Corporation subsidiary Transcontinental Capital Corporation, an independent power producer with operation in the Dominican Republic.

    Under this contract, a turnkey plug and play concept, the group will be responsible for the engineering design, procurement and construction of the floating power barge, the balance of plant and the installation of the floating power plant.

    Once completed at the group’s shipyard in Singapore, the SeaFloat concept will provide the customer with a quality proven power plant at a lower cost in comparison to a similar land-based power plant. Construction is expected to be completed in 3Q20.

    ST Engineering also won the mechanical and electrical (M&E) contract for Singapore’s fifth desalination plant. Under this contract, the group will be responsible for mechanical, electrical, instrumentation and control works for the plant consisting of the Air Flotation system, Ultrafiltration system, and Reverse Osmosis system.

    In addition, the group has been awarded a contract by a foreign government for the detailed design and construction of two firm Logistics Support Vessels (LSVs) in the US.

    The vessels will be repeat designs of an earlier LSV with enhancements to include range and cargo capacity changes to suit new requirements, an increase in speed without modifying the hull form or changing the main engine size and type, as well as upgrades to the crew complement.

    The group’s shipyard in US also received a contract from the Naval Sea Systems Command (NAVSEA) for the functional design engineering, procurement of long-lead time material, and limited advanced production to support the new T-AGS 67 Oceanographic Survey Ship. Completion of this contract is expected by May 2019.

    The above contracts are not expected to have any material impact on the group’s consolidated net tangible assets per share and earnings for the current financial year.
     
  7. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
  8. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
    Any announcement when will Capitaland resume trading?
     
  9. starshine

    starshine Well-Known Member

    Joined:
    Oct 17, 2011
    Messages:
    621
    Likes Received:
    4
    Thk u :)

     
  10. starshine

    starshine Well-Known Member

    Joined:
    Oct 17, 2011
    Messages:
    621
    Likes Received:
    4
    Thk u Bro NB.

    ok will go to SJ and hang around there :)



     
  11. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 14): CapitaLand is acquiring all the shares in two subsidiaries of Ascendas-Singbridge (ASB) from Temasek to create the largest diversified property group in Asia.

    The proposed transaction is valued at $11 billion and is subject to approval by CapitaLand’s independent shareholders at an Extraordinary General Meeting (EGM), to be convened by 1H19.

    Once the deal is completed, the combined total assets under management (AUM) of the group will exceed $116 billion. The group’s expanded asset classes will include logistics and business parks, industrial, lodging, commercial, retail and residential. Its geographical presence will span more than 180 cities across 32 countries.

    In addition, the expanded group will leapfrog CapitaLand’s Year 2020 AUM target of $100 billion, putting it among the top 10 real estate investment managers globally.

    Under the terms of the agreement, Temasek will receive $6 billion, which will be satisfied 50% in cash and 50% in new CapitaLand shares. The shares will be priced at $3.50 per share, representing a premium of 11.3%, or $0.36, over CapitaLand’s one-month volume weighted average price of $3.1447.

    The consideration takes into account the adjusted net asset value of ASB, which includes the value of its fund management platform and the trading value of its three sponsored listed trusts. Temasek’s ownership of CapitaLand will increase from 40.8% to about 51.0% upon the close of the transaction.

    ASB is Asia's leading provider of business space solutions. Headquartered in Singapore, ASB’s business presence spans 11 countries including Singapore, China, India, Australia, the United Kingdom and the United States.

    Over 80% of ASB’s $23.6 billion AUM is in business spaces, more than half of which or approximately $12.4 billion, is in new economy sectors of logistics and business parks and data centres.

    In the existing core market of Singapore, the AUM will grow by 40% and 9% respectively. The value of the group’s properties in Singapore will be worth $38.6 billion or 33% of the group’s AUM.

    The value of the group’s properties in China will be worth $48.2 billion or 41% of the group’s AUM. This includes more than 60 million sf of development pipeline.

    ASB has already built up a $2.6 billion AUM exposure in India’s business space sector and launched a-iTrust as an established vehicle to own income-producing business space assets in India.

    In Vietnam, ASB’s OneHub Saigon, a 12ha business park development in Ho Chi Minh City, will also be a strategic addition to CapitaLand’s fast-growing presence in Vietnam.

    As the transaction will trigger an obligation on Temasek to make a mandatory general offer for the shares in CapitaLand which it does not own, a whitewash resolution will be tabled at the EGM to seek the approval of CapitaLand shareholders to waive their right to receive the offer from Temasek.

    The transaction is expected to be completed by 3Q19.
     
  12. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
  13. koaladreaming

    koaladreaming Well-Known Member

    Joined:
    Oct 21, 2011
    Messages:
    2,962
    Likes Received:
    4

    waaa… Miss Fix It! Peifu Peifu :D
     
  14. koaladreaming

    koaladreaming Well-Known Member

    Joined:
    Oct 21, 2011
    Messages:
    2,962
    Likes Received:
    4


    Hello & Happy New Yr Sis Starshine,

    You have been missed and hope you will continue to pop in more frequently this year yeah :)
     
    starshine likes this.
  15. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 11): Singapore Press Holdings (SPH), the media and property group, reported 1Q19 earnings dropped by 6.3% to $57.9 million, due to a 74.3% decline in contribution from investments as the Treasury & Investment portfolio was partially divested by August 2018 at the end of the previous financial year.

    Total revenue, made up of operating revenue and other operating income, fell 3.2% to $258.8 million.

    Group operating revenue, which comprised advertisement and print and digital circulation revenue, rental income and income from other businesses, fell 1.7% to $254.3 million due to lower print advertisement revenue, but partially offset by a $6.3 million contribution from the group’s newly acquired UK student accommodation portfolio.

    SPH said the rate of decline in print ad revenue was the slowest seen in four quarters while digital ad revenue enjoyed double-digit growth of 12.9%.

    Revenue for the group’s media business fell 6.8% to $162.1 million while revenue for its property segment rose 11.1% to $68 million. Revenue for the others segment, which included its aged care business, increased 2.6% to $24.2 million.

    Other operating income, which comprised sales of production waste and other scrap materials, distribution service fees for third party periodicals and income from branding events, fell 48.1% due to the absence of a $5.9 million gain arising from the dilution of the interest on the IPO listing of MindChamps Preschool in 1Q18.

    Total costs decreased by 7% to $183.9 million from $197.7 million last year with other operating expenses dropping by 41.7% y-o-y to $23.9 million.

    Operating profit for the media business was 14.7% higher mainly due to the absence of retrenchment costs recognised in the same period last year while operating profit for the property business was 5.2% higher, boosted by a contribution of $3.2 million from the UK student accommodation portfolio which was acquired in September 2018.

    Net income from investment was 74.3% lower at $3.18 million from $12.4 million in the previous year, mainly attributable to the absence of a gain on disposal of investments of $9.1 million in 1Q18.

    During the quarter, the group recorded a loss from its share of results of associates and joint ventures of $0.46 million, compared to a gain of $0.22 million the same period a year ago. This was due to showflat and marketing expenses for The Woodleigh Residences, but partially offset by lower losses recorded by the online classifieds business in Indonesia and Thailand.

    As at end Nov 2018, SPH’s cash and cash equivalents stood at $379.9 million.

    Looking forward, the group says that its core media business is focused on accelerating its digitisation efforts to capture growth opportunities.

    Ng Yat Chung, CEO of SPH, says, “The print side of the media business continues to experience headwinds, even as we grew revenue from the digital side of the business. We made progress in growing recurring income from the property segment with initial contribution this quarter from our UK student housing assets and we look forward to more contribution."
     
  16. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 11): Fitch Solutions Macro Research is suggesting a high likelihood that the US-China trade dispute will re-escalate after Mar 1, due to disagreements over a number of outstanding key concerns.

    One such concern is a persistent lack of detail surrounding the planned increase in Chinese purchases of American goods and services, which have only been characterised as “substantial” – a term that Fitch notes has been similarly used in statements following presidents Trump and Xi’s dinner meeting at the G20 summit in Dec 2018.

    Another issue is a gap between Washington and Beijing’s positions on structure issues that form the core of US key demands, such as China stopping state subsidies for its state-owned enterprises.

    “Despite the public display of cordiality and positivity by both sides during and after the talks, we maintain our core view that there will likely not be a lasting resolution to the trade dispute after the end of the truce on March 1,” comments Fitch on the recent scheduled trade talks between US and China, which took place earlier this week over Jan 7-9, in a Friday note.

    While the firm acknowledges the likelihood of a eventual deal being struck between the two countries, it believes the outcome will be based on “more shallow and short-term concerns” such as the increased Chinese imports of American goods.

    “Key issues such as the protection of intellectual property and US accusations of Chinese corporate espionage will likely remain unaddressed. This means that a re-escalation of the trade dispute after March 1 due to disagreements on these outstanding key concerns still remains likely,” concludes Fitch.
     
  17. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
    Today is already Day 6 of the bounce.
    You should be looking for a weak stock to SHORT.
     
  18. plutus2

    plutus2 Well-Known Member

    Joined:
    Jan 8, 2013
    Messages:
    3,905
    Likes Received:
    9
    Gender:
    Male
    Location:
    Singapura
    Good morning Snipers, Jan macam up up and away
     
  19. nottibird

    nottibird Moderator

    Joined:
    Oct 25, 2012
    Messages:
    49,072
    Likes Received:
    443
    Gender:
    Male
  20. Amator

    Amator Well-Known Member

    Joined:
    Oct 19, 2011
    Messages:
    4,520
    Likes Received:
    17
    SINGAPORE (Jan 10): UOB Global Economics & Markets Research says bilateral trade relations between the US and China will be “fraught with difficulties” despite the positive steps made with their first face-to-face meeting since their 90-day truce, which concluded on Jan 9 after a one-day extension.

    Both parties released short statements following the meeting indicating they resolved to work towards some resolution.

    Based on a Jan 9 statement released by the Office of the United States Trade Representative (USTR), the negotiations took place with a view to achieving “needed structural changes” in China with respected to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft of trade secrets for commercial purposes, services and agriculture.

    “The meeting outcome suggests there will not be any escalated deterioration in US-China trade ties in the near-term, but the way forward remains fraught with difficulties given the focus on structural changes that are expected from China,” comments UOB economist Ho Woei Chen in a Thursday note.

    Ho nonetheless notes that given the low expectations going into the meeting, several factors were taken positively by markets as efforts to make the negotiations work.

    This included the meeting extension itself; a “surprise attendance” by China Vice-Premier Liu He; as well as the large size of the Chinese delegation at the meeting, which reportedly exceeded 100.

    As the next meeting approaches the half-way mark to its March 1 deadline, Ho believes that it is crucial to note the timing of its occurrence.

    “While there is still the possibility of extension of this deadline, how proactive the parties approach negotiations should provide some indication of the eventual outcome,” says Ho.

    “US Trade Representative Robert Lighthizer is expected to meet with China Vice Premier Liu He later this month, while there is some speculation that US President Trump and Chinese Vice President Wang Qishan may meet at the World Economic Forum in Davos, Switzerland (22-25 Jan) where Wang would deliver a keynote speech,” she notes.
     
Loading...

Share This Page