The Trading Floor - Q1 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. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 21): ST Engineering has signed a memorandum of understanding (MoU) with BYD to include the Chinese automobile manufacturer’s electric buses in its Land Systems arm’s portfolio of autonomous bus platforms.

    This comes as part of ST Engineering’s plans to form a consortium, in response to the Land Transport Authority (LTA) and the Singapore Economic Development Board (EDB)’s call for collaboration (CFC) for a pilot deployment of autonomous buses in Punggol, Tengah and the Jurong Innovation District.

    In its announcement on Wednesday, the group says it intends to integrate its autonomous vehicle (AV) kit onto BYD’s buses.

    Both ST Engineering and BYD intend to look at marketing this joint platform internationally, it adds.

    “This partnership is the beginning of our quest for the CFC, and we are excited that a leading OEM of electric vehicles such as BYD has agreed to be part of our consortium,” says Lee Shiang Long, president of Land Systems, ST Engineering.

    “We continue to explore partnerships with like-minded companies and incorporate their capabilities into a proposal that offers a sustainable and scalable transportation solution for Singapore,” he adds.

    ST Engineering and BYD have previously worked together on developing the former’s STROBO range of adaptable and scalable autonomous material handling equipment for the warehouse, airport, seaport and manufacturing industries.
     
  3. nottibird

    nottibird Moderator

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  4. Amator

    Amator Well-Known Member

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    re. capland div 12c .....

    upload_2019-3-20_9-2-41.png
     
  5. nottibird

    nottibird Moderator

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  6. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 20): CapitaLand Commercial Trust (CCT), Singapore’s biggest office landlord, is among suitors in talks about a potential acquisition of the Duo office and retail development in the city, people with knowledge of the matter said.

    The real estate investment trust has been negotiating the purchase of a 39-story office building called Duo Tower, along with the connected Duo Galleria mall, according to the people. The property could be valued at more than $1.5 billion, one of the people said, asking not to be identified because the information is private.

    Other parties also remain interested in the asset, which is located in the Bugis area on the fringe of Singapore’s central business district, the people said. The project’s owner is separately seeking a buyer for the hotel portion of the development in a deal that could fetch as much as $500 million, according to the people.

    The development is owned by M+S Pte, a joint venture set up in 2011 between Malaysian sovereign fund Khazanah Nasional Bhd and Singapore state investment firm Temasek Holdings. No final agreements have been reached, and there’s no certainty the talks will result in a transaction, the people said.

    Singapore’s strong office rental growth is expected to extend into 2019, driven by limited new completions and a strong labor market, according to Bloomberg Intelligence. The supply of new office space in the city-state will shrink to a 12-year low in 2019, Bloomberg Intelligence analysts wrote in December.

    German Architect
    CapitaLand Commercial Trust closed 2% lower at $1.94 on Tuesday in Singapore, on track for the biggest drop since November. The benchmark Straits Times Index was little changed.

    Duo Tower has 568,000 square feet (52,800 square meters) of Grade-A office space with tenants including Abbott Laboratories Inc., Chevron Corp. and Mastercard Inc. The connected shopping plaza comprises 56,000 square feet of retail and restaurant space, according to the project’s website.

    A representative for the manager of CapitaLand Commercial Trust said it “continually evaluates opportunities” that have a strategic fit with the REIT and can create value. A representative for M+S declined to comment.

    The DUO development was officially opened in January 2018 by the prime ministers of Singapore and Malaysia and hailed as a result of the strong ties between the two countries. The project was designed by renowned German architect Ole Scheeren, whose other works include Beijing’s CCTV headquarters building.

    Malaysia Prime Minister Mahathir Mohamad told an investor conference Tuesday the government is identifying opportunities to monetise its assets as it seeks to bring down its budget deficit.
     
  7. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 19): Singapore Telecommunications is expanding its cross-border mobile payment alliance. But how significant will Singtel's foray into e-payments be for investors?

    To be sure, the details remain scant.

    Singtel has refused to reveal if it has a revenue-sharing agreement with its regional e-payments partners. It has also declined to reveal if it charges a merchant fee.

    But Arthur Lang, CEO of Singtel's International Group, says the partnership would result in greater business opportunities, ranging from gaming to social commerce.

    Indeed, all the signs are pointing towards the telco hoping to play a bigger role in the regional digital payments and services space.

    "If you look at payment as a domestic game, it is very difficult. [It] doesn't move the needle from a profitability standpoint because it is such a fragmented market. There are 27 players in Singapore, for instance," says Lang.

    "We are targeting the tourist and unbanked market in the region where we hope to offer [more competitive] merchant and FX rates through [scale that we gain through more partnerships]," he adds.

    The latest to join Singtel's VIA is Tokyo-based NETSTARS, a mobile payment technology company, adding its 100,000 stores to the network’s current 1.6 million merchant partners.

    The alliance currently includes Singtel Dash and its Thai associate's AIS GLOBAL Pay. Kasikornbank’s K Plus and Boost Malaysia will join soon, according to the telco. It also plans to add LinkAja, the new consolidated e-payment services in Indonesia with more than 300,000 merchants, to VIA.

    So far, Singtel has chosen partners in the region that have leading market shares in their respective countries. The telco has made the same bet with its slate of associates in the region. Among its VIA partners, K Plus has the largest network of users in Thailand, Boost Malaysia that has 3.8 million users is the largest in the country and NETSTAR is the biggest mobile payment aggregator in Japan.

    Users can use their respective wallets to make payments in their local currency at NETSTARS’ merchants, from airports to a variety of tourist destinations and shopping malls.

    NETSTARS targets to grow its merchant base to one million stores throughout Japan by end-2020.

    “These partnerships to grow cross-border mobile payments continue to add further momentum to the Singtel Group’s goal of empowering consumers and enabling them to transact seamlessly across borders,” Lang says.

    But whether these moves will benefit Singtel’s investors will remain to be seen – at least for now.
     
  8. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 19): SilkAir, the regional wing of Singapore Airlines (SIA), has grounded six of its Boeing 737 MAX 8 jets following the crash of an Ethiopian Airlines flight last week – the second fatal accident involving the best-selling Boeing aircraft in less than five months.

    But even as the B-737 MAX fleet accounts for some 16% of SilkAir’s total seat capacity, analysts say the net impact of their grounding – which is unlikely to be lifted until at least May this year – is nowhere that significant.

    “With the announced schedule changes for March 16-30, the impact of the MAX 8 grounding will amount to only 1.5% of SilkAir’s systemwide seat capacity,” says CGS-CIMB Research lead analyst Raymond Yap in a Monday report.

    “SilkAir has increased the utilisation of its A320 and 737-800 planes and SIA mainline has mounted supplementary widebody flights,” he explains.

    According to Yap, the SIA group will see a net capacity reduction of 935 seats per week as a result of the grounding of SilkAir’s 737 MAX 8 planes – just a fraction of SilkAir’s total systemwide seat capacity of 61,842 seats per week.

    Yap estimates that SilkAir will see a reduction of 306 seats per week on flights to Phuket, or lower by close to 6%, while seat capacity on flights to Hyderabad will be reduced by 14%, or 258 seats per week.

    At the same time, seat capacity on flights to Kuala Lumpur will be reduced by 10%, or 233 seats per week; and seat capacity on flights to Wuhan will be reduced by 13%, or 138 seats per week.

    Seat capacity on all its other flight destinations are likely to remain intact.

    “Short-term impact on SilkAir’s flights is manageable,” Yap says. “But MAX grounding may delay SilkAir’s long-term strategic plans… The MAX 8 planes are envisioned as the cornerstone of its future fleet because SilkAir has orders for a further 31 MAX planes.”

    Further, SilkAir had planned to retire its existing Airbus fleet as well as Boeing 737-800 planes, which will see the regional airline operate only one aircraft type – the MAX planes.

    It has also planned to retrofit its MAX planes with lie-flat business class seats and seatback In-Flight Entertainment (IFE) in order to offer a comparable product with SIA mainline.

    SilkAir was intended to be formally merged with its parent company into one SIA brand following these changes.

    “All these plans, including the delivery of MAX 8 orders from Boeing, retirement/transfer of other models and seat retrofit, will now likely be delayed due to the MAX grounding,” Yap says.

    While the analyst believes it could be possible for SilkAir to claim compensation from Boeing for the MAX groundings, he says it is “too early to assess the long-term impact on SilkAir and the wider SIA group”.

    CGS-CIMB is keeping its “hold” call on SIA with an unchanged target price of $10.25.
     
  9. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 19): Maybank Kim Eng is starting coverage on Sheng Siong Group (SSG) at “sell” with a target price of 95 cents, which implies 19.5 times FY19F P/E – 1 S.D. below the stocks’ five-year mean.

    The research house’s estimates for FY19-20E new-store sales and same-store sales (SSS) contributions are currently below that of the street. It is also forecasting for only four and two new store openings for FY19 and FY20E, respectively, compared to the 10 new stores SSG opened in 2018.

    Maybank’s conservative projections are considering the supermarket chain’s believed exposure to a slowdown in consumer spending amid economic deceleration, which is expected to come on top of rising e-commerce competition and changing consumer habits.

    In an initiation report on Monday, analyst Sze Jia Min highlights a number of downside catalysts that sees SSG likely to face in the near-term – for one, the rising trend of home-delivered cooked meals due to the emergence of food-delivery services in Singapore.

    “These are early indicators of a structural change in consumers’ dining habits, where in the interest of time, ready meals are preferred to home-=cooked meals. Such a trend is detrimental to supermarkets’ fresh-produce sales,” says Sze.

    Although she expects SSG’s revenue to grow 8.4% y-o-y on the back of new stores opened in 2018, Sze foresees tepid SSS contributions and smaller basket values dragging on subsequent revenue growth.

    This comes as consumers are expected to further tighten their purse strings in the face of decelerating GDP growth, which the research house is forecasting to slow markedly to 1.8% in 2019 from 3.2% last year.

    While Sze acknowledges SSG’s unique positioning for pricing its products competitively against market peers, she is more concerned about the increasing concentration of SSG, NTUC FairPrice, and DFI outlets in multiple HDB heartland locations.

    This implies fierce competition, which in turn may limit consumer conversion to SSG after its competitors narrow the price differences between them.

    “Our analysis of a sample basket of staples shows SSG’s pricing to be comparable to market leader’s NTUC FairPrice and cheaper than competitors like Dairy Farm’s brands. Given small price differences between NTUC FairPrice and SSG and the proximity of their stores, we see limited consumer conversion to SSG when they trade down in an economic downturn,” says Sze.

    “Given SSG’s heartland positioning, the supply of new HDB commercial sites for tendering, bidding competition and the number of supermarket choices vis-à-vis population density will be crucial to its revenue visibility, in our view,” she adds.
     
  10. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 19): RHB Research is sticking to its bottom-up approach in the tech sector, focusing on key selection of stocks which have sound fundamentals and balance sheet as well as good growth despite the ongoing trade war issues.

    This means RHB tries to identify the laggards -- those which have not yet been rerated or rerated less than its peers -- with the hope that these stocks might rerate when they deliver earnings growth, coupled with further positive news on the US-China trade deal.

    “Our Top Picks -- Venture, Fu Yu and Silverlake -- reported positive results and their share prices have also rallied since the start of the year,” says lead analyst Jarick Seet in a Tuesday RHB report, “while we explore new names which we consider laggards like Memtech and Frencken.”

    [​IMG]

    Since US President Donald Trump initiated the possibility of a trade war against China and its other key deficit trading partners in Mar 2018, Singapore stocks, especially those in the manufacturing sector, have taken a significant hit.

    However, since end Jan, there has been positive news on this front coming out from both parties as they have met and held talks during 1Q19. Both parties have also expressed optimism towards a trade deal in front of the media, which improved market sentiment generally, mostly tech stocks, as the market seems to be positioning for a trade deal by end Mar.

    Says Seet, “We do note that not all technology share prices have rallied – some have even derailed due to negative earnings, or a slowdown due to loss of projects, or cut in orders by their customers, like Sunningdale Tech and Valuetronics.”

    In addition, the semiconductor sector remains weak across the whole supply chain, with orders still recovering at a slow pace.
     
  11. sotong11

    sotong11 Well-Known Member

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    morning snipers...
     
  12. nottibird

    nottibird Moderator

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  13. plutus2

    plutus2 Well-Known Member

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    Good the morning, new week, new huat!
     
  14. nottibird

    nottibird Moderator

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    Nite of 16 March 2019, Fri.

    upload_2019-3-16_10-11-8.png

    upload_2019-3-18_8-23-36.png
     
  15. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 15): OCBC Investment Research is maintaining “neutral” on Singapore’s telco sector in the wake of the 4QCY18 reporting season, which saw StarHub and M1 results come in within expectations, while that of Singtels was slightly under.

    Nonetheless, the research house continues to favour Singtel and NetLink NBN Trust with a “buy” rating for both and the respective fair value estimates of $3.79 and $90 cents.

    In a Friday report, analyst Joseph Ng says the latest financial reporting quarter’s “big surprise” came from StarHub’s deep DPS cut from 16 cents in FY19 to potentially 9 cents in FY19, which is significantly lower than his expectations of 12 cents in FY19.

    Given StarHub’s new variable 80% payout ratio, the reduced DPS implies a NPAT of about $195 million, which is about 9% lower than FY18’s $215 million underlying NPAT.

    He also observes that StarHub’s yield spread against that of Singtel has now compressed from 330 bps in the previous financial year to -10 bps.

    “Singtel has guided that it will maintain its 17.5 S-cents DPS for FY19 and FY20, despite the US$525m that will be going towards the group’s participation in Bharti Airtel’s rights issuance, with respect to its 15% direct stake,” says Ng.

    On the other hand, Ng also highlights that NetLink NBN Trust exceeded its IPO projections over the latest quarter and benefitted from more orders from StarHub, as the latter is preparing to cease cable services from July 2019.

    Going forward, the analyst sees the telco incumbents seeking to share infrastructure as the Singapore government intends to roll out 5G in 2020 – considering how it would likely be “untenable” for all four mobile network operators to build out their own, in Ng’s view.

    He also sees the ongoing competition in the mobile postpaid scene as great news for consumers, despite the erosion of telcos’ average revenue per user (ARPU) in the process.

    “ARPU-eroding developments should not come as a surprise, given TPG’s impending commercial rollout. However, more aggressive contract-less SIM-only plans might do little for customer stickiness, though operators do have little alternatives, given its increasing popularity and longer handset replacement cycles,” says Ng.
     
  16. nottibird

    nottibird Moderator

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  17. koaladreaming

    koaladreaming Well-Known Member

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    Well Done :cool:
     
  18. sotong11

    sotong11 Well-Known Member

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    congrates bro Nb
     
  19. nottibird

    nottibird Moderator

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  20. Amator

    Amator Well-Known Member

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    SINGAPORE (Mar 13): The Singapore economy is expected to expand by 1.9% y-o-y in 1Q19, according to the March survey of professional forecasters by the Monetary Authority of Singapore (MAS).

    This is lower than the 2.4% forecast in the December 2018 survey.

    For 2019, GDP growth is expected to come in at 2.5%, a slight downgrade from the previous survey.

    Based on mean probability distribution, the most likely outcome is for the Singapore economy to grow by between 2.0% and 2.9% this year, with respondents assigning almost equal probabilities to the ranges of 2.0–2.4% and 2.5–2.9%.

    This is in contrast to the December 2018 survey, in which a higher probability was assigned to the 2.5–2.9% range.

    For 2020, GDP growth is expected to hit 2.4%. Based on mean probability distribution, the respondents, on average, estimate 2.0–2.4% to be the most likely growth outcome for the Singapore economy next year.

    The March survey was sent out by MAS to a total of 28 economists and analysts who closely monitor the Singapore economy. The report reflects the views received from 23 respondents and does not represent MAS’s views or forecasts.

    For 1Q19, CPI-all items inflation and MAS core inflation are expected to come in at 0.6% and 1.7%, respectively. For 2019 as a whole, they are forecast to be 1.1% and 1.7%, respectively, down from 1.3% and 1.8% in the December 2018 survey. As for the labour market, the respondents expect the unemployment rate to be 2.2% at year-end, slightly higher than in the previous survey.

    [​IMG]

    Among the top risk factors highlighted, the majority of respondents noted that an easing of trade tensions between China and the US could contribute towards a stronger-than-expected growth turnout for Singapore. The proportion of respondents who identified this as an upside risk to their forecasts was 74%, substantially higher than in the previous survey.

    Stronger growth in China resulting from fiscal and monetary stimulus also emerged as a likely upside, with 37% of forecasters citing it in their responses, up from 24% in December 2018.

    A similar number of respondents also included in their lists a pause in monetary policy tightening in developed economies, which was a slight increase from 29% in the previous survey.

    Reflecting recent developments in trade relations between China and the US, a smaller share of respondents identified trade protectionism as a key downside concern, though the proportion remains high at 84%.

    A hard landing in China, possibly exacerbated by inadequate policy responses, was also frequently brought up as a downside scenario. In addition, many respondents cited higher global interest rates, brought about by inflationary pressures and resumption of monetary policy tightening, as one of their top downside risks, though the proportion fell slightly from 41% to 32%.
     
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