Tuesday, January 27, 2015
How To Profit From Unloved Companies | The Motley Fool Singapore
How To Profit From Unloved Companies | The Motley Fool Singapore: "When expectations are low, any slight positive news can trigger a big improvement on investors’ perception of the company. And there were positive news about SMRT which appeared by mid-2014."
'via Blog this'
'via Blog this'
Monday, January 26, 2015
Klang mall reopens after facelift - Community | The Star Online
Klang mall reopens after facelift - Community | The Star Online: "The massive makeover, aimed at revitalising and transforming the mall to offer a high-quality shopping experience to customers, was a true challenge for the complex managers, ARA Asset Management Limited, who wanted to exploit the strategic locatio"
'via Blog this'
'via Blog this'
Many projects in pipeline for St James group, News, News, AsiaOne Business News
Many projects in pipeline for St James group, News, News, AsiaOne Business News: Shareholders of the former St James Holdings could reap a bonanza now that it is reinventing itself as a major property player.
Developer Perennial Real Estate Holdings (PREH) completed a $1.56 billion reverse takeover of the nightlife firm last month and is set on raising its net asset value by more than twofold from its current $1.26 billion to $2.62 billion, along with other deals in tow.
The enlarged group will also include a PREH-sponsored vehicle, the Perennial China Retail Trust (PCRT), once it is de-listed.
PREH's net asset value per share is expected to climb to $2.12, said chief executive Pua Seck Guan in a recent interview with The Straits Times. PREH units have yet to commence trading on the mainboard.
This increase assumes the group completes its acquisition of the Beijing Tongzhou Integrated Development and the remaining 51 per cent stake in Perennial Real Estate as well.
"The potential of the company is great because we've created a sizeable platform to deliver long-term growth," said Mr Pua, pointing to PREH's China portfolio, which comprises mixed-use developments worth $13.1 billion.
Its Singapore portfolio, which includes Capitol Singapore, Chijmes and TripleOne Somerset, has a gross development value of $3.8 billion.
Shareholders of the former St James Holdings who keep their shares could enjoy ample rewards, especially as PREH completes its ongoing projects in China and Singapore in the coming years.
Even PCRT shareholders who participate in the share swap can expect an upside, given that they are receiving PREH shares at a discount to the net asset value per share of $2.12, said Mr Pua.
"All our projects, which include the two largest high-speed rail commercial hubs in the whole of China, are strategically connected to major transportation nodes," he noted.
"And that's the exciting thing - because we have seen how successful such commercial hub projects can be in the likes of other cities, be it Tokyo, Osaka or Hong Kong."
The group's integrated development in Chengdu, for instance, is next to the Chengdu East High Speed Railway Station.
It has a gross floor area of 8.2 million sq ft and will boast offices, apartments and retail space when completed.
"When we bought the land about four to five years ago, other developers didn't quite see its potential," said Mr Pua.
"Today, as more train lines are added and as the area evolves to become Chengdu's new central business district, you can see it is bustling with activity."
Other projects in the pipeline include integrated developments in Xi'an, which is adjacent to the Xi'an North High Speed Railway Station, Beijing's Tongzhou district and Zhuhai's Hengqin area.
Mr Pua said the group plans to retain ownership of about 50 to 60 per cent of each China project, while putting the rest up for strata- title sales - as offices, shops, small office home office (Soho) or residential units that will "churn out trading profit and retain liquidity".
Such a strategy, said market watchers, may fetch high rates in a market packed with potential investors.
But they also cautioned that having more sub-proprietors could make it more difficult for the developer to get consensus on issues such as upgrading.
For Mr Pua, however, the sites bode well for the company's long-term prospects.
"We're not keen on selling everything because we believe that, in the coming years, these projects will help build the company's net asset value."
Mr Pua said PREH is also considering real estate opportunities outside of China, especially in countries such as Malaysia, Indonesia, Myanmar and even in Africa.
"But we won't go to a country where we don't know anyone," he said. "We will at least leverage on our business partners' network of relationships and experience before moving into another market."
tsjwoo@sph.com.sg
This article was first published on November 20, 2014.
'via Blog this'
Developer Perennial Real Estate Holdings (PREH) completed a $1.56 billion reverse takeover of the nightlife firm last month and is set on raising its net asset value by more than twofold from its current $1.26 billion to $2.62 billion, along with other deals in tow.
The enlarged group will also include a PREH-sponsored vehicle, the Perennial China Retail Trust (PCRT), once it is de-listed.
PREH's net asset value per share is expected to climb to $2.12, said chief executive Pua Seck Guan in a recent interview with The Straits Times. PREH units have yet to commence trading on the mainboard.
This increase assumes the group completes its acquisition of the Beijing Tongzhou Integrated Development and the remaining 51 per cent stake in Perennial Real Estate as well.
"The potential of the company is great because we've created a sizeable platform to deliver long-term growth," said Mr Pua, pointing to PREH's China portfolio, which comprises mixed-use developments worth $13.1 billion.
Its Singapore portfolio, which includes Capitol Singapore, Chijmes and TripleOne Somerset, has a gross development value of $3.8 billion.
Shareholders of the former St James Holdings who keep their shares could enjoy ample rewards, especially as PREH completes its ongoing projects in China and Singapore in the coming years.
Even PCRT shareholders who participate in the share swap can expect an upside, given that they are receiving PREH shares at a discount to the net asset value per share of $2.12, said Mr Pua.
"All our projects, which include the two largest high-speed rail commercial hubs in the whole of China, are strategically connected to major transportation nodes," he noted.
"And that's the exciting thing - because we have seen how successful such commercial hub projects can be in the likes of other cities, be it Tokyo, Osaka or Hong Kong."
The group's integrated development in Chengdu, for instance, is next to the Chengdu East High Speed Railway Station.
It has a gross floor area of 8.2 million sq ft and will boast offices, apartments and retail space when completed.
"When we bought the land about four to five years ago, other developers didn't quite see its potential," said Mr Pua.
"Today, as more train lines are added and as the area evolves to become Chengdu's new central business district, you can see it is bustling with activity."
Other projects in the pipeline include integrated developments in Xi'an, which is adjacent to the Xi'an North High Speed Railway Station, Beijing's Tongzhou district and Zhuhai's Hengqin area.
Mr Pua said the group plans to retain ownership of about 50 to 60 per cent of each China project, while putting the rest up for strata- title sales - as offices, shops, small office home office (Soho) or residential units that will "churn out trading profit and retain liquidity".
Such a strategy, said market watchers, may fetch high rates in a market packed with potential investors.
But they also cautioned that having more sub-proprietors could make it more difficult for the developer to get consensus on issues such as upgrading.
For Mr Pua, however, the sites bode well for the company's long-term prospects.
"We're not keen on selling everything because we believe that, in the coming years, these projects will help build the company's net asset value."
Mr Pua said PREH is also considering real estate opportunities outside of China, especially in countries such as Malaysia, Indonesia, Myanmar and even in Africa.
"But we won't go to a country where we don't know anyone," he said. "We will at least leverage on our business partners' network of relationships and experience before moving into another market."
tsjwoo@sph.com.sg
This article was first published on November 20, 2014.
'via Blog this'
Sunday, January 25, 2015
Friday, January 23, 2015
1 Quality Share That Could Be Worth a Deeper Look | The Motley Fool Singapore
1 Quality Share That Could Be Worth a Deeper Look | The Motley Fool Singapore: "The nine points in Dorsey’s checklist are as follows:
The firm provides regular financial updates, has a long track record as a publicly-listed entity, and a market capitalisation that isn’t too small.
It has consistently earned an operating profit.
It has generated consistent operating cashflow.
The firm earns a good return on equity.
It has been able to grow its earnings consistently
.
It possess a clean balance sheet.
The firm can generates lots of free cash flow.
There are infrequent appearance of one-time charges.
There has not been major dilution of shareholders’ stakes in the firm."
'via Blog this'
The firm provides regular financial updates, has a long track record as a publicly-listed entity, and a market capitalisation that isn’t too small.
It has consistently earned an operating profit.
It has generated consistent operating cashflow.
The firm earns a good return on equity.
It has been able to grow its earnings consistently
.
It possess a clean balance sheet.
The firm can generates lots of free cash flow.
There are infrequent appearance of one-time charges.
There has not been major dilution of shareholders’ stakes in the firm."
'via Blog this'
Thursday, January 1, 2015
Winners and losers here amid weak ringgit, News, News, AsiaOne Business News
Winners and losers here amid weak ringgit, News, News, AsiaOne Business News:
"Chia Yan Min
My Paper
Friday,
Jan 02, 2015
The weaker ringgit has been a boon to Singapore shoppers and travellers, but the impact on businesses here is mixed.
While some companies with operations in Malaysia say costs are now slightly lower, others say the currency's fluctuations have affected cashflow and demand for Singapore exports.
The ringgit slumped to a historic low of RM2.67 (S$1.009) against the Singdollar last month, as plunging crude oil prices hit revenue from Malaysian petroleum exports.
The currency has since recovered slightly to about RM2.64 against the Singdollar - still down 3 per cent from RM2.57 in June.
Willy Koh, chief executive of precision engineering firm Racer Technology, said the company has benefited as its sales are denominated in United States dollars, while labour and rental costs are denominated in the relatively cheaper ringgit."
Racer Technology has a factory in the Iskandar region, employing 250 to 300 Malaysian workers.
However, the impact has been "very slight" as cost savings were offset by year-end bonus payouts to staff, said Mr Koh.
"If not for year-end bonuses, it might have been easier to see the impact of the weaker ringgit," he added.
While the depressed currency means lower operating costs for some, it has also made Singapore products relatively pricier in Malaysia.
Jonathan Phoon, executive director of wet-towel maker Freshening Industries, said its sales in Malaysia have dipped 5 to 8 per cent in recent months.
Its products are all made in Singapore.
"Retail and medical products are less price sensitive, so we have not been badly affected...We've also seen stronger sales from new product lines, which have helped offset the effect of the weaker currency," said Mr Phoon.
Chan Chong Beng, CEO of interior-furnishing firm Goodrich Global, said Malaysian customers have been "holding back payments to Singapore in the hope that the currency will recover".
"For SMEs, this means they might not get money as quickly, which would affect cashflow," said Mr Chan.
However, neither he nor Mr Koh expect the positive or negative effects to last for long.
"People will get used to the weaker currency after some time," said Mr Chan.
Firms - especially those with factories located close to Singapore - will also eventually have to raise Malaysian workers' wages if the ringgit's weakness is sustained, said Mr Koh.
The impact is negligible for companies like Hai's, which has a factory in Johor making sauces and pastes.
General manager Darren Lim said the company's business there is all conducted in ringgit, so it has been largely unaffected.
"The raw materials we use are bought in Malaysia and our Malaysian business sells the final products to our company in Singapore in ringgit...We're not feeling much of an impact," he said.
Analysts do not expect a strong pick-up in the ringgit, given that commodity prices are likely to remain subdued in the coming year.
Sim Moh Siong, senior currency strategist at the Bank of Singapore, said oil-exporter currencies like the ringgit and the Russian rouble "will likely face more risks this year".
'via Blog this'
"Chia Yan Min
My Paper
Friday,
Jan 02, 2015
The weaker ringgit has been a boon to Singapore shoppers and travellers, but the impact on businesses here is mixed.
While some companies with operations in Malaysia say costs are now slightly lower, others say the currency's fluctuations have affected cashflow and demand for Singapore exports.
The ringgit slumped to a historic low of RM2.67 (S$1.009) against the Singdollar last month, as plunging crude oil prices hit revenue from Malaysian petroleum exports.
The currency has since recovered slightly to about RM2.64 against the Singdollar - still down 3 per cent from RM2.57 in June.
Willy Koh, chief executive of precision engineering firm Racer Technology, said the company has benefited as its sales are denominated in United States dollars, while labour and rental costs are denominated in the relatively cheaper ringgit."
Racer Technology has a factory in the Iskandar region, employing 250 to 300 Malaysian workers.
However, the impact has been "very slight" as cost savings were offset by year-end bonus payouts to staff, said Mr Koh.
"If not for year-end bonuses, it might have been easier to see the impact of the weaker ringgit," he added.
While the depressed currency means lower operating costs for some, it has also made Singapore products relatively pricier in Malaysia.
Jonathan Phoon, executive director of wet-towel maker Freshening Industries, said its sales in Malaysia have dipped 5 to 8 per cent in recent months.
Its products are all made in Singapore.
"Retail and medical products are less price sensitive, so we have not been badly affected...We've also seen stronger sales from new product lines, which have helped offset the effect of the weaker currency," said Mr Phoon.
Chan Chong Beng, CEO of interior-furnishing firm Goodrich Global, said Malaysian customers have been "holding back payments to Singapore in the hope that the currency will recover".
"For SMEs, this means they might not get money as quickly, which would affect cashflow," said Mr Chan.
However, neither he nor Mr Koh expect the positive or negative effects to last for long.
"People will get used to the weaker currency after some time," said Mr Chan.
Firms - especially those with factories located close to Singapore - will also eventually have to raise Malaysian workers' wages if the ringgit's weakness is sustained, said Mr Koh.
The impact is negligible for companies like Hai's, which has a factory in Johor making sauces and pastes.
General manager Darren Lim said the company's business there is all conducted in ringgit, so it has been largely unaffected.
"The raw materials we use are bought in Malaysia and our Malaysian business sells the final products to our company in Singapore in ringgit...We're not feeling much of an impact," he said.
Analysts do not expect a strong pick-up in the ringgit, given that commodity prices are likely to remain subdued in the coming year.
Sim Moh Siong, senior currency strategist at the Bank of Singapore, said oil-exporter currencies like the ringgit and the Russian rouble "will likely face more risks this year".
'via Blog this'
5 kinds of moats
There are 5 kinds of moats in investing:
Brand Moat: This type of moat exists when people think in terms of the brand rather than the category. Coke, not cola. Harley, not motorcycle. Porsche, not sports car, xerox, not copier. iPhone, not cell phone. Mac, not computer. This is a tough moat to build and to be durable requires enormous focus and consistency in the product and the ability to keep that going in the face of competition."
Secrets Moat: Companies with a secrets moat are those whose products use different technology, ingredients, or parts that are patented. 3M is a perfect example of a company with a big secrets moat because they create product around adhesives that are patented (adhesive recipe is a secret) such as Scotch tape and Post Its.
Toll Bridge Moat: Companies with a Toll Bridge Moat are companies who have somewhat of a monopoly over their industry, which positions them as the “go-to” choice. For example, Pacific Gas & Electric (PCG&E) is an example of a company with a “Toll Bridge Moat” because if you want to get power in California, you pretty much have to go through PCG&E.
Switching Moat: This kind of moat is centered on the cost of shifting from one product or supplier to another. For example, a company with a switching moat is Intel. Why? Because Apply built their computers on an Intel chip, so it would be very hard for them to switch to another competitor.
Price Moat: This moat is not so much about the lowest price as it is about the lowest cost. Price moats exist when a company's cost of production is durably lower than the competition, a moat that lets the company remain profitable when all other competitors are losing money.
Brand Moat: This type of moat exists when people think in terms of the brand rather than the category. Coke, not cola. Harley, not motorcycle. Porsche, not sports car, xerox, not copier. iPhone, not cell phone. Mac, not computer. This is a tough moat to build and to be durable requires enormous focus and consistency in the product and the ability to keep that going in the face of competition."
Secrets Moat: Companies with a secrets moat are those whose products use different technology, ingredients, or parts that are patented. 3M is a perfect example of a company with a big secrets moat because they create product around adhesives that are patented (adhesive recipe is a secret) such as Scotch tape and Post Its.
Toll Bridge Moat: Companies with a Toll Bridge Moat are companies who have somewhat of a monopoly over their industry, which positions them as the “go-to” choice. For example, Pacific Gas & Electric (PCG&E) is an example of a company with a “Toll Bridge Moat” because if you want to get power in California, you pretty much have to go through PCG&E.
Switching Moat: This kind of moat is centered on the cost of shifting from one product or supplier to another. For example, a company with a switching moat is Intel. Why? Because Apply built their computers on an Intel chip, so it would be very hard for them to switch to another competitor.
Price Moat: This moat is not so much about the lowest price as it is about the lowest cost. Price moats exist when a company's cost of production is durably lower than the competition, a moat that lets the company remain profitable when all other competitors are losing money.
Subscribe to:
Posts (Atom)