Value Investing For Singapore!

Homegrown Heng Long International (Heng Long) could be in for a promising ride in 2010, if its financial performance for the three months ended 31 December 2009 is a harbinger of things to come.

Dividends matter and they matter a lot! Had you bought Singapore Post at the start of 2005 and held it till the end of February this year, inclusive of dividends, it would have compounded at 9.4% over the 5 odd years, against the Straits Times Index’s 5.6%.

Conglomerate Jardine Matheson Holdings Ltd., one of Asia's oldest trading companies, said Friday (5 March) its 2009 underlying net profit rose 23% to a record high, mainly boosted by strong contributions from its property unit.

It is back to business for the stock market after a prolonged period of sideways-trading, which is not uncommon considering the traditional lull period that investors go through after the Chinese New Year.

The Straits Times Index (STI) reached a high of 2,947 on 10 January and fell sharply soon after the hike in the US Fed’s discount rate.

Being an Asian replica of the low-cost business model established by Ryanair, we think investors will value Tiger on a similar basis.

Things appear to be looking up for the local equity bellwether, which recently breached the 2,800 psychological resistance.

A study by CB Richard Ellis (CBRE) shows that the average transaction value of private homes sold in the primary market in the first 2 months of the year rose to $1.78m per unit, as developers released more upmarket projects.

TO ENHANCE UNDERSTANDING of one of China's youngest but most important major cities, NextInsight brings you a series of interviews...

GEM Major MoversListcoFriday daily gainZhuhai Orbita Shenzhen+10.02%Capchem Tech+7.98%Hanwei Electronic+7.29% THE BENCHMARK Shanghai Composite Index closed Friday down 1.24%...

According to CEO of Oslo bourse, Bente Landsnes, the Norwegian bourse now has a pipeline of companies considering listing there, including a few SGX-listed companies going for dual listing.

SP Setia has received an in-principle agreement from Vietnam's Investment and Industrial Development Corp to develop a 10.8ha land in Binh Duong province,Vietnam, for a 50-year term.

ANWELL TECHNOLOGIES is just days away from a historic moment in its corporate history – the start of mass production...

THE INNOTEK analysts' meeting yesterday was well attended. The company has restarted its IR engagement programme now that...

BROADWAY INDUSTRIAL87.5 cents52-week high/low94.5/13.5 cents2009 dividend yield2.9%PE ratio5.7NAV95.28 ctsMarket cap$180.8 m AFTER A sterling 2009, expect a strong 2010...

CHINA GAOXIAN FIBRE, which sports a historical PE of just 2.6, has enjoyed a recovery in revenue every quarter since...

HWA HONG CORP57 cents 52-week Hi/Lo59 / 23.1 centsDividend yield (trailing 12–mths)24.25%PE ratio7.66Net tangible asset a share48.19 cents (after Tenet...

TOYOTA dealerships in China are facing an easing of sales and customers asking for discounts.The car maker's massive global recall...

SERIAL SYSTEM'S 2H09 net profit of S$6.3 m came in 9% above our profit expectation of S$5.8m. Read more...

SOON after announcing record profits for 2009, these 2 CEOs bought their company shares.Meanwhile, 2 companies - Pan Hong and...

Revenue: -9.4% (4Q09), -38.8% (FY09)Net Profit: NM (4Q09), NM (FY09)Outlook: The Group's performance in 2010 will depend on the global economic conditions.With unexpected global events that may unfold, the directors are of the view that the timing and pace of any economic recovery is difficult to predict.Having regard to its earlier announcement dated 7January 2010 and its outlook in 2010, the directors expect to encounter continued challenges in 2010.FINANCIAL RECORDS Revenue (USD '000)FY 1Q 2Q 3Q 4Q Total2009 29,921 29,557 39,531 59,298 156,5612008 54,479 67,362 69,299 65,433 255,7152007 53,567 60,578 70,680 60,610 245,029FY 1H 2H Total2006 10,106 32,969 43,1672005 11,600 7,168 18,7682004 NA NA 22,427-----------------------------------------------------------Earnings (USD '000)FY 1Q 2Q 3Q 4Q Total2009 413 (2,809) (839) 1,520 (1,715)2008 (1,066) (889) (1,034) (12,413) (15,402)2007 42...

Revenue: +101.93% (FY09)Net Profit: +472.48% (FY09)Press Release: Revenue up 101.9% to RMB554.5 million on stronger sales from all three telecommunication units and maiden contribution from property development business Expects stronger FY2010 on enlarged production capacity and progressive sales from Linping Times Square project Proposing final dividend of S0.622 cents per share, bringing total FY2009 dividend to S1.807 cents; and 10:1 bonus shares issue Outlook: The Group will also continue to expand its geographical presence in provinces such as Guangdong, Jiangsu, and Fujian, while maintaining its strong market share in Zhejiang and Shanghai. The long term prospects for the real estate sector remains highly favourable as market demand for quality residential and commercial developments is flowing to second-tier cities such as Zhejiang. As such, it expects sales from its Linping Ti...

Revenue: -6.47% (2Q10), -7.26% (1H10)Net Profit: +30.93% (2Q10), -3.06% (1H10)Outlook: The retail market is currently undergoing pressure especially from a weakening consumer sentiment.Profit from the apparel business has dropped 13.12% due to cautious consumer spending. This decline is expected to reverse as the economies of both Singapore and Malaysia continue their recovery from the after effects of the recent financial turmoil. The gold business managed to increase its profit by $0.62 million in spite of a 3.11% drop in revenue.This is due to the offset in the gold inventory, which was bought at a lower price and cthus positively impacted the gross profit margin. The volatility of gold prices will continue to have an effect on the amount of future profits. The properties division recorded a 7.73% decrease in profits mainly due to the lower revenue caused by the absence of rental ...

Revenue: -16.9% (2Q10), -17.9% (1H10)Net Profit: -34.8% (2Q10), -65.3% (1H10)Outlook: Despite signs that the global economy is recovering from recession, the economic outlook remains uncertain. Construction of the new 2-storey chemical warehouse cum office was completed and TOP obtained in November 2009. This facility would contribute to the Group’s rental income from January 2010 onwards. The Group has reviewed its strategic options with regards to its proposed investment in Citic Logistics Co., Ltd. In view of growing uncertainty as to the project’s risk-return environment, the Group is taking steps to recover its advances made. On the proposed sale of the property at 30/32 Tuas Avenue 8, as announced on 30 November 2009, the Group has submitted a Notice of Appeal to pursue its claim against the purchaser.In the meantime, the Group continues to derive rental income from the prope...

Revenue: -19.2% (1Q10)Net Profit: -63.7% (1Q10)Outlook: It appears that the economic meltdown has bottomed out and the Group is seeing some improvement in the general economic environment and improved orders from its customers. However, full recovery of the economy and business to pre-crisis level is expected to take some time.The Group expects the business environment to continue to be tough, challenging and highly competitive with volatility in foreign exchange rates and prices of energy and raw materials.Revenue (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 394,3072009 488,081 334,264 352,077 399,848 1,574,2702008 214,399 254,883 462,347 482,814 1,414,4432007 245,557 200,318 213,472 211,235 870,5822006 315,563 226,899 245,735 249,198 1,037,3952005 256,741 225,335 259,376 285,583 1,027,035-----------------------------------------------------------Earnings (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 2,...

Revenue: +14% (2Q10), +26% (1H10)Net Profit: +378% (2Q10), +50% (1H10)Outlook: Recent economic data appears to indicate that the worst of the economic crisis may be behind the group and a modest recovery is underway globally.Despite this, the Group believes there will still be many challenges and uncertainties that lie ahead. Hence, the Group will maintain its disciplined approach to risk management and operational efficiency. With the Group’s strong cash position and healthy balance sheet, it is confident that it will be able to weather the uncertainties and continue to grow its market share.FINANCIAL RECORDSRevenue (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 154,601 111,9072009 113,539 97,803 138,147 100,827 450,3172008 113,250 94,397 134,120 93,228 434,9952007 100,585 90,839 121,994 84,817 398,2352006 96,711 85,408 119,358 82,310 383,7872005 89,801 83,493 110,328 76,484 360,106-----------...

Revenue: +1.98% (2Q10), -11.45% (1H10)Net Profit: NA (2Q10), NA (1H10)Outlook: The Group expects market conditions to gradually improveThe Group aims to improve its product mix and profit marginsIt will continue to actively manage its operating costsFINANCIAL RECORDSRevenue (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 69,622 76,5962009 90,006 75,110 63,252 69,262 297,6302008 84,330 80,583 80,046 83,788 328,747FY 1H 2H Total2007 138,774 158,627 297,4012006 119,879 134,632 254,5112005 90,658 100,923 191,581-----------------------------------------------------------Earnings (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 905 1,9682009 3,256 (2,258) 69 (59) 1,0082008 2,951 1,316 1,979 1,332 7,578FY 1H 2H Total2007 5,607 6,014 11,6212006 6,498 9,057 15,5552005 2,996 5,607 8,603-----------------------------------------------------------DividendsFY Interim Final Special (SGD)2010 NA2009 NA NA NA2008 0.010 0.005 NA...

Revenue: -89.3% (2Q10)Net Profit: NM (2Q10)Outlook: Barring any unforeseen circumstances and delay in the roll out of products, the Group remains cautiously optimistic about its performance for the second half of FY2010.FINANCIAL RECORDSRevenue (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 733 4682009 270 4,365FY 1H 2H Total2009 4,635 1,161 5,7962008 5,484 5,214 10,6982007 3,522 2,726 6,2482006 9,317 3,455 12,7722005 NA NA 18,067-----------------------------------------------------------Earnings (SGD '000)FY 1Q 2Q 3Q 4Q Total2010 (582) (2,838)2009 (860) 1,905FY 1H 2H Total2009 1,044 (3,849) (2,805)2008 1,042 1,140 2,1822007 46 93 1382006 2,432 (25,249) (22,817)2005 NA NA (9,017)-----------------------------------------------------------DividendsFY Interim Final Special (SGD)NA-----------------------------------------------------------Bonus / Rights / Stock SplitDate Type DetailsNA---------------...

Revenue: -0.0% (3Q09), -12.1% (9M09)Net Profit: -10.2% (3Q09), -23.6% (9M09)Press Release: Revenue up 12.6% qoq to US$14.8m; achieves growth in all sectors Hard Disk Drive grew 7.9% qoq and 21.7% yoy to US$8.4m Gross margin up qoq and yoy to 32.2% Net margin up qoq to 13.3% Revenue grows 36.6% qoq to US$13.2m led by Hard Disk Drive growthOutlook: Business sentiments continue to improve; economic uncertainties however continue to cloud business outlook. The Directors are as such cautiously optimistic of the Group’s prospects for the December quarter.FINANCIAL RECORDSRevenue (USD '000)FY 1Q 2Q 3Q 4Q Total2009 9,651 13,181 14,8422008 14,023 13,993 14,845FY 1H 2H Total2008 28,016 27,540 55,5562007 18,828 28,976 47,8042006 15,176 16,706 31,8822005 12,076 14,277 26,353-----------------------------------------------------------Earnings (USD '000)FY 1Q 2Q 3Q 4Q Total2009 624 1,449 1,9732008 ...

Revenue: -84% (3Q09), -55% (9M09)Net Profit: -74% (3Q09), -77% (9M09)Outlook: Following the successful implementation of China’s RMB 4 trillion stimulus package, there was a respite for the steel mills.However, the fundamental issues of falling exports, soaring imports and concerns of oversupply remains unresolved in the steel industry. The Group will focus on prudent cost containment measures and effective cash flow management to prepare for the recovery in the long-run.The management has put in dedicated efforts to streamline its operations and implement cost control measures during this current economic turndown and shall continue to monitor its financial position closely. FINANCIAL RECORDSRevenue (SGD '000)FY 1Q 2Q 3Q 4Q Total2009 65,851 44,180 18,4872008 44,310 130,553 113,320FY 1H 2H Total2008 217,610 174,682 392,2922007 54,191 62,981 117,1722006 13,604 20,221 33,8252005 1...