Month: October 2019

Hongkong Land share price to suffer Trojan Horse?

Hongkong Land

With a history of 130 years, Hongkong Land is certainly one of the most venerable listed companies in Singapore. Possibly, only Boustead, OCBC’s Great Eastern and UOB’s Haw Par Corp can match Hongkong Land in terms of pedigree and history. If you are talking about prestige, Hongkong Land is even more impressive as its parent company is none other than the famous Jardine Matheson Holdings. Together with Dairy Farm, Jardine C&C, Jardine Matheson Holdings and Jardine Strategic Holdings, Hongkong Land forms the “Hong Kong Five Tigers” that ruled Straits Times Index (STI) for many years.

The Hong Kong Five Tigers are all part of the Jardine Matheson Group and this network of companies established an impenetrable fortress in the SGX mainboard. Nonetheless, what can float a boat can also sink it. In this regard, will the unfolding Hong Kong protests be a Trojan Horse for Hongkong Land share price?

Hongkong Land

Hongkong Land share price in trouble

Troubles certainly come in troops for Hongkong Land share price. Indeed, since the start of the Hong Kong protests, Hongkong Land share price got bombed out, falling from USD6.60 to the current USD5.50.  However, investors who are planning to buy on the cheap and …

Keppel REIT a time-bomb waiting to explode?

Keppel REIT

Amid the current rally in the S-REIT sector, Keppel REIT is one of the rare counters that is majority-owned by Temasek Holdings (49%) and at the same time, an S-REIT that remained elusively laggard thus far. The current Price/Book value stood at 0.875, indicating that Keppel REIT unit price is trading at an undervalued level.

With a strong sponsor in Keppel Land and a solid backer in Temasek Holdings, Keppel REIT can be considered a blue chip among the S-REIT community. Total market capitalization is about $4.2 billion. So the poor form of Keppel REIT unit price, against the backdrop of a powerful rally in the S-REIT sector, must have left investors singing the blue. Then again, unitholders must count their blessings. After all, Keppel REIT’s net income consistently fell for the past five years. It is a miracle that the unit price had not suffered a meltdown.

Keppel REIT

In my opinion, there are a few factors that attributed to the current form of Keppel REIT unit price. However, the investment merits will be highlighted as well so as to provide a balanced view of this counter. Fundamentally, Keppel REIT is not a company in crisis but there is a need …

OCBC share price in for an explosive thrashing?

OCBC share price

Will OCBC share price bomb out on 5 November 2019, which is the day it announces its third quarter financial results? In my view, investors should brace themselves for a wild ride as there are signs that point to OCBC share price breaching the critical support level of $10.00 in the coming weeks.

2019 had been such an intriguing year for OCBC share price. Despite posting good financial results for 1QFY2019 and 2QFY2019, OCBC share price tumbled after the announcement of the financial results. For example, on 10 May 2019, the bank achieved net profit of $1.23 billion for the first quarter of 2019, representing an increase of 11% to 1QFY2018. Yet in that month, OCBC share price plunged from $12.10 to a low of $11.00.

OCBC share price

Then on 2 August 2019, OCBC share price corrected from $11.40 to $10.50 on 26 August 2019. The decline was puzzling because 2QFY2019 results showed that net profit had increased by 1% to $1.22 billion from $1.21 billion reported a year ago. Although the data indicated that growth for OCBC is slowing, the bank is still making healthy level of profits. In this regard, will 3QFY2019 be the final straw that break the camel’s …

DBS Group share price set for another hellish ride?

DBS Group share price

After delivering ten consecutive quarter of increasing profit, DBS Group share price should logically be in heaven right now. However, in life, things aren’t always so straightforward. Whilst the business fundamentals of the bank remained positive, the narrative for the global macro-economic conditions had turned dark. Against this backdrop, DBS Group share price hit the skid to reach the current $24.50 after smashing a record high of $30 in April 2018.

Question now is will Singapore’s DBS Group share price join Hong Kong protest? 11 November 2019 will be destiny day for DBS Group share price as the bank will announce its 3rd quarter financial results for FY2019. Many investors are holding their breath for the release of the financial data. This is because Hong Kong market contributed the second highest profit to the Group (due to Dao Heng bank).

DBS Group share price

To illustrate how important Hong Kong market is to DBS Group share price, the net income from its Hong Kong subsidiary for 1HFY2019 was $755 million while Singapore contributed $2.24 billion. The rest of Greater China contributed only $145 million while the rest of the world provided $118 million. Assuming that the property disposal gain of $86 million …

Keppel DC REIT share price in unstoppable form

Keppel DC REIT

What an explosive bull run! From $1.00 in 2016, Keppel DC REIT share price went on a rampage to reach a high of $2.00 in 2019, representing a 100% increase in value within a span of just three years. Unitholders of Keppel DC REIT must be laughing all the way to the bank. Amid the current rally in S-REITs sector, is the current form of Keppel DC REIT share price sustainable?

Hailed as the first pure-play data centre REIT listed in Asia on SGX, Keppel DC REIT is certainly riding on Singapore’s aspiration to become the Smart Nation. During its IPO, the portfolio comprised of only eight data centres. In the blink of eye, the portfolio has grown to 15 data centres spanning across Asia and Europe. The number of data centres will rise further to 17 as Keppel DC REIT is recently acquiring two data centres in Singapore – KDC SGP 4 located in Tampines Industrial Park and 1-Net North DC in Woodlands. As 67% of the portfolio is in Asia while 33% is in Europe, the management has built a diversified portfolio indeed.

Keppel DC REIT

Being a data centre service provider, Keppel DC REIT is an interesting long-term REIT play …

CapitaLand share price set for explosive bull run?

CapitaLand share price

It has been a lost decade for CapitaLand share price as the real estate developer endured crisis after crisis ranging from the Great Financial Crisis to the European sovereign debt problem to the slew of property cooling measures unleashed by Singapore government. For sure, investors of CapitaLand had a roller coaster ride and suffered plenty of sleepless nights. But the sluggish CapitaLand share price looks set for a turbo-charged spin in the next six months. Read on to find out why CapitaLand could possibly stage a “return of the king” in the coming months.

Being one of the marquee assets of Temasek Holdings, CapitaLand is obviously one of the big boys in the real estate business. The company’s real estate and hospitality portfolio spans more than 120 cities in over 20 counties. In addition to this, CapitaLand also manages eight REITs and business trusts and twenty private funds. Given the diversified global portfolio (worth $129 billion), understanding this real estate giant is never easy but the biggest question among investors must be why CapitaLand share price had consistently been laggard for the past few years.

CapitaLand share price

If investors looked back, CapitaLand share price peaked at $7 to $8 back in …