Month: April 2022

EnGro share price jolly holly with Ho Bee?

EnGro share price

At the request of an SG Wealth Builder Lifetime Member, I am covering EngGro share price in this article. With a market capitalization of just $157.9 million, this is a very small cap stock in SGX. Admittedly, prior to the request from my member, I have not heard of this company before. I believe I am not alone as this counter falls under the radar of many analysts. However, a closer look on this company reveals some interesting findings.

EnGro’s history dates back to 1973 when it was formed as a tri-partite joint venture among SsangYong Cement Industrial Co. Ltd (South Korea), DBS Bank, and Afro-Asia Shipping Co. Listed on the SGX main board since 1983, the company was previously known as SsangYong Cement (Singapore) Pte Ltd. However, SsangYong Cement exited the business in 2005 and the company was renamed as EnGro Corporation Limited.

EnGro share price

As of 15 March 2022, the largest shareholder of EnGro is Dr Chua Thian Poh, Executive Chairman of Ho Bee Land, which controls Afro-Asia International Enterprises Pte Limited. Dr Chua holds 38.68% stake in EnGro. Ho Bee Land is known for being the developer of Sentosa Cove.

To be specific, EnGro is provider of building materials, specializing in specialty cement and high-performance concrete supply. Within SGX, its competitor is Pan-United Corporation. However, unlike Pan-United Corporation, EnGro has [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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LIFETIME

Singtel share price (SGX: Z74) returns from grave!

Singtel share price

This will be my first coverage of Singtel share price in 2022. My last coverage on this counter was on 31 December 2021. Since then, Singtel share price has surged from $2.30 to $2.65 at the point of writing. Year-to-date, Singtel share price has increased about 14%. Is this yet another false dawn or light at end of tunnel for the leading regional telco?

Whilst it may be too early for investors to pop the champagne, the operating climate has certainly improved significantly as compared to 2021. The lifting of COVID-19 restrictions in March had pushed Singtel share price to an almost 2-year high as the incoming volume of tourists should increase revenue for the Singapore Consumer business. Nonetheless, the positive effect should kick in from the new financial year onwards (Singtel’s financial year ends on March).

Singtel share price

The coming weeks should see plenty of volatility for Singtel share price as the telco will release its full-year financial result. Based on the results of the past three quarters, the full-year result should be stellar, thereby providing a tailwind for Singtel share price. To put the icing on the cake, Singapore announced further relaxation of public health measures on 22 April 2022. Arising from this, number of tourists should spike in the coming months, providing another catalyst driver for Singtel share price.

Singtel’s sprawling telco businesses are prone to the impact of the pandemic as a significant portion of the Group’s revenue is derived from roaming revenue from tourists. Hence, the lifting of border restrictions should benefit Singtel’s Singapore Consumer business. Furthermore, its regional associate’s businesses will also benefit from cross border travel as Southeast Asia countries start to ease borders’ restrictions too. Thailand, in which Singtel has operations, has also announced easing of borders’ restrictions on 22 April 2022 too.

Singtel

AEM share price in holy grail with Temasek

AEM share price

What a supersonic form! Investors must buckle their seat belts and brace for the wildest ride of their lives. AEM share price went on a rampage following a series of share purchases by its biggest shareholder – Temasek Holdings. Temasek’s entry in August 2021 saw the sovereign wealth fund taking an initial stake of 9.5% in AEM. Within six months, Temasek increased its stake to 12.08% following a slew of share purchases in 2022. What is the game plan that Temasek has in mind for AEM?

AEM share price

Whilst Temasek’s strategic investment in AEM may seem like a no-brainer, the narrative may not be so straightforward, at least for Temasek. To put things into perspective, Temasek used to have two major assets in the semiconductor industry – Chartered Semiconductor and Stats Chippac. Chartered Semiconductor used to be the world’s third largest chipmaker while Stats Chippac was the biggest Southeast Asia assembly and chip-testing company. Despite so, Temasek had disposed them during the previous downturn of the semiconductor industry.

Chartered Semiconductor was sold to Abu Dhabi in 2009 while Stats Chippac was sold to China’s JCET in 2015. Both companies were delisted from SGX following the buyouts. The rationale for Temasek to sell was understandable as both assets were struggling to turn around for years. Back then, stiff competition from Taiwan Semiconductor Manufacturing Company (TSMC) had led to razor-thin margins for chips. To compound matters, the higher manufacturing costs also mean that it is difficult to sustain operations in Singapore.

Given the notorious boom and bust cycle of the semiconductor industry, what could have caused Temasek to turn its head and invest in AEM? Surely, the motivating factors must be compelling enough after the experiences of Chartered Semiconductor and Stats Chippac. In this article, I will share my thoughts on the plausible …

OCBC share price so bad its good

OCBC share price

Should it be “Sell in May and Go Away” or “Sell in March and Go Away”? In recent years, crises seemed to occur in March, leading to severe stock market corrections. In March 2020, we had the explosive market routs caused by the pandemic. And then in March 2022, the Russian war in Ukraine sent global markets into a devastating tailspin. Being one of the major Straits Times Index (STI) components, OCBC share price saw plenty of volatility.

To be frank, the recent March correction for OCBC share price could have been even more severe if its not for the timely ease of pandemic measures announced on 25 March 2022. The relaxation of measures should bode well for local banks as the operating environment improves significantly in the coming month. Rightfully, as we enter endemic, Singapore economy should recover and grow. Being the bellwether of the economy, OCBC Bank is likely to see healthy growth, thereby stimulating OCBC share price. Nonetheless, things are often not so straightforward in life.

OCBC share price

Inflation has thrown a spanner in the works for the recovery of global economy, which has barely emerged from the pandemic. And the Russia war has added even more fuel to the fire. So now the market concern is that the raging inflation rates could lead to US Federal Reserve raising interest rate by 50 basis points in the 4 May meeting. Question now is: how will this affect OCBC share price?

Under normal circumstances, rising interest rates should benefit banks as net interest income would increase correspondingly. Logically, OCBC share price should rise due to this tailwind. However, there are concerns that an aggressive interest rate hike could hurt the economy, causing non-performing loans to swell. In other words, there are fears that recession is on the way as …

iFAST share price so fast so good!

iFAST share price

After surging from $1.00 in 2020 to an incredible high of $10 in 2021, how will iFAST share price unravel in 2022? The spell-binding run of iFAST share price was certainly stuff of legend among SGX stocks. Given that the counter has recently stalled at $6.00 levels, is it a good time for investors to enter?

For background, iFAST is basically an online platform company offering investment products to retail investors. At the same time, financial institutions and banks can distribute their investment products through iFAST’s platform. The supersonic boom of iFAST share price was due to the award of Hong Kong ePension scheme in early 2021. iFAST partnered with Hong Kong’s PCCW (owned by Li Ka Shing’s son Richard Li) to develop the digital platform for Hong Kong’s HK$1 trillion Mandatory Provident Fund.

iFAST share price

According to the latest disclosure by iFAST, the ePension division is expected to be the biggest driver for revenue and profits from 2023. This means that the project should be operationalized by end 2022. From now till end 2022 is less than a year. Against this backdrop, there should be tremendous catalyst for iFAST share price to take off within these two years.

For perspective, the management shared in the latest financial guidance that the net revenue target from the Hong Kong division should be more than HK$800 million in 2024 and HK$1.2 billion in 2025. In comparison, the revenue and profit for FY2021 amounted to just $216 million and $30 million respectively. For this reason, the Hong Kong ePension project could be a massive game-changer for iFAST share price.

One of the things I like about the Hong Kong ePension project is that it will add a recurring stream of service fees to the Group. iFAST business model predominantly involves growing their assets under administration …

Sembcorp Industries share price in cheeky run

Sembcorp Industries share price

Since my last coverage on Sembcorp Industries share price in June 2021, there was much volatility for this counter. The pandemic disaster in India had caused much uncertainties for Sembcorp Industries’ India thermal projects, causing Sembcorp Industries to be bearish from June to October 2021. The litmus test arrived when the Group announced on 2 August 2021 the impairment of $212 million for its 49%- owned joint venture Chongqing Songzao Sembcorp Electric Power Co.

That fateful announcement on 2 August 2021 caused Sembcorp Industries share price to tumble to a low of $1.80 in October 2021. Consequently, the management went on a rescue mission for Sembcorp Industries share price by embarking on a series of shares buybacks. As at 13 December 2021, the management repurchased 6,780,700 shares from the market. Based on the recent bullish run of Sembcorp Industries share price, it seems that the shares buybacks helped to revive the stock.

Sembcorp Industries share price

Since the fateful demerger of Sembcorp Industries with Sembcorp Marine, Sembcorp Industries share price had gone from strength to strength, surging from $1.18 in September 2020 to the recent $2.65. Within the span of just 1.5 year, Sembcorp Industries share price rocketed more than 100%. Given the robust Sembcorp Industries share price, credit should be given to the Group CEO, Wong Kim Yin, who joined the Group only in July 2020.

Although CEO Wong Kim Yin joined the Sembcorp Industries only in 2020, he had steered the Group through a challenging and tumultuous period brought forth by the pandemic crisis. This is no mean feat. Many critics would argue that Sembcorp Industries is backed by Temasek Holdings, so a corporate turnaround is a given. To this end, I would disagree. I have seen cases of listed entities backed by Temasek Holdings but failed to achieve turnarounds. Examples …