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  • Asked by Isaac Chan

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 4d ago
    TL;DR There could be some strong earnings potential from growth in developing countries for Singtel's investments overseas, although the telco market in Singapore is quite lukewarm. Business Profile I don’t think Singtel needs much explaining since most of us have used one of their products before and is the largest telecom operator in Singapore. What you may not know, is that its Australian subsidiary Optus is the second largest operator in Australia. Singtel also has substantial stakes in telcos in the region – Telkomsel in Indonesia, Bharti Airtel (Bharti) in India, AIS in Thailand and Globe in the Philippines. Financials Income Statement For FY17/18, revenue was 17,532m with a YOY increase of almost 5%. There was a hug increase in exceptional items due mainly to the gain on disposal of an associate. This suggests that the much higher profit from operating activities of almost 70% is driven by non-core activities like disposal of subsidiaries, and less by operating activities like revenue. Overall profit after tax was 5403m, a 41% YOY increase, but as mentioned, the disposal of the associate should not be treated as a recurring and core activity of Singtel. Balance Sheet Current Ratio for FY17/18 was only 0.72, suggesting that Singtel’s short-term liquidity isn’t strong. Interestingly, much of Singtel’s current assets was made up of receivables, whereas Singtel’s payables is predominantly made up of payables and unsecured borrowings. Singtel’s leverage (D/E) is 0.35, showing that the Singtel’s capital structure is made up mainly of equity. A L/E of 60%, also reveals Singtel’s greater dependency on equity holdings as compared to liabilities. Cashflow Singtel’s cashflow from operating activities was a slight improvement, due to higher profit before tax and stronger working capital management. For investing activities, there was a large purchase of intangible assets (5X previous FY), comprising mainly of telecommunications and spectrum licenses. Cashflow from financing activities had a large outflow due to mainly repayment of term loans and special dividends paid out. Risks Competition in Singapore The increased competition in Singapore’s telco space has led to intensified efforts by Singtel to maintain it’s foothold and market share. Additionally, the telco space in Singapore is already quite saturated with different competitors and a market size that is unlikely to grow due to slowing population growth and a lack of innovation on mobile offerings. Weak Enterprise Segment There have also been a slow order flow from Smart Nation projects, and the hype from this national development may lead to a lower valuation given by investors who had believed that Smart Nation development will improve Singtel’s earnings. Growth Associates Growth The listing of Airtel Africa in the middle of this year could allow Singtel to monetise its stake there. Also, increases of tariffs in India or a partial exit from its digital businesses could also help to lift earnings this year. Developing Countries Other than Australia and Singapore, Singtel also operates in Thailand, India, Philippines and Indonesia. These developing countries have a growing middle class that usually demand greater mobile and internet connectivity. This provides potential upside to Singtel in the long run.
  • Asked by Anonymous

    Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 5d ago
    Soup Restaurant. As shareholder, you can apply special card and get discount in the restaurant. Whether is good to buy their stock or not, that is another discussion.
  • Asked by Anonymous

    Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 2w ago
    Doing that is similar to buying Toto and 4D based on the weather forecast for the next few weeks. If got alot of rain, you should not buy. If alot of bright sunny days, you buy. When the weather forecast is wrong, we do not blame the forecaster or nature. However in financial markets, it is a strange phenomenon. If I forecast company X to do 10% increase profits, and they did not meet the forecast, the markets will punish the company for not meeting the forecast! Strange indeed!!
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered 2w ago
    Here's an update on CCT's financial results based on its 2018 annual report. Portfolio Value Due to the capital appreciation of its existing properties and acquisition of prime office real estate its portfolio value grew at a CAGR of 7.2% over last 10 years from S$5.7 billion in 2009 to S$10.6 billion in 2018. Gross Revenue Due to steady growth in gross revenue from Capital Towoer, RCS & Six Battery Road and injection of revenues from CapitaGreen & Asia Square Tower 2, CCT's achieved a CAGR of 3.7% in gross revenue, increase from S$403.3 million in 2009 to S$557.4 million in 2018. Distributable income / Distribution per unit (DPU) Distributable income grew by a CAGR of 5.5% from S$198.5 million in 2009 to S$312.7 million in 2019. Therefore growing its distribution per unit from 7.06 cents in 2009 to 8.70 cents in 2018. CCT is trading at a PB ratio of 1.07, significantly higher than its 10 year average of 0.92. However, its current dividend yield is 4.53%, which is below its 10 year average of 5.56%. CCT's current gearing ratio is 34.9% which is significantly below MAS's limit of 45%. Future Outlook Following its acquisition of Galileo (located in Frankfurt's CBD) in Jun 2018, it is expected to contribute its first full financial year of results in 2019. Additionally, the redevelopment of Golden Shoe Car Park is expected to be completed in first half of 2021. TL;DR: CCT has steady growth in revenue, DPU over the last 10 years. In terms of outlook, the major growth driver will be Golden Shoe Car Park and Galileo. CCT is trading above its P/B ratio average, suggesting it is expensive to buy now.
  • Asked by Anonymous

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Level 4. Prodigy
    Answered 2w ago
    The underwriters overpriced the company at $72 per share when the indicative range was $62 - $68. Given how it made a loss of $900 million in 2018, many find the share price unjust given the uncertainty of it's future propsects (when will it turn profitable) and hence the push down in share price with the short-sells as what Sandra has mentioned.
  • Asked by Anonymous

    Luke Ho
    Luke Ho, Money Maverick at Money Maverick
    Level 6. Master
    Answered 2w ago
    Buy the US Index and get both. Because why not?
  • Asked by Anonymous

    Luke Ho
    Luke Ho, Money Maverick at Money Maverick
    Level 6. Master
    Answered 2w ago
    Most elections tend to run the same way - they either leave stocks falling a little or stagnant, and tend to bounce back up once its been decided for a while. But its extremely hard to time and the market may move in a completely different direction from the winner predicted. For the US, the market went up with Donald Trumps victory despite millions - literally millions - of articles and predictions that it would go down. So don't bother figuring it out and stay invested.
  • Asked by Donald Kieran Ang

    Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered 2w ago
    You can take a look at EQQU and CNDX. There is already overlap for S&P 500 and MSCI world index so it might not be a very good idea to get NASDAQ 100 as well.
  • Asked by Billy Ko

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 2w ago
    Business Profile : Yanlord is a real estate development company focusing on high-end and luxury residential developments throughout 14 major cities in China and has a very established landbank. It has a market cap of over $2.73 Bn, and has been getting quite a lot of attention for potential high growth rates. Financials: Revenue decreased from FY17 to FY18 by almost 4%. Overall Profit Before Tax had also fallen because of increases in financing costs, selling & admin expenses despite increases in Other Opearting Income and gains. Current ratio seems quite healthy at almost 1.5. FY18 also seems like the year where they paid off the rest of their short-term debt, with no new short-term debt due this current FY. Cashflow from operating activities had also turned a positive since last FY, due to a significant decrease in cash outflow for properties in development and improved working capital. Valuation : Based on analysis from DBS and Simply WallSt, it seems that this share is undervalued. This is based both on intrinsic valuation from forward earnings, but also a comparison with Yanlord's current P/E ratio of 3.81X which is lower than their historical average of 5X. Although target price has fallen, it seems that the undervalued stock may be a good buy. Risks : Many of Yanlord's projects which perform well are situated in Tier 1/2 cities in China. However, these areas are still tightly controlled by the central government and there is a risk that changes in policies and regulations could affect how businesses are operated there. A slowing down of the Chinese economy could also lead to slower growth rates and opportunities in the future. Growth Opportunities : Yanlord will likely reduce their acquisitions of new land and properties, due to the higher gearing ratio that they have and lower pre-sales. Yanlord has more incentive to launch projects at government guided price.
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