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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 1h ago
    Isetan is a household name and many of us might have shopped there before. I wiill try something out here and analyse Isetan through the lens of their cashflow statements. Operating Cashflows The first thing that strikes me here is that profit is actually negative for them. Just from looking at their cashflows, I believe that this is also due to the impairment on property, plant and equipment of $12m. Thankfully, the company has managed their working capital for this year in such a way that it actually generated more cash for them. Working Capital refers to assets such as inventory, receivables (money owed from others) and payables (money that you owe to others). Investing Cashflows What strikes me here is the high amount that i spent on purchases of financial assets and payments for investments property. These 2 outflows have contributed significantly to the negative cashflows for investing activities. Financing activities Cashflow from financing activities was negative as well, due mainly to dividends being paid out. This would bring us to a dividend payout ratio (dividends/net profit) which is negative, since net profit was negative. Free Cash Flow A quick and dirty estimate of Free Cash Flow brings us to 6.2m. If the company does not hold much debt, then such the free cashflow flows to shareholders of the company.
  • Asked by Isaac Chan

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 4h ago
    TL;DR Singpost has fluctuating profitability and cash flows. Although global expansion has contributed to growth, their e-commerce segment needs to be watched more closely. We all know who Singpost is… So I don’t need to mention much here. But other than posting letters, they do also provide courier services and end-to-end eCommerce logistics solutions. They mail 3 million letters a day and have operations all over the world. Not sure if you know this, but there are 743 street posting boxes in Singapore. What can their financials tell us? Revenue is split between postal, logistics and e-commerce. Postal and logistics revenue are about the same, with e-commerce being the smallest. Overall, revenue has increased over the years, due to expansion overseas as well as Singpost not just sticking to delivering mail and parcels. However, profitability have been fluctuating over time, despite revenue increasing steadily. This can be said about the same as cash-flow from operating activities as well. With different strategic initiatives leading to different capital expenditures, free cash flow has also fluctuated. For example, it was 0.3m in FY17, but one year later in FY18, it was 136m. Interest coverage have also reduced over time, which started with a high of 41.6 in 2014, and with the latest FY being 25.2. This shows that the ability for business to pay back interact based on it’s operating cashflows seems to have reduced over time, as seen by how EBITDA has fluctuated over time. What are some risks faced? The logistics playing field is quite competitive, and Singpost may find it harder to expand and grow overseas. Also, value differentiation might be harder between different competitors because I believe they mainly compete on price, convenience and efficiency. This could mean that the main bulk of the business relies on operational capabilities. There could also be further e-commerce losses losses following the acquisitions of Jagged Peak and TradeGlobal. Increased losses here would reduce earnings of Singpost as a hold.
  • Asked by Isaac Chan

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 4h ago
    TL;DR The company houses several brand names such as Ajisen Ramen. Despite competitive F&B spaces, the firm has growing revenue and profitability. How does the business make money? Japan Foods Holding Ltd is an F&B group in Singapore specialising in quality and authentic Japanese cuisine. They currently operate a chain of more than 40 restaurants, with some franchise brands and some self-developed. Notable brands include Ajisen Ramen and Menya Musashi (I tried the 5X ramen before which I regretted) They have also venture d into Malaysia and Vietnam to franchise some of their brands. Basically, they are in the F&B restaurant business. What can their financials tell us? Revenue has grown by a Compounded Annual Growth Rate of 4.3% over the years, to 67.8m in 2018. Ajisen Ramen is actually the most popular brand generating the highest revenue of 26.8m, almost 40% of the company’s total revenue, followed by Menya Musashi. The increase in revenue can be attributed to the opening of new outlets of Ajisen Ramen a well as conversions of certain food outlets to one of their other brands. Cashflow from operating activities look healthy and stable, being able to service their cash needs for investing and financing activities, such that the firm is mostly cashflow positive every year. This is a healthy sign since the firm’s core revenue generating activities can sustain the needs of the business. The firm has also become more profitable over time, as shown by Return on Assets and Return on Equity increasing despite increases in both assets and equity. This is an indication that the firm is able to reap returns based on the capital that they possess. Gross Profit Margin and EPS have all improved, reflecting this trend as well. With a Net Cash for Net Debt/Equity, this shows that the firm is well leveraged, and won’t have much interest or debt payment obligations in the future. Four-Pronged Strategy The firm has developed these strategies which include development of new concepts, overseas expansion, cost and quality control and network expansion and consolidation. This to me seems like the right moves to make. Developing new concepts helps to diversify revenue streams, which reduces risk and also introduce fresh concepts to the public. With the limited Singapore market, expanding overseas is also quite necessary to tap on growing middle class bracket in Asia. Network expansion and consolidation might help to reduce costs due to economies of scale too. With high fixed costs like rent and staff costs, increases in revenue will more than proportionately increase profits, so expansion is quite crucial.
  • Asked by Anonymous

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

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 9h ago
    If you are a Singapore resident trading US markets, you are subject to dividend withholding taxes, not capital gains taxes. Have you filled up a W8Ben Form when you opened the broker?
  • Asked by Anonymous

    Ernest Yeam Wee Leong
    Ernest Yeam Wee Leong
    Level 4. Prodigy
    Answered 2h ago
    I assume that you are comparing the two since you probably want to know which investment product will tick your boxes. i have done a breakdown below for your reference on some on the commonly compared points. Do note that there are assumptions made for the chart created.
  • Asked by Anonymous

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

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered 2h ago
    I think it can go 2 ways. Event organiser or online advertising Event Organiser: Since seedly is linked to so many in the wealth, finance, investment space, they can aggregate an event such as seedly personal finance festival where all the different bloggers, investment trainers etc can come together to give talks, educate, and interact. Online advertising: With high traffic volume coming in daily, very easy to monetize with display ads, video ads, maybe search ads, contextual and native ads.
  • Asked by Anonymous

    Ernest Yeam Wee Leong
    Ernest Yeam Wee Leong
    Level 4. Prodigy
    Answered 2h ago
    Based on the scenarios that you mentioned above, i will be able to answer you since i have invested via coassets before and faced the same situations as you. 1) if there is a project which you funded but eventually the project is not fully funded, you will receive a refund for it back into your coassets account. you can decide if you want to withdraw or leave it there for other investment projects. 2) regarding the rates, it will be best to clarify with the coassets staff directly. The project details will indicate specifically the amount you will receive based on what you invested. Attached is my transaction history in coassets for reference
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered 1h ago
    Share price doesn't actually mean much alone, they just tell you the price of a slice of the pie that is OCBC. Though OCBC does have a smaller market cap than DBS, it doesn't mean much against if we just compare the price and market cap of these organisations alone, I think what we should be focusing on should be the relative valuation ratios such as P/E ratios PEG ratios etc. that would give a relative performance or overpriced/underpriced gauge of these firms.
  • Asked by Anonymous

    Thaddeus Tan
    Thaddeus Tan, Community Lead at Seedly
    Level 4. Prodigy
    Answered 39m ago
    Hi there, waa I can feel you being stressed all the way from where I am hahaha but okay hope the answers will help you in one way or another. TL:DR, Proceed with solutions that are within your control. There will be solutions that are within your control and those that are not. For practicality, let's unfold the solutions that you have control over since it's tough to interfere with factors you can't control... Let me further group the two types of solutions into a long term and short term solution . For short term solutions which means that the proposed solution might help you alleviate the problem only temporarily. Some things I can think of and which you might want to explore would be: 1) Distancing yourself from him By doing this, you do not have to be affected by his negativity and you can instead surround yourself with people who can bring out the best in you. 2) Alter the topic of conversation Recognise that he is such a person and do not add fuel into the fire. If you know he is such a person, don't give him an opportunity to express that negativity. Discuss about other things. If he finds negativity not only in work but is just super negative in everything, then you can probably go back to point 1 HAHA 3) Discuss with the manager about it This point is not so much about complaining and sabo-ing him so that he is seen in a bad light. If you dig one level deeper, this negativity might be a result of a. workload being too much b. he finds that the things he do is not meaningful c. other reasons. The manager might be able to help alter his negative mindset by finding out more and taking up the appropriate measures. For the longer term solutions , you can try to take the time and effort to find out more This tackles the root of the problem. After finding out more as to why he is being so negative, you can as best as you can help him along the way to see things in a more positive light. All in all, if it's in you to help people then maybe you could try helping him rather than just distancing yourself from him and letting him continue being this way. Hope this helps!
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