Wednesday, February 22, 2017

CityDev 4QFY2016

Revenue                       $1,167m
PATMI                         $244m
EPS                              26.1 cents
NAV                             $10.22
ROE                             7.03%

Recurring Income Segment comprises of 55% EBITDA and 52% Total  Assets
International Income Segment comprises of 58% EBITDA and 45% Total Assets

Net Borrowings            $1865m
Gearing                         16%
Interest Cover Ratio     12.5X

CityDev has a gearing of 16% without taking into consideration fair value gains on investment properties!!!! It is one of the least geared companies in STI, I think.

Monday, February 20, 2017

Wilmar - FY2016

                                                       Dec 2016    Dec 2015
Debt/Equity (x)                              0.81            0.82
- Net Debt                                      $11,692m   $11,817m
- Shareholders' funds                     $14,435m   $14,394m
Adjusted Debt/Equity (x)               0.35            0.41
- Liquid working capital                $6,706m     $5,933m
- Adjusted Net Debt                       $4,986m    $5,884m
Net debt/EBITDA (x)                    5.21           5.63
Adjusted Net Debt/EBITDA (x)    2.23           2.80
EPS                                                15.4           16.1
NTA                                               159.4         158.6
NAV                                                228.5         227.6

Friday, February 17, 2017

Ezion - Profit Warning Q4FY2016 & FY2016

Ezion issued the following statement on Fri 17/2/2017:-

"As the market conditions of the global oil and gas industry remains uncertain, the Group has carried out an assessment on the impairments of its assets. While the value of the impairments are yet to be determined, the Group is expected to record a net loss for 4Q2016 and 12M2016 from this exercise. "

The turbulence in the O&G industry remains unabated.

Wednesday, February 15, 2017


I recently divested my investment in SAT at a price of $5.25/shr. Not that I think SAT is a  company that do not deserved holding on but it is more a case of valuation. The recent quarter and YTD 9 month earning are 5.8 cents/shr and 17.2 cents/shr corresponding. At a price of $5.25, this give a PE of about 22 if you take the anualized earnings. Although SAT has low or virtually no debt (debt/equity = 0.07) ,  is in a business area where entry of new competitors is not so easy and there may be potential growth oppotunities, I think the valuation has outrun the fundamentals of the company.

This in part I think is due to the inclusion of SAT into the STI last year.ETF funds who track the STI will automatically trigger buy into SAT leading to its higher valuation vis-a-vis earnings.

As such,  I decided to let go of my holdings at $5.25 but if a buying opportunity come up later, I will definitely consider again.


Revenue                                 = $48,706,000
NPI                                         = $44,566,000
Distributable Income             = $24,335,000
DPU                                       = 0.87 cents
NAV                                       = 39 cents
Gearing                                   = 31.5%
Occupancy                              = 94.3%
Total Debt                               = $650.7m

Monday, February 13, 2017

SingPost - Impending Writeoff

The recent quarter of SingPost results is dismal. Net profits dropped by 27% yoy. Besides the traditional culprits of declining mail businesses, the main drag on profits came from the $10.2m loss suffered by its newly acquired US- based e-commerce company TradeGlobal.TradeGlobal is undergoing structural changes in its business as it lost two key customers ie one filed for bankruptcy and the other switched to in-source sourcing of its freight operations.

SingPost acquired Tradeglobal to the tune of $236m not too long ago under the previous CEO Wolfgang Baier.I do not know the rationale for the acquisition as I am not vested in Singpost after divesting them at around $2 sometime back when I am not convinced with its bloated valuation vis-a-viz revenue/profits.My interest only rekindled recently when Alibaba executed it second block purchase of  SingPost shares to become its largest shareholder.

I am expecting a large writeoff of TradeGobal on SingPost books to the tune of close to $200m in the coming quarters. the worst for SingPost is yet to come.