The outlook is turning positive for ComfortDelGro Corporation (CDG) as pressures from private-hire car services have eased significantly following the merger between Uber and Grab in March 2018. On the ground, private-hire drivers complained of lower earnings mainly as a result of reduced incentives and many, who were formerly taxi drivers, have returned to their previous trade.
PropNex is Singapore's largest listed real estate brokerage with over 7,000 sales professionals. As an integrated real estate services group, PropNex operates four main business segments – Real Estate Brokerage, Training, Property Management and Real Estate Consultancy. The group is the second real estate brokerage to make its SGX Mainboard debut on 2 July 2018 at $0.65 per share, after APAC Realty in September 2017.
n February this year, Shares Investment featured JB Foods as a strong business that would remain unfazed in the age of technological disruptions. JB Foods’ shares were then trading at around $0.53, after applying the adjustment factor for the rights issue. The group’s shares have since steadily advanced over 10 percent to $0.585 as at 17 September 2018. Shareholders that remained steadfast for the past year have more reason to celebrate as their total returns more than doubled. However, as many investors tend to be wary about stocks that have registered a significant increase in price, this is the point where the upward momentum stalls. Conversely, we believe that run is not quite over for JB Foods.
Although technological advancement has affected many businesses over the past decade leading to the rise and fall of many companies, the business of moving large amounts of goods from one location to another has remained relatively unchanged. Despite the availability of air freight, over 90 percent of world trade continues to be carried by sea due to the lower freight costs. While the shipping industry is a resilient one, it is in itself a highly competitive industry. With over 50,000 merchant ships trading internationally, shipping companies are often embroiled in price wars and they fight for a greater market share.
A one-stop specialist offering complete service in the designing, manufacturing and supplying of metal products and solutions, Nam Lee Pressed Metal Industries (Nam Lee) is one of Singapore’s leading providers of fabricated metal products and cutting-edge metal solutions. Since our previous coverage on Nam Lee in April 2016, the group’s shares have advanced around $0.10, or approximately 34 percent, to $0.375 as at 16 August 2018. During these two years, Nam Lee’s shareholders were also rewarded with a total dividend payout of $0.04. The capital gain and dividend income translates into a total gain of almost 50 percent.
In the hunt for investment worthy stocks, investors tend to make use of several common valuation indicators such as price-to-earnings (P/E) ratio, price-to-book value (P/B) ratio and dividend yield. Naturally, each of these indicators should not be used individually as a clearer picture will only be shown after delving deeper.
Real estate investment trusts (REITs) fell behind property developers in the first half of the year. However, UBS expects a reversal in this trend in the second half of the year, following the implementation of a fresh round of property cooling measures effective 6 July 2018.
Since our previous coverage in July 2017, Hi-P International's (Hi-P) share price has increased by over 40 percent to $1.30 at the time of writing. Although the current price is a steep drop from its 52-week high of $2.72 recorded in March 2018, investors who picked up their shares at below a dollar each in July last year should be more than satisfied as Hi-P also announced dividends of $0.19, $0.02 and $0.04 in August 2017, November 2017 and May 2018 respectively.
City Developments (CDL), a powerhouse in Singapore’s property sector, saw around $1.7 billion being taken off its market capitalisation as its share price plunged over 17 percent to as low as $9.22 within the first few minutes of trading on 6 July 2018. Meanwhile, investors who rode the upward movement in share price since $11.50 as at our previous coverage on 14 August 2017 would have been decently rewarded for cashing out as the developer’s shares traded around its 52-week high price of $13.52 in March 2018.
Cityneon Holdings' shares, which last changed hands at $1.07 as at end of trading on 11 September 2017, subsequently made its all-time high of $1.26 on 27 October 2017, representing a gain of over 17 percent within two months.