SI Research: Is Lippo Malls Indonesia Retail Trust’s Yield Realistic?

With a distribution per unit (DPU) of $0.0344 in FY17 and based on the closing price of $0.40 as at the last trading day of last year on 29 December 2017, Lippo Malls Indonesia Retail Trust’s (LMIRT) historical dividend yield of 8.6 percent placed it among one of the highest-yielding real estate investment trust listed on the Singapore Exchange. Just last month on 11 April 2018, LMIRT announced that the Indonesian government has passed certain amendments to the tax regulations with effect from 2 January 2018, requiring all income received or earned from land or building leases in Indonesia to be subjected to an income tax at 10 percent of the gross amount of the value of the land or building lease, including service charges and utilities recovery charges.

Markets Halt Gains Amid Conflicts

The last two weeks was a period pervaded with a series of disturbing unrests as news of conflicts around the world broke out one after another. Over the course of the past fortnight, deadly clashes from Israeli...
SG economy

Singapore’s Market Still Has Room To Grow

Straits Times Index marked a milestone on 2 May 2018 charting a historical day high at 3,615.28, the highest close in the last 10 years since 2008. Although subsequent profit takings brought the local benchmark...

SI Research: Why I Prefer ComfortDelGro Corporation Over SBS Transit

Private hire service Grab’s recent announcement to acquire Uber’s operations in Southeast Asia has brought our attention to the local land transport operator ComfortDelGro Corporation (CDG) once again. Amidst disruptions and challenges posed by private ride-hailing apps, CDG’s share price has plunged more than 30.6 percent from its high of $3.24 within the last three years. Furthermore, the share price is expected to continue to be range bound until greater clarity is seen with respect to how the deal may turn out.

Investors’ Corner (Valuetronics Holdings, Cache Logistics Trust, CITIC Envirotech, CapitaLand Commercial Trust)

Valuetronics Holdings’ (VALUE) shares sank 18% on 26 Apr-18 caused by weak Internet-of-Things (IOT) bulb sales at the group’s Dutch lighting customer which suffered a 6% reduction in sales y-o-y. This was due to an inventory build-up at the customer’s trading partners’ end and the customer expects this issue to linger before a strong recovery could commence in 2H18. We estimated that the Dutch lighting customer to contribute around 31% of revenue by FY19E and on a pro forma basis, a 10% reduction in IOT bulb sales would reduce EPS by only 1.6%.

STI Loses Ground After Hitting Historical High

The Federal Reserve kept its key interest rate unchanged at a range of 1.5 percent to 1.75 percent, citing that inflation has climbed higher and is likely to move closer to the central bank’s target of 2 percen...
3 Net-Net Stocks cvr

SI Research: 3 Net-net Stocks With Dividends

Net-net investing is a value-investing technique popularised by the father of value investing Benjamin Graham – the mentor to Warren Buffett. The approach values a company based on how much investors could receive immediately assuming that the company is liquidated, by taking current assets net of total liabilities without taking into consideration the worth of its long-term assets. In fact, it is not absurd to think that some investors might actually prefer that the company be liquidated so that its intrinsic value could be realised.

Investors’ Corner (ComfortDelGro Corporation, Dairy Farm International Holdings, Sembcorp Marine, Singapore Technologies Engineering)

Grab announced that it had acquired Uber’s Southeast Asia operations while Uber will take a 27.5% stake in Grab. However, the Competition Commission of Singapore (CCS) has written to the companies to clarify the details of the deal and there is a potential risk that CCS could impose conditions for their operations in Singapore. Furthermore, the alliance between ComfortDelGro Corporation (CDG) and Uber is also casted on doubt with the latest development.

SI Research: QAF – Still A Sound Company With Decent Yield

Unsettled by a potential global trade war sparked off by Trump slapping tariffs worth a whopping US$50 billion on Chinese goods, and China retaliating by planning to tax a matching US$50 billion of American products, Dow Jones Industrial Average (DJIA) plunged 724 points on 22 March 2018 breaching its 100-day moving average last seen in November 2016.