Monday, 29 May 2017

Top 10 Counters Quarterly Reporting (April to June)

All my counters have reported their performance for the period. Below is a short summary of my top 10 counters' performances. 

Food Empire reported its 20171Q results on 11 May. An excellent set of results as its revenue is up by 23.6% and net profit up by 57.2%. The performance is attributed to appreciation of Russian Ruble against the USD, change of business model in Kazakhstan and CIS markets, and higher sales in ingredient segment. The drop in Indochina market is due to different festive timing. 

Looking forward to the next quarter results with eyes on its Indochina and ingredient segment.
RMG reported its 20171Q results on 23 April. As expected, its revenue and net profit are flat, dipping by 1.7% as compared to 21061Q. Its expansion plan is within timeline with Raffles Hospital Extension to open in Q4. The group also recently acquired a land with an in-construction building in Chongqing for a 700-bed international tertiary hospital. This will be completed by 2Q2018, earlier than the Shanghai Hospital what is slated to be ready by end 2018.

I think the group is doing well as it is able to maintain its profit amid its expansion. I will continue to hold on to my stake and participate in its script dividend (latest at $1.26) scheme. Expect to see the benefits from its expansion from 2019 or 2020.

PLife reported its 20171Q on 24 April. DPU for the quarter is up by 9.6% due to its divestment gain in 2016. Recurring DPU goes up by 2.2%. As highlighted in its presentation, it has strong capital structure. There is no long term re-financing cost till 2019, interest cover of 10.0 times and gearing at 36.7%. 

While its share price is trading at a premium to NAV, I believe the quality of this REIT deserves that. This will stay in my portfolio for a long time.

Straco reported a decent set of 20171Q results on 9 May. Revenue is up by 4.2% with net profit up by 6.9%. It has reported a double digit growth in the visitation number to SOA, while number of visitors to UWX grows by 9.7%. Singapore Flyer's visitor number is stable but revenue grow increased on better yield and F&B revenue.

As mentioned before, I like its cash business and am hopeful that dividend payout will increase in a few years time when they pare down their debt.

Best World International Limited
Best World reported another excellent 20171Q results on 9 May. Revenue is up by 27.0% and net profit up by a whooping 63.1%. The excellent performance is attributed to the tremendous growth in of 110% in its export segment (read China market). The increase is attributed to backlog and inventories building as demand is expected to be high. It could be that while Q2 results continue to be positive, it might not see the jump seen in Q1. Slight concern is the drop in Taiwan DS for 1Q but management has guided subdue growth for the year.

My stance remains unchanged. China market provides huge potential for its growth but it has garnered lots of attention and price has gone up a lot since the award of its China DS license. Expect volatile price movement and huge drop if any of the coming quarters perform below expectation.

Valuetronics reported its 2017 full year results on 25 May. After deciding to exit mass LED market in 2015 and moving into automotive sector in2016, Valuetronics finally turnaround its results. Revenue is up by 16.5% and net profit grows by 27.9%, one of the highest since it has listed. The improvement is also attributed to a surge in order on wireless LED since 21063Q. While I am not in the industry, I believe it will go in the way of mass LED after a few years. Nevertheless, it's good business for the next few years. The group is undergoing qualification by another automaker and expect to obtain approval by late FY2018. 

With 1-to-10 bonus and maintaining its dividend, this had indirectly increase my dividend by 10%. I am hopeful of the group's performance for the next few years, so will continue to hold on to my stake.

FCT reported its 20172Q on 25 April. Revenue dipped by 2.9% and net profit income by 3.3%. However, tt has maintained its DPU at 3.04 cents. All these are achieved despite AEI work for Northpoint with average occupancy of about 63% during this period.

Will continue to hold FCT for its resilient position.

Singtel reported its full year results on 18 May. Revenue dipped by 1.5% for the year and net profit excluding exceptional item goes up by 0.9%. Singtel continues to pay a total of 17.5 cents of dividend at a payout ratio of 73%. Singapore and Australia provided stable return but India Airtel affected by price war due to new operator.

Will re-evaluate position after its Netlink IPO.

Micro-Mechanics reported its 20173Q results on 28 April. For the second consecutive quarters, it has improved its revenue and earning. For 9M, revenue is up by 9.0% and net profit up by 12.8%. It does seem that their strategical review last year to focus the engineering, development and investment efforts of the Group’s five factories on serving the semiconductor industry is working. Utilisation rate has gone up to 59% for Q3.

It seems that Micro-Mechanics will do well for the next few years and with its dividend policy of not less than 40%, this should continue to be a good investment.

Starhill Global reported its 20173Q results on 27 April. Gross revenue dipped by 0.6%, net profit income dipped by 0.9%, income available for distribution dropped by 3.1% and DPU dropped by 6.3%. This has been a tough year from SG Reit due to lower occupancy of office space especially at Wisma Atria, and re-positioning of the China mall. The positive comes from Lot 10 rejuvenation and upcoming AEI at Plaza Arcade.

I am satisfied with the current DPU and actions taken by the management. Should see better performance in 2018.

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