Indofood Agri - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
03/01/19	DBS Vickers	Indofood Agri	0.2	0.19	Hold	DCF
04/12/19	DBS Vickers	Indofood Agri	0.28	0.19	Accept offer	offer price $0.28
05/02/19	DBS Vickers	Indofood Agri	0.28	0.19	Accept offer	offer price $0.28

Stock calls for 24 May 2019

Date	Analyst	Company	Last	Target	Call	Valuation
05/24/19	UOB Kay Hian	Bumitama	0.69	0.81	Hold
05/24/19	DMG & Partners	F & N	1.73	3.53	Not Rated	Sum of parts
05/24/19	Phillip	Frasers Centrepoint Trust	2.44	2.36	Neutral
05/24/19	phillip	Golden Energy	0.198	0.24	Accumulate	PER10x

Omg! The US risk-free rate is at 2.31% now.

The 10-year treasury yield is at 2.31% and is below the Ioer (2.35%).  The US banks with excess cash won't invest in the 10y treasury now because the Ioer return is better.

https://sg-stock.blogspot.com/2019/05/will-us-fed-reduce-its-interest-rates.html

The US economic situation is getting dicey now.

Will the US Fed reduce its interest rates because of the trade war?

Let's check out the 4 interest rates (IR) in May vs April.

http://sg-stock.blogspot.com/2019/04/whats-happening-to-usd-now-why-is-it.html

Iorr: 2.35% (May) vs 2.4% (April)

Effr: 2.38% (May) vs 2.44% (April)

Ioer: 2.35% (May) vs 2.4% (April)

On RRP: 2.25% (April) vs 2.25% (May)

Effr: 2.38%
Ioer: 2.35%

The spread between Effr & Ioer is shrinking which denotes that the monetary tightening condition is starting to ease.  The Iorr, Effr and Ioer have decreased in May, and the declines in IR show that the US Fed is willing to consider interest rate cuts if the economic situation deteriorates further.

The US is pressurising South Korea again after THAAD.

https://www.channelnewsasia.com/news/business/huawei-south-korea-lg-security-risks-11557438

South Korea is facing intense pressure from the US again after THAAD installation.  If SK bans Huawei, it will antagonize China again.  SK is in no economic condition to do this again because its exports are declining rapidly due to the US-China trade war.

https://www.bloomberg.com/news/articles/2019-05-21/south-korea-faces-greater-export-pain-as-trade-tensions-escalate

IHH Healthcare - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/17/19	Kim Eng	IHH Healthcare	1.86	2.13	Buy	Sum of parts, Ringgit $6.45 target price
03/01/19	Kim Eng	IHH Healthcare	1.85	2.29	Buy	Sum of parts, Ringgit $6.90 target

IFS Capital - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/15/19	Amfrasers	IFS Capital	0.225	0.29	Buy	PB0.7x FY18

Ifast Corp - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/21/19	DBS Vickers	Ifast Corp	1.11	1.19	Hold	DDM
04/30/19	DBS Vickers	Ifast Corp	1.12	1.05	Hold	DDM

Stock calls for 23 May 2019

Date	Analyst	Company	Last	Target	Call	Valuation
05/23/19	UOB Kay Hian	Frasers Centrepoint Trust	2.41	2.71	Buy
05/23/19	CIMB	ISDN	0.215	0.32	Add	PER10x CY20
05/23/19	DMG & Partners	Japan Foods	0.44	0.4	Hold
05/23/19	Lim & Tan	Stamford Land	0.49	0	Hold

President Xi has hardened his stance in the US-China trade war.

https://www.scmp.com/economy/china-economy/article/3011186/xi-jinping-calls-new-long-march-dramatic-sign-china-preparing

President Xi has hardened his stance by rallying his nation for the new long march.  This is a dramatic sign that China won't relent in the US-China trade war and won't sign any humiliating trade deal.  This is significantly different from the previous meek stance put up by the Chinese.

Thus, the US can forget about bulldozing its way into China now.  The US-China trade talk has broken down officially now.

Will SIA seek compensation from Boeing?

https://sg.finance.yahoo.com/news/air-china-asks-boeing-compensation-041331381.html

Does SIA dare to seek compensation from Boeing for its business losses?

It will reflect badly on SIA as a public listed company when other airliners can seek compensations from Boeing.

Hutchison Port - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/13/19	OCBC	Hutchison Port	0.26	0.22	Sell
02/13/19	DBS Vickers	Hutchison Port	0.26	0.26	Hold	DCF
02/25/19	OCBC	Hutchison Port	0.235	0.22	Hold
04/30/19	OCBC	Hutchison Port	0.24	0.22	Hold
04/30/19	DBS Vickers	Hutchison Port	0.24	0.26	Hold

HRnetGroup - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/02/19	DMG & Partners	HRnetGroup	0.8	1.18	Buy	DCF
02/25/19	DMG & Partners	HRnetGroup	0.795	1.06	Buy	DCF
02/26/19	DBS Vickers	HRnetGroup	0.8	1.05	Buy	PER15x FY19, ex-cash
03/13/19	DMG & Partners	HRnetGroup	0.79	1.06	Buy
03/26/19	CIMB	HRnetGroup	0.765	1.03	Add
05/07/19	DMG & Partners	HRnetGroup	0.77	1.06	Buy	DCF
05/13/19	DMG & Partners	HRnetGroup	0.77	0.94	Buy	DCF
05/14/19	DBS Vickers	HRnetGroup	0.76	0.85	Hold	PER16x FY19, ex-cash

Hotel Properties (HPL) - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/27/19	Lim & Tan	Hotel Properties	3.76	0	Hold
04/17/19	OCBC	Hotel Properties	3.88	4.74	Buy

Stock calls for 22 May 2019

Date	Analyst	Company	Last	Target	Call	Valuation
05/22/19	phillip	Banyan Tree	0.535	0.76	Accumulate	Sum of parts, PB0.7x FY19
05/22/19	phillip	CNMC	0.2	0.31	Buy	DCF
05/22/19	CIMB	DBS	25.74	27.64	Hold
05/22/19	Kim Eng	DBS	25.74	29.46	Buy
05/22/19	Amfrasers	Japan Foods	0.44	0.55	Neutral	DCF
05/22/19	Kim Eng	OCBC	11.09	11.07	Hold
05/22/19	DMG & Partners	ST Engineering	3.96	4.45	Buy	DCF & PER20.5x FY20 & PB5.5x FY20 & EV/Ebitda11x FY20
05/22/19	Kim Eng	UOB	24.83	28.97	Buy

China mother and daughter created a raucous at Bangkok airport

https://www.dailymail.co.uk/news/article-7031753/Air-passenger-prevents-plane-leaving-wait-shopaholic-daughter.html

There is a reason for a social credit standing in China even though it is very invasive on the Chinese.  It is a good way for the communist government to control its citizens' unruly behaviours onshore and offshore.  We cannot blame the Chinese government for the pervasive public surveillance by using the social credit record system.  It will ban any unpleasant and undesirable citizens from taking public transportations such as HSR and Airliners in China to obtaining banking services.

These 2 ladies' behaviours will definitely lower their social credit ratings in China and will have difficulties flying overseas again after such a big hoo-ha.

Japan trade surplus fell 90% because of China.

https://www.marketwatch.com/story/japans-exports-fall-for-fifth-straight-month-2019-05-21

Japan trade surplus fell 90% with just a 6.3% drop in China shipments.  This shows that Japan is highly dependent on China's growth.

Tommy Koh wanted SG to be dependent on Japan instead of China.  Does this make any sense at all?

https://sg-stock.blogspot.com/2019/03/tommy-koh-has-anti-china-mindset-and.html

Why does SG need to depend on Japan when SG can go directly to China?

Anti-US sentiment is simmering in China now.

https://sg.finance.yahoo.com/news/chinese-social-media-users-rallying-032803080.html

If the anti-US sentiment is left unchecked, it will bite the US products and services really hard.

I must say that the communist government's campaign is working effectively.

https://sg-stock.blogspot.com/2019/05/china-is-stirring-up-anti-us-sentiment.html

China will ban rare earth exports to US if US continues to bully China.

https://www.bloomberg.com/news/articles/2019-05-20/xi-s-trip-to-rare-earths-plant-stokes-talk-of-trade-retaliation

Currently, China produces more than 90% of the rare earth supply and this gives China the monopolistic power.

Rare earth materials are used in many electronic applications, batteries and military weapons.  Without rare earths, the US modern industries including defense contractors will suffer greatly.

The US will have to bow to China if China is to ban rare earth exports to the US.  It is not easy to find replacements for rare earth suppliers because the production process is highly toxic.

Hongkong Land - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/17/19	DBS Vickers	Hongkong Land	6.92	7.86	Buy
03/01/19	DBS Vickers	Hongkong Land	6.77	8.02	Buy	RNAV (40% discount)
05/10/19	DBS Vickers	Hongkong Land	6.97	8.02	Buy