https://sg.finance.yahoo.com/news/hong-kong-hotel-workers-paying-020839342.html
We stated that Hongkongers would be the ones paying a huge price in our previous post. It is already happening now in the HK hotel industry because workers are being forced to take unpaid leaves due to poor businesses.
https://sg-stock.blogspot.com/2019/08/why-did-us-and-taiwan-engineer-hong.html
This economic slowdown will spread to other sectors because China has decided to transfer its "love" for the long lost child (HK) to Shenzhen.
https://sg-stock.blogspot.com/2019/08/omg-china-has-displaced-hong-kong-with.html
Thursday, August 22, 2019
Germany flopped in its negative yield bond sales.
https://finance.yahoo.com/news/germany-sees-anemic-demand-30-100930717.html
The 30y Germany bonds were severely undersubscribed and this denoted that the investors were rejecting the negative yield bonds. We did state that the current world was not built for a negative yield environment. The world is in a conundrum now.
http://sg-stock.blogspot.com/2019/08/a-new-world-unchartered-territory.html
When the governments cannot raise funds for economic developments in a negative yield environment, they'll have to raise interest rates to attract investors to buy their bonds but the economic situation doesn't allow interest rates to be raised.
When the strongest economy, Germany, cannot raise enough funds, the other weaker European economies cannot raise funds too. Therefore, the EU is badly in need of cheap funding and will need TLTRO urgently in September.
http://sg-stock.blogspot.com/2019/03/what-is-targeted-longer-term.html
The 30y Germany bonds were severely undersubscribed and this denoted that the investors were rejecting the negative yield bonds. We did state that the current world was not built for a negative yield environment. The world is in a conundrum now.
http://sg-stock.blogspot.com/2019/08/a-new-world-unchartered-territory.html
When the governments cannot raise funds for economic developments in a negative yield environment, they'll have to raise interest rates to attract investors to buy their bonds but the economic situation doesn't allow interest rates to be raised.
When the strongest economy, Germany, cannot raise enough funds, the other weaker European economies cannot raise funds too. Therefore, the EU is badly in need of cheap funding and will need TLTRO urgently in September.
http://sg-stock.blogspot.com/2019/03/what-is-targeted-longer-term.html
Why is Renminbi (RMB) depreciating again?
The RMB or CNY is depreciating again because of the imposition of China new loan prime rate (LPR).
https://www.reuters.com/article/us-china-economy-rates-explainer/explainer-how-chinas-new-interest-rate-reforms-will-work-idUSKCN1V90Q8
China is facing tremendous pressure to stimulate its decelerating economy but it doesn't want to reduce its official bank interest rates because this will disrupt its property industry. Therefore, it has come up with a new LPR which is based on MLF to be used as the benchmark for commercial loans (SMEs) and the LPR is lower than the current lending rate.
Like I said before, the money will flow from a low-interest rate country to a high-interest rate country. Consequently, there is lesser demand for RMB after the LPR and this causes RMB to depreciate.
https://www.reuters.com/article/us-china-economy-rates-explainer/explainer-how-chinas-new-interest-rate-reforms-will-work-idUSKCN1V90Q8
China is facing tremendous pressure to stimulate its decelerating economy but it doesn't want to reduce its official bank interest rates because this will disrupt its property industry. Therefore, it has come up with a new LPR which is based on MLF to be used as the benchmark for commercial loans (SMEs) and the LPR is lower than the current lending rate.
Like I said before, the money will flow from a low-interest rate country to a high-interest rate country. Consequently, there is lesser demand for RMB after the LPR and this causes RMB to depreciate.
Huawei had repented and given my parents 4 $100 e-vouchers as compensations.
I've just bought 4 Huawei Y6 Pro for my parents and another 2 elders with the 4 $100 e-vouchers given by Huawei. How did I get the e-vouchers? Well, I emailed to Huawei to complain about its bad promotion behaviour and also give it the greatest piece of my mind.
I would like to compliment Huawei for the generosity given.
My life philosophy is simple: If you treat me good, I will treat you better. If you treat me bad, I will treat you worse.
I lambasted Huawei previously for its bad behaviour.
http://sg-stock.blogspot.com/2019/07/huawei-deceived-elderly-singaporeans.html
Now, I will compliment Huawei for its generosity to compensate my parents. Well done and keep up the good work!
Wednesday, August 21, 2019
Jardine C&C - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
01/04/19 | DBS Vickers | Jardine C&C | 35.28 | 43.1 | Buy | |
05/02/19 | DBS Vickers | Jardine C&C | 35.52 | 39.1 | Buy | Sum of parts (16% discount) |
Japfa - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
01/29/19 | CIMB | Japfa | 0.82 | 0.9 | Add | Sum of parts |
01/30/19 | Kim Eng | Japfa | 0.81 | 0.99 | Buy | |
03/01/19 | CIMB | Japfa | 0.765 | 0.9 | Add | Sum of parts |
03/05/19 | UOB Kay Hian | Japfa | 0.705 | 0.98 | Buy | Sum of parts, PER10.7x FY19 |
03/05/19 | DBS Vickers | Japfa | 0.705 | 0.8 | Buy | Sum of parts (15% discount), PER11.4x FY19 |
03/14/19 | CIMB | Japfa | 0.715 | 0.63 | Reduce | Sum of parts |
03/21/19 | Kim Eng | Japfa | 0.65 | 1.05 | Buy | Sum of parts |
04/02/19 | Kim Eng | Japfa | 0.665 | 1.05 | Buy | |
05/03/19 | UOB Kay Hian | Japfa | 0.605 | 0.73 | Buy | Sum of parts |
05/03/19 | DBS Vickers | Japfa | 0.605 | 0.61 | Hold | Sum of parts (10% discount), PER14x FY19 |
05/27/19 | Kim Eng | Japfa | 0.575 | 0.93 | Buy | Sum of parts |
07/31/19 | UOB Kay Hian | Japfa | 0.515 | 0.48 | Hold | Sum of parts, Buy @ $0.42 |
08/01/19 | Kim Eng | Japfa | 0.51 | 0.73 | Buy | Sum of parts |
08/05/19 | DBS Vickers | Japfa | 0.5 | 0.53 | Hold | Sum of parts (10% discount), PER12.5x FY19 |
Japan Foods - Stock calls
Date | Analyst | Code | Company | Last | Target | Call | Percent | Valuation |
02/12/19 | Amfrasers | 5OI | Japan Foods | 0.415 | 0.57 | Hold | 37.35 | DCF |
03/08/19 | DMG & Partners | 5OI | Japan Foods | 0.43 | 0.45 | Neutral | 4.65 | |
04/05/19 | DMG & Partners | 5OI | Japan Foods | 0.435 | 0.45 | Neutral | 3.45 | |
05/22/19 | Amfrasers | 5OI | Japan Foods | 0.44 | 0.55 | Neutral | 25.00 | DCF |
05/23/19 | DMG & Partners | 5OI | Japan Foods | 0.44 | 0.4 | Hold | -9.09 | |
06/06/19 | DMG & Partners | 5OI | Japan Foods | 0.43 | 0.4 | Neutral | -6.98 |
Stock calls for 21 August 2019
Date | Analyst | Company | Last | Target | Call | Valuation |
08/21/19 | Citibank | ESR-Reit | 0.51 | 0.57 | Buy | |
08/21/19 | UOB Kay Hian | First Resources | 1.5 | 1.6 | Hold | |
08/21/19 | CIMB | Frasers Logistics | 1.2 | 1.27 | Add | |
08/21/19 | Kim Eng | HMI | 0.720 | 0.73 | Hold | offer at $0.73 |
08/21/19 | CIMB | OCBC | 10.69 | 12.53 | Hold |
A new world, an unchartered territory – A negative yield environment - Part 2
https://finance.yahoo.com/news/danish-bank-start-charging-wealthy-112125179.html
The banks are starting to cave into the negative yield environment because their profit margins are shrinking. The banks have problems making good earnings in a negative yield world because our current financial and economic structures are not built for this.
https://sg-stock.blogspot.com/2019/08/a-new-world-unchartered-territory.html
The banks are starting to cave into the negative yield environment because their profit margins are shrinking. The banks have problems making good earnings in a negative yield world because our current financial and economic structures are not built for this.
https://sg-stock.blogspot.com/2019/08/a-new-world-unchartered-territory.html
Tuesday, August 20, 2019
Jadason - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
01/02/19 | CIMB | Jadason | 0.02 | 0.066 | Add | |
05/13/19 | CIMB | Jadason | 0.038 | 0.059 | Add | PB1x CY19 |
ISOTeam - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
02/18/19 | DMG & Partners | ISOTeam | 0.22 | 0.23 | Neutral | DCF |
05/15/19 | DMG & Partners | ISOTeam | 0.22 | 0.29 | Buy | DCF |
06/06/19 | DMG & Partners | ISOTeam | 0.23 | 0.29 | Buy | |
07/11/19 | UOB Kay Hian | ISOTeam | 0.245 | 0.3 | Buy | PER12.4x FY20 |
07/25/19 | DMG & Partners | ISOTeam | 0.245 | 0.31 | Buy | DCF |
07/25/19 | UOB Kay Hian | ISOTeam | 0.245 | 0.34 | Buy | PER12.4x FY20 |
ISDN - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
05/23/19 | CIMB | ISDN | 0.215 | 0.32 | Add | PER10x CY20 |
07/01/19 | CIMB | ISDN | 0.235 | 0.32 | Add | |
08/19/19 | CIMB | ISDN | 0.192 | 0.27 | Add |
Stock calls for 20 August 2019
Date | Analyst | Company | Last | Target | Call | Valuation |
08/20/19 | CIMB | Capitaland | 3.46 | 4.15 | Add | RNAV (35% discount) |
08/20/19 | DMG & Partners | GSS Energy | 0.074 | 0.08 | Neutral | DCF |
08/20/19 | Lim & Tan | HMI | 0.720 | 0.73 | Accept offer | offer at $0.73 |
08/20/19 | DMG & Partners | Hyphens Pharma | 0.2 | 0.25 | Buy | DCF |
08/20/19 | Kim Eng | MM2 Asia | 0.186 | 0.2 | Hold | PEG |
08/20/19 | DMG & Partners | Moya Asia | 0.068 | 0.083 | Buy | DCF |
08/20/19 | DMG & Partners | OCBC | 10.71 | 11.5 | Neutral | GGM, PB1.07x FY20 |
08/20/19 | CIMB | UOB | 25.15 | 29.54 | Add |
Thank god! Singapore doesn't need to sell heavily subsidized treated water to JB soon.
https://sg.news.yahoo.com/malaysian-minister-says-johor-to-not-be-dependent-on-singapore-for-treated-water-by-2022-010113972.html
Yeah! SG doesn't need to sell heavily subsidized treated water to JB soon....in 2022!
Malaysia has been taking advantage of SG by buying back treated water cheaply for too long.
Just look at Malaysia's announcement without stating the local water treatment cost per 1000 gallons. The Malaysian's government is trying to mislead the general public that SG is overcharging MY without stating the true water treatment cost. The water treatment cost is way higher than $0.50 ringgit per 1000 gallons and it is estimated to be $2.40 ringgit per 1000 gallons (Singapore's treatment cost).
Malaysians should ask their government to come clean with the true water treatment cost but Mahathir won't reveal it.
Water is a strategic supply and should not be held hostage by a foreign country. Even if the local water treatment cost is higher, the country should produce it locally. SG is doing that and MY should follow too. However, by accusing a foreign country of selling the overpriced treated water when instead it is buying the treated water at a heavily subsidized price is a thuggish behaviour.
Nonetheless, SG is happy that this unfair water trade will terminate soon. Cheers!
Yeah! SG doesn't need to sell heavily subsidized treated water to JB soon....in 2022!
Malaysia has been taking advantage of SG by buying back treated water cheaply for too long.
Just look at Malaysia's announcement without stating the local water treatment cost per 1000 gallons. The Malaysian's government is trying to mislead the general public that SG is overcharging MY without stating the true water treatment cost. The water treatment cost is way higher than $0.50 ringgit per 1000 gallons and it is estimated to be $2.40 ringgit per 1000 gallons (Singapore's treatment cost).
Malaysians should ask their government to come clean with the true water treatment cost but Mahathir won't reveal it.
Water is a strategic supply and should not be held hostage by a foreign country. Even if the local water treatment cost is higher, the country should produce it locally. SG is doing that and MY should follow too. However, by accusing a foreign country of selling the overpriced treated water when instead it is buying the treated water at a heavily subsidized price is a thuggish behaviour.
Nonetheless, SG is happy that this unfair water trade will terminate soon. Cheers!
Cathy Pacific suspends ticket sales at HK airport.
https://news.cgtn.com/news/2019-08-19/Cathay-Pacific-suspends-tickets-sales-at-counters-at-HK-airport-JhI69AzAkg/index.html
It looks like China is coming down hard on Cathy Pacific.
Cathy Pacific Ceo has rushed to China to try to pacify CAAC so that it can resume its normal flight activities.
It was indeed a flight risk when Cathy Pacific supported its employees to join the HK protests because China couldn't guarantee that Cathy Pacific employees won't do foolish things when the airliner was flying in and out of China airspace since they were emotionally disturbed.
It looks like China is coming down hard on Cathy Pacific.
Cathy Pacific Ceo has rushed to China to try to pacify CAAC so that it can resume its normal flight activities.
It was indeed a flight risk when Cathy Pacific supported its employees to join the HK protests because China couldn't guarantee that Cathy Pacific employees won't do foolish things when the airliner was flying in and out of China airspace since they were emotionally disturbed.
Monday, August 19, 2019
Innotek - Stock calls
Date | Analyst | Company | Last | Target | Call | Valuation |
08/14/19 | Lim & Tan | Innotek | 0.5 | 0 | Buy on weakness |
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 |
07/16/19 | DBS Vickers | Indofood Agri | 0.325 | 0.33 | Hold | |
08/05/19 | DBS Vickers | Indofood Agri | 0.32 | 0.29 | Hold | DCF |
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 |
05/31/19 | UOB Kay Hian | IHH Healthcare | 1.79 | 2.07 | Buy | Ringgit $6.30 target price, PER32.8x FY2020 |
06/12/19 | CIMB | IHH Healthcare | 1.84 | 2.09 | Add | Ringgit $6.37 target price |
07/31/19 | Kim Eng | IHH Healthcare | 1.88 | 2.16 | Buy | Sum of parts, Ringgit $6.50 target price |
Stock calls for 19 August 2019
Date | Analyst | Company | Last | Target | Call | Valuation |
08/19/19 | Phillip | APTV | 0.17 | 0.165 | Neutral | EV/Ebitda9.5x |
08/19/19 | Phillip | Capitaland | 3.4 | 4.2 | Buy | PB0.75x FY19 |
08/19/19 | Lim & Tan | City Developments | 9.16 | 0 | Buy | |
08/19/19 | phillip | CNMC | 0.3 | 0.33 | Accumulate | DCF |
08/19/19 | OCBC | Golden Agri | 0.29 | 0.27 | Sell | |
08/19/19 | CIMB | Grand Venture | 0.22 | 0.22 | Hold | |
08/19/19 | CIMB | ISDN | 0.192 | 0.27 | Add | |
08/19/19 | Kim Eng | Manulife US Reit | 0.89 | 1 | Buy | DDM |
08/19/19 | UOB Kay Hian | Overseas Edu | 0.285 | 0.46 | Buy | |
08/19/19 | phillip | Propnex | 0.5 | 0.59 | Buy | |
08/19/19 | Amfrasers | Thai Beverage | 0.885 | 0.8 | Neutral |
Omg! China has displaced Hong Kong with ShenZhen in the greater bay development.
https://www.businesstimes.com.sg/technology/china-to-boost-shenzhen%E2%80%99s-role-in-greater-bay-area-innovation
The HK protestors have just killed their own future and they must be celebrating their "success" now.
China has decided to displace HK with Shenzhen in the greater bay developments with many favourable economic and preferential policies. HK will lose its importance over time and its economic developments will slow down over time too.
These Hongkongers will need to travel to Shenzhen to find work in the future because HK cannot generate enough job opportunities for these 1.7m protestors in the future with weak economic growth. HK has fallen from its financial hub pedestal and will never rise back to its glorious heyday again.
RIP, HK!
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