Author: Evergreen Investing

SOG continues organic growth in Q3 2018

Singapore O&G (SOG) reported a strong set of Q3 results with the company reporting year on year and quarter on quarter revenue growth. Q3 revenue was up 18% year on year while net profit grew 23% year on year to SGD2.8 million. The improved results is especially impressive since it was driven by organic growth and not acquisitions. Existing clinics benefited from a higher patient load  and the ramp-up of two pediatricians who joined in 2017. Q3 revenue grew 18% year on year and 5% quarter on quarter with growth across its O&G segment (SGD0.8 million), cancer (SGD0.5 million)...

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CAO Q3 2018 update: Short term headwinds

CAO reported a weak set of results for the third quarter of 2018 with net profit falling 8% year on year. Weaker earnings from its largest associate, Shanghai Pudong (SPIA) and OKYC was the main cause. SPIA was hit with lower earnings despite higher refuelling volumes. SPIA is expanding its facilities (5th runway operational in 1H 2018 and new satellite terminal in 2019) so the company has been expanding headcount and investing in re-fuelling equipment. As the exclusive international jet fuel supplier in Pudong airport, SPIA will benefit from the growth of Pudong airport. The company’s gross profit performance was...

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China Aviation Oil (Part 2)

I previously wrote about how China Aviation Oil (CAO) offers value and growth at a price of SGD1.45 per share. A recent history of SATS is a useful analogy for understanding CAO’s potential to become a successful and independent aviation fuel supplier. SATS is a gateway services and food solutions provider that mainly serves the aviation industry and was once 80% owned by Singapore Airlines. Although both companies operate in different parts of the aviation industry, I see a few similarities between SATS and CAO. Both companies derive 40-50% of their annual revenue from a single client and are...

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China Aviation Oil: Flying high

China Aviation Oil is one of the few SGX-listed companies which offers both growth and value. China is the fastest aviation growth market in the world with Boeing predicting Chinese outbound passenger traffic to grow 3x from 2017-37. But how can one invest in this trend? Buying airline shares can be risky because of fierce competition while Chinese internet travel companies such as Ctrip are trading at lofty valuations. With a trailing 10x P/E, China Aviation Oil offers a safer and cheaper way for me to benefit from China’s high growth aviation industry. China Aviation Oil has the sole...

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Dr Lee buys more Singapore O&G shares

Dr Lee, one of the Singapore O&G founders bought SGD65k of shares last week. This is part of a string of insider purchases over the last 12 months which suggests that the company is undervalued. As I previously mentioned, Singapore O&G net profit is likely to see at least 10-12% earnings growth over the next five years because of its strategy to expand its women’s healthcare and paediatrics practice.   Buyer Shares bought Value (SGD) Implied share price (SGD) Jul-2018 Dr Lee Keen Whye            193,500        65,480                                       0.34 Feb-2018 Dr Joyce Lim            100,000        38,750                                       0.39...

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iFAST cuts SG and HK stockbroking fees

Quick update on iFAST which in my view is poised to see double digit growth over the next five years. iFAST recently said it intends to lower its Singapore and Hong Kong stockbroking commissions from 0.12% to 0.08%, the lowest in Singapore. Cutting stockbroking commissions is a great move for 3 reasons. First, more than 92% of its AUA consists of unit trusts as of end-2017 so this cut in stockbroking fees is unlikely to hurt the company.  Second, iFAST revenue per employee is very high because of its Internet-based platform so the company can afford to lower fees. 2017 comparison...

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Singapore O&G: steady growth

SOG (Singapore Obstetrics and Gynaecology) is one of the cheapest healthcare companies listed on the Singapore stock exchange. Healthy growth across all economic conditions is a key strength for this female healthcare company with its focus on resilient specialist practices such as obstetrics, Gynae-oncology, and paediatrics. SOG was incorporated in 2011, listed on the SGX in 2015, and as of end- 2017, SOG employs 12 specialist doctors which includes six O&G specialists, three cancer specialists, one dermatologist and two paediatricians. Steady earnings across all economic conditions SOG results (SGD m) Year Revenue Net profit Operating cash flow Free cash...

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