Author: SG Wealth Builder

Investing in Capitaland

Being one of the largest listed real estate companies in South East Asia, Capitaland remains an enigma in Singapore stock exchange. Share price reached a record high of $7.00 in 2007 and subsequent bombed out during the Great Financial Crisis. Since then, this counter never really recover from the setback, presumably due to the slew of property cooling measures implemented by Singapore government. The slowing down of the China market could also played a part in the laggard of the share price. In this article, the investment merits of Capitaland are examined. Profile of Capitaland Formed in November 2000...

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Understanding CPF LIFE (Lifelong Income for Elderly)

Sometimes, you really have to hand it to the policymakers for coming out with an acronym like CPF LIFE, which stands for Lifelong Income for Elderly. As the name aptly suggests, CPF LIFE provides you with a lifetime monthly pay outs. Introduced in 2009 by the Singapore government, this annuity scheme ensures that Singaporeans do not outlive their CPF savings. There is a marked difference between the previous scheme, CPF Retirement Sum, and the current CPF LIFE. It is important that Singaporeans understand how this improved system works so that they can plan their retirement needs appropriately. It should...

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Special dividends for OCBC shareholders?

Singapore’s oldest bank, OCBC, delivered an excellent full year results for 2017, setting the share price on fire. The venerable bank reported on 14 February 2018 a net profit after tax of $4.15 billion, an increase of 19% from $3.47 billion a year ago. This is the first time the net profit of OCBC surpassed the $4 billion mark. In my opinion, OCBC share price is poised to surge to another new level with the impending divestment of Great Eastern Life Insurance (Malaysia). There might even be special dividends for OCBC shareholders. Against this background, OCBC is deemed to...

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Destructive decline of Hutchison Port Holdings Trust (HPH Trust)

On 6 February 2018, OCBC Investment Research upgraded its rating on Hutchison Port Holdings (HPH Trust) from “hold” to “buy”. One wonders what had been going through the OCBC analysts’ minds when they made such a call. Following their upgrade, the unit price had been on an embarrassing downward trend and recovered slightly lately. And every drop in the unit price seems like a slap to the analysts’ face. Of course, investors must be feeling unhappy. In my opinion, there is absolutely no basis to claim that “the worst is over” for this business trust. When HPH Trust debut...

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Is Fraser and Neave (F&N) a value trap?

And so the dust has finally settled for Singapore’s iconic Fraser and Neave (F&N). Following the explosive takeover saga in 2012, share price languished at $2.20 level since. In the aftermath of the corporate drama, is F&N currently a value trap? For a 135 years old company, Fraser and Neave (F&N) limited should be a household name to many Singaporeans. But understanding this venerable SGX-listed company is not an easy feat as corporate events unfolded between 2008 and 2013 transformed its destiny forever. The takeover saga On looking back, the appointment of Lee Hsien Yang as Chairman in 2008...

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Will Dyna-Mac be acquired by Keppel Corp?

SGX-listed Dyna-Mac to sink or swim? As an oil and gas player, it is so easy to write off this company like so many of its struggling peers (EMAS, Nam Cheong, Ezion, Marco Polo Marine, etc). But then again, every stock has its own story. So let’s examine whether Dyna-Mac stands a chance in winning the battle of survivorship. The collapse of the oil price since 2014 had led to a long winter for the oil and gas exploration industry. Many companies in this sector had been embattled by the protracted oil slump and quite a number mid-sized players...

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CPF Retirement Sum Scheme

55 is a milestone age for many Singaporeans as we all look forward to cashing out our hard-earned CPF savings accumulated through decades of hard work. But before you rejoice, it is important to understand the CPF Retirement Sum Scheme. This is because the amount of cash you can take out may be vastly different from what you had been dreaming of all along. There might be heart pain. There could be disappointment, or even bitterness. To put things into perspective, Central Provident Fund (CPF) is Singapore’s social security system and over the years, it has evolved to cover...

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Baptism of fire for Frasers Centrepoint Trust

For a real estate investment trust (REIT) that achieved eleven consecutive years of distribution per unit (DPU) growth, the trust manager of Frasers Centrepoint Trust (FCT) must be doing something right. You don’t simply sleepwalk to such fantastic results with mediocre management. On looking back, the management has done a great job in growing this S-REIT. Over the last 5 years, FCT had registered total returns of 55.2%, outperforming both the FTSE Straits Times Index and the FTSE REIT Index.  Net Asset Value (NAV) per Unit increased 4.7% year-on-year to $2.02 per unit, due to gains from revaluation of portfolio...

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My insurance portfolio strategy

There are a few battles you simply cannot afford to lose in life. While insurance would not enable you to avoid these catastrophic disasters, it can provide an important safety net for you to ride out these storms and gives you a piece of mind. Notwithstanding the above, the recent announcement on major changes to the Integrated Shield Plan rider had thrown a spanner in the works to my insurance portfolio strategy. My family’s journey Very often, I look at my children and can’t help feeling how fortunate they are. At their age, they already had overseas holidays, get...

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Creative Technology staged “mission impossible” come-back

It was a “mission impossible” come-back for Creative Technology. On 6 March 2018, I can imagine long-term investors punching the air and screaming in delirious as its share price ripped Singapore stock market apart. Creative Technology shares surged almost 10-fold to hit as high as $9.77 during the trading session. But for those who have not invested in Creative Technology, it is best to avoid this counter. The latest financial statement revealed that this company is still suffering from huge losses. In fact, if not for the USD32 million legal settlement windfall, there would be massive net losses for...

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Dual-class voting shares a game-changer for Singapore Exchange (SGX)?

How often do you get to rub shoulders with a VIP like CEO of Singapore Exchange (SGX) and how would you present yourself? During a recent Chinese New Year celebration dinner hosted by SGX, I got a chance to meet the CEO, Mr Loh Boon Chye, who made a surprise appearance. Although it was a brief encounter, my impression of CEO Loh was that he is certainly larger than life and came across as a really humble person. This is in deep contrast to his controversial predecessor, the late Magnus Bocker. Frankly, I prefer the current CEO because of...

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The investment fortress of Mapletree Logistics Trust

With four Mapletree-sponsored Real Estate Investment Trusts (REITs), Mapletree Logistics Trust sometimes suffered from a tricky identity crisis. The problem is further exacerbated by the numerous REITs in Singapore stock market. Nevertheless, this REIT stands out as being Singapore’s first Asia-focused logistics REIT. After being prompted by a member of SG Wealth Builder, I realize that this could be an interesting counter because of the perpetual bonds issued by Mapletree Logistics Trust. In my previous article, I shared about Hyflux’s perpetual bonds. But do you know that REIT can also issue perpetual bonds? What are rules concerning REIT perpetual...

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Singapore Airlines CEO won the battle but lost the war

It is akin to winning the battle but losing the war. Current chief executive of Singapore Airlines, Goh Choon Phong, got the top job after upstaging his former boss, Bey Soo Khiang in a four-horse race back in 2011. Bey was the former Chief of Defence Force of Singapore and having lost to his subordinate, resigned promptly from the national carrier. Goh Choon Phong is the The Chosen One, thats for sure. But whether he is The Special One to take Singapore Airlines to another level is another question altogether. Make no mistake, this is Singapore Airlines we are...

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That “uh-oh” feeling of Midas Holdings

Since losing $8,000 on China Enersave in 2008, I swore never to touch any S-Chips again in my life. Like many investors, I had bought into S-Chips because of China growth story. But a spate of corporate scandals had given S-Chips a bad reputation that subsequently led to a serious crisis of confidence among investors. Today, I do not believe in the investment merits of S-Chips anymore. Nevertheless, at the request of a member, this article will discuss the case of Midas Holdings. Corporate Profile Every stock has its own story. Midas Holdings began life when it was founded...

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DBS Bank share price ran riot and stormed to record level!

It is a case of “return of the king” as DBS Bank staged a comprehensive comeback by announcing an impressive 4th quarter 2017 results. Marred by net allowances of $815 million in the previous quarter, DBS lost to OCBC in terms of net profit for that quarter. However, DBS managed to redeem itself by announcing a much better 4th quarter results, with higher net profit of $1.19 billion. The full year results had been boosted by acquisition of the wealth management and the retail banking business of ANZ in Asia-Pacific region. But unknown to many, the biggest profit contributor...

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