Author: Investment Income for Life

Upcoming 5G Network Technology and Imminent Threat to Netlink Trust Business

The faster than expected development of the 5G network caught me by surprise. Just last month (July’18), Singtel and Ericsson announced that they will be launching a 5G pilot network test by the fourth quarter of 2018 to support drone and self-driving car tests in the one-north district. Also, Optus (Singtel’s Australian subsidiary) and Globe (Singtel’s Philippine Associate Company) have announced plans for the rolling out of commercial 5G services next year. I have done up some technical readings and post it here on the 5G technology characteristics so as to analyze the potential implication on Netlink Trust, which...

Read More

Now Is The Best Time To Buy Private Property?

Just a few days ago, I had a rather exasperated conversation with a colleague who is moonlighting as a property agent. My colleague is a 40 over years old lady who is notoriously well known to be very blunt in dealing with people. The ironic part is that she is a business development manager. I am not sure whether I should be upset or to just laugh off the entire episode. The conversation I had went something like this in my office pantry during lunch hours: BK: “Hi Xiaoling, long time never see you back in office liao. How...

Read More

Government Should Bail Out Hyflux And Don’t Put All Your Eggs Into One Basket

It was poignant to read from the news that there was a retail investor who risk losing a certain portion of his S$250K of capital investment into Hyflux bond. The retail investor in this case was a retiree who originally intent to use it to finance part of his retirement income and also to fund his children upcoming university expenses. For all retail investors caught in the current Hyflux Tuaspring crisis, I am keeping my fingers crossed that the eventual divestment and re-organisation is successful so that they can get back most of their capital. Types of Bond There...

Read More

SPH- The New Transformer And Interesting Points To Note

SPH recently announced its 3rd quarter ending 30 June 2018 financial results and more insights into Management strategy in its Property Business. While investors must be happy to know that SPH is embarking on a transformation journey by riding on its new growth engine, the traditional Media business is still in doldrums.  Key Highlights: 1. New strategy by SPH is to focus on the acquisition of cash yielding, real estate assets overseas.  2. SPH is particularly interested in Aged Care business which it believes to be a recession proof business. There are also opportunities for investments into overseas student...

Read More

Singtel- Hidden Danger and Downside Risk that may have been neglected by potential investors

Singtel dropped to a 5 year all time record low of S$3.02 per share on 3 July 2018 (Tuesday) before rebounding to S$3.23 per share on 6 July 2018  (Friday). The plunge to the lowest point is a 16% dropped from S$3.60 at the start of this calendar year. The mind blogging part is many well known analysts over the past 2 months have predicted a targeted price of over S$3.57 to S$4.22 per share for Singtel. Hence it is certainly bewildering to see the price of Singtel flopping and wiping billions of dollars off its market capitalisation and...

Read More

Global Investment Limited- Excess cash from FY2017 deployed into China Domestic Bonds

From my last review, Global Investment Limited (“GIL”) had S$88Mil of cash on hand as at 31 December 2017. Total assets is S$337Mil. This represented a 26% of unproductive assets held as cash and cash equivalent at the end of the previous financial year.    For Q1 2018, GIL had deployed S$59.11Mil into purchase of a basket of 21 China domestic bonds. These fixed income securities have a weighted average coupon of 4.28% and have a weighted short term maturity of 2.22 years. The invested fixed income securities are classified by management as held at fair value. This is a...

Read More

Singapore Press Holdings and SPH REIT- Growth Engine in Property Development and Retail Shopping Malls

Singapore Press Holdings (“SPH”) has been actively pursuing business development in its property segment as part of its diversification strategy.  Recently,  SPH has again partnered with Japanese developer Kajima to bid for a mixed residential and commercial plot at Seng Kang Central as at 21 June 2018. Just last year, SPH and Kajima had bidded and successfully won the Bidadari mixed residential and commercial plot  just next to Woodleigh MRT Station which will be the heart of the new housing estate. These developments will serve as future catalyst of growth as the revenue of the former Media super star...

Read More

How to Preserve the Value of your 99 years leasehold HDB or Private Property?

The 99 years leasehold expiry issue that was recently hotly debated due to the comments from the National Development Minister is actually not just restricted to HDB. Yes, it also affects private property owners who purchased their properties under a 99 years tenure. Simply put, all leasehold properties, whether public or private, will eventually go back to the state upon expiry. The Singapore Land Authority official stance is that its general policy will be to recover the land upon lease expiry. For HDB, do not expect all aged flats to be eligible for Selective Enbloc Redevelopment Scheme (“SERS”). This...

Read More

Netlink NBN Trust- From Boring Stable Counter to Jaw Dropping 8% price drop since IPO

Netlink Trust-the Fibre of a Smart Nation- dropped to a 52 week low of S$0.745 per unit on 8 June 2018 (Friday) during its mid-day trading, before recovering to close off at S$0.780 per unit. During 2018, most analysts were all setting price target of over S$0.915 per unit, but instead it dropped from the S$0.810 to S$0.745. Taking into account Netlink’s IPO price of S$0.810, the Business Trust would have dropped 8% at its lowest point since the announcement of its year end results. What happened to this counter which investors used to praise for its relative stable...

Read More

Property Market going Crazy? Will you pay S$1,750 psf for a private property at Serangoon North?

I am flabbergasted and exasperated. Record new high created again in our Singapore Property Market even at mass market private properties. It was reported in the news that Oxley launched Affinity at Serangoon (formerly enbloc Serangoon Ville) at an average of S$1,550 psf. 110-140 units estimated to have been sold. 5 mins away, Keppel Land and Wing Tai launched their Garden Residences (Serangoon North Ave 1) at an average of $1,750 psf and they managed to move 60-90 units. Also with EC going at S$900 psf and even upcoming projected EC projected at S$1,000 psf at Punggol in 2019...

Read More

Fu Yu Corporation- SUPER Hero cash generating abilities

Superhero strength and superhero cash generating abilities best describe Fu Yu Corporation (“Fu Yu”). Fu Yu is a business listed on the Singapore Stock Exchange focusing on fabrication of precision moulds as well as sub-assembly of precision plastic parts and components. The Fu Yu Group of companies have non-existent bank borrowings on the face of their statement of financial position. Yes…..this is not a typo error…zero borrowings from the bankers. It is even sitting on a cash hoard of over S$98.4Mil as at Q1 2018 which was built up over the years. This represented an impressive translation of S$0.131...

Read More

Asian Pay TV Trust keeps spiralling downards after Q1 2018 results. How low could it go?

Asian Pay TV Trust (“APTT”) closed off Friday (24 May 2018) at a 52 weeks low of SGD 0.440. Based on the re-affirmed SGD 0.065 per unit of dividend guidance for FY2018 by the Management of APTT after the Q1 2018 results announcement, this represented a dividend yield of 14.77% (please see the previous post here with regard to analysis on whether the cashflow for dividend is sustainable) Is this a value trap? How low will APTT goes? When will the dumping of its units in open market stop? Why did APTT plummet recently since the release of its...

Read More

Like us on Facebook

Follow us on Twitter