3 Things Investors Should Know Before Investors in Thai Beverage Public Company Limited

With a market capitalization of more than S$17 billion, Thai Beverage Public Company Limited (SGX: Y92) is one of the most valuable beverage companies in Asia. Thai Beverage Public Company Limited is Singapore undervalued stock produces a wide range of branded beer and spirits in Thailand. But that has not stopped its shares from stumbling more than 30% year-to-date. Investors who are bargain hunting might view this as an attractive entry point.

Here Multi Management Future Solutions presenting the three things to know about the company.

Revenue Generation
Thai Beverage owns several significant alcoholic and non-alcoholic brands in Thailand. Through is signature beer, Chang, it has grown to become the largest beer player in South East Asia. It also sells non-alcoholic beverages such as OISHI Green Tea and est Cola. In 2012, it acquired Fraser and Neave Limited (SGX: F99), which has enabled it to expand overseas and increase its product offering. It now owns brands that Singaporeans are familiar with, such as F&N Magnolia, and F&N Seasons. 

2017 Total Sales Revenue Breakdown

Historical Track Record

Thai Beverage has had a remarkable track record of growth over the past few years. The group has benefitted from the rising wealth of people in the region. It also benefited from the timely acquisition of Fraser and Neave, which has facilitated business expansion outside of Thailand.

Its Revenue has increased by 4% per year over the time frame while operating income and earnings per share have increased by 4.9% and 12.5% respectively. There has been a clear and consistent increase in earnings per share each year, barring 2016, when the group changed its fiscal year end from December 31 to September 30.

Valuation
As of now, Thai Beverage’s share price is S$0.64, which gives the company a price-to-earnings (PE) multiple of 18.4 and a price-to-book (PB) ratio of 3.2. The valuation numbers are both above the Straits Times Index‘s (SGX:^STI) PE and PB ratios of 14.5 and 2.2, respectively, but are at a slight discount to the company’s own five-year-averages of 20.9 and 4.3. 

Cache Logistics Trust: Higher Gross Revenue But Lower Distribution Per Unit

Cache Logistics Trust (SGX: K2LU) is a Singapore REIT. The REIT invests in income-producing real estate used for logistics purposes in Asia-Pacific, as well as real estate-related assets.

Last week, Cache Logistics Trust (SGX: K2LU) latest result shows its 2018 third-quarter earnings update. This Singapore undervalued stock currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.

Here Multi Management Future Solutions presenting some stats which investors should know about Cache Logistics Trust’s latest results- 

1. The Gross revenue of Cache Logistics for the reporting quarter grew 14.8% to S$31.5 million while net property income grew by 8.1% to S$23.1 million. 

2. The REIT’s distribution per unit (DPU) was down by 4.3% YOY to 1.475 cents, mainly due to lower income for distribution and issue of new units.

3. The REIT has a trailing distribution yield of 8.4% based on it’s annualized DPU of 5.868 Singapore cents and its unit price of S$0.70 (as of the time of writing).

4. As of 30 September 2018, the REIT’s gearing stood at 35.6%, which is a wide distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had a committed occupancy rate of 96.9% at the end of the quarter.

6. The weighted average lease expiry (by gross rental income) was at 3.1 years, as of 30 September 2018. 46.5% of Cache Logistics Trust’s leases will expire between 2018 and 2020, 27.3% will expire in 2021 and 2022, and the rest will expire from 2023 onward.

7. Singapore accounted for 76% of Cache Logistics Trust’s revenue in the quarter. Australia was in second place with 23%, and China accounted for the remaining 1%.

8. Cache Logistics has the right of first refusal (ROFR) on acquiring 14  properties. These properties belong to the REIT’s sponsor, CWT Limited, which was acquired by the Hong Kong-listed CWT International Limited in late 2017.

9. Cache Logistics Trust proposed the divestment of Jinshan Chemical Warehouse in Shanghai for RMB87.0 million.

Mapletree Industrial Trust’s Latest Earnings: Slight Raise In DPU

Mapletree Industrial Trust (SGX: ME8U) reported higher distribution per unit (DPU) on last week of October, lifted by growth from its new properties and acquisitions. The acquisitions and developments supported the 1.5% growth in its H1 DPU.
The latest report was for the second-quarter earnings results for the budgetary year ending on 31 March 2019.
Mapletree Industrial Trust is an industrial-based real estate investment trust (REIT) in Singapore undervalued stock division with 86 industrial properties and 14 data centers. Geographically, its properties are located in Singapore and United States and have a book value of S$4.4 billion.

According to DBS Group research, Mapletree Industrial Trust (MINT) could attract investors to accord the REIT with strong valuations through its overseas ventures given its ability to offer strong certainty of growth.

Here Multi Management Future Solutions present the financial report of Mapletree Industrial Trust, Let’ take a look-

The Gross revenue Mapletree for the reporting quarter decreased by 0.4% year-on-year to S$92.5 million while net property income declined by 0.1% to S$70.68 million.

The revenue for the Q2 a year ago rose up by an early termination by a key occupant.
If its termination was excluded then the revenue would have risen 3.1% YOY.

The distributable income of Mapletree rose 4.9% to S$56.3 million over the same period, resulting in a 0.3% accrual in DPU which came in at 3.01 cents. The hike in distributable income was due to profit contribution from the 14 data centers in the United States in which Mapletree Industrial Trust has a 40% interest.

As of 30 September 2018, the REIT’s gearing stood at 35.1% remaining stable at the previous quarter and the annualized interest rate stood at 3.0% with an average debt duration of 2.9 years. Around 78% of the REIT’s debt was on fixed-rate loans.

According to Mapletree operational statistic data, the REIT’s portfolio had a committed occupancy rate of 86.7% at the end of the quarter, which is a slight decline from the occupancy of 88.3% recorded at the end of June.

As of 30 September 2018, the REIT’s weighted average lease expiry (by gross rental income) came in at 3.7 years with only 7.7% of the leases expiring in FY18/19. And its net asset value (NAV) remained stable compared to the last quarter coming in at S$1.48.

CapitaLand Limited Is Trading Close To Its 52-Week Low Price: Is It Cheap?

CapitaLand Limited (SGX: C31) is a real estate development company focused on investment holding. The Company and its subsidiaries are principally engaged in investment holding, real estate development, investment in real estate financial products and real estate assets, investment advisory and management services, as well as the management of serviced residences.

CapitaLand Limited is one of the largest undervalued stock company in the Singapore stock market with market cap 13.113 B Its diversified global real estate portfolio includes integrated developments, shopping malls, serviced residences, offices, and homes.

CapitaLand’s shares are just 7 cents higher than the 52-week low price of S$2.98 at the current price of S$3.05. This recent move in the stock raises a important question: Is CapitaLand cheap now? This question is really worth according to the investor's point of view because if the firm’s shares are cheap, it might be a good opportunity for investors.

The answer is not easy. But, Multi Management Future Solutions figure some insight by comparing CapitaLand’s current valuations with that of the market by focusing on are the price-to-book (PB) ratio, price-to-earnings (PE) ratio, and dividend yield.

Here we are using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market benchmark, the Straits Times Index.

The PB ratio of CapitaLand is 0.7, which is lower than the SPDR STI ETF’s PB ratio of 1.1. In addition, its PE ratio is lower than that of the SPDR STI ETF’s (9.2 vs 10.7). 

Similarly, the property outfit’s dividend yield of CapitaLand is 3.9% is higher than the market’s yield of 3.6%. The higher a stock’s yield is, the lower is its valuation.

Hence, due to the market average due to its low PB ratio, low PE ratio, and high dividend yield, we can argue that CapitaLand is priced at a discount to the market average.

StarHub Share Price Hike after 4 Week Span

SINGAPORE: StarHub shares have leap 17% after span of 4 week on 27 Sep, from $1.62 to $1.90. Keppel and SPH have made a buyout offer for M1, StarHub shares are up 11 cents or 6.2% to close at $1.88 in the morning announcement.

StarHub Ltd is one of the three major telcos under blue chip stock segment Singapore. Since in the beginning of the year, StarHub’s shares have declined 33%, and generate extremely tough competitive environment for telcos in the local market.

The StarHub is one of the known undervalued stock of sgx index competitive landscape among StarHub’s EPS declined 34.8% since 2013,  representing a –10.1% CAGR during the period and the net margin also possess the same challenging environment, losing 5.6ppts from a high of 16.0% in 2013.

From 2010 StarHub maintained its DPS at 20 cents for seven years. In September, StarHub made a JV with Temasek to set up Ensign InfoSecurity, a pure-play cybersecurity firm that will offer bespoke, end-to-end security solutions to enterprises and governments globally.

The latest hike of StarHub is now trading at 7.4x FY2018F EV/EBITDA, which is comparable to M1’s valuations based at $2.06 offer price by Keppel.

SingTel may provide a good risk/reward at this time given that it is offering a dividend yield of 5.6% for FY2019-20F, when StarHub offers a dividend yield of around 6.4% in FY2019-20F

The telcos speed-up their digital transformations and leverage on partnerships with strategic shareholders, valuations may see an upward re-rating over the next few quarters.
Risks include income contribution from new business segments not raise up fast enough to offset declining margins in their core businesses.

Consider These Element Before Buying SATS LTD. (S58.SI) This Year

The risk of investing in the blue chip stock Singapore is a systematic crash when all the stock prices start falling around the same time. High standard, manifest companies be apt to stick around in the long run, although their share price may be temporarily crashed. This is the best time to buy stocks like SATS Ltd at a discount in favour of good return.

SATS Ltd. commonly known as SATS provides gateway services and food solutions. The company specialize in  chief ground-handling and in-flight catering service provider at Singapore Changi Airport. SATS is the well known undervalued stock Singapore registered on 12 May 2000 on SGX Mainboard. 

Here Multi Management Future Solutions team of analyst researched market stats of SATS Ltd. as per the traders interest to buy the stock in this year.

SATS Ltd., was established in 1972 with the market cap of $5.66 B, and categorized under mid-cap stocks Singapore. The company is less independent on external funding because It is bigger size well resourced company and producing good amount of money less independent on external funding. This kind of large cap companies are a great bet when the market are in there dooms situation.

SGX: S58 Historical Debt 2nd September 2018

SATS operating cash flows generously covers its total debt by over 2x, much higher than the safe minimum of 0.2x. And, a given, its liquidity ratio holds up well with cash and other liquid assets exceeding upcoming liabilities, meaning S58’s financial strength will continue to let it flourish in a volatile market. SATS pay his interest periodically with dept of $106.5 M. This means it needs to have enough cash on hand to meet these upcoming expenses. With interest income higher than interest payments, meeting these short-term debt obligations isn’t a problem for SATS. 

SGX:S58 Income Statement Export 2nd September 2018

SATS (S58’s) has vigorous track record of delivering strong returns over a number of years, increasing my conviction in SATS as an investment over the long run. It obtain quality growth from last 5 years, with an average annual rate of 6.6%, beating the industry growth rate of 4.4%. It has also returned an ROE of 15.0% recently, above the industry return of 9.7%.

Singapore Undervalued Stock- SATS LTD. (S58.SI)

Finding a Singapore undervalued stock is not easy; an undervalued stock often isn't in the public
eye, and if it is, the news might be overly negative. Both these factors can keep a stock low-spirited
while the fundamentals of the company dictate it should be trading at a higher price.

Here, Multi Management Future Solutions discuss the market stats of SATS LTD. (S58.SI) which is
predicted to be the Singapore best-performing undervalued stocks for investment and trade at market prices below their actual values with a good return.

SATS Ltd. is an investment holding company which provides gateway services and food solutions.
The Company specializes in airfreight, ramp and baggage handling, passenger services, aviation security
services, aircraft cleaning, and cruise centre management. It also provides airline catering, institutional
catering, aviation laundry, and food distribution and logistics. SATS has presence across Asia and the
Middle East.

STATS : SP (29- Aug 2018)

Sats Ltd

5.20 sgd             +0.03+0.58%

29- Aug 2018

Open	Prev Close	Volume
5.17	5.18	1,020,800
Market Cap	Dry Range	52 Week Range
5.808B	5.17-5.23	4.55-5.85

SATS LTD. (S58.SI)
Period		Dividend Received	Capital Appreciation	Total Shareholder Return
Short Term Return	5 Days	-	0.12	2.36%
	10 Days	-	0.09	1.76%
	20 Days	-	0.01	0.19%
Medium Term Return	3 Months	0.12	-0.15	-0.56%
	6 Months	0.12	-	2.31%
	1 Year	0.18	0.43	12.79%
Long Term Return	2 Years	0.35	0.34	14.20%
	3 Years	0.5	1.71	63.32%
	5 Years	0.77	2.09	91.96%