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%

2 Questions to Interrogate While Estimating Dividend Stocks

The Singapore advertise is notable for its high profit paying firms. One such gathering is those of land venture trusts (REITs)(sgx stock). With profit stocks being well known in the city-state, in what manner should financial specialists assess such organizations? 

One of the greatest missteps a speculator can make is as a rule too focused on the profit yield of an organization. This is frequently an issue on the grounds that the yield just educates you regarding the past and not what's to come. While the profit installments may have been high previously, it doesn't consequently bring about high-profit installments later on. 

How about we take a gander at two inquiries speculators should ask of a profit organization when they assess it. 

Question 1: Do earnings sufficiently cover the dividend payments?

For an organization to pay profits, it needs to profit; that is truly self-evident. In this way, the main check speculators should make is to guarantee that the organization's profit is adequate to cover its profit installments effortlessly.( 

For REITs in Singapore, the payout rate is typically 90-100%. This implies the REIT is paying out near the entirety of its profit as profits. In such a circumstance, it turns out to be much more vital to assess the security of the business or rental wage. 

For organizations other than REITs, the payout proportion ought to be checked altogether. Organizations with a payout proportion of beneath 75% are generally considered to be moderately traditionalist in my view. Financial specialists should remember that organizations that compensation out at least 100% of their income as profits ought to be seen with some incredulity, except if they are only erratic installments.(singapore stocks to buy) 

Question 2: How stable has past dividends been?

The following component speculators should take a gander at is the strength of the profit. Most speculators who purchase profit stocks do as such for the chance to get repeating pay from these stocks. In such a case, isn't the soundness of the profit essential? 

When taking a gander at the profit history, financial specialists should watch out for emotional cuts in profit or the most pessimistic scenario, a missed installment. How about we have a speedy take a gander at what could cause these. 

For a REIT, a drop in the payout could be intelligent of a poor request from its properties, bringing about lower rents.(share trading tips) This could imply that the property is not any more focused and in this way, can't summon high rental salary pushing ahead, except if the supervisor finds a way to enhance the property. 

Another explanation for a drop could be because of the offer of a property. In such a case, financial specialists need to assess what the administrator does with the business continues. On the off chance that it is reinvested into another property, the rental salary ought to have the capacity to make up for the lost pay. 

For organizations other than REITs, a drop in profit could be intelligent of testing business conditions.(stock research singapore) In such a case, financial specialists need to reexamine the profit pushing ahead. Another explanation for a drop in installment could be because of an amendment of the organization's payout approach. On the off chance that this was the situation, the administration ought to have an unmistakable clarification for the diminishment. 

The Foolish bottom line 

The two focuses above are only the beginning stages from which speculators ought to assess profit stocks. The inquiries will guarantee that financial specialists give careful consideration to an organization's or REIT's capacity to pay a steady profit, keeping away from any potential entanglements meanwhile.source

It’s a Sum up- The Top 3 and Last 3 Blue-Chip Stocks for June

The Straits Times Index (SGX: ^STI), which tracks the execution of the main 30 biggest and most fluid organizations recorded in Singapore, was in the red for June. For the month, the neighborhood securities exchange bellwether tumbled 4.7% to 3,268.7. (Stock tips)

Of the 30 list segments, four were in the green; one was level while the rest of the 25 were in the red. 

The best three champs of the Straits Times Index were Jardine Strategic Holdings Limited (SGX: J37), Hutchison Port Hldg Trust (SGX: NS8U) and Jardine Matheson Holdings Limited (SGX: J36).

Jardine Strategic is a holding organization with long-haul key interests in multinational organizations. Jardine Strategic possesses 58% of Jardine Matheson, the third-best entertainer in June, while Jardine Matheson has an 84% in Jardine Strategic.(stock Recommendation) 

For the primary quarter of 2018, the organizations refreshed the market that they have performed consistently amid the period, with income relatively unaltered from a similar period multi-year back. Their accounting reports, as at 31st March 2018, "stayed solid with an unobtrusive increment in equipping since the earlier year-end". (stock research singapore)

Both Jardine Strategic and Jardine Matheson will declare their budgetary outcomes for the half year finished 30 June 2018 on Friday, 27 July 2018. 

Concerning Hutchison Port, income and other pay grew multi year-on-year to HK$2.7 billion for the three months to 31 March 2018. Be that as it may, benefit owing to unitholders of the trust tumbled by 12.9% to HK$145.4 million. Hutchison Port as of now has one of the most noteworthy profit yields among the Straits Times Index stocks.(Penny Stocks Recommendation) 

Then again, the best three washouts of the list were Venture Corporation Ltd (SGX: V03), StarHub Ltd (SGX: CC3) and CapitaLand Limited (SGX: C31).

For the long stretch of May, Venture's offers fell nearly 16%. This is over the declining stock cost in the earlier months. With a cost-to-income proportion of 12.3, the valuation is at a low not seen in numerous years. Wander's offers have been hit as of late by a short-offer report which proposed that Venture is excessively uncovered, making it impossible to Philip Morris International, which delivers the "warmth not-consume" tobacco item, IQOS.(share trading tips) 

Toward the finish of a month ago, The Straits Times announced that StarHub would hatchet seven stations from Discovery Networks, following unsuccessful transactions between the two organizations. To supplant the dropped channels, StarHub had anchored seven fresh out of the plastic new channels, and these will be added at no additional cost to clients.(sgx analyst recommendation) 

For the telco's first quarter finished 31 March 2018, income tumbled multi year-on-year to S$561.0 million. The decay was primarily because of lower income from portable and pay TV administrations, together with bringing down offers of hardware. Net benefit slammed 14.9% to S$61.5 million. (Singapore Stocks Signals)

In June, CapitaLand's offers shut at S$3.16, just somewhat higher than the 52-week intraday low cost of S$3.11. In the last seven day stretch of the month, CapitaLand Commercial Trust (SGX: C61U), which is supported by CapitaLand, said that it is offering Twenty Anson to a disconnected outsider for S$516 million. The divestment is relied upon to be finished in the second from last quarter of this current year.(intraday trading) 

The SPDR STI ETF (SGX: ES3), a trade exchanged store which can be taken as an intermediary for the Straits Times Index, was esteemed at a cost to profit proportion of 10.5 and had a dissemination yield of 3% on 29 June 2018. source

Don't Stay Away From Thai Beverage Public Company Limited For Now

Thai Beverage Public Company Limited (SGX: Y92)(sgx analyst recommendation) is the main drink organization in Southeast Asia and the biggest of its kind in Thailand. It likewise has a 28.5% stake in another Singapore-recorded organization, Fraser and Neave Limited (SGX: F99), which is a drink maker and wholesaler with a long history. 

I like Thai Beverage for the different driving drink marks that it possesses, its broad dissemination arranges universal nearness in excess of 90 nations, and the development potential it has in the years ahead. 

Development designs set up 

Thai Beverage needs to wind up the biggest and most gainful drink organization in Southeast Asia by 2020. By that year, it plans to build its income share from non-mixed drinks to more than half. It likewise needs the greater part of its income to originate from outside of Thailand. 

In an offer to develop its best line, Thai Beverage finished four acquisitions in its monetary first quarter finished 31 December 2017. One of the arrangements was the buy of a 53.59% stake in Saigon Beer Alcohol Beverage Joint Stock Corp (Sabeco)(share trading tips), a Vietnam-based lager brewer. 

Sabeco has the biggest piece of the pie in Vietnam's brew showcase. It claims acclaimed brands, for example, Saigon Beer and 333 Beer. Vietnam is the most unmistakable brew showcase in Southeast Asia and the third biggest in Asia. The securing gives Thai Beverage access to broad conveyance arranges in Vietnam and broadens its items topographically. 

Amid a similar quarter, Thai Beverage additionally ate up a 75% stake in Myanmar Distillery Company (MDC), the creator of Myanmar's driving whiskey mark Grand Royal, and MDC's connected store network business. 

It is likely that Thai Beverage would encounter development in the years to come. Yet, I'm avoiding the organization, for the present.(should I buy Keppel corp now) 

Obligation loaded accounting report 

The primary motivation behind why I've not put resources into the refreshment mammoth is that I'm not happy with its frail accounting report. 

Starting at 31 March 2018, Thai Beverage had THB 234.5 billion in all-out obligation, and just THB 20.4 billion in real money and money reciprocals. In correlation, toward the finish of September 2017, it had a moderately more grounded asset report with THB 40.7 billion in absolute borrowings, and THB 9.9 billion in real money adjust.(stock Recommendation) 

Because of the huge successive increment in its obligation, Thai Beverage's equipping proportion expanded from 0.47 starting at 30 September 2017 to 1.88 starting on 31 March 2018. 

Thai Beverage's capacity to produce an abnormal state of free income should assist it with reducing its obligation in the coming years, however, I don't feel good putting resources into an organization weighed down with obligation. 

The Foolish takeaway 

Thai Beverage is the proprietor of numerous driving drink brands and appears to have a lot of development ahead in a district with a rising white collar class. Notwithstanding, the powerless monetary record is something I'm watchful about. At the point when the obligation levels are more tasteful for me, the valuation of the business may have expanded further, yet I'm not stressed over that. source