Recent Portfolio Update and Thoughts

Dear All,


I've divested all my units (3500) in HC surgical, with no reasons in particular except to re-balance my portfolio.

Raffles medical has continued to be a poor performer for me, and is the biggest drag as it constitutes the majority of my portfolio. Nonetheless, I will continue watching this counter and will likely average down.

Two other counters I'm closely monitoring is Jumbo Group (which I already own a small parcel of), as well as Comfort Delgro, with both demonstrating recent weakness; Jumbo due to its stagnant results and CDG with its recent taxi-competition. Although CDG is potentially losing revenue due to the various incentives Grab has offered to lure its cabbies, I do believe that CDG may eventually come to an agreement with Uber to counter this. How effective it will be is another question.

Nonetheless, CDG is looking slightly more attractive now that it has reached its 2014 levels, but i do not think that it has bottomed yet. It will be difficult to catch the bottom for sure and if I were to enter, I would have to commit to averaging down in order to get the best out of it. It is worth noting that whilst the taxi business does take up a huge chunk of CDG's operations, they do have other operations including public transport and engineering.

Furthermore, Grab/Uber, whilst snatching market share from CDG, is burning lots of cash in the process. Their model is not without it's downside as well. (Please note that I'm not speaking from personal experience, but based on what I've learnt from some of the Uber and Grab drivers when I tried the app myself); "it is annoying that a percentage of our earnings goes to the company", "Taxis are actually good too, they pay a high base rental, but they do not have to pay a percentage, which then varies with their earnings. Earning more means losing more".


I'd leave things here for now, thanks for reading.

A.

July Updates and Thoughts

The month of July heralded new highs in the stock markets globally, with DOW hitting a new high and the STI reaching its previous peak.

The performance of my personal portfolio has not been great though, with Raffles Medical being the worst performer. That said, I'm not too concern about things yet and I am still confident about its' growth in the long term. Profits are getting squeezed, and with analysts predicting the fall in NPAT due to their expansion and upgrading plans the next 3 years, buyers seem to be rushing out of this counter. As such I have taken the opportunity to acquire a small parcel of another 1500 shares which  brings my total RMG counter number to 4300. I will continue to monitor this counter and I'm currently planning on scooping up more if the weakness continues to persist.

(image credits: Jumbo Group LTD)

I have also acquired 4000 shares in Jumbo (42R), which has retreated back from its previous peak, hence presenting with a decent buying opportunity IMO. Similarly, if this counter continues to present with weakness, I may scoop up more as well. Although this counter has been compared to other services/food-services counters which are cheaper, I believe that this is an unnecessary comparison as they are all intrinsically different. Jumbo has a great product and they are already taking the right steps (I believe) in their overseas venture.

With Regards to my REITs counters, they have all been doing well despite the recent Fed rate hike in June. IMO this is because most of these REIT counters are still fairly valued. Looking back, Parkway REIT has been by far my best performer, with about a 28% gain since I bought (nearly at it's bottom) nearly 2 years ago, with 2 years of dividends to boot on top of it. On hindsight, this highlighted to me that if I strongly believe in the intrinsic value of a counter, I should not be too worried about the general market sentiments, which I was afraid of at that point in time.

That's all for today's update, best wishes to everyone out there!

A

Recent Portfolio Update - Singapore O & G

(source: Singapore O&G Ltd)

Dear all,


As most of you would have read in my previous post, I divested all my holdings (6000 units post-split) in Singapore O & G for an average price of approximately $0.655 per unit. (post-split) about 2 months ago. (NB: this was near to it's peak)

I took advantage of the recent weakness to take a small bite (3500 units) of the company again @ $0.475 per unit. This entry price represents a 27.5% discount as compared to my previous exit-price. In addition a unit price of $0.475 represents a P/E ratio of 25 times earnings (EPS of $0.019), a stark difference to the previous P/E of 35.

Once again, this is a decently risky share. As per most small-cap medical groups, revenue and income are heavily dependent on the key medical practitioners. Furthermore, this is a rather new counter, without a longstanding track record. I'm also uncomfortable with the O&G segment remaining as a significant bulk of the revenue, due to falling birthrates. However this is somewhat offset by their expansion of other specialisations (Derm, Surg etc). In addition, it is worth noting that there was some insider selling (though insignificant) at the start of the year, and the end of last year. The recent sell-down is also questionable due to the large volumes unloaded (and loaded), although there has yet to be any news. There may be a tinge of panic selling amongst this, which I am banking on, but I definitely won't jump to conclusions yet.

To conclude, this is likely to be a short-medium term play rather than a long term one as this is more based on a bit of speculation and a 'value-play'.

Good luck to all holders.

A.

Recent Portfolio Update - Singapore O & G

Dear All,

I have divested all my holdings (3000 units) in Singapore O & G at an average price of $1.31. (Current share price of Singapore O & G is $0.665 which would work out to be $1.31 before the 2 for 1 share split).

(Image Credits: Singapore O & G Ltd)

I still agree that Singapore O & G has a lot of potential to grow. It does still have a reasonable share price at the moment based on its earnings, however, with healthcare counters already taking up the majority of my portfolio, I decided that it was in my best interests to rebalance my portfolio. This is so that I will be able to jump on any opportunities in the market that may come in the future.

The reason why Singapore O & G was chosen out of all my healthcare counters, is because I believe that whilst it carries decent value, the other healthcare counters I currently hold are more "undervalued" relative to Singapore O & G at their current prices, and I believe that they would bring about greater value in the short to medium term at least.

I am also slightly troubled by the declining birth rates. Although Singapore O & G has been able to consistently grow its market share, there would eventually be a point in time in which it's ability to grow my acquisitions becomes more and more limited. This is understandable because as more and more suitable practices are being acquired, the "less suitable" ones increase in proportion to the overall market.

That aside, I will however be likely to reinvest in Singapore O & G if its' plans to expand overseas materialize. The demand for medical tourism seems to be plateauing and unlike my other healthcare counters, Singapore O & G does not have overseas exposure. Doing so would decrease concentration risk and provide much greater opportunities to grow.


Thanks for reading everyone!

A.  😁

Which brokerage should I use?

This is a question I've received from a couple of friends who are new to investing, so I thought that it'll be fantastic if I could write about this directly on my blog for the benefit of everyone else who has the same question. Please also note that this post contains my personal experiences and opinions to a large extent.

(image source: clipartfest.com)

Well to begin with, I cant exactly give anyone an answer as to which brokerage they should use if they were to start investing, but I can certainly tell you what I am using, and why. From there, perhaps you could then explore your options. 😁

Before we begin, the table below is just an overview of a few (not all) brokerages and their fees, which as you can see, are mostly similar, note that different % fees apply for amounts > $50k, but I have left them out of here for simplicity's sake.

Brokerage	Minimum Commission	% Commission Fee (<$50k)
DBS Vickers	$25	0.28%
OCBC Securities	$25	0.275%
Standard Chartered	$10	0.20%
UOB Kay Hian	$25	0.275%
Phillip Securities	$25	0.28%
Maybank Kim Eng	$25	0.275%

Currently, amongst these (and many other brokerages available), I have opted to use OCBC Securities and Standard Chartered Online Trading. Please also note that I have not tried other brokerages, so I am currently unable to give an opinion on them.

I think there are a few things you could potentially weigh over here:

1. Customer Service

I think this is an important factor as you may be handling calls/ be required to make calls to the brokerage at times. However this is also a subjective matter, and should be determined by your own personal experience. Although it is also often hard to determine initially whether or not the customer service suits your preference on your first visit (e.g. to open your account), or by your first call as the staff in charge at their call centres often rotate,  but I believe that eventually, experience will tell you whether or not you should stick with your brokerage, or switch to another.

Here are my personal experiences with the two brokerages I'm using thus far,

Standard Chartered: when I had to open my account at standard chartered, the staff who attended to me was pretty impolite and sounded even a little condescending. However, my experience with the staff members at the call centres have so far been great, they were all very polite and patient, which is one reason why I continued using this brokerage.

OCBC: conversely, the staff who helped me with opening my account was very polite, (well he did want me to fill up a customer satisfaction form subsequently, so I don't know if that played a part, but I'll give him the benefit of the doubt. Follow up was not fantastic though, basically, OCBC has a YIP that gives young investors slightly lower brokerage fees, however, the polite staff member who assisted me with the account opening did not inform me that the nett difference is only refunded subsequently. (I will be talking about this later) But basically, I was wondering if I was actually "registered" under the program, and I had to make multiple calls to their call center as well as write a few emails in an attempt to resolve this issue. Furthermore, the majority of the staff members who attended to my calls did not seem to know how to resolve the issue and often gave me superficial answers. I still use OCBC at times, but am less inclined to for the above reasons.

2. Brokerage Fees

This is very important as well. Especially for those with shallower pockets like mine. Most brokers charge a minimum commission fee. In my opinion this is probably one of the reasons why there hasn't been much interest in the local exchange and also why there hasn't been much trading activity, even though there may be so many decent stocks listed on our exchange; simply because of the high commission fee, and this is so even for online trading. (note that call-trading is still available but seldom used, and is way more expensive)

2.1. OCBC Brokerage Fees

For OCBC securities, the online trading minimum commission fee is $25. That is a lot of money, as this is the minimum cost per trade. 

Basically, if your trade value (the value of the stocks you're purchasing) is lower than $50,000, a 0.275% (of the total value) commission is what you have to pay, however, if the 0.275% falls below $25, then you would have to pay $25.

To put things into context, basically for the 0.275% to be effective over the $25, your trade value needs to be $25/0.00275 = $9090.90. Otherwise you will be paying the minimum commission of $25. Whether you are buying $100, $500, $1000, $5000, or $9000 worth of stocks, you have to pay $25 as the 0.275% percentage commission does not apply to you. As you have probably already noticed, the lower your trade values, the more you are "losing" in terms of the commission paid.

Example Scenario

Investor A - Makes 10 trades with each trade valued at $1000 each

-> minimum commission kicks in  for each trade as each trade value is below $9090.90

-> total commission paid to for the $10000 worth of stocks = 10 x $25 = $250, which is 2.5%

Investor B - Makes 1 trade with the trade valued at $10 000

-> minimum commission does not kick in as the trade value is above $9090.90

-> total commission paid for the $10000 worth of stocks = 0.275/100 x $10000 = $27.5, which is 0.275%, seems cheaper ain't it?

The only problem is that most new investors/ investors with tighter pockets tend to end up like "investor A", resulting in a sizeable proportion of their cash being burnt before they even get started. Don't forget that the same commission applies when you want to sell hence everything in the above scenario should be "doubled" if you are not planning to buy and hold for eternity.

Also it is important to note that all brokerages are approximately the same in this sense, as they all have a minimum commission fee, which varies slightly, and a percentage fee (if the minimum commission amount were to be exceeded) which also varies slightly.

So why did i use OCBC?

Because under the YIP (youth investment program) young investors enjoy $10 off the minimum commission fee, which therefore brings the minimum commission of each trade to $15. It doesn't bring a big difference if you only made a single trade, but it will if you are making several. Also because of the slightly lower minimum commission fee under the program, it puts OCBC's minimum commission fee at a lower price than other brokerages (assuming the other brokerages are not running any special offers/promotions which can sometimes happen).

2.2. Standard Chartered Brokerage Fees

Standard Chartered currently offers a minimum commission fee of only $10, with a brokerage rate of 0.20%, hence applying the same rule, in order for the minimum brokerage fee to not apply, the value of the trade needs to be at $10/0.002 = $5000. You may be thinking now, this makes it cheaper than other brokerages doesn't it? So is there a difference? Well, I will be talking about the difference under the next point.

3. Custodian vs CDP

Basically your shares can either be held under your own CDP (Central Depository) account or a Custodian Account (which occurs in the case of SC bank, as well as in other situations but I don't think that's important to this discussion).

Various other webpages gives an entire list of the differences and disparities but here I will only be writing what I personally experienced thus far, as I believe it will be more useful as a snapshot or rather an overview of things that you will be experiencing very soon if you were to choose between the two.

Basically Standard chartered does not credit your shares to your personal CDP account, rather, they hold the shares for you, as the custodian. Whereas if you were to use OCBC or most other brokerages, the shares will be credited to your personal CDP account when you buy.

So what happens when you want to sell shares?

If a set of shares are in your own CDP account, you can use any other brokerages to trade the said shares. However, if your shares are held by SC, you can only use them to trade the same shares in question.

Any benefits to either?

Well, from my personal experience, if your shares are held in your CDP account, you will receive mailing updates directly from the company, i.e. annual reports, invitations to AGM, dividend notice, dividend reinvestment plan (DRP) notice etc. but if your shares are held under the SC custodian account, SC communicates with you on their behalf. However, you will not be invited to the AGMs, receive the companies' annual reports, although you will still receive notice when there are dividend payouts and of DRPs. Oh it is also important to note that if you were to use SC's custodian account, you would not have any voting rights, as these rights are 'transferred' to SC (the custodian), who can choose to exercise (or not exercise) the voting rights.

Any risks to using the custodian account?

Well using SC's custodian account does not seem to bring about any additional risks, as according to them, it appears that investors' shares in the SC custodian accounts are held separately from the bank's own assets. Which would mean that in the unlikely event that the bank collapses, creditors will not be able to claim ownership of your shares.

On this note, that is all from me today!

I hope you find this post useful, good luck in your own journeys.

Best Regards,
A 😁

3 Potential munchies over the next few months

For those of you who have been following my blog, you would probably know that my current portfolio is heavily concentrated on the healthcare sector. And I had previously planned to keep the proportion of healthcare counters to about 50% of my portfolio. However, with my latest purchase of shares in ISEC healthcare which i blogged about here, healthcare sits at a significant 70% (approximately) of my portfolio. 

I am planning to balance my portfolio and I am currently, and will continue looking at counters from other sectors. Please note that whilst I believe balancing my portfolio is necessary, I will not do so unless I find suitable shares at prices I can swallow.

Here are some counters I am looking at;

Singapore Telecommunications (Z74)

If you had read my portfolio page, you would have realised that I do have a small parcel of Singtel shares already, and if you are interested, I blogged about it here recently. Potentially, I am looking at doubling my holdings in this counter, and my reasons for investing in it remains unchanged from what I previously mentioned. But in short, I believe Singtel remains an excellent defensive play due to its' significant diversification, good management track record, and little free-float. 

Frasers Logistics and Industrial Trust (BUOU)

(image credits: Frasers Logistics Trust)

I have never bought an industrial REIT before, and this is the first one on my watchlist. They have recently exceeded their maiden DPU forecast, and currently sits at approximately 99% portfolio occupancy. They also boast a WALE of about 7.0 years. This is higher than most other industrial REITs listed in Singapore. For those of you who are new to the term, WALE (Weighted Average Lease Expiry) essentially reflects how long the average remaining lease period is, to a tenant of the REIT. This is done by taking into account every tenant's respective contribution to the REIT and their remaining lease period, and aggregating the amount. In short, the greater the WALE, the less risk the REIT faces as tenants aren't going to vacate anytime soon.

The REIT also has sufficient room to acquire more properties, and they have recently made a good acquisition (The Martin Brower Property), which increased their WALE and reduced their average portfolio age.

I also like the fact that the REIT's properties are based in Australia, and collects rent in AUD. Although there is no risk of unfavourable/favourable currency swings at the moment due to hedging, in the next FY (FY18), it may not be the case. I am bullish on the Australian dollar, and its economy, and I believe that its' currency will continue to be on the upswing, which could potentially increase distributions in this REIT. We should also note that Australia has not experienced a single recession in the past 25 years. 

This counter is not that expensive yet, and is currently hovering right between the 52 week low and high. Hence, I am monitoring this counter closely for an opportunity to invest.

ISOTeam

This is probably the least well known counter out of the three. This company specialises in facilities management and upgrading of the public housing estate in Singapore. Sounds defensive already doesn't it? Services they provide range from painting services, pest services to re-roofing and waterproofing. At the same time they do have a number of subsidiary companies which I will not be writing about here as it is not the main point. The problem though is that this may have already been factored into the share price, as you can see in the chart below and it is decently expensive, if not the most expensive for a counter classified under the construction sector: 

(image credits: yahoo finance)

I will probably be just monitoring ISOTeam for now due and will only strike if there's a window of opportunity.

On this note, that will be all from me today, and I'd like to thank you for your support!

Best Regards,
A 😁

Happy Lunar New Year!

Dear friends,

If you're reading this, I'd like to take this opportunity to wish you a very happy and prosperous Lunar New Year. If you're Chinese and follow the tradition, may you have a great time visiting and spending time with your family members and friends! If you aren't, I would also like to wish you an awesome extended holiday with your family and friends! 😁

(image credits: clipartfox.com)

Remember to stay happy, and calm!

During this festive season, I do know that there are investors out there who buy (for good luck) and also those who sell (due to the increased demand!). I would just like to remind everyone (including myself) that whilst doing this, remember to make prudent and informed choices!

The stock market is much about human psychology after all, and when prices go up and up, with the markets being in the green, it becomes "easy or good to buy" to non-holders. On the other hand, holders are tempted to sell. During such times, I suppose it is important for both non-holders and holders to think again; about their investment thesis for the counter in question: has it changed? (well of course this is assuming that you are a medium-long term investor and not a trader.)

If the answer is no, then there you have it. You don't have a good reason to buy or to sell. Excessive buying and selling can potentially lead to regrets due to the opportunities lost (e.g. oh no i sold the shares of the company that I was very confident in and the price went up!), and also due to the heft brokerage fees incurred (> $20 generally for each trade is a lot of money!). I thought of the second point as I do know of a friend who makes many many trades and still end up holding shares in the same company. And this is without making any profit from the trades, coupled with some losses incurred due to the fees involved!

This argument does not just apply to this festive season but also to every other occasion in the year which influences short term investing decisions and hence the overall market direction. So, remember to keep calm when making your decisions!

That is all from me today, once again, I'd like to wish everyone a safe, happy, and prosperous 2017 ahead.

Best Regards,
A 😁

FIrst REIT latest earnings

This is not going to be a long piece! As I am sure First REIT is pretty well known to most investors. But just in case: First REIT is an Healthcare REIT mainly based in Indonesia (with small concentrations in Singapore and Korea) listed on the SGX and they currently have a market capitalisation of about $1B, and 18 properties. 

For those of you who have read my blog before, you would know that I am currently holding a small parcel of shares in this REIT (if you are curious you can check out my portfolio tab section)

Distribution

The latest quarterly (oct-dec) distribution per unit (DPU) amounted to 2.13c, up from 2.12c in the previous quarter. You may also like to note that DPU has risen steadily for the past 12 quarters (from 1.96c to 2.12c currently. Dividend yield stands at 6.47% based on current prices. You can see from the chart below that the DPU has grown together with the REITs' Earnings per share (EPS), which is a good thing.

(image credits: Singapore Exchange Ltd)

Growth

To a certain degree, the REIT has experienced growth. We can see this in the chart below; from their  increasing operation cash flows and increasing revenue over the past few years. We should also note that most recently, the REIT has acquired Siloam Hospitals Labuan Bajo, and the deal was completed on the 30th December 2016, and the contributions of this new property has not yet been accounted for in the latest quarter.

(image credits: Singapore Exchange Ltd)

Valuation

The current PB ratio sits at 1.205 (which is decent compared to historical levels. Gearing is currently at 31% which is decent as well, and provides a little headroom for further acquisitions (SGX REITs have a gearing limit of 45%). For those of you who are unfamiliar with this term, it is a common term used when describing the valuation of REITs, and it is equal to the REITs' debt divided by the total equity value. 

Other thoughts

There was initially panic when the REIT's sponsor, Lippo announced potential plans to shift the REIT (along with Lippo Malls REIT) to Indonesia's exchange. However the news has quietened down for now, and I believe one reason it has not yet happened is due to the risk free rate in Indonesia being far greater than that in Singapore, hence potentially requiring a greater yield to attract investors, which may not be plausible. 

At the same time, it is also encouraging to see that the REITs' managers have been consistently participating in the Dividend Reinvestment Plan (DRP) for First REIT, which to a certain extent demonstrates that they are confident in the REITs' future.

I will just be sitting back and collecting dividends for now, and I believe this is not a counter that I need to monitor daily. 

Cheers, 

A 😁

Recent Investment/ Portfolio Update - ISEC Healthcare

 

(image credits: ISEC Healthcare)

It's been awhile since I have updated my blog, and I am very pleased that I do have an update now! I have bought 13000 Shares in ISEC Healthcare with an  average price of $0.285. You may like to note that current price levels are very near to their IPO price of $0.280, and I have been monitoring this counter for a few months awaiting a drop to favourable levels whereby it has now arrived at. 

For those of you who are unfamiliar with this counter, this company provides medical services, and its' main focus is on opthalmology (eye medical care services). It currently has operations in Malaysia (KL, Penang), and Singapore.

Expansion & Synergies

ISEC has seen some issues recently in the past and previous year, with its Novena eye center clocking a lost for the group totalling $2.6M, due to both losses and closure related activities. (PS. It has closed down due to failure to renegotiate wages with the 3 doctors working at the center) However, the board has hinted that business opportunities remain strong, both locally and abroad (Malaysia and Vietnam, and the Asia Pacific region in general).

True enough, under a year ago, they have acquired shares in Southern Specialist Eye Centre in Malaysia, and most recently, the acquiring of 4 General Practice Clinics in Singapore. Although their expansion plans in Vietnam have not materialised, I believe that it is only a matter of time. There is potential for GP-Opthalmology referrals and for GP follow-ups as well. Although this is not definite but there is a decent likelihood. There would also likely be cost savings along with expansion; due to synergies and economies of scale (which applies to most businesses including ISEC) - better negotiating power for medical equipment, more efficient managing of facilities, staff-sharing between centers; to name a few.

Population Tailwinds

Everyone has probably heard of the ageing population argument for healthcare (ie. average population age increasing = more demand for healthcare in general) already so I would not repeat that here. But instead let me give a tiny snapshot about why opthalmology as a specialty is particularly important or potentially lucrative in a few short dot-points;

1. LASIK is gaining popularity, an increasing amount of Singapore and the world's population is experiencing short-sightedness (largely due to technology's contribution)
2. Cataracts and Glaucoma are very common eye problem requiring urgent treatment
3. Singapore (which is a main source of revenue for ISEC), has the 2nd largest proportion of diabetics amongst developed nations. Diabetes has also been on an uptrend in other countries including Malaysia the other main source of revenue for ISEC (also note that Malaysia has a greater prevalence of diabetes than the world population (about 8% higher)).
4. Diabetes has many microvascular and macrovascular complications. Amongst the former, eye complications are one of the first signs of manifestations and require urgent treatment
5. Of which, Cataracts, Glaucoma and Retinopathy (damage of blood vessels of the retina) are common complications

There are of course many other arguments (e.g. ozone depletion -> increasing UV exposure -> increase risk of cataracts and other eye conditions) that would go the same way, however I will not be going into them as the purpose of this piece is just to give ourselves a snapshot of the big picture.

I believe that the main take away point is that eye conditions are getting increasingly more common locally and abroad. Furthermore, eye conditions are arguably less insidious than other medical conditions, as their manifestations appear quickly and bring about severe changes to the standard of living of patients', leading to patients being more likely/receptive to receiving medical treatment for their eye (and being more than willing to pay for it) as compared to other specialties.

Financials

(Image Credits: Singapore Exchange Ltd)

As you can see revenue and gross profit as well as dividends per share have been on a steady rise, which is all good. Current P/E is also at 26.9 which is high, but then again relatively low to the other listed healthcare providers. 

ROE currently sits at 10.4 which is not fantastic but not terrible either, as compared to the other years since listing, and there are signs that their returns are increasing, perhaps due to their expansion from the utilisation of free cash flow and IPO proceeds. On that note, they also have $26.9M in cash and equivalents and no debt as well, giving them sufficient room to acquire other practices when they deem fit. 

In summary, there are a number of things I like about this counter and I have hopes that they are back on track onto achieving success. For now I'll just be sitting back, collecting dividends, and monitoring their progress. This is probably a counter I will be holding for the long term.

I hope you have enjoyed reading my 2 cents!

Cheers,
A 😁

Potential Munchies - A little known company?

Hi everyone, hope the New Year has been treating you all well thus far! I was bored today so I did random searches on SGX-Listed Catalist companies. 

The reason why I am interested in smaller-cap (for those of you who dont know, this is a common abbreviation for "companies with smaller market capitalisation" is due to their greater potential for growth. (I've spoken briefly about this in my earlier posts) Long story short, smaller companies are more likely to be able to grow and increase their market share as compared to larger companies, due to reasons such as product saturation.

So I found a pretty interesting company/group: 

Keong Hong Holdings (5TT.SI)

(image source: keonghong.com)

Well technically this group is not a Catalist group, it is: founded in 1983, listed in 2011 on the catalist, but transitioned to mainboard in 2015.

This group basically does construction and building, has a P/B of 0.79 which is really good value, basically you will be paying less for the company's assets than the market valuation, and this is still decent when comparing to other companies in the same sector.

It also sports a dividend yield of 7.49% (however the dividends have not been very consistent). Upon a closer look however, its' lowest dividend historically would have been in 2015, where it had total dividends of $0.018, which based on today's share price of $0.465, would be equivalent to a 3.87% yield, which is still decent. They're dividend payout ratio also sits at only 23.1%, which would give them ample financial headroom.

If you take a look at its share price; it has actually been growing at a decently fast rate since its listing, when compared to the STI ETF (ES3). Although history doesn't determine the future, it does show that this group, or the markets' expectations of this group have been growing:

(image credits: yahoo finance)

Ok moving on, the group appears to have a decent pipeline of projects in place. The construction order book currently stands at $351M, which allows for a sustainable flow of activities up till the end of FY2018. It is also in charge of a number of notable projects including the Raffles hospital extension, it also has several overseas projects, including the expansion of the Kooddoo domestic airport (Maldives), and the construction of the Pullman Maldives Maamutaa Resort in the Maldives, the group it also has investments in Japan. 

Although due to property cooling measures and oversupply (IMO) of new private housing projects would be very challenging, I believe that the group is going in the right direction by expanding overseas. 

The group has set its sights on the tourism industry in Malaysia, Japan, Indonesia and Australia and is planning to grow its contributions from hotel development and investments, which is probably a good step forward as it is currently highly reliant on the Singapore private property market for its' revenue source. 

Therefore, I will certainly be putting this company on my watchlist for now and will be monitoring its' future developments.

That's all from me for today!

Best Regards, 

A