Singapore Technologies Engineering Ltd’s 2018 Third-Quarter Earnings Result

Singapore Technologies Engineering Limited (SGX: S63) specializes in aerospace, electronics, land defense systems, and marine capabilities for defense and commercial enterprises. The Company provides integrated aerospace, engineering, and maintenance services for military and commercial aircraft. The undervalued stock recently released its financial results for the third quarter ended 30 September 2018.

Here Multi Management Future Solutions research some outstanding stats of Singapore Technologies Engineering Limited 2018 Third-Quarter Earnings Result report which all investors should be considered before investing on it, let's take a look-

1. The reporting quarterly revenue of Singapore Technologies is inched up by 1% YOY to S$1.63 billion. The main segment of its growth is driven by the aerospace and electronics sectors; revenue from those sectors rose 13% and 2% respectively. Land systems and marine segments saw lower revenue for the quarter. The marine segment’s top-line fell 16% to S$137 million.

2. Due to the higher administrative expenses, and distribution and selling expense its profit from operations became down by 1.3% to S$143.6 million.

3. The ner profit of Singapore Technologies Engineering rose 5.3% to S$134.6 million. The aerospace, electronics, and land systems sectors saw higher profitability while the marine sector posted a 35% fall in net profit.

4. The balance sheet of ST Engineering’s improved for the latest period. As of 30 September 2018, the group had S$352.6 million in cash and cash equivalents, with S$370.7 million in total borrowings.

5. The Q3 cash flow result from its operation plunged 61.3% to S$43.3 million. The company posted negative free cash flow of S$5.7 million for the 2018 third-quarter. In the 2017 third-quarter, the combination had S$15.2 million in free cash flow.

6. ST Engineering entered the quarter with an order book of S$13.3 billion. Around 12% of the amount is expected to be delivered in the remaining period of this year.     

Hi-P International Limited: The Better Dividend Share

Hi-P International Limited (SGX: H17) operates as an integrated contract manufacturer serving the telecommunications, consumer electronics, computing and peripherals, lifestyle, and medical and industrial devices industries.

Hi-P International Limited one of the leading Singapore undervalued stock operates through three segments: Precision Plastic Injection Molding; Mold Design and Fabrication; and Provision of Sub-Product Assembly and Full-Product Assembly Services.

The company pay a dividend and could interest income investors, which would boost your earning? To help that, here Multi Management Future Solutions research the dividend yields, dividend historical growth rates, and dividend payout ratios from different sources let take a look:  

Dividend Yield

Hi-P had a trailing dividend yield of 6.1% with a share price of S$0.825 at the close of trading on the second weak of November 2018, on the other hand, the the stocks related to the same segment has the dividend yield less than 5 percent with the maximum share price compared to the Hi-P for example Venture’s share price closed at S$15.03 on Monday (12 November), giving the company a trailing dividend yield of 5.3% which shows  that Hi-P has a better dividend yield than other stocks.

Dividend growth rate

The dividend yield gives information about what a company has paid over the last 12 months, However, we should also be looking at how the company’s dividend has changed over time, preferably over the last five years or more.     

Hi-P has the upper hand dividend growth over other stock, its dividend had climbed by 154% annually from S$0.006 per share in 2013 to S$0.25 per share in 2017. In 2017, Hi-P paid out an interim dividend per share of S$0.19 in the second quarter, which looks like a one-off dividend to me. Excluding this dividend, Hi-P’s dividend from 2013 to 2017 would have grown by 77.8%, which is still commendable.  

Dividend payout ratio

Hi-P’s payout ratio was 88.3%, given its free cash flow and dividend payment of S$228.6 million and S$201.9 million, respectively, in 2017. The dividend payment amount includes the 2017 second-quarter interim dividend.

By considering these three factors we can say that Hi-P is the more attractive dividend share with a higher dividend yield and far superior dividend growth rate. 

Ascendas REIT NPI slipped 1% to $158.9m in Q2

Ascendas Real Estate Investment Trust (Ascendas REIT) saw its net profit income (NPI) slip 1% to $158.9m from $160.5m in Q2 due to the one-off reversal of accrued operating expense last year. Whilst its distribution per unit (DPU) fell 4.2% to $3.89 cents.

Ascendas Reit is Singapore’s first and largest listed business space and industrial real estate investment trust in Singapore undervalued stock division. As at 30 September 2018, total assets were about S$10.8 billion, comprising 98 properties in Singapore, 35 properties in Australia and 12 properties in the United Kingdom.

Multi Management Future Solutions presenting the financial report on Ascendas Real Estate Investment Trust of Q2 2018:

According to the financial report of Ascendas REIT its NPI decline in Q2, its total amount available for distribution also fell 3.1% to $115m from $118.8m YoY due to additional interest expenses.   

Meanwhile, it condemns its DPU decline to lower offering from Singapore, higher interest expense and the $450m equity raised in expectation of its second UK portfolio accession and ‘Built-to-Suit’ development in Singapore.

The gross revenue leaps 1.1% to $2.18.1m from $215.8m due to the newly acquired properties of Ascendas in Australia and UK. The increase was moderately equalized by lower occupancies in Singapore.

The firm continues its optimistic attentive growth amidst tension between US and China which Ascendas REIT noted could pose a threat to its global outlook for Singapore, Australia, and the UK.