Top Singapore Blue-Chip Shares Which Top Traders Might Like

In Singapore’s stock market, there are so many companies with wide economic moats. Let’s look at three such companies that are part of the Straits Times Index (SGX: ^STI), and hence, are also known colloquially as blue-chip shares. 
                                
Here Multi Management Future Solutions find some fascinating Singapore undervalued Blue-Chip stock which might be like by Singapore top investors. Just take a look-

DBS Group Holdings Ltd                                       
Here we are taking first on the list DBS Group Holdings Ltd (SGX: D05), is the largest bank in Singapore, its subsidiaries provide a variety of financial services. The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage. DBS Group also acts as the primary dealer in Singapore government securities. Beyond Singapore, the bank also has operations in Hong Kong, China, Taiwan, India, and Indonesia.

Being the largest bank in Singapore, DBS attracts many savers with its vast network of bank branches and cash machines. The bank’s depositors are also sticky; once someone opens a bank account with DBS and deposits money in it, he or she is unlikely to move funds in and out frequently, unless there is a convincing reason to do so. Having a predictable pool of capital from depositors contributes to the stability of the bank.   
   
SATS Ltd       
The last we are taking is SATS Ltd (SGX: S58), which has a majority market share in-flight catering and ground-handling services at Singapore’s Changi Airport. SATS Ltd. 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.

The company also has a large network of joint ventures and strategic alliances — in similar lines of businesses as what it does — in many countries. SATS is now present in over 60 locations and 13 countries across Asia and the Middle East. This massive network and SATS presence in many key airports bring about high barriers to entry for new entrants. 

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.

Risk Investors Should Know Before Invest In Sheng Siong Group Ltd in 2018

Sheng Siong Group Ltd  (SGX: OV8) is one of the top blue chip stock company in Singapore. The company had an magnificent start to 2018. Higher same store sales and the opening of four new supermarkets were key operating segment of its revenue growth.
Here are three potential reason that could obstruct the Sheng Siong in the future.

Challenging China market 
Sheng Siong recently has one supermarket in China and looking for further enlarge its brand in the country. China has vast potential and  larger market as concern to the growth of Sheng Siong, there are umpteen challenges when dealing with international expansion.
For one, local competitors should already have a head start. Also, government regulations may affect Sheng Siong’s expansion plans.

Possibility of market saturation in Singapore
Due to the small size of Singapore market there is already inflexible competition in the supermarket space. In addition, Singapore has 114 wet markets and hawker centers scattered all over the island. NTUC Fair Price and Dairy Farm International Holdings (SGX:D01) operate around 140 and 110 stores respectively.
Sheng Siong currently has 48 stores in Singapore. There seems to be still place for store count growth with same store sales increasing in recent quarters,. However, this cannot go on indefinitely and there could be a point when the market starts to get saturated or new stores, due to their close presence, may utilise existing store sales.

Online competitors
The technology involved in traditional growth market, online retailers may also create a threat. Sheng Siong introduced its online shopping website (allforyou.sg) in December 2013. But according to its investor relations team, online sales only account for around 1% of total sales.
If consumer behavior divert towards online grocery shopping, Sheng Siong will need to reinvent itself and improve its online shopping experience to attract customers to its platform.

The Foolish bottom line
There are certain reasons to be positive about Sheng Siong. However, as with all companies, there are uncertainties and potential pitfalls ahead. Investors should at least be aware of the risks before making an investment decision.

3 Risk Bearing Factors While Investing in Stocks

Since its commencement in 1987, the Straits Times Index (SGX: ^STI)(sgx stock), Singapore's most generally utilized securities exchange indicator, has conveyed over 7% yearly returns. Be that as it may, the increase just recounts a large portion of the story. 

In contributing, there are dependably dangers and potential misfortunes included in sgx stock. We should investigate a portion of the dangers related to putting resources into stocks or to know which singapore stocks to buy.

Interest rate risks

Loan fees, in principle, can influence the cost of stocks or sgx stock. At the point when loan fees rise, speculators can win better profits for ventures by purchasing bonds and other wage creating resources. Thusly, they may move their cash far from stocks to these advantages, influencing the cost of the stock exchange.(share trading tips)

Financing costs can likewise influence organizations that obtain intensely. An uptick in financing costs can make these organizations acquire higher intrigue cost, which can extend misfortunes or eat into benefits. 

Commodity price risk

Numerous stocks are connected to the cost of products. Wares, for example, oil and gas, and certain crude materials can influence the cost of creation of products. A slight change in these costs can have an undulating impact on an organization's benefits. 

There are likewise organizations that work in product related fields. These organizations are more in danger to vacillations in item costs.(Singapore Stocks Signals)

Foreign exchange risk

Organizations regularly work in various nations, and this opens them to remote trade hazard. To check this hazard, a few organizations may utilize supporting strategies to settle the conversion standard. And, after its all said and done, most organizations can't diminish the hazard completely. 

Financial specialists who put resources into stocks outside their own particular nation may likewise need to buy partakes in a remote money. When they offer those stocks, it can likewise make an introduction outside cash changes.

All these three reasons are enough to do analysis on Stocks and gives a clear picture on which Singapore stocks to buy and might be useful in share trading tips as well. sgx stock is considered to be one of the higher traded stocks in the world. source

The Week Subsequently: Earnings Season Get Off With SPH

The Singapore income season commences with second from last quarter numbers from Singapore Press Holdings (SGX: T39). (Stock tips)

The media and property organization revealed a 25% drop in second-quarter profit in April. The proprietor of the Straits Times said it will center around ventures with relentless money respect create new wellsprings of income and benefit.(stock Recommendation)SPH auxiliary SPH REIT (SGX: SK6U) will likewise report comes about. 

On the financial front, America will report swelling numbers for June. Feature swelling is required to edge up again to 2.9%. In May, expansion expanded to 2.8% on account of higher fuel costs. 

China will likewise report swelling numbers for June that are relied upon to demonstrate an expansion from 1.8% to 2%. 

Of more intrigue, however, will be June's exchange surplus with whatever remains of the world. That is relied upon to show that China traded US$29 billion more than it imported.(Singapore Stocks Signals)The exchange surplus with the US will be nearly investigated. 

There are swelling numbers from India that could give a few insights to the heading of financing costs. The feature rate could move from the fourth back to back a month to 5.2%. In April, upward weight originated from rising nourishment costs.(sgx analyst recommendation)

At long last, Singapore will give a first take a gander at how the economy fared in the second quarter. It is required to have developed at an annualized rate of 3.7% amongst April and June. source