FSMOne SG - Research Highlights

2021-07-13 16:02:45 As the global economy recovers from Covid-19, inflation worries are rearing their ugly heads. Here’s our strategy for managing your bond investments amidst the backdrop of inflation concerns. https://bit.ly/2TL3qgc

There's been a lot of buzz about Sembcorp Marine and Keppel O&M's potential merger. Is it a yay or nay for Keppel bondholders? https://bit.ly/3qVJqmW Open / Comment

2021-07-13 12:28:05 S-REIT Update

Position your S-REIT portfolio to achieve sustainable passive income in the long run

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• For the first half of 2021, office and retail S-REITs have outperformed industrial and data centre S-REITs thanks to the rotation to value stocks.

• After the decent run up in the share price of Keppel REIT, we think it is time for investors to sell the stock.

• With rising vaccination rates, hospitality REITs with a larger exposure to domestic travel demand should be able to outperform. Our pick for this sub-segment is ARA US Hospitality Trust.

• We generally prefer the industrial and data centre sub-segments due to their stronger fundamentals. We expect them to deliver resilient growth, supported by structural trends accelerated by the pandemic. Our pick is Ascendas REIT.

: Read the full article here
: ARA US Hospitality Trust (SGX:XZL), Ascendas REIT (SGX:A17U) Open / Comment

2021-07-13 08:15:31 In this week’s Bond Market Monitor, the Bloomberg Barclays USD Asian High Yield Bond Index continues its dip.

Plus, updates on Agile Group and Greenland Holding’s partnership, First REIT’s non-call and Mapletree Logistics Trust’s acquisition. bit.ly/3yP0UUM Open / Comment

2021-07-12 14:19:35 Stock Idea

Look out for these exciting developments that lie ahead for Trendlines Group

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• The Trendlines Group, is an Israel-based incubator that invests in early-stage, high growth, innovation-based start-up companies in the medtech and agtech space.

• Trendlines Group announced its proposal to seek a dual primary listing on Israel's Tel-Aviv Stock Exchange (TASE) on 5 April 2021.

• On 6 April 2021, Trendlines Group announced that it has received a non-binding letter of intent (LOI) for the acquisition of a portfolio company by a public corporation.

• Additionally, on 2 May 2021, Trendlines Agrifood has entered into a partnership agreement with Mitsubishi Corporation for the identification of emerging agrifood technologies and start-ups.

• We upgrade our target price to SGD 0.140 for Trendlines Group, based on a fair price-to-book (PB) ratio of 0.85X. Based on the closing price of SGD 0.110 on 9 July 2021, this translates to an upside potential of 27%.

: Read the full article here
: Trendlines Group (SGX:42T) Open / Comment

2021-07-12 08:33:46 We've been following Evergrande's bond price decline closely. Here's our latest update on the situation and the opportunities that we've spotted. https://bit.ly/2UBJtrT Open / Comment

2021-07-12 03:03:57 ETF Idea

The SPDR Gold Shares ETF can now be traded in SGD

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• Gold can serve as an effective hedge in a portfolio due to its low or negative correlation to other traditional asset classes such as stocks and bonds.

• A gold ETF provides investors with exposure to the price of physical gold at a low cost. It is also highly liquid and flexible.

• State Street has launched the SGD share class of its popular SPDR Gold Shares ETF. For investors who prefer the SGD share class, we are happy to share that we have added it into our RSP List.

: Read the full article here
: SPDR Gold Shares ETF SGD share class (SGX:GSD) Open / Comment

2021-07-09 15:25:32 Stock Idea

China’s internet healthcare market is growing rapidly. Don’t miss out on investing in this stock

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• Ping An Good Doctor, is the largest online healthcare platform in terms of user scale and coverage.

• Leveraging on its network, Ping An Good Doctor is able to maximise cross-selling opportunities and build a one-stop healthcare ecosystem for its users.

• Internet healthcare services are pivotal to alleviating the current shortcomings of China’s healthcare system, such as long waiting times and poor patient experience.

• The recent changes to reimbursement policies in China are highly supportive of Ping An Good Doctor’s future growth.

• Our 2023 target price for Ping An Good Doctor is HKD 154, based on a fair PS multiple of 10.0X. This translates to a huge upside potential of 79% based on the last closing price of HKD 85.90 on 7 July 2021.

: Read the full article here
: Ping An Good Doctor (HKEX: 1833) Open / Comment

2021-07-08 15:59:31 Quick Take

Quick Take: What investors can expect from Keppel Corp and Sembcorp Marine's potential merger

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• Keppel Corporation Limited and Sembcorp Marine Ltd have entered into talks to merge their offshore and marine (O&M) business.

• If the merger goes through, the combined entity would be better positioned to compete for larger contracts and to pursue synergies arising from combined scale, footprint and capabilities.

• Alongside the merger announcement, Sembcorp Marine also announced a 3-for-2 renounceable rights issue to raise SGD 1.5 billion, causing its share price to decline by 27.2% on 25 June 2021.

• Sembcorp Marine has been struggling in recent years, and its investors will be faced with a massive dilution if they choose not to subscribe to the rights.

• However, its outlook looks to be more positive in the longer term. A successful merger would create a stronger Singapore-based global player, and pivoting into the fast-growing renewable and clean energy space is the right strategy moving forward.

: Read the full article here
: Keppel Corporation (SGX:BN4) and Sembcorp Marine (SGX:S51) Open / Comment

2021-07-07 13:17:36 ETF Idea

Our cash-free future is getting closer. Here’s how you can profit from this trend.

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• We believe the shift away from cash will continue as more consumers move towards digital payment methods.

• Global e-commerce sales and penetration rate is expected to continue growing, translating to a rise in demand for digital payment systems as payments for online goods and services have to be processed remotely.

• With rising smartphone adoption, we believe more consumers will transit from physical point-of-sale to online point-of-sale, a trend that will drive the growth of digital payments as well.

• As the world moves towards smart cities, governments are expected to increase their spending in various areas, including digital payments, which is an important part of this development.

• We believe there is still a long runway of growth for the digital payments industry. With a target price of USD 84, this translates to an upside potential of about 20%.

: Read the full article here
: ETFMG Prime Mobile Payments ETF (NYSE:IPAY) Open / Comment

2021-07-07 08:49:35 In this week's Bond Market Monitor, the European Central Bank reviews how they measure inflation and will be meeting this week to discuss changes to the current inflation target.

Plus, updates on Century Sunshine's debt restructuring progress, LMIRT and Yanlord. https://bit.ly/3dJXx9s Open / Comment