Boat of Opportunity Coming for COVID-19 Stock Rally

Posted on November 25, 2020 Written by

COVID-19 vaccine likely will get FDA approval soon, then will be injected ASAP to millions of people globally by end of Dec 2020, before extending to billions of people in the next 6-12 months to end the pandemic permanently. In fact, even 2/3 people are protected, enough to terminate COVID-19 virus naturally as spreading path will be limited when over 60% people have immunity.

Stock market is forward looking, economy is the “master” who walk the “dog” which is stock market taking the lead.  For conventional investor who waits for confirmation of economy recovery may miss the early boat of COVID-19 stock crisis recovery rally

There are 2 main investing and trading strategies during any major stock crisis (including COVID-19 pandemic):

1) Average Down (Bear Market)

This is mainly suitable for cyclic / dividend / undervalue stocks which share prices are declining into lower optimism. Dividend yield of 2% – 10% would help to strengthen holding power of investor during “winter time” of stock crisis. Now it is the time for this group of contrarian investors to benefit in coming summer of bullish stock market with tremendous capital gains.

2) Average Up (Bull Market)

This is mainly suitable for growth / momentum stocks with uptrend prices, eg technology / software and COVID-19 beneficiary stocks (eg healthcare, glove, etc). This strategy is sensitive to price trend (especially momentum trading), therefore recently there is sector rotation with changing of momentum to COVID-19 affected stocks (those average down stocks now become potential average up stocks).

It is fine if stock investors have missed the past 8 months of stock “crisis” to buy low (i.e. average down). Now the investors should not miss the change of “average up” but careful choice of growth / momentum stocks in the right sector is crucial for success as share price is getting higher (but still moderate low optimism).

The old saying of “Crisis is Opportunity” is correct for the past decades of market cycle every 5-10+ years, again proven correct for COVID-19 stock crisis. However, this is conditional the investment has to be a giant stock. If not, “Buy Low” may “Get Lower” or even going bankrupt.

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Congratulations to success of Ein55 graduates who dare to overcome own biggest enemy (oneself) to take action, “Be Greedy when others are fearful”. I have received many positive students feedback, here are a few examples:

– over 40% DBS gains + over 20% OCBC gains when investing since Mar 2020

– over 50% gains in Nov 2020 for an US giant bank stock (cyclic)

– over 40% gains in an online HR technology stock (growth)

– over 25% gains in Nov 2020 for 2 oil & gas giant stocks (cyclic + dividend)

– and many other global giant stocks (there are total over 1500 giant stocks following Dr Tee giant stock criteria).

It is never too late to learn stock investment. You have not missed the investment opportunity yet (despite recent stock rally) as there are at least 10 different strategies in stock investing and trading, some adjustments are required for the current global stock market, different from the past 8 months of pandemic. It is important to master the skills quickly within the next 6 months, in order not to miss the last few boats of opportunities for COVID-19 stock crisis (should be called “rally” now).

Once day, the rally would become crisis again, therefore an investor has to master such investment clock for Stocks, Properties, Forex (including bitcoin), Commodities and Bonds.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Macroeconomy, Market Cycle Investing, Stock Market Tagged: , , ,

Change Horse with Sector Rotation (乾坤大挪移)

Posted on November 18, 2020 Written by

Since wind direction is changing in global stock market with sector rotation, readers may consider to “change horse” for some stocks from past momentum stocks which are losing steam (eg. Technology / Software / Glove / Healthcare benefiting from pandemic, etc) to cyclic giant stocks (eg. Bank, Casino, Hotel, Oil & Gas, Healthcare affected by pandemic, etc) which are recovering from lower optimism.

After recent US election with potential new world order (US vs world/China) by President-Elect, Joe Biden, supported by positive COVID-19 news (2 vaccines are proven to have effectiveness over 90%), global stock markets become more “greedy” and rally includes most stocks, especially for many pandemic affected sectors. It means the stock market is in transition from K-Shape recovery (uptrend vs downtrend for 2 main groups) to overall U-Shape recovery.

Growth or momentum stocks are usually suitable to average up with support of bullish economy, strong business fundamental and uptrend prices. However, when there is competition of fund, money would find its way to look for potential opportunity of quicker and higher return. Power of growth investing is with the holding power to compound the return for higher capital gains. “Buy High Sell Higher” is sustainable only if the business is growing with faster pace, supported by strong economic moat.

Cyclic stocks are usually suitable for average down with condition they are giant stocks which are temporarily affected by sector, country or global financial crisis. During low optimism period, these giant stocks could continue to pay dividend (some even with dividend yield of 5-10%, much better than bank interest rates of less than 0.5%) as bonus, when the uptrend cycle is triggered expectedly in future (with uncertain date, depending on pace of sector recovery and market wind direction of greed and fear), those who could take calculated risks could enjoy the enormous capital gains. “Buy Low Sell High” is only meaningful if supported by value investing.

Stock investors or traders may consider to rebalance stock portfolio with “Change Horse” among the sectors, diversifying over 10-20 global giant stocks with average-up or average-down strategies, aligning with own unique personalities (eg. short term trading or long term investing).

COVID19 stock crisis recovery rally may be sustainable only if there are more support by Biden after officially become US president on 20 Jan 2021. Political fight between Senate (controlled by Republican currently) and Democrat (US president & the House) may continue for 2 more years unless the last 2 Senate seats in state of Georgia (re-election in Jan 2021) could be won by Democrat, only then major decision (Eg. QE) could be passed easily.

Biden is likely more gentle in global trade policies as past Democrat presidents (eg. aiming win-win or balanced approach, not win-lose or extreme approach as Trump). This would be helpful for global stock markets (alliance and opponent of US would be more relieved). However, since Trump as set a “high standard” against China, Biden could not be too gentle in the beginning as Trump may continue to gather momentum to come back again 4 years later to run for US president again.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Market Cycle Investing, Stock Market Tagged: , ,

Last Few Trains for COVID-19 Stock Crisis Recovery Rally

Posted on November 17, 2020 Written by

Global stock markets see strong light at the end of tunnel recently with confirmation of Biden as new US president and news COVID-19 vaccine over 90% effectiveness. During early phase of pandemic, Dr Tee students learned to apply defensive dividend stock strategies to consider Asian giant stocks at low optimism (average down strategy), balancing with growth investing / momentum trading (average up strategy) in bullish US giant stocks.

The stock market this time is different from last 8 months of V-shape recovery limited to a few sectors (eg. Technology / Software, Healthcare / Glove, etc). There are sectors rotation, focusing more on cyclical stocks (eg. banks and oil & gas) and COVID-19 affected stocks are recovering quickly, resulting in global surge in share prices, over 10-40% over the past few weeks.

Even for lagging Singapore stock market, 30 STI component blue chip stocks have started to surge together with the world stock market:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

If Biden could get support from Congress after 20 Jan 2021 to print more money with QE (Quantitative Easing), the potential stock market upside is enormous, especially when more proven vaccines are manufactured and injected globally, allowing more people to interact again, as if a reborn of world economy which would drive the stock market further up.

Stock market is forward looking, will not wait for the economy to be strong first. Since the vaccine development and implementation is considered nearly known unknown, global stock market is getting stronger with more confirmation news.

Crisis is opportunity (eg. 1997 Asian Financial Crisis, 2003 SARS / Gulf War, 2008-2009 Subprime crisis, including COVID-19 pandemic in 2020-2021), it is never too late to consider stock investing and trading now but one has to master what to buy with global giant stocks, following by the unique investment clock of when to buy and sell.

Congratulations to graduation of 6-day Ein55 class in Nov 2020, together with recent graduates in July – Oct 2020 classes, catching the last few trains for global stock market recovery rally. During pandemic, they took the courage to learn in 6-day Ein55 class (www.ein55.com/course) with both Meet-up / Live Zoom options, including Singapore and overseas students (Malaysia, Hong Kong, Australia, New Zealand, Qatar, etc).

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Macroeconomy, Market Cycle Investing, Stock Market Tagged: , ,

Download Dr Tee 2 eBooks for Stock Market 2021 with Joe Biden as US President during Pandemic

Posted on November 8, 2020 Written by

Fresh from Oven: Download the latest 2 FREE high-quality stock investment eBooks by Dr Tee on (1) “Global Market Outlook 2021”, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & (2) “Dream Team Portfolio 2021” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited both stock investment ebook, learning Simple and Powerful strategies which deliver incredible results in stocks.

Are you worried or excited about the current global stock market with impact of COVID-19 pandemic especially with the new US President, Joe Biden?  Every crisis is an opportunity for investing. You will learn useful methods step by step from 2 valuable FREE stock investment eBook by Dr Tee which work in stock market. Take action now to surprise yourself!

Dr Tee 刚完成2本投资秘籍。《环球市场展望2021》书内覆盖很多在环球主要市场 (美国、新加坡、香港、中国、欧洲) 的投资议题及提供解决方法。《10大梦幻股票2021》书则分享了各种实用投资策略于10大高潜能股票。很多读者已经从Dr Tee过去发表的股票投资书中受惠，大家可在Dr Tee 的最新报告中洞悉环球市场目前面对的风险及机遇。

Table of Contents (FREE Stock Investment eBook #1):
Global Stock Market Outlook 2021

Mass Market Sentiment Survey （大众市场情绪调查）
Review of Global Stock Markets （环球股市回顾）
US Market Outlook （美国市场展望）
Regional Market Outlook (Europe, China, Hong Kong) （区域市场展望）
Singapore Market Outlook (Stock & Property) （新加坡市场展望）
Conclusions and Recommendations （总结及建议）

Table of Contents (FREE Stock Investment eBook #2):
Top 10 Global Stocks – Dream Team Portfolio 2021

Personalized Stock Investment Portfolio （个人化股票投资组合）
Ein55 Global Top 10 Stocks （10大全球高潜能股票）
Summary of Actions （投资方向总结）

Download Dr Tee 2 eBooks Here: http://eepurl.com/P8i61

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Macroeconomy, Market Cycle Investing, Stock Market, Value Investing Tagged: ,

10 Global Internet Giant Stocks (FANG-MAN-ATM) (龙头老大)

Posted on October 29, 2020 Written by

World has the largest IPO of all time with listing of Ant Finance (Ant Group, HKEX: 6688) on 5 Nov 2020, right after US presidential election but some retail investors are disappointed of could not get a piece of pie.  In fact, there are many proven technology giant stocks globally with great potential ahead, there is no need to invest in an emerging technology stock during IPO.

In this article, you will learn from Dr Tee on 10 US and Hong Kong Internet Giant Stocks (FANG-MAN-ATM) for longer term investing and / or short term trading with impact of COVID-19 crisis. Bonus for readers who could read every words of the entire article, learning alternative way of investing in all these giant stocks with limited capital.

1) FANG Stocks

– Facebook (NASDAQ: FB)

– Amazon (NASDAQ: AMZN)

– Netflix (NASDAQ: NFLX)

– Google (Alphabet) (NASDAQ: GOOGL)

2) MAN Stocks

– Microsoft (NASDAQ: MSFT)

– Apple (NASDAQ: AAPL)

– Nvidia (NASDAQ: NVDA)

3) ATM Stocks

– Alibaba (HKEX: 9988 / NYSE: BABA) & Ant Group (HKEX: 6688)

– Tencent (HKEX: 700)

– Meituan (HKEX: 3690)

Over a life time, an investor may experience a few generations of technology evolutions about every 20 years.  In 1980s, with invention of computer, Microsoft (Windows) and Apple (Mac) became popular and they manage to extend the company lifespan with next generation applications such as clouding computing and gaming industry, supporting new comer such as Nvidia. MAN stocks (Microsoft, Apple, Nvidia) are mainly supported by more internet users with computers and mobile devices.

In 2000s, with popularity of internet, FANG stocks (Facebook, Amazon, Netflix, Google) become highly demanded with disruptive technologies with strong global network. In 2020s, with support of high-speed 5G mobile applications among high population network in China, ATM stocks (Alibaba, Tencent, Meituan) are gaining momentum, becoming the Top 3 largest component stock of Hong Kong Hang Seng Tech Index.  As of today, all 10 giant internet stocks (FANG-MAN-ATM) with different length of company history, are leading in world with internet era.

It is hard to invest the same technology stock for life as new or disruptive technology could overthrow the existing market leaders, past examples are Yahoo, Motorola, Nokia, etc.  Therefore, technology stock investors need to know the stage of technology of a business, emerging, mature or declining.  In general, growth investing and / or momentum trading strategies could be more suitable for 10 FANG-MAN-ATM stocks.

Singapore technology stocks are mostly small cap, hard to have scale of economy and networking efficiency to compete with these 10 FANG-MAN-ATM stocks.  Just Netflix (smallest of 10 giant internet stocks) alone is about 40 times larger than the total market cap of all 88 technology stocks in Singapore (investor could still focus only on a few little giant stocks in Singapore for investing):

Accrelist Limited (SGX: QZG), Acma Limited (SGX: AYV), Advanced Systems Automation (SGX: 5TY), Adventus Holdings (SGX: 5EF), AEI Corporation (SGX: AWG), AEM Holdings (SGX: AWX), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Asian Micro Holdings (SGX: 585), ASTI Holdings (SGX: 575), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CEI Limited (SGX: AVV), CFM Holdings (SGX: 5EB), Chuan Hup Holdings (SGX: C33), CPH Limited (SGX: 539), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Duty Free International (SGX: 5SO), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), Global Testing Corporation (SGX: AYN), GP Industries (SGX: G20), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), ICP Limited (SGX: 5I4), Jadason Enterprises (SGX: J03), JEP Holdings (SGX: 1J4), Karin Technology Holdings (SGX: K29), Ley Choon Group (SGX: Q0X), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems  (SGX: BCY), Renaissance United (SGX: I11), Serial System (SGX: S69), SEVAK Limited (SGX: BAI), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), SUTL Enterprise (SGX: BHU), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), TT International (SGX: T09), UMS Holdings (SGX: 558), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49), Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

In fact, STI stock Index is much weaker than US stock index (S&P500 and NASDAQ) and Hong Kong stock index (HSI) mainly due to lack of giant growth technology stocks (such as 10 FANG-MAN-ATM stocks which are US and Hong Kong stock index main component stocks), having only 1 cyclic technology stock (Venture) in 30 STI index component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Mall Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Therefore, an investor may need to consider to balance own stock portfolio, balance the slow growth / dividend stocks / REITs (Singapore, Malaysia, etc) with other global giant stocks (growth / momentum), including but not limited to 10 FANG-MAN-ATM stocks.

From the table sorted below for 10 FANG-MAN-ATM stocks, all are profitable (10 / 10 stocks were making money in businesses last year) with double digit ROE (except for Meituan which is still at emerging phase of business, focusing more on revenue growth instead of net profit. So, comparison for 10 giant stocks could be based on relative growth rate, eg. high earnings growth of Netflix, Amazon, Alibaba, Tencent, etc, have helped to support the rising momentum of share prices in shorter duration during the recovery from COVID19 pandemic with better business performance due to global lock down.

Most 10 FANG-MAN-ATM stocks don’t pay dividend (only 4 / 10 stocks pay dividend). Even if they do, for example, Microsoft with only about 1% dividend yield (need to offset 30% withholding tax, left 0.7%), is only a little bonus comparing with the high capital gains in share prices.

All 10 FANG-MAN-ATM (10 / 10) have Price-to-Book ratio ($ / NAV = PB) > 1 with premium over asset but this consideration is secondary for growth investing with asset light business. The ability to make more money in future is far more important buying cheaply (undervalue investing). Therefore, business growth is much more important than undervalue price to sustain the share prices with capital gains in longer term for technology stocks.

NoNameCodeROE (%)Dividend Yield (%)PB = Price /NAV
1Alibaba998820.29–7.51
2Tencent70021.860.29.74
3Meituan36902.46–17.79
4FacebookFB18.29–7.31
5AmazonAMZN18.67–22.33
6NetflixNFLX24.62–20.90
7AlphabetGOOGL17.05–5.25
8MicrosoftMSFT37.431.013.63
9AppleAAPL61.060.727.97
10NvidiaNVDA22.910.123.79

All 10 FANG-MAN-ATM stocks are high growth giant stocks, most of them are at moderate high optimism, mainly due to rising share prices, achieving new high after recovery from COVID-19 stock crisis. The main risk of high growth stocks are sustainable growth rate. Company such as Facebook is getting slower in growth rate due to global market saturation compared to earlier phase. 

Most FANG-MAN-ATM stocks are cyclical in nature, some of them (eg. Microsoft and Apple) have gone Year 2020 dotcom bubble when technology sector was speculated to extremely high prices before falling down over 50%.  Year 2020 and later years have potential to be version 2.0 of dotcom bubble when stock market is filled with greed to push up technology stocks (mainly represented by NASDAQ stock index) to another extreme high optimism level.

It is relatively safer to position with trend-following strategy either with short term momentum trading or long term growth investing for 10 FANG-MAN-ATM stocks. This would help to minimize the high risk if version 2.0 of dotcom may happen one day as next global financial crisis, especially in US with high optimism S&P500 and NASDAQ stock markets.

For retail investors with limited capital may not able to invest in expensive giant stock such as Amazon (over US$3000/share) and Google (Alphabet, over US$1500/share).  Recent stock split of Apple (1 to 4) has helped to make the stock more affordable to investors with small capitals. However, some investors may hope to form a diversified stock portfolio of 10 FANG-MAN-ATM and other stronger internet / technology stocks with limited capital.

A simple solution is to invest in Exchange Traded Fund, ETF (possible with capital of only $1000) with these technology giant stocks, eg. through Invesco QQQ ETF which follows NASDAQ Top 100 stocks (about 50% weightage are FANG-MAN stocks). For ATM stocks, possible to consider China stocks ETF such as KWEB or MSCI China ETF (MCHI ETF, about 40% weightage are ATM stocks).

It is important for a stock investor to have a balanced stock portfolio in various sectors (eg. technology, property / REIT, banking & finance, F&B, healthcare, oil & gas, commodity, etc) to minimize risk in each sector with unique market cycle.  High concentration of stock portfolio (eg. in 10 FANG-MAN-ATM internet stocks) would create high volatility which may be beyond risk tolerance level of an investor.  Knowing one’s personality is key for success in stock investing or trading, not simply following “tips” by anyone to take action.

===================================

There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: , ,

60 Singapore Electronics Technology Stocks (雷电交加)

Posted on October 11, 2020 Written by

Electronics industry has been backbone of Singapore economy for decades since independence. In the current internet era, demand for electronics related products has been increasing, supporting the share prices.  Therefore, an investor may consider 60 electronics technology stocks in Singapore, especially those with growing businesses.

In this article, you will learn from Dr Tee on 9 Singapore Electronics Giant Stocks for longer term investing and / or short term trading with impact of COVID-19 crisis. Bonus for readers who could read every words of the entire article, additional references on 5G related stocks.

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

2) Computer / IT Giant Stocks

– Powermatic Data Systems  (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

Electronics industry consists of many levels of products in value chain, from semiconductor to circuit boards to integrated electronics products.  Singapore electronics industry mostly plays the roles as suppliers or subcontractors for other international electronics products.  Electronics (especially for semiconductor) industry is cyclical in nature, stock is usually bullish with rising economy, bearish with declining economy.

Current COVID-19 crisis (雷电交加) does not significantly affect the electronics stocks due to the rising demand of certain electronics products (due to longer stay at home) and also support of 5G technology wave (especially for semiconductor related stocks). Most of the Singapore electronics technology stocks are at higher optimism level with short term trading opportunity while some stocks may even be considered for long term investing with stable dividend payment as passive incomes, which is uniquely different from US electronics technology stocks.

There are 60 Electronics Technology Stocks in Singapore (investor has to focus only on giant stocks for investing):

Acma Limited (SGX: AYV), Advanced Systems Automation (SGX: 5TY), Adventus Holdings (SGX: 5EF), AEI Corporation (SGX: AWG), AEM Holdings (SGX: AWX), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Asian Micro Holdings (SGX: 585), ASTI Holdings (SGX: 575), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CEI Limited (SGX: AVV), CFM Holdings (SGX: 5EB), Chuan Hup Holdings (SGX: C33), CPH Limited (SGX: 539), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Duty Free International (SGX: 5SO), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), Global Testing Corporation (SGX: AYN), GP Industries (SGX: G20), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), ICP Limited (SGX: 5I4), Jadason Enterprises (SGX: J03), JEP Holdings (SGX: 1J4), Karin Technology Holdings (SGX: K29), Ley Choon Group (SGX: Q0X), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems  (SGX: BCY), Renaissance United (SGX: I11), Serial System (SGX: S69), SEVAK Limited (SGX: BAI), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), SUTL Enterprise (SGX: BHU), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), TT International (SGX: T09), UMS Holdings (SGX: 558), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49).

From the table sorted below for 60 Singapore electronics stocks, only half are profitable (33 / 60 stocks were making money in businesses last year). Therefore, careful choices of giant electronics stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic. 

Most Singapore electronics stocks don’t pay dividend (only 23 / 60 stocks pay dividend). Even if they do, for example, Thakral Corporation (SGX: AWI) and CDW Holding (SGX: BXE) with about 10% dividend yield, are not good dividend stocks due to weaker business fundamental.

Many electronics stocks (36 / 60) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties.

For most Singapore electronics stocks, main strategy would be momentum trading or dividend investing, therefore business growth is much more important than undervalue price to sustain the dividend payment in longer term.

NoNameCodeROE (%)Dividend Yield (%)PB = Price /NAV
1Accrelist LimitedQZG––0.31
2Acma LimitedAYV––0.31
3Advanced Systems Automation5TY–––
4Adventus Holdings5EF––1.71
5AEI CorporationAWG––0.95
6AEM HoldingsAWX39.281.45.25
7Allied Technologies LimitedA13––0.30
8Amplefield LimitedAOF2.29–0.43
9Asian Micro Holdings5851.39–2.00
10ASTI Holdings5759.83–0.25
11Avi Tech ElectronicsBKY11.664.71.42
12Ban Leong TechnologiesB269.005.70.79
13CDW HoldingBXE–11.30.44
14CEI LimitedAVV18.161.6361.97
15CFM Holdings5EB––0.52
16Chuan Hup HoldingsC33–4.90.56
17CPH Limited539––0.66
18Creative TechnologyC76––1.32
19Datapulse TechnologyBKW––0.58
20Dragon Group InternationalMT1133.17–0.09
21Dutech HoldingsCZ47.983.90.45
22Duty Free International5SO2.015.8140.78
23Ellipsiz LimitedBIX–1.70.45
24Excelpoint TechnologyBDF2.08–0.36
25Frencken GroupE2814.353.11.29
26Global Invacom GroupQS9––0.39
27Global Testing CorporationAYN––0.23
28GP IndustriesG205.202.40.67
29Grand Venture TechnologyJLB9.83–1.92
30HGH Holdings5GZ––0.30
31Hu An Cable HoldingsKI3––0.78
32ICP Limited5I4––1.0227
33Jadason EnterprisesJ03––0.69
34JEP Holdings1J410.85–1.13
35Karin Technology HoldingsK291.124.70.89
36Ley Choon GroupQ0X––0.98
37Libra Group5TR––-0.83
38Manufacturing Integration TechnologyM11197.04–1.10
39Maruwa Yen1kM12–––
40MeGroup LimitedSJY2.880.41.33
41Micro-Mechanics Holdings5DD25.274.45.47
42Plastoform HoldingsAYD––-0.34
43Polaris Limited5BI1.43–3.75
44Powermatic Data Systems BCY14.265–1.4844
45Renaissance UnitedI110.91–0.16
46Serial SystemS695.774.730.36
47SEVAK LimitedBAI2.54–0.39
48Shinvest HoldingBJW61.5130.45
49Sunright LimitedS712.020.8820.50
50Sunrise Shares Holdings581––1.42
51SUTL EnterpriseBHU4.264.60.63
52Thakral CorporationAWI6.719.5240.39
53The Place HoldingsE270.09–0.68
54Trek 2000 International5AB––0.42
55TT InternationalT09––-0.06
56UMS Holdings55813.793.4852.05
57Valuetronics HoldingsBN214.536.481.08
58Venture CorporationV0314.553.5782.23
59Willas-Array Electronics HoldingsBDR––0.31
60World Precision MachineryB491.855.3640.34

An investor has to be selective in investing or trading as many electronics stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite they belong to a promising electronics industry but the competition is too intense, only some electronics stocks could be profitable in longer term.

Here, let’s focus on 9 Singapore electronics technology giant stocks over 3 main categories:

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

Venture Corporation engages in the design, manufacture, assemble, and distribution of electronics related products.  Venture is a highly cyclical stock, not suitable for long term investing (despite very low debt with consistent dividend payment over the past decade, current dividend yield is nearly 4%) as the potential capital loss during bearish market cycle is much more significant.

Venture may be considered for medium term trading, especially after the share prices dropped to half of the peak prices over the past 2 years, currently recovering gradually from Covid-19 stock crisis with acceptable impact on its business. 

Venture is the largest market cap (but only a marginal giant stock based on Dr Tee criteria) among 60 Singapore electronics stocks and the only technology stock in 30 STI component stocks:

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

Unlike US and Hong Kong stock markets which have more heavy weigh technology stocks, Singapore stock market depends more on traditional industries (eg. bank and property stocks) which are cyclical in nature, therefore STI is at lower optimism level.

Valuetronics operates in two segments, Consumer Electronics (CE), and Industrial and Commercial Electronics (ICE). It offers design, engineering, manufacturing, and supply chain support services for electronics products.

Valuetronics is a much stronger electronics stock with nearly no debt, suitable for both growth investing and dividend investing. However, the company share prices are at lower optimism level, mainly due to negative stock market sentiment with potential future business affected by both COVID-19 and US-China trade war.

Crisis investing strategy many be considered for Valuetronics, collecting dividend payments (about 6% dividend yield, preparing for worst case of only 3% dividend yield which is still better than 0.5% interest for cash despot in bank) during bearish market while waiting for rising share prices when market sentiment is reversed from negative to positive with support of better business.

2) Computer / IT Giant Stocks

– Powermatic Data Systems  (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

Powermatic Data Systems manufactures, sells, markets, and distributes wireless connectivity products (related to computers).  Powermatic Data Systems is a cyclical stock, both in share prices and businesses, following the electronics sector cycle.  Over the past few years, businesses have been growing well, supporting the share prices to higher optimism level.

Powermatic Data Systems may be considered for mid-term investing to ride the rising wave of global electronics (including computer) industry.  However, the growth is much slower compared with other high-tech stocks, patience is required.  The company has low debt but long term optimism level is high, therefore not suitable for long term investing.

Ban Leong Technologies engages in the wholesale and distribution of computer peripherals, accessories, and other multimedia products in Singapore and internationally. It is the smallest market cap (also a penny stock) among the giant electronics stocks but having strong business fundamental with lower debt. 

Ban Leong is near to fair price, may be considered for longer term dividend investing (current dividend yield is nearly 6%) when optimism level is lower for share prices, helping to maximize the potential upside, compensating for the slower growth.

Besides Powermatic Data Systems and Ban Leong Technologies, there are other 28 IT Stocks in Singapore, making money with Information Technology (related to electronics industry):

Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

CEI provides contract manufacturing services for the industrial equipment market (eg. printed circuit board, box-build assembly, semiconductor equipment, etc). CEI is also a Temasek stock.

CEI is cyclical stock, prices at high optimism currently, supported by rising electronics and semiconductor industry, partly supported by higher demand of 5G.  Despite it is a good dividend stock, the cyclical price behavior at high optimism make it not suitable for investing at the moment. The price trend is also too stable over the past few years to justify for trading.  A more suitable action could be “wait” for potential investors when optimism level is much lower in future.

There are other 5G related stocks which may benefit in shorter term trading, eg. Micro-Mechanics, AEM, UMS and Frencken. Trend-following strategy is required for trading of technology stocks as their long term optimism levels are at higher position, potential risk could be higher for longer term investors when semiconductor cycle becomes bearish in future.

Dr Tee has written another article with more details of these 5G stocks: https://www.ein55.com/2020/05/5-singapore-semiconductor-5g-stocks/

===================================

There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market Tagged: , ,

111 Singapore S-Chip and Greater China Stocks (龙潭虎穴)

Posted on October 2, 2020 Written by

China is world No 2 economy, therefore there are many China business related stocks in the world (Singapore, China, Hong Kong, Taiwan, US). The quality of China related stocks could vary significantly, including 111 S-Chip stocks in Singapore with 20% weak stocks are suspended and also some strong China stocks could double the share price in a short period.

In this article, you will learn from Dr Tee on 4 China related Giant Stocks which are efficient in making money with strong business growth in Greater China market (China, Hong Kong, Taiwan). Bonus for readers who could read every words of the entire article, learning unique strategy for each giant stock.

1) Singapore All-Rounded Giant Stock (S-Chip / A-Share)

– Tianjin Zhongxin Pharmaceutical Group (SGX: T14 / China Shanghai: 600329, 天津中新药业)

2) China / Hong Kong Giant Bank Stock (H-Share / A-Share)

– Industrial And Commercial Bank Of China, ICBC (China Shanghai: 601398 / HKEX: 1398, 中國工商銀行)

3) China F&B Giant Stock (A-Share)

– Kweichow Moutai (China Shanghai: 600519, 貴州茅台酒)

4) Taiwan Technology Giant Stock (ADR)

– Taiwan Semiconductor Manufacturing, TSMC (Taiwan: 2330 / NYSE: TSM, 台積電)

After China joining WTO since 2001, it has opened up its door to the world, including many global stocks in different stock markets, eg. Singapore (S-Chip), China (A-Share), Hong Kong (H-Share), US (ADR), etc.  Greater China market includes China, Hong Kong, Macao and Taiwan, which is a fast rising region, attracting global investors.

In fact, reputation of S-Chip (China business with stock listed in Singapore) is relatively low as 20% of these stocks (24 / 111 stocks) have been suspended as of now due to various reasons, including poor businesses, not following SGX codes of business practices, potential scandals, etc.  This concern is also observed in global stock exchanges for other China related stocks in Hong Kong (H-Share) or even in US, eg. Luckin Coffee (NASDAQ: LK) with “excellent” financial report but proven was not reported truthfully.  Greed could make a business choose shortcut to achieve the goal.  So, a stock investor has to make an integrated analysis of China related stocks, taking calculated risks to ride the uptrend wave of businesses.

There are 111 S-chip or China related Stocks in Singapore, making money with businesses in Greater China (龙潭虎穴):

AnAn International (SGX: Y35), Anchun International Holdings (SGX: BTX), AnnAik Limited (SGX: A52), ARA LOGOS Logistics Trust (SGX: K2LU), BM Mobility (SGX: I9T), Bund Center Investment Ltd (SGX: BTE), CapitaLand Retail China Trust (SGX: AU8U), Chasen Holdings (SGX: 5NV), China Aviation Oil Singapore Corp (SGX: G92), China Environment (SGX: 5OU), China Everbright Water (SGX: U9E), China Fishery (SGX: B0Z), China Great Land (SGX: D50), China Haida (SGX: C92), China Hongxing Sports (SGX: BR9), China International Holdings (SGX: BEH), China Jishan Holdings (SGX: J18), China Mining (SGX: BHD), China Paper Holdings (SGX: C71), China Real Estate Group (SGX: 5RA), China Sky Chem (SGX: E90), China Sports (SGX: FQ8), China Yuanbang Property Holdings (SGX: BCD), China Kangda Food Company (SGX: P74), China Kunda Technology Holdings (SGX: GU5), , Combine Will International Holdings (SGX: N0Z), COSCO Shipping International Singapore (SGX: F83), Courage Investment Group (SGX: CIN), Darco Water Technologies (SGX: BLR), Debao Property Development (SGX: BTF), Dukang Distillers Holdings (SGX: BKV), Dutech Holdings (SGX: CZ4), Emerging Towns & Cities Singapore (SGX: 1C0), Fabchem China (SGX: BFT), First Sponsor Group (SGX: ADN), Full Apex (SGX: BTY), Fuxing China Group (SGX: AWK), Global Invacom Group (SGX: QS9), Green Build Technology (SGX: Y06), Guoan International (SGX: G11), Healthway Medical Cor (SGX: 5NG), Hi-P International (SGX: H17), Hutchison Port Holdings Trust SGD (SGX: P7VU), Hutchison Port Holdings Trust USD (SGX: NS8U), Hu An Cable Holdings (SGX: KI3), Hyflux Limited (SGX: 600), IEV Holdings (SGX: 5TN), Japfa Limited (SGX: UD2), Jason Marine Group (SGX: 5PF), JES International Holdings (SGX: EG0), Jiutian Chemical Group (SGX: C8R), Joyas International Holdings (SGX: E9L), KOP Limited (SGX: 5I1), LCT Holdings (SGX: BJL), Leader Environmental Technologies Limited (SGX: LS9), Lion Asiapac Limited (SGX: BAZ), Luzhou Bio-chem Technology Limited (SGX: L46), Mapletree North Asia Commercial Trust (SGX: RW0U), Memstar Technology (SGX: 5MS), Mercurius Capital Investment (SGX: 5RF), Midas Holdings (SGX: 5EN), Mirach Energy Limited (SGX: AWO), MMP Resources Ltd (SGX: F3V), Malaysia Smelting Corp (SGX: NPW), Natural Cool Holdings (SGX: 5IF), Net Pacific Financial Holdings (SGX: 5QY), Nordic Group (SGX: MR7), Ouhua Energy Holdings (SGX: AJ2), Pacific Andes Resources Development (SGX: P11), Pacific Century Regional Developments (SGX: P15), Pan Hong Holdings Group (SGX: P36), PEC Limited (SGX: IX2), Plastoform Holdings (SGX: AYD), Raffles Infrastructure Holdings (SGX: LUY), Sapphire Corp (SGX: BRD), SBI Offshore Limited (SGX: 5PL), SembCorp Industries Limited (SGX: U96), Shanghai Turbo Enterprises (SGX: AWM), Shangri-La Asia Limited (SGX: S07), SIIC Environment Holdings (SGX: BHK), Sinarmas Land Limited (SGX: A26), Sincap group (SGX: 5UN), Sing Holdings (SGX: 5IC), Sinjia Land Limited (SGX: 5HH), Sino Grandness Food Industry Group (SGX: T4B), Sinopipe Holdings (SGX: X06), Sinostar PEC Holdings (SGX: C9Q), Starland Holdings (SGX: 5UA), Straco Corporation (SGX: S85), Sunpower Group (SGX: 5GD), Suntar Eco City (SGX: BKZ), SunVic Chemical Holdings (SGX: A7S), Swing Media Technology Group (SGX: BEV), Thakral Corporation (SGX: AWI), Tianjin Zhongxin Pharmaceutical Group (SGX: T14), Tiong Seng Holdings (SGX: BFI), United Food Holdings (SGX: AZR), USP Group Limited (SGX: BRS), Valuetronics Holdings (SGX: BN2), Willas-Array Electronics Holdings (SGX: BDR), Wilmar International (SGX: F34), World Precision Machinery (SGX: B49), Yamada Green Resources (SGX: BJV), Yanlord Land Group (SGX: Z25), Yongmao Holdings (SGX: BKX), Yunnan Energy International (SGX: T43), Yangzijiang Shipbuilding YZJ CNY (SGX: SO7), Yangzijiang Shipbuilding YZJ SGD (SGX: BS6), Zhongmin Baihui Retail Group (SGX: 5SR).

From the table sorted below for 111 China related stocks in Singapore, only half are profitable (62 / 11 stocks were making money in businesses last year). Therefore, careful choices of giant China stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic. 

Most China related stocks in Singapore don’t pay dividend (only 41 / 11 stocks pay dividend). Even if they do, for example, Hutchison Port Holdings Trust (SGX: P7VU / NS8U) with over 9% dividend yield, are not good dividend stocks (despite backed by Li Ka-shing, Hong Kong richest man) due to weaker business fundamental.

Many S-Chip stocks (81 / 11) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties. “Buy Low” may get lower in share prices, a common mistake by beginner investor to buy a stock cheaply (eg. at historical low price) without considering the business fundamental and economic moat.

For most local and global China related stocks, main strategy would be cyclic investing or swing trading, therefore understanding of business and stock market cycle is much more important than undervalue price or dividend payment.

NoNameCodeROE (%)Dividend Yield (%)PB = Price /NAV
1Alibaba Pictures GroupS91––1.80
2AnAn InternationalY35––1.23
3Anchun International HoldingsBTX3.9410.50.04
4AnnAik LimitedA523.344.70.31
5ARA LOGOS Logistics TrustK2LU–8.81.07
6BM MobilityI9T––4.38
7Bund Center Investment LtdBTE6.351.90.94
8CapitaLand Retail China TrustAU8U8.838.30.72
9Chasen Holdings5NV––0.39
10China Aviation Oil Singapore CorpG9211.965.10.70
11China Environment5OU––0.36
12China Everbright WaterU9E9.466.00.39
13China FisheryB0Z5.13–0.15
14China Great LandD50––-0.19
15China HaidaC92––0.05
16China Hongxing SportsBR9––-383.33
17China International HoldingsBEH5.61–0.32
18China Jishan HoldingsJ18––1.81
19China MiningBHD––0.41
20China Paper HoldingsC713.24–0.13
21China Real Estate Group5RA––0.77
22China Sky ChemE90––0.06
23China SportsFQ8––0.13
24China Yuanbang Property HoldingsBCD5.99–0.09
25China Kangda Food CompanyP740.68–0.19
26China Kunda Technology HoldingsGU5––1.20
27China Sunsine Chemical HoldingsQES15.18230.6385
28Combine Will International HoldingsN0Z8.115.0510.26
29COSCO Shipping International SingaporeF831.38–0.77
30Courage Investment GroupCIN0.41–0.18
31Darco Water TechnologiesBLR––0.29
32Debao Property DevelopmentBTF––0.10
33Dukang Distillers HoldingsBKV––0.03
34Dutech HoldingsCZ47.983.90.45
35Emerging Towns & Cities Singapore1C05.76–0.19
36Fabchem ChinaBFT––0.23
37First Sponsor GroupADN10.431.8510.78
38Full ApexBTY––0.08
39Fuxing China GroupAWK––0.10
40Global Invacom GroupQS9––0.39
41Green Build TechnologyY06––0.30
42Guoan InternationalG11––2.24
43Healthway Medical Cor5NG––0.79
44Hi-P InternationalH1713.512.4731.47
45Hutchison Port Holdings Trust SGDP7VU2.049.2940.39
46Hutchison Port Holdings Trust USDNS8U2.049.4030.40
47Hu An Cable HoldingsKI3––0.78
48Hyflux Limited600––-0.16
49IEV Holdings5TN14.10–5.28
50Japfa LimitedUD213.621.4790.90
51Jason Marine Group5PF8.803.4970.60
52JES International HoldingsEG0-44.12–-2.77
53Jiutian Chemical GroupC8R––1.28
54Joyas International HoldingsE9L––3.75
55KOP Limited5I1––0.36
56LCT HoldingsBJL1.00–0.68
57Leader Environmental Technologies LimitedLS9––4.27
58Lion Asiapac LimitedBAZ0.75–0.41
59Luzhou Bio-chem Technology LimitedL46––-0.75
60Mapletree North Asia Commercial TrustRW0U2.627.6880.66
61Memstar Technology5MS––-1.67
62Mercurius Capital Investment5RF––6.25
63Midas Holdings5EN––-7.71
64Mirach Energy LimitedAWO52.17–0.18
65MMP Resources LtdF3V––-0.48
66Malaysia Smelting CorpNPW9.012.5320.90
67Natural Cool Holdings5IF––0.60
68Net Pacific Financial Holdings5QY––0.59
69Nordic GroupMR79.874.060.95
70Ouhua Energy HoldingsAJ27.48–0.27
71Pacific Andes Resources DevelopmentP118.47–0.09
72Pacific Century Regional DevelopmentsP152.978.630.81
73Pan Hong Holdings GroupP3615.443.7220.37
74PEC LimitedIX2–1.250.56
75Plastoform HoldingsAYD––-0.34
76Raffles Infrastructure HoldingsLUY15.32–0.87
77Sapphire CorpBRD4.55–0.22
78SBI Offshore Limited5PL––0.55
79SembCorp Industries LimitedU963.073.7860.41
80Shanghai Turbo EnterprisesAWM––1.81
81Shangri-La Asia LimitedS072.461.2180.54
82SIIC Environment HoldingsBHK7.195.4950.28
83Sinarmas Land LimitedA2615.142.3320.25
84Sincap group5UN1.03–0.04
85Sing Holdings5IC15.354.8680.51
86Sinjia Land Limited5HH––0.58
87Sino Grandness Food Industry GroupT4B6.35–0.03
88Sinopipe HoldingsX06––-31.71
89Sinostar PEC HoldingsC9Q13.64–0.52
90Starland Holdings5UA1.05300.60
91Straco CorporationS8513.215.0571.62
92Sunpower Group5GD7.960.4761.07
93Suntar Eco CityBKZ0.03–2.47
94SunVic Chemical HoldingsA7S24.63–0.13
95Swing Media Technology GroupBEV4.76–0.09
96Thakral CorporationAWI6.719.5240.39
97Tianjin Zhongxin Pharmaceutical GroupT1411.615.3730.79
98Tiong Seng HoldingsBFI3.993.5960.24
99United Food HoldingsAZR––0.13
100USP Group LimitedBRS––0.25
101Valuetronics HoldingsBN214.536.481.08
102Willas-Array Electronics HoldingsBDR––0.31
103Wilmar InternationalF347.722.8391.22
104World Precision MachineryB491.855.3640.34
105Yamada Green ResourcesBJV2.25–0.99
106Yanlord Land GroupZ2511.866.0180.39
107Yongmao HoldingsBKX7.680.2830.40
108Yunnan Energy InternationalT43––0.91
109Yangzijiang Shipbuilding YZJ CNYSO79.994.4140.66
110Yangzijiang Shipbuilding YZJ SGDBS69.994.6120.62
111Zhongmin Baihui Retail Group5SR28.574.842.86

Due to globalization, most of the 30 STI component stocks have significant businesses in Greater China market (eg. Wilmar, Hongkong Land, etc), although they are not commonly labelled as S-Chip (such as Yangzijiang Shipbuilding, YZJ):

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

An investor has to be selective in investing as some China related stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite some may have a beautiful Chinese name or belong to a promising China market but the competition is too intense, only giant China stocks could be profitable in longer term.

Here, let’s focus on 4 China related giant stocks in 4 different stock exchanges (Singapore, Hong Kong / China, Taiwan / US).

1) Singapore All-Rounded Giant Stock (S-Chip / A-Share)

– Tianjin Zhongxin Pharmaceutical Group (SGX: T14 / China Shanghai: 600329, 天津中新药业)

Despite Tianjin Zhongxin is much smaller than other pharmaceutical companies in China, it is a little giant stock. It is an all-rounded stock with many unique characteristic, eg cyclic, growth, dividend and even undervalue. This implies an investor or a trader would have more options but need to choose the right strategy aligning with own personality.

The stock is currently as lower optimism level, possible for long term cyclic investing to Buy Low but requires years of holding power before could sell high, supporting by steady business growth, even during COVID-19 pandemic.  The company also distributes high dividend (about 5% dividend yield), suitable for holding but weakness is cyclic share prices may result in losses for shorter term traders, therefore trend-following strategy may be considered. The stock is listed in both Singapore (S-Chip) and China Shanghai (A-Share) with some differences in short term prices due to different market responses (eg. China stock market is relatively more bullish than Singapore stock market over the past 1 year).

Tianjin Zhongxin is a giant Singapore / China healthcare stock, much stronger than most of other 37 Singapore healthcare stocks in Singapore:

Accrelist Ltd (SGX: QZG), Alliance Healthcare (SGX: MIJ), Aoxin Q & M Dental (SGX: 1D4), Asia Vets Holdings (SGX: 5RE), AsiaMedic (SGX: 505), Asian Healthcare Specialists (SGX: 1J3), Beverly JCG (SGX: VFP), Biolidics (SGX: 8YY), Cordlife (SGX: P8A), First Reit (SGX: AW9U), Haw Par Corporation (SGX: H02), HC Surgical Specialists (SGX: 1B1), Healthway Medical Corporation (SGX: 5NG), Hyphens Pharma International (SGX: 1J5), IHH Healthcare (SGX: Q0F), ISEC Healthcare (SGX: 40T), IX Biopharma (SGX: 42C), Lonza Group (SGX: O6Z), Medinex (SGX: OTX), Medtecs International Corporation (SGX: 546), OUE Lippo Healthcare (SGX: 5WA), ParkwayLife Reit (SGX: C2PU), Pharmesis International (SGX: BFK), Q&M Dental Group (SGX: QC7), QT Vascular (SGX: 5I0), Raffles Medical Group (SGX: BSL), RHT Health Trust (SGX: RF1U), Riverstone Holdings (SGX: AP4), SingMedical Group (SGX: 5OT), Suntar Eco-City (SGX: BKZ), TalkMed (SGX: 5G3), Thomson Medical Group (SGX: A50), Tianjin Zhong Xin Pharmaceutical Group (SGX: T14), Top Glove Corporation (SGX: BVA), Trendlines Group (SGX: 42T), UG Healthcare Corporation (SGX: 41A), Vicplas International (SGX: 569).

2) China / Hong Kong Giant Bank Stock (H-Share/A-Share)

– Industrial And Commercial Bank Of China, ICBC (China Shanghai: 601398 / HKEX: 1398, 中國工商銀行)

ICBC is the world largest bank based on asset size, listed in both China Shanghai (A-Share) and Hong Kong (H-Share). It has steady business performance but the growth is limited over the past few years (transition from growth to mature company). It has attracted support of global funds including Temasek of Singapore as a major shareholder (8.4%).

The share price is at long term and medium term low optimism, could be considered for cyclic investing with Buy Low Sell High strategy but current bearish short term prices (sharp falling knife) could result in losses for a trader.  In addition, the stock pays consistent dividend in the past, currently dividend yield is about 7%, reasonable for passive income investor.

ICBC is a giant China / Hong Kong bank stock, much stronger than most of 30 Singapore Banking & Finance stocks in Singapore:

AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

3) China F&B Giant Stock (A-Share)

– Kweichow Moutai (China Shanghai: 600519, 貴州茅台酒)

Kweichow Moutai is a famous Chinese liquor stock, also the largest in the world, surpassing Diageo (LSE: DGE) since 2017, mainly supported by high growth share prices. Competitor, Wuliangye Yibin (Shenzhen: 000858, 宜宾五粮液), is also an alternative stock investment option, having strong business fundamental but growth is relatively slower than Moutai.

Moutai is a strong growth stock in long term and also a strong momentum stock in short term. So, either an investor or a trader may apply “Buy & Hold” strategy, with timeframe following own personality.  The brand is a strong intangible asset for the company.

The liquor industry could be cyclic in longer time especially when there is any major change in China government policy, eg. about 10 years, due to anti-corruption campaign (eg. consumption or giving high price liquor as gift could be a common practice for decades), growth of Moutai Wuliangye was slow but start to gain momentum over the past few years.  In a longer term, premium alcoholic beverages of Moutai and Wuliangye would have sustainable growth, supported by rising middle class population in China with stable growing economy.

Kweichow Moutai and Wuliangye Yibin are giant China F&B stocks, much stronger than most of 48 Singapore F&B stocks in Singapore:

Abterra (SGX: L5I), Acma (SGX: AYV), Amara Holdings (SGX: A34), Bonvests Holdings (SGX: B28), ChasWood Resources (SGX: 5TW), China Fishery (SGX: B0Z), China Kangda Food (SGX: P74), Dairy Farm International (SGX: D01), Del Monte Pacific (SGX: D03), Delfi (SGX: P34), Dukang (SGX: BKV), Envictus (SGX: BQD), Food Empire Holdings (SGX: F03), Fraser and Neave F&N (SGX: F99), Hosen Group (SGX: 5EV), Japan Foods Holding (SGX: 5OI), Japfa (SGX: UD2), JB Foods (SGX: BEW), Jumbo Group (SGX: 42R), Katrina Group (SGX: 1A0), Khong Guan (SGX: K03), Kimly (SGX: 1D0), Koufu (SGX: VL6), Luzhou Bio-Chem (SGX: L46), Mewah International (SGX: MV4), Neo (SGX: 5UJ), No Signboard Holdings (SGX: 1G6), Old Chang Kee (SGX: 5ML), OneApex (SGX: 5SY), Pacific Andes (SGX: P11), Pavillon (SGX: 596), QAF (SGX: Q01), Sakae (SGX: 5DO), SATS (SGX: S58), Sheng Siong (SGX: OV8), Shopper360 (SGX: 1F0), Sino Grandness (SGX: T4B), Soup Restaurant (SGX: 5KI), ST Group Food (SGX: DRX), SunMoon Food (SGX: AAJ), Thai Beverage (SGX: Y92), Tung Lok Restaurants (SGX: 540), United Food (SGX: AZR), Wilmar International (SGX: F34), Yamada Green Resources (SGX: BJV), Yeo Hiap Seng (SGX: Y03), Zhongxin Fruit (SGX: 5EG).

4) Taiwan Technology Giant Stock (ADR)

– Taiwan Semiconductor Manufacturing, TSMC (Taiwan: 2330 / NYSE: TSM, 台積電)

Taiwan is one of “4 Small Dragons” in Asia (South Korea, Taiwan, Singapore and Hong Kong), also a strong technology hub, especially for semiconductor industry leading by TSMC, world largest IC chip manufacturing company.  TSMC is very advanced in IC technology development, currently the only player for 5nm technology, far ahead of competitor, Samsung.  With rising demand for 5G and internet related applications globally, TSMC has a monopoly of such advanced IC technology, able to sustain the growth with profits over the next decade.

TSMC is a strong growth investing stock and strong momentum stock, share price is doubled over the past few months, riding the wave of uptrend semiconductor industry and unique position as world semiconductor leader. The long term optimism level of TSMC is relatively high, more suitable for short term position trading to “Buy & Hold” with trend-following strategy, supported by strong business growth. 

TSMC is a giant Taiwan technology stock, much stronger than most of 53 Electronics stocks and 28 IT stocks, total 81 Technology Stocks in Singapore:

AEM Holdings (SGX: AWX), Accrelist Limited (SGX: QZG), Acma Limited (SGX: AYV), Adventus Holdings (SGX: 5EF), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CFM Holdings (SGX: 5EB), CPH Limited (SGX: 539), Chuan Hup Holdings (SGX: C33), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), GP Industries (SGX: G20), Global Testing Corporation (SGX: AYN), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), JEP Holdings (SGX: 1J4), Jadason Enterprises (SGX: J03), Karin Technology Holdings (SGX: K29), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems  (SGX: BCY), Renaissance United (SGX: I11), SEVAK Limited (SGX: BAI), SUTL Enterprise (SGX: BHU), Serial System (SGX: S69), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), TT International (SGX: T09), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49). Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

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Both China (Oct 1) and Taiwan (Oct 10) celebrate respective national days in the month of October, moon is the roundest on 1 Oct 2020 (Mid-Autumn Festival), implying peaceful political world could share the fortune but requiring investing in giant stocks. Both Big and 4 Small Dragons (including Singapore) are global economic growth engines, in transition from manufacturing to higher value technology development.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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28 Singapore and Global Information Technology Stocks (通风报讯)

Posted on September 23, 2020 Written by

Information Technology (IT) is everywhere in modern world, a stock with strong IT related business would have bright future for investment.  Therefore, an investor may consider 28 IT stocks in Singapore, especially those defensive growth stocks.

In this article, you will learn from Dr Tee on 4 Singapore IT Giant Stocks which are efficient in making money with economic moat but having mixed impacts during COVID-19 stock crisis. Bonus for readers who could read every words of the entire article: 7 global IT giant stocks.

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

Nearly everyone of us needs certain IT services in our daily lives, eg. when reading Dr Tee article here with common online platforms which are also global giant stocks: Google (NASDAQ: NYSE), Facebook (NASDAQ: FB), etc.  Most global IT giant stocks are from US but there are still some good local IT giant stocks in Singapore worth consideration for investment.

There are 28 IT Stocks in Singapore, making money with Information Technology (通风报讯):

Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

These 28 IT stocks are also related in businesses to 53 Electronics Technology Stocks in Singapore:

AEM Holdings (SGX: AWX), Accrelist Limited (SGX: QZG), Acma Limited (SGX: AYV), Adventus Holdings (SGX: 5EF), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CFM Holdings (SGX: 5EB), CPH Limited (SGX: 539), Chuan Hup Holdings (SGX: C33), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), GP Industries (SGX: G20), Global Testing Corporation (SGX: AYN), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), JEP Holdings (SGX: 1J4), Jadason Enterprises (SGX: J03), Karin Technology Holdings (SGX: K29), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems  (SGX: BCY), Renaissance United (SGX: I11), SEVAK Limited (SGX: BAI), SUTL Enterprise (SGX: BHU), Serial System (SGX: S69), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), TT International (SGX: T09), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49).

From the table sorted below for 28 Singapore IT stocks, only half are profitable (17 / 28 stocks were making money in businesses last year). Therefore, careful choices of giant IT stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic. 

Most Singapore IT stocks don’t pay dividend (only 11 / 28 stocks pay dividend). Even if they do, for example, CSE Global (SGX: 544) and Boustead Singapore (SGX: F9D) with over 4% dividend yield, are not good dividend stocks due to weaker business fundamental.

Only 1/3 of IT stocks (9 / 28) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties.

For most local and global IT stocks, main strategy would be growth investing or momentum trading, therefore business growth is much more important than undervalue price or dividend payment.

NoNameCodeROE (%)Dividend Yield (%)PB = Price /NAV
1Alpha Energy Holdings5TS––3.64
2Alset International40V––3.78
3Artivision Technologies5NK7.0–-0.77
4Asiatravel.com Holdings5AM0.4–2.62
5A-Smart HoldingsBQC––3.97
6Azeus Systems HoldingsBBW–2.72.30
7Boustead Singapore LimitedF9D5.14.30.99
8CaptiiAWV26.83.70.27
9Challenger Technologies573–3.31.41
10CSE Global5440.75.71.30
11DISA53212.4–1.11
12International Press Softcom571––0.69
13ISDN HoldingsI07–1.01.04
14Keppel DC ReitAJBU12.62.52.55
15Koyo International5OC5.21.30.77
16M DevelopmentN14––0.87
17Mapletree Industrial TrustME8U10.33.51.94
18New Silkroutes GroupBMT3.2–0.61
19New Wave Holdings5FX13.6–0.90
20PECIX218.51.20.58
21Plato CapitalYYN17.0–0.18
22Procurri CorporationBVQ––1.82
23Rich Capital Holdings5G4––1.36
24Silverlake Axis5CP22.82.13.18
25SinoCloud Group5EK27.1–1.00
26Stratech GroupBRR––-0.49
27Synagie CorpV2Y2.2–7.24
28YuuZoo Networks Group CorpAFC15.2–-3.49

There are only 2 IT related stocks (Mapletree Industrial Trust, following by Keppel DC Reit would be included soon by end of 2020) which are also listed in 30 STI component stocks:

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

An investor has to be selective in investing as many IT stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite they belong to a promising IT industry but the competition is too intense, only some IT stocks could be profitable in longer term.

Here, let’s focus on 4 Singapore IT giant stocks over 3 main categories:

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

Challenger Technologies has many IT retail stores in Singapore, business has been growing. In Year 2019, the acquisition offer by major shareholders was not successful due to joint effort of smart minority shareholders with over 10% objection votes.  As a result, Singapore can still keep this giant stock, especially the company has strong cash flow, able to pay consistent dividend in the past, suitable for longer term investing.

However, over the past 2 years, Challengers Technologies has reduced on the dividend payment (unsure if this may be a move to discourage longer term investing, especially after the acquisition was not successful). In fact, the company is defensive in both share prices and business, not affect affected during COVID-19 compared with peers.

So, Challenger Technologies is transformed from a dividend stock (defender) in the past to a growth stock (midfielder with moderate dividend and capital gains). Current share price is at lower optimism level but it may not be suitable for traders due to sideways prices (which is better than most bearish Singapore stocks). Since this is not a REIT, major shareholders have the power to change the dividend payout policy each year, making it less attractive to longer term investors for holding, perhaps a higher chance for acquisition again in future if both the capital gains and dividends are limited in medium term.

In Singapore, besides Challenger Technologies, consumers may also go to Harvey Norman IT stores which is listed in Australia stock market (ASX: HVN). Harvey Norman is as strong as Challenger Technologies, another option for global IT giant stock investing.  Even during crisis such as COVID-19, their businesses are doing better as there are online sales channel, demand is supported by more IT users.

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

Silverlake Axis provides software solutions and services to the banking, insurance, payment, retail and logistics industries.  It is a leader for backend software to many banks in Southeast Asia (Malaysia, Singapore, Indonesia, etc).  Banks usually don’t easily change the supplier of financial software for safety and stability, therefore Silverlake Axis has economic moat in high switching cost.

In Year 2015, there was allegation reported on questionable high profitability of company, even if there is no confirmation, resulting in significant correction of share price from peak of over $1/share, bearish share prices continue in the past few years to about 20% of peak share price during COVID-19 stock crisis, currently at low optimism.  Silverlake Axis business is affected during pandemic but this is reasonable compared with peers and clients (most banks have weaker businesses during COVID-19).

Financial reports are key consideration for investors, therefore any doubt (even not confirmed) could create unwanted market fear, resulting in falling of share prices. Another recent example is Best World International (SGX: CGN) which also reported very good financial results, attracting questions on reliability of business performance. Even during the stock suspension period, Best World continues to report expected good financial results.

So, for a giant stock, besides good business fundamental, it is important for management to pay more attention on public communication, be transparent in financial reports, especially on grey areas.  Luckin Coffee (NASDAQ: LK, forced to be delisted) was a negative example that a “strong fundamental” company ends up in scandal of deceiving global investors (including GIC of Singapore) with manipulated financial reports. Integrity of management is key for a giant stock but it is very hard to measure as greed could drive a business to different direction. Sometimes under the pressure of investors expectation, some management of companies may choose shortcut to achieve early “success” with creative accounting.  So, stock investors have to read between the lines for financial reports, reviewing each potential allegation or rumors if there is any.

Overall, assuming truthful financial reports over the past decade, Silverlake Axis is a reasonable strong fundamental stock at low optimism but it is very cyclical in nature, an investor needs to have holding power when buying at low optimism.

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

Both Keppel DC Reit and Mapletree Industrial Trust (MIT) are data center REITs, benefiting from increasing demand in internet era for data storage to keep critical and sensitive information for clients in different countries globally. Data center business has strong economic moat (high switching cost) and predictable in income generation, supported by clients who are financially strong with internet related businesses.

Keppel DC Reit is mainly on data center business, growth in business with strong cash, could double the dividend in about 4 years, much stronger than most dividend stocks and REITs which need 8-10 years to double the dividend payment.  However, this strong growth has attracted competition globally, therefore the high growth rate in share prices and businesses would slow down in longer term.  The share price was corrected by about 20% during COVID-19 stock crisis but quickly recover to new historical high prices, currently at high optimism. So, the stock is more suitable for momentum trading as the dividend yield is less than 3%, trend-following trading strategy may be applied. Keppel DC Reit would be the next in line for new 30 STI component stock, replacing the empty slot when CapitaLand Mall Trust (SGX: C38U) and CapitaLand Commercial Trust (SGX: C61U) are merged by end of 2020, with new opportunity for higher upside in share prices with more fund managers support.

Mapletree Industrial Trust has acquired 14 more data centers in US, overall business contribution with data center is about 40%, would help to accelerate the future growth of company. The company share price and business performance are similar to Keppel DC Reit, but it is more gradual in growth. After replacing Singapore Press Holding, SPH (SGX T39) as the latest 30 STI component stock in Year 2020, MIT share price is supported further (currently at high optimism) with more institutional investors.  MIT may be considered as midfielder with capital gains and moderate 3.7% dividend yield, currently more suitable for trend-following trading or growth investing due to higher optimism prices.

Both Keppel DC Reit and MIT are stronger growth REITs compared with 52 Singapore REITs and Business Trusts which are mainly positioned for dividend investing (investor has to focus only on giant stocks for investing):

AIMS APAC Reit (SGX: O5RU), ARA Hospitality Trust USD (SGX: XZL), ARA LOGOS Logistics Trust (SGX: K2LU), Ascendas Reit (SGX: A17U), Ascendas India Trust (SGX: CY6U), Ascott Trust (SGX: HMN), Asian Pay Tv Trust (SGX: S7OU), BHG Retail Reit (SGX: BMGU), CapitaLand Commercial Trust (SGX: C61U), CapitaLand Mall Trust (SGX: C38U), CapitaLand Retail China Tr (SGX: AU8U), CDL Hospitality Trust (SGX: J85), Cromwell Reit EUR (SGX: CNNU), Cromwell Reit SGD (SGX: CSFU), Dasin Retail Trust (SGX: CEDU), Eagle Hospitality Trust USD (SGX: LIW), EC World Reit (SGX: BWCU), Elite Commercial Reit (SGX: MXNU), ESR-REIT (SGX: J91U), Far East Hospitality Trust (SGX: Q5T), First Reit (SGX: AW9U), Frasers Centrepoint Trust (SGX: J69U), Frasers Hospitality Trust (SGX: ACV), Frasers Logistics & Commercial Trust (SGX: BUOU), FSL Trust (SGX: D8DU), HPH Trust SGD (SGX: P7VU), HPH Trust USD (SGX: NS8U), IREIT Global (SGX: UD1U), Keppel Infrastructure Trust (SGX: A7RU), Keppel Pacific Oak US REIT (SGX: CMOU), Keppel DC Reit (SGX: AJBU), Keppel Reit (SGX: K71U), Lendlease Reit (SGX: JYEU), Lippo Malls Trust (SGX: D5IU), Manulife Reit (SGX: BTOU), Mapletree Commmercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), Mapletree North Asia Commercial Trust (SGX: RW0U), NetLink NBN Trust (SGX: CJLU), OUE Commercial Reit (SGX: TS0U), ParkwayLife Reit (SGX: C2PU), Prime US Reit (SGX: OXMU), RHT HealthTrust (SGX: RF1U), Sabana Reit (SGX: M1GU), Sasseur Reit (SGX: CRPU), Soilbuild Business Space Reit (SGX: SV3U), SPH Reit (SGX: SK6U), Starhill Global Reit (SGX: P40U), Suntec Reit (SGX: T82U), United Hampshire US Reit (SGX: ODBU).

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In fact, a company does not need to pay dividend to be a giant stock.  Warren Buffett Berkshire Hathaway (NYSE: BRK.A / BRK.B) did not pay dividend for the past decades, retained earnings are accumulated, making it the most expensive stock in the world.  So, a company value can be evaluated from both past and future earnings and cash flow.

Nearly every company or investor needs IT except for Warren Buffett. Many years ago, Bill Gates (founder of Microsoft, NASDAQ: MSFT, also a global IT giant stock) was trying to persuade his good friend (who supports his charity fund), Warren Buffett, to accept application of computer, at least to manage his stock portfolio.  Warren Buffett joked that he only has 1 stock (which is Berkshire Hathaway), therefore no need computer at all.  In reality, main contributor of Berkshire revenue now is from world largest IT giant stock, Apple Inc (NASDAQ: AAPL).  Warren Buffett regrets of not able to investing in Amazon.com (NASDAQ: AMZN), another US IT giant stock in earlier stage with lower prices.  For growth investing, an investor may not need to buy low but need to invest more during stock crisis, leveraging on power of time to compound the share prices with condition the strong growth businesses are sustainable.

Although Warren Buffett is not IT savvy, he could read the financial reports of Apple, understanding his strong economic moat to continue to make money as a market leader, at least for the current decade. Indeed, IT is beneficial to businesses but an investor may not need to be high tech person to invest in high tech stocks. However, since technology sector is very dynamic, especially for information technology, new or disruptive technology could take the lead at the right time. For example, Zoom Video Communications (NASDAQ: ZM) is a promising young IT stock, by right needs another 5-10 more years to become a proven giant stock but the process is shortened to months with unexpected help of COVID-19 crisis with millions of new users including Dr Tee during pandemic.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

Dr Tee Stock Investment Course
Filed Under: Fundamental Analysis, Market Optimism, Stock Market, Value Investing Tagged: , ,

48 Singapore Food & Beverage Stocks (民以食为天)

Posted on September 12, 2020 Written by

During crisis, a consumer may not able to afford luxury products but still need to eat and drink to survive. Therefore, an investor may consider 48 Food & Beverage (F&B) stocks in Singapore, especially those defensive growth stocks.

In this article, you will learn from Dr Tee on 9 Singapore F&B Giant Stocks which are efficient in making money with food as essential products (consumer staples) but having mixed impacts during COVID-19 stock crisis. Bonus for readers who could read the entire article: a strategy to eat and drink for free for lifetime.

1) Supermarket F&B Stocks

– Sheng Siong (SGX: OV8)

– Dairy Farm International (SGX: D01)

2) Restaurant F&B Stocks

– Japan Foods Holding (SGX: 5OI)

– Old Chang Kee (SGX: 5ML)

3) Consumer F&B Stocks

– QAF (SGX: Q01)

– Thai Beverage (SGX: Y92)

4) Mixed Industry F&B Stocks

– Amara Holdings (SGX: A34)

– SATS (SGX: S58)

– Wilmar International (SGX: F34)

There are 48 Food & Beverage Stocks in Singapore, making money from the most essential products of people (民以食为天):

Abterra (SGX: L5I), Acma (SGX: AYV), Amara Holdings (SGX: A34), Bonvests Holdings (SGX: B28), ChasWood Resources (SGX: 5TW), China Fishery (SGX: B0Z), China Kangda Food (SGX: P74), Dairy Farm International (SGX: D01), Del Monte Pacific (SGX: D03), Delfi (SGX: P34), Dukang (SGX: BKV), Envictus (SGX: BQD), Food Empire Holdings (SGX: F03), Fraser and Neave F&N (SGX: F99), Hosen Group (SGX: 5EV), Japan Foods Holding (SGX: 5OI), Japfa (SGX: UD2), JB Foods (SGX: BEW), Jumbo Group (SGX: 42R), Katrina Group (SGX: 1A0), Khong Guan (SGX: K03), Kimly (SGX: 1D0), Koufu (SGX: VL6), Luzhou Bio-Chem (SGX: L46), Mewah International (SGX: MV4), Neo (SGX: 5UJ), No Signboard Holdings (SGX: 1G6), Old Chang Kee (SGX: 5ML), OneApex (SGX: 5SY), Pacific Andes (SGX: P11), Pavillon (SGX: 596), QAF (SGX: Q01), Sakae (SGX: 5DO), SATS (SGX: S58), Sheng Siong (SGX: OV8), Shopper360 (SGX: 1F0), Sino Grandness (SGX: T4B), Soup Restaurant (SGX: 5KI), ST Group Food (SGX: DRX), SunMoon Food (SGX: AAJ), Thai Beverage (SGX: Y92), Tung Lok Restaurants (SGX: 540), United Food (SGX: AZR), Wilmar International (SGX: F34), Yamada Green Resources (SGX: BJV), Yeo Hiap Seng (SGX: Y03), Zhongxin Fruit (SGX: 5EG).

From the table sorted below for 48 Singapore F&B stocks, only 2/3 are profitable (32 / 48 stocks were making money in businesses last year). Therefore, careful choices of giant F&B stocks are critical, many are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.

Nearly half of F&B stocks (22 / 48) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but only 1 stock (Amara) has high quality asset related to properties which will be discussed further. Buy undervalue stocks require patience, Buy Low may not able to Sell High in future if there is no alignment with one’s unique personality and other consideration of investment. Buy low-quality asset simply at low price (very low PB << 1) may have high risk of bankruptcy if the company could not be profitable.

NoStock NameCodePB = Price /NAVROE (%)
1ABR Holdings (SGX: 533)5331.462.1
2Abterra (SGX: L5I)L5I2.81–
3Acma (SGX: AYV)AYV0.31–
4Amara Holdings (SGX: A34)A340.517.0
5Bonvests Holdings (SGX: B28)B280.390.4
6ChasWood Resources (SGX: 5TW)5TW-0.11–
7China Fishery (SGX: B0Z)B0Z0.155.1
8China Kangda Food (SGX: P74)P740.120.7
9Dairy Farm International (SGX: D01)D014.7826.8
10Del Monte Pacific (SGX: D03)D030.36–
11Delfi (SGX: P34)P341.4112.4
12Dukang (SGX: BKV)BKV0.04–
13Envictus (SGX: BQD)BQD0.32–
14Food Empire Holdings (SGX: F03)F031.1112.6
15Fraser and Neave F&N (SGX: F99)F990.605.2
16Hosen Group (SGX: 5EV)5EV0.48–
17Japan Foods Holding (SGX: 5OI)5OI1.973.2
18Japfa (SGX: UD2)UD20.8713.6
19JB Foods (SGX: BEW)BEW0.8118.5
20Jumbo Group (SGX: 42R)42R3.1917.0
21Katrina Group (SGX: 1A0)1A010.80–
22Khong Guan (SGX: K03)K030.62–
23Kimly (SGX: 1D0)1D03.2822.8
24Koufu (SGX: VL6)VL63.8127.1
25Luzhou Bio-Chem (SGX: L46)L46-0.75–
26Mewah International (SGX: MV4)MV40.472.2
27Neo (SGX: 5UJ)5UJ1.8115.2
28No Signboard Holdings (SGX: 1G6)1G61.34–
29Old Chang Kee (SGX: 5ML)5ML3.153.2
30OneApex (SGX: 5SY)5SY1.16–
31Pacific Andes (SGX: P11)P110.098.5
32Pavillon (SGX: 596)5960.251.1
33QAF (SGX: Q01)Q011.065.4
34Sakae (SGX: 5DO)5DO0.17–
35SATS (SGX: S58)S582.0110.4
36Sheng Siong (SGX: OV8)OV86.3924.176
37Shopper360 (SGX: 1F0)1F00.61445.642
38Sino Grandness (SGX: T4B)T4B0.046.4
39Soup Restaurant (SGX: 5KI)5KI2.927.692
40ST Group Food (SGX: DRX)DRX1.1315.6
41SunMoon Food (SGX: AAJ)AAJ4.55–
42Thai Beverage (SGX: Y92)Y922.5820.087
43Tung Lok Restaurants (SGX: 540)5402.63–
44United Food (SGX: AZR)AZR0.13–
45Wilmar International (SGX: F34)F341.017.716
46Yamada Green Resources (SGX: BJV)BJV0.992.253
47Yeo Hiap Seng (SGX: Y03)Y030.752.873
48Zhongxin Fruit (SGX: 5EG)5EG1.013.926

There are only 3 F&B related stocks (Dairy Farm, Thai Beverage, Wilmar) which are also listed in 30 STI component stocks:

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

F&B stocks may not be defensive as not all the products are popular (eg. taste of food) and some may not have the right marketing (even restaurant with tasty food and/or low prices may not able to last if few people know). Therefore, selection of F&B giant stocks is different from selection of “Best Food” in Singapore or each country. In fact, it is possible for average taste or even “junk” food for some people (eg. fast food McDonald’s, NYSE: MCD) to be a global giant stock.

Here, let’s focus on 9 Singapore F&B giant stocks over 4 main categories:

1) Supermarket F&B Stocks

– Sheng Siong (SGX: OV8)

– Dairy Farm International (SGX: D01)

Both Sheng Siong and Dairy Farm make more profits in supermarket business during COVID-19 pandemic as most people would stay longer at home (cook more often at home) and need more consumer staples (using more essential products in daily life). However, share prices performances of both supermarket giant stocks are distinctly different with Sheng Siong at high optimism and Dairy Farm at low optimism.

Sheng Siong is mainly on supermarket business, therefore it is clear on positive impact of COVID-19 crisis, share prices dropped to low optimism in Mar 2020 during the most fearful time of pandemic, then quickly recovered and speculated to historical high prices, together with other COVID-19 related stocks, eg, glove / healthcare stocks: Medtecs International Corporation (SGX: 546), UG Healthcare Corporation (SGX: 41A), Top Glove Corporation (SGX: BVA), Riverstone Holdings (SGX: AP4).  These COVID-19 beneficiary stocks including Sheng Siong have been falling down from high optimism with fading of fear of COVID-19, therefore both stock traders (trend-following) and investors (price over value) have to take note, not to “Buy High Sell Low” eventually.  Sheng Siong may be considered when short term momentum is back (depending on the prices) or when there is global financial crisis in future (with low optimism prices again)

Dairy Farm has more diversified businesses within the Asia Pacific, besides Cold Storage, also has 7-Eleven, IKEA, restaurants, etc, which have different impacts during pandemic. Despite overall business is still profitable, the profitability is declining over the past 5 years, even before COVID-19.  In addition, Dairy Farm belongs to Jardine Group, bearish share prices at low optimism is aligned for all Jardine related stocks, eg: Jardine Matheson Holding – JMH (SGX: J36), Jardine Strategic Holding – JSH (SGX: J37), Jardine Cycle & Carriage – JCC (SGX: C07), Hongkong Land (SGX: H78), Mandarin Oriental Hotel (SGX: M04), etc. When market sentiment of Jardine Group related stocks is negative, they would take longer time to recover in stock crisis.  Dairy Farm may be considered for crisis investing with protection of consistent dividends (about 5% dividend yield) but an investor needs to have longer term holding power and able to control fear with falling prices in short term to medium terms.

2) Restaurant F&B Stocks

– Japan Foods Holding (SGX: 5OI)

– Old Chang Kee (SGX: 5ML)

Japan Foods and Old Chang Kee behave as if twin, IPO time was also close in years 2009 and 2008 respectively. Both stocks suffered during COVID-19 due to lockdown with less customers come to the food outlets.  However, the main issue is even before COVID-19, since year 2013 till now, earnings of both stocks have been dropping, result in bearish share prices with low optimism prices. Therefore, they are lower quality crisis stocks as business is affected (lower profitability for 7 years), hard for the share prices to recover significantly in short to medium terms.

Although operational cashflow have been improving over the past 2 years, this could be due to impact of IFRS-16 (new accounting principle) which categories operational leases (eg. rental of food outlets) as liability (therefore debt has been increasing over the past 2 years), may not be entirely improvement in business cashflow. It is important for an investor review with longer term perspective (over 10 years) and bigger picture (income statement, balance sheet, cashflow statement) with integration with share price performance.  When businesses of both stocks have significant breakthrough, the bearish trend in share prices and earnings may be reversed. Until then, they may only be considered for trading with trend-following.

3) Consumer F&B Stocks

– QAF (SGX: Q01)

– Thai Beverage (SGX: Y92)

QAF is famous of bakery brands such as Gardenia and Bonjour breads available in Asia Pacific.  The defensive business (eg. breakfast) has doubled during pandemic but share prices are not speculated as high as Sheng Siong, only at mid optimism level but it is a stronger F&B stock relative to peers. QAF may also be considered as dividend stock with consistent dividend payout (about 5% dividend yield).  See strategy in later article on how to eat Gardenia bread for free for lifetime (one may upgrade to better free food with improvement in investment).

Thai Beverage is an outstanding F&B giant stock, strong in businesses (eg. beers and spirit drinks in Thailand, Myanmar and regional markets) and low optimism in share prices.  The business is not much affected during COVID-19 but share prices dropped to very low optimism due to market fear, which is a higher quality crisis stock.  Positioning of Thai Beverage requires alignment with other stocks of Charoen Sirivadhanabhakdi (Top 10 richest person in Thailand), eg. Fraser and Neave – F&N (SGX: F99), Frasers Property (SGX: TQ5), Frasers Centrepoint Trust, FCT (SGX: J69U), Frasers Logistics & Commercial Trust (SGX: BUOU), Frasers Hospitality Trust (SGX: ACV).

4) Mixed Industry F&B Stocks

– Amara Holdings (SGX: A34)

– SATS (SGX: S58)

– Wilmar International (SGX: F34)

Some stocks only have partial F&B businesses, eg. Amara, SATS and Wilmar. Therefore, analysis of these stocks require integration with other sectors with different business segments.

Amara is mainly on hotel related businesses, F&B is only a smaller segment of business (restaurants), businesses are badly affected during COVID-19. SATS has both F&B and airlines gateway businesses, the earnings from F&B has helped the company minimize the negative impact of COVID-19 to airlines sector.

Both Amara and SATS suffer low optimism in share prices but each has its own defense system. Amara has undervalue hotel properties which could still generate cash with fading of COVID-19 but it needs to go through a long winter time until vaccine could be developed for COVID-19. SATS may expand F&B business during the downturn of airlines sector. Therefore, SATS is relatively a better airlines related stock than Singapore Airlines, SIA (SGX: C6L), which has full risk exposure to COVID-19 crisis, even the recent rights and bond issues may not be sufficient, therefore need to reduce the staff size to save cash.

Cash is King for investor, also true for stocks in crisis. SATS has strong sponsor of Temasek with diversification of business in F&B, therefore chances of recovery is higher than the peers in airlines sector.  Some companies went bankrupt during global financial crisis mainly due to shortage in cash while making losses, hard to get new loan (high risk of default) with weak sponsor.  So, when investing in crisis stock with weaker business fundamental, an investor who wants to take calculated risks, need to consider the cash burning rate of company vs the potential duration of crisis (eg. assuming another 12 months for COVID-19 to last).

Wilmar is a commodity giant stock, mainly in palm oil which products include cooking oil in F&B sector. Subsidiary company of Wilmar, Yihai Kerry Arawana (YKA), is a major producer of cooking oil in China, will be listed in China stock market. The future stock potential of Yihai Kerry Arawana has helped Wilmar to outperform other palm oil stocks, recovering from low to mid optimism level. Palm oil prices have been recovering, combining with positive news of spin-off of Yihai Kerry Arawana, supporting Wilmar share prices. Wilmar is a cyclic giant stock, more suitable to invest during uptrend stock market from lower to mid optimism level.  Demand of palm oil would be higher with fading of COVID-19. Possible speculation of IPO (common in China stock market) of Yihai Kerry Arawana may also support the share price of parent stock, Wilmar.

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If one could invest $2000 in QAF stock, would get about $100 dividend with consistent 5% dividend yield (higher if investing during crisis), enough to pay for $2 or 1 loaf of white bread per week (assume eat bread for 50 weeks in 1 year) which have about 14 slices (assuming eating 2 slices per day x 7 days per week), could enjoy free white bread for lifetime if QAF continues the business model this way. An investor may apply this strategy to eat in restaurant (eg. McDonald’s burger) for free for lifetime (if investing in a restaurant stock with consistent dividend or growth in share prices) or enjoy any drink (Coca-Cola – NYSE: KO, Thai Beverage beer, Starbucks coffee – NASDAQ: SBUX, etc), 1 cup per day, free for lifetime.  Similarly, a consumer could enjoy free healthcare service (hospital or dental stocks), free handbag or watch (luxury products stocks), free house rental (property stocks but need higher capital), etc.

In fact, most consumers pay for lifetime for the same products (foods & beverages) again and again, contributing to the growth of F&B giant stocks with recurring incomes.  When a consumer could reverse the role to an investor (as if a business partner of F&B outlet of interest), a consumer could make profit and enjoy free foods and drinks for life, with condition that it has to be a F&B giant stock, to be certified each year with Dr Tee selection criteria. For investors who are foods or drinks lover, may consider to invest in Top 10 global F&B giant stocks, diversifing investment over 10 different types of low-risk foods and beverages.

F&B giant stocks usually are cash cow with profitable businesses, therefore when share prices are undervalue at low optimism, may become target of acquisition, eg. past Singapore F&B giant stocks of Super Group (SGX: S10) and BreadTalk Group (SGX: CTN).  Singapore has less F&B giant stocks but there are some global F&B giant stocks which have strong dominance in certain F&B businesses, able to make money consistently each day for decades.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Fundamental Analysis, Macroeconomy, Market Cycle Investing, Market Optimism, Stock Market Tagged: , , , ,

11 Singapore Healthcare COVID-19 Stocks (生死关头)

Posted on September 4, 2020 Written by

Between life and money, which is more important? In this article, you will learn from Dr Tee on 11 Singapore Healthcare Giant Stocks which are efficient in making money with life as an economic moat, while some surge in prices during COVID-19 stock crisis.

1) COVID-19 “Crisis as Opportunity” Stocks

Medtecs International Corporation (SGX: 546)

UG Healthcare Corporation (SGX: 41A)

Top Glove Corporation (SGX: BVA)

Riverstone Holdings (SGX: AP4)

2) Medical Services Stocks

Q&M Dental Group (SGX: QC7)

Raffles Medical Group (SGX: BSL)

3) Healthcare Products Stocks

Tianjin Zhong Xin Pharmaceutical Group (SGX: T14)

Haw Par Corporation (SGX: H02)

4) Healthcare REITs

First Reit (SGX: AW9U)

ParkwayLife Reit (SGX: C2PU)

IHH Healthcare (SGX: Q0F)

There are about 37 Healthcare stocks in Singapore, a natural move for medical related businesses to get listed to leverage on capital from stock market for further expansion:

Accrelist Ltd (SGX: QZG), Alliance Healthcare (SGX: MIJ), Aoxin Q & M Dental (SGX: 1D4), Asia Vets Holdings (SGX: 5RE), AsiaMedic (SGX: 505), Asian Healthcare Specialists (SGX: 1J3), Beverly JCG (SGX: VFP), Biolidics (SGX: 8YY), Cordlife (SGX: P8A), First Reit (SGX: AW9U), Haw Par Corporation (SGX: H02), HC Surgical Specialists (SGX: 1B1), Healthway Medical Corporation (SGX: 5NG), Hyphens Pharma International (SGX: 1J5), IHH Healthcare (SGX: Q0F), ISEC Healthcare (SGX: 40T), IX Biopharma (SGX: 42C), Lonza Group (SGX: O6Z), Medinex (SGX: OTX), Medtecs International Corporation (SGX: 546), OUE Lippo Healthcare (SGX: 5WA), ParkwayLife Reit (SGX: C2PU), Pharmesis International (SGX: BFK), Q&M Dental Group (SGX: QC7), QT Vascular (SGX: 5I0), Raffles Medical Group (SGX: BSL), RHT Health Trust (SGX: RF1U), Riverstone Holdings (SGX: AP4), SingMedical Group (SGX: 5OT), Suntar Eco-City (SGX: BKZ), TalkMed (SGX: 5G3), Thomson Medical Group (SGX: A50), Tianjin Zhong Xin Pharmaceutical Group (SGX: T14), Top Glove Corporation (SGX: BVA), Trendlines Group (SGX: 42T), UG Healthcare Corporation (SGX: 41A), Vicplas International (SGX: 569).

From the table sorted below for 37 Singapore Healthcare stocks, only 2/3 are profitable (25 / 37 stocks were making money in businesses last year). Therefore, careful choices of giant healthcare stocks are critical, not just buying any healthcare stock with rising in share prices which may not be sustainable in longer term.

There are 1/3 stocks (13 / 37) having Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but only 2 stocks (First Reit and Haw Par) have high quality asset related to cash or properties which will be discussed further. Buy undervalue stocks require patience, buying low may not able to Sell High in future if there is no alignment with one’s unique personality and other consideration of investment.

NoTickerPB = Price /NAVROE (%)
1Accrelist Ltd (SGX: QZG)0.310.0
2Alliance Healthcare (SGX: MIJ)1.8912.6
3Aoxin Q & M Dental (SGX: 1D4)1.17-0.1
4Asia Vets Holdings (SGX: 5RE)0.573.9
5AsiaMedic (SGX: 505)2.53-0.1
6Asian Healthcare Specialists (SGX: 1J3)2.5112.3
7Beverly JCG (SGX: VFP)6.67-0.7
8Biolidics (SGX: 8YY)8.33-0.4
9Cordlife (SGX: P8A)0.745.0
10First Reit (SGX: AW9U)0.455.7
11Haw Par Corporation (SGX: H02)0.785.8
12HC Surgical Specialists (SGX: 1B1)2.7821.5
13Healthway Medical Corporation (SGX: 5NG)0.820.0
14Hyphens Pharma International (SGX: 1J5)2.7214.8
15IHH Healthcare (SGX: Q0F)2.151.9
16ISEC Healthcare (SGX: 40T)2.6011.7
17IX Biopharma (SGX: 42C)16.88-1.0
18Lonza Group (SGX: O6Z)0.639.9
19Medinex (SGX: OTX)2.0225.5
20Medtecs International Corporation (SGX: 546)5.331.8
21OUE Lippo Healthcare (SGX: 5WA)0.641.3
22ParkwayLife Reit (SGX: C2PU)1.9810.4
23Pharmesis International (SGX: BFK)0.53-0.3
24Q&M Dental Group (SGX: QC7)3.2014.7
25QT Vascular (SGX: 5I0)4.78-2.5
26Raffles Medical Group (SGX: BSL)1.697.2
27RHT Health Trust (SGX: RF1U)0.92-0.1
28Riverstone Holdings (SGX: AP4)9.3916.52
29SingMedical Group (SGX: 5OT)0.829.4
30Suntar Eco-City (SGX: BKZ)2.490.0
31TalkMed (SGX: 5G3)6.4843.0
32Thomson Medical Group (SGX: A50)2.87-0.2
33Tianjin Zhong Xin Pharmaceutical Group (SGX: T14)0.8311.6
34Top Glove Corporation (SGX: BVA)20.8915.3
35Trendlines Group (SGX: 42T)0.530.0
36UG Healthcare Corporation (SGX: 41A)6.7525.7
37Vicplas International (SGX: 569)4.367.0

Interestingly, none of the 37 Singapore Healthcare stocks are 30 STI component stocks but a few could be related (eg. Haw Par is related to UOB Bank and UOL):

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), Hongkong Land (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

For healthcare business with strong economic moat, eg. having special knowhow or patents in medical solutions, limited suppliers of critical medical appliances, etc, would naturally be the preferred choice for stock investing.  Most people would choice life over money (eg. during COVID-19 health crisis, 生死关头) but if one could integrate both life and money through giant stocks, the probability of success in investing would be high. 

Here, let’s focus on 11 Singapore healthcare giant stocks over 4 main categories:

1) COVID-19 “Crisis as Opportunity” Stocks

There are 4 “lucky” stocks helped by COVID-19 crisis as they are crucial medical appliance suppliers, sales and profits surge during pandemic:

– Medtecs International Corporation (SGX: 546) – personal protective apparel

– UG Healthcare Corporation (SGX: 41A) – gloves

– Top Glove Corporation (SGX: BVA) – gloves

– Riverstone Holdings (SGX: AP4) – gloves

Their share prices have been speculated to over 5-10 times during COVID-19 stock “crisis” (which is an opportunity).  This is a form of positive speculation (strong business fundamental with share price speculated to very high optimism level), especially for Top Glove and Riverstone which have strong business performances even before COVID-19 crisis.  However, for Medtecs and UG Healthcare, both only have moderate good businesses before COVID-19 crisis,  the sudden high growth in business would not be sustainable when fear of COVID-19 has subsided in 6-12 months.  Stock such as Biolidics (SGX: 8YY) has even weaker business fundamental (losses in the past) but share prices surged due to speculation, traders may suffer huge loss if investing in long term for stock which may not have sustainable business beyond COVID-19.

Therefore, these 4 COVID-19 healthcare stocks are more suitable for shorter term trading as optimism level has been speculated to very high. Trend-following trading strategy may be applied to “Buy High Sell Higher” but when price trend is reversed, a trader would need to exit, even if it is a loss due to sudden correction.  If not, do not speculate, even these companies make a lot of money during pandemic. Stock market is forward looking, their strong business fundamental are already considered in rising prices. One day, when they could not perform as strong as now with lower demand (despite still profitable), the share prices would be corrected significantly, especially for Medtecs and UG Healthcare.

2) Medical Services Stocks

These are the 2 “unlucky” stocks which save lives or reduce pains but due to nature of businesses which require interaction with patients (how to cure without seeing the patients), business performances are affected, including share prices at lower optimism levels.

– Raffles Medical Group (SGX: BSL) – Hospitals

– Q&M Dental Group (SGX: QC7) – Dental Clinics

Both stocks have been growing the business through expansion locally and abroad. Raffles Medical has extended businesses to China cities (eg. Shanghai, Chongqing, etc), even before COVID-19 crisis, the share prices have been corrected due to ambitious expansion which would take a few years to breakeven in investment for new hospitals. During pandemic, Raffles Medical loses overseas patients due to international travelling restrictions. Similarly, Q&M Dental has expanded to be the largest dental service provider in Singapore, business has been affected during COVID-19 due to close interaction required between dentists and patients.

However, COVID-19 could only slowdown, not stopping patients from seeking medical help (saving life or tooth pains), therefore when fear of COVID-19 has subsided, both giant stocks would perform normally again, accumulation of demand (non-urgent cases, eg. medical or dental check-up) would surge and balance out in longer term business.

Since both giant stocks are at lower optimism level, they are more suitable for longer term cyclic investors with “Buy Low Sell High” strategy while collecting moderate dividends during the recovery phase (as if fixed deposit investing in a medical bank).

3) Healthcare Products Stocks

These 2 stocks have healthcare products which have no strong correlation to COVID-19. So, they could still perform normally in businesses during pandemic:

– Tianjin Zhong Xin Pharmaceutical Group (SGX: T14) – Traditional Chinese Medicine (TCM)

– Haw Par Corporation (SGX: H02) – Tiger Balm and Others

Tianjin Zhong Xin is a highly cyclic growth stock (dual listing in both Singapore Stock Exchange – T14 and Shanghai Stock Exchange – 600329) with very strong business fundamental. It is more suitable for longer term cyclic investor, optimism is just recovering from low level.  Share prices in Singapore and Shanghai stock exchanges are aligned in general direction but sometimes one market could perform better than another (eg. China stock market is relatively more bullish than Singapore in current market condition).  Tianjin Zhong Xin is an all-rounded stock, also paying high dividend yield of 5-6% (depending on the share prices, higher if one could investing during crisis).  It is not suitable for shorter term trader or investor with weak holding power, buy low may get lower during bearish stock market, despite business fundamental is strong. 

Haw Par is not a pure healthcare stock as majority of revenue and income are actually on investment of 2 other stocks of Mr Wee Cho Yeow (Top 10 richest person in Singapore, UOB Chairman) stocks: UOB Bank and UOL.  Therefore, investing in Haw Par is an indirect investment of UOB and UOL stocks. With the current lower optimism prices of Haw Par stock with ownership of equivalent values of UOB and UOL shares, the main “business” of Tiger Balm and other products are virtually “free” for undervalue stock investors. However, patience is required for undervalue investing (owning high quality asset of cash from UOB Bank and properties from UOL). Haw Par has strong support of Singapore Giant stocks, UOB and UOL, all under Mr Wee Cho Yeow.  If Mr Wee continues to be the Top 10 richest person in Singapore, implying these 3 giant stocks are doing well in both businesses and stock market.

4) Healthcare REITs

These 3 stocks are special integration of healthcare with property sectors as Healthcare REITs:

– First Reit (SGX: AW9U) – Healthcare REIT with hospitals mainly in Indonesia

– ParkwayLife Reit (SGX: C2PU) – Healthcare REIT with hospitals mainly in Singapore

– IHH Healthcare (SGX: Q0F) – Sponsor of ParkwayLife REIT

Both healthcare and property are promising sectors in general for stock investing, therefore healthcare REITs (rental collection from hospitals as tenants) are defensive in nature as they could pay consistent dividend with long term tenant agreement (eg. 15 years), slow growth but steady. Therefore, they may be considered for longer term investing, crisis usually is a good opportunity to own healthcare REITs to generate consistent passive incomes.

However, stock has price component which may give surprises to investors, for example First REIT share prices have been corrected to less than 1/3 of peak prices over the past few years due to various concerns, mainly due to poor sponsor and customers (who owns Siloam Hospitals), Lippo Karawaci group which has cashflow issue due to ambitious property expansion in Indonesia. 

This concern of sponsor has resulted instability to other Lippo Group related stocks, eg. OUE Group.  Second sponsor of First Reit is OUE Lippo Healthcare, also not a giant stock, could not help much to restore the confidence of investors, worrying potential rights issues (nightmare for dividend investors, paying passive incomes, instead of collecting dividends). Despite First REIT is a giant REIT (even as of today) but this is a supported giant stock, mainly dependent on sponsor, main customer and major shareholder (multiple roles in 1). The immediate risk is cut of dividend payment (rental relief during COVID1-9 requested by sponsor) and also possible future rental payment for new agreements in Rupiah (about 25% of portfolio) in Year 2021, which could reduce overall dividend yield by 1/8 (Rupiah has depreciated more than 50% against SGD over the past 10 years in earlier agreement).  Based on current crisis price of $0.44/share (lower than IPO price), dividend yield is nearly 20% but actual payment could be only 10% due to rental relief.  Before a stock investor may enjoy 20% dividend yield, First Reit has dropped more than 20% share prices with capital loss in just a few months. 

So, First REIT is an indirect crisis stock, not due to the Reit itself (a giant stock) but more dependent on performance of weak sponsor. Current Price-to-Book is less than 0.5, rare for a Reit, even if sponsor goes bankcrupt, First Reit investor could still recover the share prices with selling of Reit properties.  The main concern is the REIT likely could operate normally (especially Siloam Hospitals and Lippo Group would perform better after fading of COVID-19 crisis) but short term to midterm bearish share prices could affect the confidence of investors who collect high dividend yield but also suffer huge capital losses.

Parkwaylife Reit is an opposite of First Reit, having a strong sponsor, IHH Healthcare (also a giant stock), therefore enjoying the stability with gradual growth under triple net lease.  Parkwaylife owns local properties which rent out to customer (Parkway Pantai) who owns profitable hospitals, eg. Mount Elizabeth Hospital, Gleneagles Hospital, Parkway East Hospital, etc.  When sponsor and customer and major shareholder (3 roles in 1) are strong, it provides stability to long term rental payment and therefore, dividend payment to stock investor of Parkwaylife Reit.

Despite Parkwaylife is suitable for longer term or event lifetime investing (if there is no major change in sponsor financial condition), it is crucial to buy below fair price, ideally during stock crisis such as COVID-19.  This would help to maximize the dividend yield. So, an investor may apply “Buy Low and Hold” strategy.  Value is what you get and Price is what you pay. Integration of value and price are crucial for investing success.

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Choice of 11 healthcare giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com


Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market Tagged: , ,
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