134 Singapore Property Stocks with Discounted NAV Strategy (为善最乐)

In recent Ein55 Charity Course on Global Discounted NAV (DNAV) Stocks, we have raised fund of $24,488 to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 134 Singapore Property Stocks and 3 global DNAV stocks in 3 countries with readers (detailed strategies including Ein55 Optimism levels, Ein55 intrinsic values and DNAV will be shared):

1) Singapore DNAV Stock – Hongkong Land (SGX: H78)

2) Malaysia DNAV Stock – Paramount (Bursa: 1724)

3) Hong Kong / China DNAV Stock – Yuexiu Property (HKEx: 123)

Dr Tee, Ein55 Mentors & Graduates have together organized 11 charity investment courses (REITs in Nov 2015, May 2017 and May 2019, High Dividend Stocks in Mar 2016, Oct 2017 and Nov 2019, Global Growth Stocks in Apr 2018 and Nov 2020, and Discounted NAV Stocks in Sep 2016, Nov 2018 and May 2021) in the past 6 years, donating net income of around $222,000 to Tzu Chi 慈济 Singapore.

We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future (为善最乐).

Discounted Net Asset Value (DNAV) Strategy is valuation of company business, firstly based on the Net Asset Value (NAV) listed in current Balance Sheet. Then, we determine the net cash that would be received if all assets were sold and liabilities paid off.  Various discounts will be applied based on different quality of asset classes.  It is safer to buy stock with share price below the Discounted NAV (much more conservative than price below NAV or Price-to-Book ratio, PB < 1). Unlike PB method mainly applied for asset rich company (eg. property stocks), DNAV method can be applied in non-property or not cash-rich stocks. However, Ein55 Optimism strategies have to be integrated to avoid value trap, i.e. Buy Low Get Lower for undervalue stocks.

The best time to buy global DNAV stocks and 134 Singapore property stocks is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Singapore property stock investing is not based on undervalue strategy (Buy Undervalue Sell Overprice) alone, may be integrated with dividend investing, growth investing, swing trading, momentum trading, cyclic investing, defensive investing and other Ein55 strategies.

There are 134 Singapore property stocks (not all are giant stocks with Dr Tee criteria), based on the last price traded (7 May 2021), sorted by 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, over 75% (101/134 stocks) are undervalue (Price to Book ratio, PB < 1), mainly due to COVID-19 stock crisis, affecting property construction business with bearish share prices but property asset valuation remains stable.  There are only 20% (27/134 stocks) have growing businesses (over 5% ROE, Return on Equity) while over 50% (72/134 stocks) were making losses during pandemic in Year 2020. There are nearly 50% (62/134 stocks) were paying dividend but only 22 stocks (16%) having dividend yield over 3%, potential for dividend investing.

No134 SG Property StocksROE (%)PBDY (%)
13Cnergy (SGX: 502)1.1
2A-Smart Holdings (SGX: BQC)0.8521.8
3AEI Corporation (SGX: AWG)2.6
4Aims Property Securities Fund (SGX: BVP)0.41.9
5Asia-Pacific Strategic Investments (SGX: 5RA)0.8
6APAC Realty (SGX: CLN)10.621.15.1
7Abterra (SGX: L5I)50.492.1
8Acromec (SGX: 43F)1.9
9Alset International (SGX: 40V)53.451.1
10Amara Holdings (SGX: A34)0.5
11Amcorp Global (SGX: S9B)0.6
12AnnAik (SGX: A52)0.2940.31.8
13Astaka Holdings (SGX: 42S)5.5
14BBR Holdings (SGX: KJ5)0.5
15BRC Asia (SGX: BEC)7.6931.31.3
16Blackgold Natural Resources (SGX: 41H)
17Boldtek Holdings (SGX: 5VI)0.7
18Bonvests (SGX: B28)0.50.3
19Boustead Singapore (SGX: F9D)9.011.42.9
20Boustead Projects (SGX: AVM)7.4691.10.8
21Bukit Sembawang Estates (SGX: B61)5.7480.90.9
22Bund Center Investment (SGX: BTE)2.1970.97.3
23CSC Holdings (SGX: C06)4.5310.4
24CapitaLand (SGX: C31)0.82.5
25CASA Holdings (SGX: C04)2.6380.35.6
26Chemical Industries (Far East) (SGX: C05)2.7820.42.1
27China International Holdings (SGX: BEH)14.620.39.1
28China Yuanbang Property Holdings (SGX: BCD)5.9910.1
29Chip Eng Seng Corporation (SGX: C29)0.44.4
30City Developments (SGX: C09)0.91.0
31DISA (SGX: 532)4.3
32Debao Property Development (SGX: BTF)0.1
33ETC Singapore (SGX: 1C0)0.3
34Edition (SGX: 5HG)1.6
35Engro Corporation (SGX: S44)8.5630.62.0
36Fraser and Neave – F & N (SGX: F99)5.0260.73.5
37Far East Orchard (SGX: O10)0.1240.42.6
38Figtree Holdings (SGX: 5F4)0.52.9
39First Sponsor Group (SGX: ADN)5.9960.82.2
40Fragrance Group (SGX: F31)0.1330.6
41Frasers Property (SGX: TQ5)1.4770.50.9
42GYP Properties (SGX: AWS)0.4
43Gallant Venture (SGX: 5IG)0.9
44Golden Energy and Resources (SGX: AUE)2.1010.7
45Goodland Group (SGX: 5PC)0.31.0
46GuocoLand (SGX: F17)2.2340.53.6
47HL Global Enterprises (SGX: AVX)0.2630.4
48Hatten Land (SGX: PH0)0.9
49Heeton Holdings (SGX: 5DP)0.2
50Hiap Hoe (SGX: 5JK)0.40.8
51Hiap Seng Engineering (SGX: 510)
52Ho Bee Land (SGX: H13)3.7820.52.9
53Hock Lian Seng Holdings (SGX: J2T)2.080.61.0
54Hong Fok Corporation (SGX: H30)0.31.2
55Hong Lai Huat Group (SGX: CTO)0.3
56Hong Leong Asia (SGX: H22)5.3120.81.0
57Hongkong Land Holdings (SGX: H78)0.34.5
58Hor Kew Corp (SGX: BBP)0.8610.2
59Huationg Global (SGX: 41B)0.2
60Hwa Hong Corporation (SGX: H19)2.2211.03.3
61IPC Corporation (SGX: AZA)0.2
62ISOTeam (SGX: 5WF)1.1
63Imperium Crown (SGX: 5HT)0.2
64Jasper Investments (SGX: FQ7)
65KOP (SGX: 5I1)0.4
66KSH Holdings (SGX: ER0)4.7570.66.0
67Keong Hong Holdings (SGX: 5TT)0.4
68Keppel Corp (SGX: BN4)0.91.9
69Keppel Reit (SGX: K71U)0.94.4
70King Wan Corporation (SGX: 554)0.7530.2
71Koh Brothers Group (SGX: K75)0.2
72Koon Holdings (SGX: 5DL)
73KORI Holdings (SGX: 5VC)0.8520.3
74LHN (SGX: 41O)19.850.94.7
75Ley Choon Group (SGX: Q0X)1.1
76Lian Beng Group (SGX: L03)4.060.32.0
77Low Keng Huat (Singapore) (SGX: F1E)7.0070.55.1
78Lum Chang Holdings (SGX: L19)0.63.3
79Luminor Financial Holdings (SGX: 5UA)0.5
80MYP (SGX: F86)0.4
81Metro Holdings (SGX: M01)2.150.42.7
82OIO Holdings (SGX: KUX)
83OKH Global (SGX: S3N)0.3
84OKP (SGX: 5CF)2.6960.53.8
85OneApex (SGX: 5SY)1.1
86Oxley Holdings (SGX: 5UX)1.03.3
87PSL Holdings (SGX: BLL)0.3
88Pacific Century Regional Development (SGX: P15)1.08.7
89Pacific Star Development (SGX: 1C5)
90Pan Hong (SGX: P36)15.440.52.4
91Pavillon Holdings (SGX: 596)0.4
92Pollux Properties (SGX: 5AE)0.0960.6
93PropNex (SGX: OYY)34.44.94.9
94Raffles Infrastructure Holdings (SGX: LUY)13.350.5
95Regal International Group (SGX: UV1)15.284.3
96Renaissance United (SGX: I11)0.3
97Rich Capital Holdings (SGX: 5G4)1.4
98Roxy-Pacific Holdings (SGX: E8Z)1.0
99Ryobi Kiso (SGX: BDN)2.2
100SHS Holdings (SGX: 566)0.8
101SLB Development (SGX: 1J0)6.8380.63
102SP Corporation (SGX: AWE)2.4590.38
103Sasseur Reit (SGX: CRPU)4.2541.017.06
104Second Chance Properties (SGX: 528)1.7860.781.61
105Sin Heng Heavy Machinery (SGX: BKA)1.0630.331.54
106Sinarmas Land (SGX: A26)3.5450.430.32
107SingHaiyi (SGX: 5H0)0.46
108SingHaiyi Group (SGX: 5IC)5.3190.492.63
109Singapore Land Group (SGX: U06)1.230.531.28
110Sinjia Land (SGX: 5HH)0.95
111Soilbuild Construction (SGX: S7P)0.75
112Straits Trading (SGX: S20)3.3470.712.22
113Sysma Holdings (SGX: 5UO)2.1210.59
114TA Corporation (SGX: PA3)0.38
115T T J Holdings (SGX: K1Q)0.4212.614
116Tai Sin Electric (SGX: 500)5.3640.8164.348
117Thakral Corporation (SGX: AWI)4.4180.4076.522
118Thomson Medical Group (SGX: A50)4.946
119Tiong Seng Holdings (SGX: BFI)0.2991.562
120Top Global (SGX: BHO)0.531
121Tosei Corporation (SGX: S2D)6.1090.5832.585
122Tritech Group (SGX: 5G9)1.063
123United Overseas Australia – UOA (SGX: EH5)6.4010.7292.678
124UOL Group (SGX: U14)0.1340.6562.3
125USP Group (SGX: BRS)0.204
126Vibrant Group (SGX: BIP)2.4560.307
127Wee Hur Holdings (SGX: E3B)6.810.4512.439
128Wing Tai Holdings (SGX: W05)0.0880.4541.593
129Yanlord Land Group (SGX: Z25)8.3060.4284.857
130Yeo Hiap Seng (SGX: Y03)0.8922.21
131Ying Li International Real Estate (SGX: 5DM)0.391
132Yoma Strategic Holdings (SGX: Z59)0.405
133Yongmao Holdings (SGX: BKX)7.6820.3590.309
134Yongnam Holdings (SGX: AXB)0.308

However, not all the 134 Singapore property stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period and an undervalue stock may remain lagging in share prices for many years, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Let’s learn these 3 global Discounted NAV giant stocks in 3 countries, understanding the business nature, investment clock and unique strategy.

1) Singapore DNAV Stock – Hongkong Land (SGX: H78)

Hongkong Land is part of Jardine Group with over 100 years of history. It has property businesses mainly in Hong Kong, China and Singapore with 61% in investment properties (main source of rental income) and 39% in development properties. The West Bund project in Xuhui Shanghai of China would be major revenue contributor in the next few years.

Hongkong Land is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $9/share. This stock has Discounted NAV of $15/share (close to NAV, implying very high quality of its asset), providing high safety of margin for long term investors with stable dividend payment (about 4-5% dividend yield, depending on entry price). Assuming extreme devaluation of Hong Kong property market by 50%, Hongkong Land would still have $7.50/share value for very conservative investors.  The “loss” of Hongkong Land in Year 2020 is mainly accounting loss due to devaluation of property but cashflow is still strong to support the dividend payment, behaving as if a REIT.

Recent acquisition of parent company, JSH (SGX: J37) by JMH (SGX: J36), has helped to support the prices of other stocks in Jardine group including Hongkong Land.  Jardine Group may have more corporate actions in future to release the hidden value of subsidiary stocks including Hongkong Land, Jardine Cycle & Carriage – JCC (SGX: C07), Dairy Farm International (SGX: D01) and Mandarin Oriental Hotel (SGX: M04). However, the recovery pattern of share prices for undervalue stock can be different from growth stocks. Hongkong Land is more suitable for long term investors with patient, positioning as a mid-fielder stock, good balance between capital gains and dividend as passive income.

Readers may read earlier articles (during pandemic with low optimism prices) by Dr Tee for more details on Jardine Group of stocks including Hongkong Land:
https://www.ein55.com/tag/jardine/

2) Malaysia DNAV Stock – Paramount (Bursa: 1724)

Paramount is a Malaysia property development stock with 50 years of history in businesses. After divestment of education segment business, Paramount has drawn up a new 5-year (2020 – 2024) strategic roadmap to focus on Property development and concentrate on landed developments and integrated developments in Malaysia. In the next 5 years, Paramount plans to venture into overseas property development projects, expecting to contribute approximately 10% of the Group’s revenue. It enjoys recurring income from investment property and minority interest in education business.

Paramount is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $1.20/share. This stock has Discounted NAV of $2.17/share (20% lower than NAV, partly due to lower value of non-property business), providing high safety of margin for long term investors with stable dividend payment (about 4-5% dividend yield, depending on entry price). Assuming extreme devaluation of Malaysia property market by 50%, Paramount would still have $1.08/share value for very conservative investors.

Malaysia property stock investing is complicated by worse pandemic condition, political instability and weaker consumer purchasing power. Paramount is more suitable for long term investors with patient, positioning as a mid-fielder stock, good balance between capital gains and dividend as passive income.

Readers may read earlier article (during pandemic with low optimism prices) by Dr Tee for more details on other Malaysia stock affected by pandemic:
https://www.ein55.com/tag/malaysia-stocks/

3) Hong Kong / China DNAV Stock – Yuexiu Property (HKEx: 123)

Yuexiu Property is a China property developer company (state-owned enterprise), originated in Guangzhou, expanding property businesses to other 19 cities in China. In 2019, Guangzhou Metro (another state-owned enterprise) becomes the second largest investor of Yuexiu Property, deepening the strategic collaboration between 2 giants (transportation and property).

Yuexiu Property is at moderate low Ein55 Optimism of about 40%, near to Ein55 intrinsic value of $2.20. This stock has Discounted NAV of $1.27/share (much lower than its NAV), higher than its current share price, therefore no safety of margin for very conservative investors. Yuexiu Property may still be considered for growth investing with dividend payment (about 6-7% dividend yield, depending on entry price). Trend-following strategy with S.E.T. (Stop Loss, Entry, Target Prices) trading plan may be integrated into stock investing without DNAV protection.

Yuexiu Property belongs to Yuexiu Group, which also owns 2 other subsidiary stocks, Yuexiu Reit (HKEx: 405) and Yuexiu Transport Infrastructure (HKEx: 1052) which may also be considered for dividend stock investing. Major shareholder and sponsor is Guangzhou local government, providing strong support to Yuexiu Group of stocks.

Readers may read earlier articles by Dr Tee for more details on other global and local property stocks including but not limited to Yuexiu Property:
https://www.ein55.com/category/property-market/

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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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Latest 30 STI index Stocks Strategies (卧虎藏龙)

30 STI index stocks represent the overall Singapore stock market performance. The list is dynamic, recent new comers are Keppel DC Reit (replacing SPH) and Frasers Logistics and Commercial Trust (replacing Jardine Strategic Holdings). During the COVID-19 stock recovery, there is a sector rotation, investors start to pay more attention to cyclical stocks (eg. bank, properties and transportation sectors, etc), which are main businesses of 30 STI stocks.

In this article, you will learn from Dr Tee on the Latest 30 STI Index Stocks Strategies, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 30 STI Index stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for 6 groups of STI stocks with potential. Learn key applications of ALL 30 STI stocks with 1 article here:

4 Banking & Finance STI Stocks (35% of STI):
– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

4 Property STI Stocks (9% of STI):
– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

7 REITs STI Stocks (11% of STI):
– Ascendas Reit (SGX: A17U), CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U), Frasers Logistics & Commercial Trust (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U)

4 Jardine STI Stocks (14% of STI):
– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

4 Transportation STI Stocks (6% of STI):
– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

8 Other Sectors STI Stocks (27% of STI):
– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

Investing in stock index of a country with growing economy (eg. Singapore STI, China A50 / Hong Kong HSI, USA S&P500 and Nasdaq, Malaysia KLCI, etc) is a defensive strategy as the stock index is well diversified over a portfolio of large cap stocks (卧虎藏龙) from various sectors, able to minimize unsystematic risks due to uncertainties in businesses and sector cycles. An investor may invest in stock indices with ETFs (Exchange Traded Fund), eg. STI Singapore has 2 ETFs: SPDR STI  ETF (SGX: ES3) and Nokko AM STI ETF (SGX: G3B), can be traded like any stock.  This provides a way for small capital investor to diversify in investment with minimal capital, eg. 1 STI ETF equals to investing in 30 STI stocks at the same time with different weightages.

The best time to buy 30 STI stocks or index ETF is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). STI Index stocks investing is not for dividend collection alone, may be integrated with growth investing, swing trading, momentum trading, cyclic investing, defensive investing, undervalue investing and other Ein55 strategies.

30 STI index stocks represent the 30 largest stocks by trading market capitalization (trading price x trading volume). Therefore, not all are giant stocks (based on Dr Tee giant stock criteria).  Below are the 30 STI index component stocks based on the last price traded (20 Apr 2021), sorted by 6 main groups with details of 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, over 50% (18/30 STI stocks) have growing businesses (over 5% ROE, Return on Equity) while 7 stocks were making losses during pandemic in Year 2020. With recovery of pandemic, there are only 20% (6/30 STI stocks) are still undervalue (Price to Book ratio, PB < 1). There are over 50% (16/30 STI stocks) have dividend yield over 3%, potential for dividend investing. STI ETF has an average dividend yield of about 3%, may be considered as replacement for long term fixed deposit but it requires a stock crisis to start this saving scheme at lower Ein55 optimism level to minimize the potential capital loss due to emotional stock market.

However, not all the 30 STI index stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

No30 STI StocksROE (%)PBDY (%)
1Ascendas Reit (SGX: A17U)4.971.44.8
2CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U)2.6831.14.0
3CapitaLand (SGX: C31)0.92.4
4City Development (SGX: C09)0.91.0
5ComfortDelGro (SGX: C52)2.3711.50.8
6DBS Bank (SGX: D05)8.6421.43.0
7Dairy Farm International (SGX: D01)20.54.43.9
8Frasers Logistics & Commercial Trust (SGX: BUOU)12.061.34.8
9Genting Singapore (SGX: G13)0.8841.41.1
10Hongkong Land (SGX: H78)0.34.4
11Jardine Matheson Holdings JMH (SGX: J36)1.62.7
12Jardine Cycle & Carriage (SGX: C07)8.0731.02.4
13Keppel Corp (SGX: BN4)0.91.8
14Keppel DC Reit (SGX: AJBU)8.6472.33.4
15Mapletree Commercial Trust (SGX: N2IU)9.3851.23.8
16Mapletree Industrial Trust (SGX: ME8U)10.311.64.1
17Mapletree Logistics Trust (SGX: M44U)8.2351.53.6
18OCBC Bank (SGX: O39)7.2271.12.7
19SATS (SGX: S58)10.413.01.4
20Singapore Exchange (SGX) (SGX: S68)37.98.92.9
21Singapore Airlines (SIA) (SGX: C6L)1.30.6
22ST Engineering (SGX: S63)22.765.43.8
23Sembcorp Industries (SGX: U96)1.21.8
24Singtel (SGX: Z74)4.0111.64.8
25Thai Beverage (SGX: Y92)15.962.93.4
26UOB Bank (SGX: U11)6.9021.13.0
27UOL (SGX: U14)0.1340.72.2
28Venture Corporation (SGX: V03)11.52.33.7
29Wilmar International (SGX: F34)8.1251.42.4
30Yangzijiang Shipbuilding (YZJ) (SGX: BS6)7.7810.83.3

Here, let’s focus on 30 STI Index Component Stocks in Singapore over 6 main groups (Hongkong Land is counted twice under both Jardine Stock & Property Stock), learning the unique positioning:

4 Banking & Finance STI Stocks (35% of STI):
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– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

3 major banks in Singapore (DBS, OCBC, UOB – all are giant stocks with close relative performance in medium term) are key pillars to STI, contributing to 33% or 1/3 of STI. Therefore, price movement and business changes in Singapore banks or financial sector would affect STI direction significantly. With improvement of pandemic condition, all 3 Singapore major banks reported better quarterly results. As a result, the share prices have recovered from lower optimism level, currently near to their respective intrinsic values.  This implies the cyclic upside potential of DBS, OCBC and UOB are limited (unless there is another global financial crisis to buy low in future), share prices would grow gradually along their intrinsic values with time.

Main current strategy for 3 bank stocks could be momentum trading (Buy High Sell Higher) with support of increasing bank interest rate (improving interest income with higher NIM, Net Interest Margin) over the next few years.  When Asian stock market are over-price (exceeding intrinsic values) with greedy market emotions, STI may achieve a new historical high, bank stock investors may need to plan for exit strategy at higher Ein55 Optimism level.  Meanwhile, Singapore bank stocks are still suitable for long term dividend investing, especially if 60% dividend payout cap (based on FY2019) may be lifted by MAS from Q2/2021, then dividend yield would increase by 50%, achieving normal dividend yield of nearly 5% (comparable with REITs), an excellent alternative to cash deposit in banks or even Singapore Savings Bond which has only 0.5% interest rate yearly, becoming negative return when inflation is over 1%.

Singapore Exchange (SGX) is a moderate growth stock due to a monopoly business model, regardless of bullish or bearish stock market, as long as there is higher demand to buy or sell stocks, earnings would increase.  With challenges from Hong Kong Stock Exchange (HKEX: 388) who wins the MSCI Future business, Singapore Exchange has to explore new derivatives and widen the customer base to more global investors. Intrinsic value of Singapore Exchange is about $13, still undervalue at the moment, having upside potential but patience is required due to moderate growth.

Even if an investor could not buy any Singapore bank stock, may follow Ein55 Optimism strategy to buy STI index at low optimism (<25%) during pandemic, recovery from 2200+ to 3200+ points, the reward could be 30% – 50% in 1 year, depending on the timing of entry when “others are fearful”.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 30 Banking & Finance stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/30-singapore-banking-and-finance-stocks/


4 Property STI Stocks (9% of STI):
=============================
– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

4 major property stocks in Singapore (CapitaLand, City Development, Hongkong Land and UOL) are undervalue in nature (PB < 1), only contributing to 9% of STI. With recovery of pandemic, lower optimism levels of property stocks start to appreciate in share prices but still below their intrinsic values currently. For example, Hongkong Land has nearly 2X potential from current share price of $5 to its intrinsic value of about $9 but it has a new variable of stagnant Hongkong property market.  Despite Hongkong Land is listed in Singapore, main property business is located in Hong Kong, devaluation of Hong Kong properties results in accounting losses in FY2020 but cashflow is not affected, therefore able to pay consistent dividend as if a REIT (dividend yield of 4-5%).

Among all 4 STI property stocks, City Development has the weakest business fundamental (partly due to setback in China investment with Sincere Property), therefore even if share price has the most discount, this could be a value trap for longer term investor, therefore a lower quality of crisis stock.  UOL and CapitaLand are relatively stronger in businesses.  Despite Singapore property construction business was affected during pandemic, actual property price is growing up gradually.  Therefore, Singapore property stocks are likely to recover strongly after pandemic.

Temasek stock, CapitaLand, will be delisted in near future after recent restructuring, replacing with another potential new giant stock, CLIM (investment asset management company which focus on growth investing). In future, the undervalue CapitaLand may be listed again with higher premium price, a better option than continue the current listing with long term undervalue price under the theme of property stock.

Similar to bank stocks, Singapore property stocks are also cyclical in nature, more suitable with Buy Low Sell High strategy.  STI property stocks also could be a defender with dividend investing, especially for Hongkong Land, almost behaving like a Reit with steady dividend payment (except not required by law). Since Singapore property stocks are undervalue in nature, this is a layer of safety measure for long term investor as the asset value is more than its current share price.  However, if major shareholder decides to delist an undervalue property stock at low optimism level, then minority shareholders may not gain much after sharing the pain of holding in long term. Therefore, when Singapore stock market and property market rise to a higher optimism level, a property stock investor may consider the exit strategy (Sell High and Buy Low next time), no need to hold for long term.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 47 Undervalue Property Stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/47-undervalue-sg-property-stocks-for-privatization-including-perennial/


7 REITs STI Stocks (11% of STI):
==========================
– Ascendas Reit – Areit (SGX: A17U), CapitaLand Integrated Commercial Trust – CICT (SGX: C38U), Frasers Logistics & Commercial Trust – FLCT (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust – MCT (SGX: N2IU), Mapletree Industrial Trust – MIT (SGX: ME8U), Mapletree Logistics Trust – MLT (SGX: M44U)

The earlier 2 new comers of STI are MIT and FLCT, both are REITs, The 4 STI reserved list (for future consideration, eg. after replacement of CapitaLand after it is delisted) are all REITs or Trust related stocks, showing the increasing demand for defensive dividend investing: Keppel REIT, Suntec REIT, Frasers Centrepoint Trust and NetLink NBN Trust.

7 STI REITs in Singapore (Areit, CICT, FLCT, Keppel DC Reit  MCT, MIT, MLT) are all giant REITs for dividend investing, the ideal time to invest was during pandemic when “others are fearful” in 2020 with over 30% price correction at low Ein55 Optimism level, resulting in higher dividend yield over 4 to 7%. “Buy Low” is only applicable for giant stocks, otherwise “Buy Low” may become lower for weak fundamental stocks.

Most of these 7 STI REITs have recovered to near or even above their intrinsic values, except CICT is still at moderate low optimism, having over 20% discount below its fair value, growth is slow but steady.  MCT is close to its intrinsic value but slower growth. Both MLT and FLCT are at higher Ein55 Optimism levels, supported by logistics business with higher demand during pandemic.

Singapore REITs in general only have moderate dividend yield after recovery from pandemic so far. A few non-STI REITs with high dividend yield could be a value trap with weaker business, driving lower prices and therefore higher dividend yield).  Dividend yield should not be the main selection criteria of a giant REIT.

These 3 industrial STI REITs (Keppel DC Reit, MIT, Areit) have strong uptrend momentum during the early stage of pandemic (industry sector business was not much affected during circuit breaker time) but suffering in sector rotation when pandemic condition improves in later stage, share prices were corrected more than 20% over the past few months, currently under second round of price recovery, may be considered for medium term trading with trend-following strategies, applying S.E.T. (Stop Loss / Entry / Target Prices) in trading plan.  All these 3 STI REITs have partial business related to high growth data center (100% for Keppel DC Reit, 30% for MIT, 10% for Areit) with higher demand in internet applications during and post pandemic.

In summary, 7 STI REITs are excellent choices for dividend investing but the best time for investing is always when “others are fearful” during Global Financial Crisis with low Ein55 Optimism level. Currently these giant REITs are more suitable for medium term dividend investing or even trading with trend-following strategies. Unlike property market, REITs are hybrid of stocks and properties, therefore they are cyclic in nature, an investor could suffer significant capital loss when buying at high Ein55 Optimism level with downtrend prices, especially near to peak of stock market.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 42 REITs and 16 Business Trusts in Singapore, not limited to STI:
https://www.ein55.com/2020/06/42-singapore-reits-16-business-trusts/


4 Jardine STI Stocks (14% of STI):
=============================
– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage – JCC (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

Jardine group of stocks are influential to STI, even with delisting of JSH, these 4 Jardine giant stocks (JMH, JCC, Hongkong Land and Dairy Farm) still dominate 14% of STI by market cap.  Currently, all these 4 Jardine STI stocks are recovering together from very low Ein55 Optimism level, partly supported by the corporate news of acquisition of JSH by JMH, triggering speculation on potential next undervalue Jardine stock to acquire which may surge in prices.

In fact, acquisition of a giant stock at low optimism (eg. JSH) should be a nightmare for a long term investor, despite a premium price (typically about 20%) is given for the offer to minority shareholders.  For long term investor who bought a stock at higher optimism level, even could hold a stock for long term or lifetime, may not able to stop the major shareholder from leveraging on low optimism opportunity to delist a company at undervalue prices (including CapitaLand, JSH and many other good fundamental stocks), a few may even end up with losses as entry price at high optimism is higher than the acquisition price. 

Therefore, to minimize systematic risks (eg. global financial crisis, sector correction, etc), investing in a portfolio of 10-20 giant stocks at lower Ein55 Optimism with strong holding power could improve the probability of winning in investment. Stock market in short term is a voting machine (up and down daily, sensitive to news) but in a long term, it becomes a weighing machine (steady growth in years with support of growing business).

All the 4 Jardine STI stocks are aligned with recovery of share prices from low Ein55 Optimism levels. They are considered laggard stocks (slower in recovery from pandemic), limited number of giant stocks with higher upside cyclic potential. However, Jardine stocks are cyclical in nature, stock price volatilities may be beyond the risk tolerance level of some traders or even investors.

Readers may read earlier article (Apr 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details on 7 Jardine Group of Giant Stocks, not limited to STI:
https://www.ein55.com/2020/04/7-jardine-king-of-singapore-stocks/


4 Transportation STI Stocks (6% of STI):
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– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

There are 4 transportation STI stocks: ComfortDelGro (land transportation), Singapore Airlines (airlines), SATS (partial airlines), Yangzijiang Shipbuilding (shipping). Transportation sector in general is badly affected during pandemic but strongly supported by government grants, therefore these stocks start to recover with slow business improvement in later stage of pandemic.  Stock market is always forward looking, most people believe pandemic would end sooner or later, therefore global vaccination starts to recover the share prices of transportation stock, despite their businesses are still weak.

ComfortDelgro is mainly on taxi business, also has bus / MRT / car inspection businesses through subsidiaries SBS Transit (SGX: S61) and Vicom (SGX: WJP).  The impact of pandemic is much less than the airlines sector, mainly affected during circuit breaker time (Q2/2020) when most people stay at home.  Share price of ComfortDelgro was cut by nearly half during pandemic, then share price starts to recover from low Ein55 Optimism. Intrinsic value of ComfortDelgro is about $2.50, there is cyclic upside potential in share price with diminishing fear, supported by low community cases of COVID-19 in Singapore, allowing land transportation business to go back to normal. Vicom as a more defensive dividend stock (but dividend yield is moderate after rising in share prices after 4-to-1 stock split) with stable and predictable car inspection business (nearly monopoly, sharing the pie with ST Engineering which has STA car inspection centers), supplying critical cashflow to major shareholder, ComfortDelgro (2/3 ownership of Vicom). SBS Transit has become an asset light company after LTA changes of its business model a few years ago (focusing as transport operator with lower expenses and more predictable incomes), gradually become a giant stock but Ein55 Optimism level is relatively high, more suitable for trading, not yet for investing.

YangZiJiang (YZJ) is in shipbuilding industry, relatively stronger than most shipping or marine related stocks with decade long of winter time in this sector. Pandemic in fact helps the shipping industry due to more intercontinental shipping activities. Baltic Dry Index (BDI, a measurement of inflation for shipping industry) has been surging since pandemic, a bullish business signal.  However, YangZiJiang is cyclic in nature, limited growth in long term with moderate dividend yield (3%), more suitable for short term trading, especially when there is rising interest in shipping related stocks.

SIA is a truly crisis stock as airlines passengers drop more than 90%, even parent shareholder, Temasek has to take the lead to help with rights and bonds issues, in additional to Singapore government financial aids.  However, the risk of SIA is not limited to pandemic, the gradual weakening of airlines business was shown even over the last 10 years before pandemic due to competitive airlines industry (eg. price competition for similar flight from City A to City B), similar to another “grandparents blue chip” stock, Singapore Press Holdings – SPH (SGX: T39) with declining business due to less readers (who access free info including news from internet) gradually over the decade.  Despite both SIA and SPH are no longer giant stocks for longer term investing, they may be considered for short term trading (with trend-following strategies) due to speculation of recovery in pandemic, especially after their stock prices were cut by half during pandemic.

SATS is a spinoff company of SIA about 3 decades ago with about 60% airlines gateway business and 40% F&B business.  SATS is indirectly affected by COVID-19 for airlines related business but it can still be compensated by F&B business, therefore a better financial position than most airlines stocks.  In fact, SATS is relatively a better investing choice than SIA, considering both have about 50% price discount during pandemic but SATS has higher growth potential than SIA, therefore may be considered for both longer term investing (current price is only 15% below its intrinsic value) or even shorter term trading.

In fact, even an investor has a lousy stock with weak business fundamental, could not accept the fact of capital loss with “long term investing”, may apply the powerful “Change Horse” strategy, i.e. selling weaker stock, using the remaining capital recovered to buy another stronger stock on the same day. This is a psychological strategy to strengthen the mind of an investor (as if a stock is never sold, just changing its name), despite mistake could be made in the past, there is a second choice, no need to keep on holding to the same weaker stock, changing its future with a giant stock.

Readers may read earlier article (Mar 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details of “Change Horse” strategy (SATS and SIA as examples, assuming an investor only prefers airlines stock):
https://www.ein55.com/2020/03/change-horse-strategy-sia-to-sats/


8 Other Sectors STI Stocks (27% of STI):
==================================
– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

The remaining 8 STI stocks come from various industries: Genting Singapore (casino), Keppel Corp (property / oil & gas), ST Engineering (technology), Sembcorp Industries (utility / property), Singtel (telecommunication), Thai Beverage (F&B), Venture Corporation (technology, Wilmar (commodity).  They are aligned with average 3.3% weightage of each STI stock (100% / 30 stocks = 3.3% per stock), total 27% of STI by market cap for 8 stocks.  However, due to less STI stocks in these miscellaneous sectors, therefore changes in each sector do not significantly affect STI index.

For example, early stage of pandemic supports share prices of high-tech stocks globally but STI had little gain due to lack of high-tech stocks, lagging behind comparing with US NASDAQ or even Hong Kong HSI indices.  On the other hand, since global stock market currently value more on cyclic sectors (most of STI component stocks) with pandemic recovery, therefore STI is leading compared to global peers since early Year 2021.  So, it is a blessing in disguise for STI to be lagging, so that late comers still have chance to enter the stock market with higher reward to risk ratio.

Among these 8 other sectors STI stocks, Singtel and Wilmar have the largest market cap. Singtel is a Temasek stock, a defensive dividend stock but telco overseas business overseas (contributing to over 50% revenue) is not as stable as in Singapore, therefore share prices have been corrected lower over the past few years, even before pandemic. Before pandemic, telco industry has been too competitive, over-saturated market with lower profit margins, many global and local telco stocks are affected with declining business (Singtel is still relatively stronger than other telco stocks).  Although 5G technology could create a new wave of future business, most profits may go to smart phone / 5G leaders (eg. Apple, NASDAQ: AAPL) and semi-conductor (eg. TSMC, NYSE: TSM) supplier giant stocks. Singtel has started to recover from low Ein55 Optimism but not supported by growing business, may take more time to achieve intrinsic value of nearly $4.  “Buy Low” in share price without growing business may fall into value trap in longer term (Buy Low Get Lower), therefore careful monitoring of future Singtel business is required for long term investing. Singtel is more suitable for trading currently.

Wilmar is a strong fundamental commodity stock with steady growth in palm oil and sugar businesses, supported by PPB (KLSE: 4065) of Kuok Group as major shareholder (head of Kuok family is Robert Kuok, the richest person in Malaysia while nephew, Kuok Khoon Hong, is Wilmar Chairman), aligning with recovery of commodity market including palm oil and sugar prices from lower Ein55 Optimism (supported further by weakening of US dollar with QE during pandemic). Wilmar share price follows its intrinsic value closely, therefore little opportunity to Buy Low unless there is a global financial crisis in future. Wilmar subsidiary with cooking oil business, YKA, is a new IPO stock in China stock market (larger market cap than Wilmar now due to higher demand in China stock market), would help to support the parent stock in longer term. In general, Wilmar can be a steady defender stock but may not be suitable for those who aim for quick gains.

Remaining 6 other STI stocks, each has its own pros and cons. Genting Singapore is a crisis stock, share price is recovering well from low Ein55 Optimism but business is limited by lack of international tourists to Singapore (potential customers for gambling business which is the main profit generator).  Thai Beverage is a higher quality crisis stock, share price is recovering from very low optimism but beer business is not much affected by pandemic, short term price is affected due to recent news to delay IPO plan for its subsidiary, BeerCo. Thai Beverage’s intrinsic value is about $1, current price is about 30% below this fair value.

ST Engineering is a defensive technology stock, share price is recovering from low optimism in pandemic, near to its intrinsic value, more suitable for medium term dividend investing.  Venture is a cyclic technology stock, more suitable for Buy Low Sell High (currently at high Ein55 Optimism level), more suitable for trading, may not for long term investing. There is a potential of Version 2.0 Dotcom bubble (Version 1.0 was in Year 2000) due to over-price global technology giant stocks, therefore investing in high tech stocks require trend-following trading strategies due to very high optimism in many technology stocks which could be fine for a period of time with support of growing economy after pandemic is over.

Keppel Corp is not supported by Temasek partial acquisition last year but share prices recover gradually with improvement in oil prices during pandemic (after the worst time of negative oil price in May 2020), but business is still declining, mainly supported by property market (eg. Keppel Land and Keppel Reit). Despite Keppel Corp plans to exit from Oil & Gas sector eventually in future, it could still benefit from the recovery of oil market as Keppel Offshore & Marine division may be merged with Sembcorp Marine (SGX: S51), another Temasek crisis stock, which is demerged recently from Sembcorp Industries.  After demerging, Sembcorp Industries becomes a giant stock overnight (before demerging, 1/3 business was affected by subsidiary, Sembcorp Marine with losing business in oil & gas), share prices have recovered from low Ein55 Optimism in pandemic, near to its intrinsic value currently, supported mainly by growing land development business and defensive utility business.

Out of 30 STI Index stocks, there are 50% or 15 Temasek related stocks: DBS, Singtel, Sembcorp Industry, Keppel Corp, Keppel DC Reit, CapitaLand, CICT, SIA, SATS, ST Engineering, Singapore Exchange, Areit, MIT, MCT and MLT. Temasek as a major or significant shareholder, provides stability to business and even share prices to these Temasek stocks, especially during stock or business crisis (including non-STI stock such as Olam (SGX: O32) when it was attacked by Muddy Waters during shorting many years ago.

Readers may read earlier article (Aug 2020 during pandemic with low optimism prices) by Dr Tee for more details on 26 Temasek stocks, not limited to STI:
https://www.ein55.com/2020/08/temasek-giant-stocks-corporate-actions/

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

Between knowledge (eg. reading this educational article of 30 STI stocks) and fortune (eg. making profits in stocks), there is a bridge to cross called Action (Buy, Hold, Sell, Wait or Shorting).  Before making any decision, reader may need to understand own personality, eg. short term trading or long term investing, risk tolerance level and reward expectation, etc, then aligned with the right strategies. Similar to each profession, stock trading and investment skills can be learned, even in a free way (you are doing the right way now) if one could put in effort consistently to learn and apply.

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

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

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.

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7 Jardine King of Singapore Stocks (狮城股王)

Jardine Group SGX Jardine Matheson J36 Jardine Strategic Holding J36 Jardine Cycle & Carriage C07 Astra Asii Mandarin Oriental Hotel M04 Hongkong Land H78 Dairy Farm D01 Singapore Stocks Creative Technology C76 Berkshire BRK NYSE Sheng Siong OV8

Jardine Group is not just a company, it is a giant group with nearly 200 years of business history (started in 1832, then controlled by Keswick family for many generations till now).  Jardine group of companies cover many industries, eg. engineering, automotive, properties, hotel, supermarkets, etc.

Jardine group has 7 giant stocks (Jardine Matheson, Jardine Strategic, Jardine Cycle & Carriage, Astra, Hongkong Land, Dairy Farm, Mandarin Oriental Hotel), all are falling to very low optimism (mostly with optimism <10%) over the past 2 months of global stock crisis.  Since 5 of Jardine giant stocks (except Mandarin Oriental Hotel and Astra International – listed in Indonesia) are 30 STI component stocks (contributing to about 15% weightage), it has the strongest influence to Singapore stock exchange, more than individual stock of 3 major banks (DBS, OCBC, UOB) and Singtel.

There are 30 STI index component stocks including 5 Jardine stocks (investor has to focus only on giant stocks for investing):
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).

6 Jardine stocks listed in Singapore Stock Exchange are secondary listing (primary listing in London Stock Exchange) and traded in USD (currently at high optimism vs SGD). USD usually performs better in bear market (safe haven), weaker during bull market, the longer term forex disadvantage of USD/SGD (about -2%/year USD depreciation) could be compensated by higher growth of 10+%/year of Jardine stock prices.

So, let’s learn to position in 7 Jardine stocks, all are giant stocks based on Dr Tee criteria but each Jardine stock has different characteristic, which may be considered for different personality of investors.

1) Jardine Matheson Holding – JMH (SGX: J36)

2) Jardine Strategic Holding – JSH (SGX: J37)

Jardine Matheson Holding, JMH is “King” of Singapore stocks (狮城股王), the highest share price in Singapore stock market history. JMH share price was peak around US$70/share a few months ago, before falling by 30% during Coronavirus crisis to about US$50/share. It is costly to invest even with minimum of 100 shares per lot (price in USD) = $50 x 1.43 (USD/SGD) x 100 = S$7150.

Highest stock price may not be always a giant stock, although most of the time, high stock prices are giant stocks, higher prices due to growing business over the decades. For example, world’s most expensive stock, Berkshire Hathaway (NYSE: BRK) managed by Warren Buffett, 1 share alone could be US$344,000 (nearly S$500k, could buy a 5-room HDB flat), currently selling at discount of US$290,000 (for details of Berkshire stock, refer to free eBook by Dr Tee on global Top 10 stocks).

The former Singapore stock king was Creative Technology (SGX: C76) with over S$60/share peak stock price recorded in year 2000 dotcom bubble. After the burst of technology bubble, not only stock price in crisis, Creative Technology also lost the giant stock title, company is no longer growing, share prices declining for 20 years till as low as $1/share. Therefore, long term investing requires monitoring of business fundamental, otherwise buy low may get lower over time, suffering huge capital loss. A common mistake for beginner in stock investing is usually buy a famous brand of stock at historical low price or 5-10 years low, assuming the price may recover in future which may not because future business is the key.

Similarly, during Coronavirus crisis, some sectors are badly affected (eg, airlines, F&B, hotel, etc), an investor needs to review whether the business with losses (more than 90% drop in revenue) could last with cash or net asset available. After the crisis is over, could the business recover quickly?

Jardine Strategic Holding, JSH is sibling of JMH, both are owning each other, a special cross-holding structure which could prevent hostile takeover. See another article of this topic: https://www.ein55.com/2017/03/jardine-group-uob-group-cross-holding-stock-network/

Both JMH and JSH stock performance are very close in longer term (eg over 10 years). Investing in either JMH or JSH is as if investing in Jardine fund of stocks with most the Jardine businesses. JMH has average of 1% higher dividend yield than JSH but JSH has average of about 1% higher yearly growth in share price than JMH, so effect is about the same. More details of JMH in earlier article: https://www.ein55.com/2016/04/choose-stocks-grow-30-times-price/


Both JMH and JSH are considered cyclic growth stocks, need to position with optimism less than 25%, best during global stock crisis or global financial crisis. Due to cyclic nature of these 2 stocks with minimal dividend for protection, it is more suitable for investing during recovery phase of stock crisis, avoid buying low get lower. When positioned right at significant low optimism in a severe global stock crisis, JMH and/or JSH may be considered for longer term holding due to high growth but need to monitor its cyclic businesses to certify that they are giant stocks (based on Dr Tee criteria) as this title of giant stock is not forever, eg. Creative Technology lost this title about 20 years ago.

“Buy Low” could only have chance to “Sell High” in longer term with condition that it is a giant stock. If not, “Buy Low” may become “Lower” in prices.

3) Jardine Cycle & Carriage – JCC (SGX: C07)

4) Astra International (IDX: ASii)

Jardine Cycle & Carriage, JCC is only a subsidiary of JSH but itself is already a giant automotive stock (familiar car brands:  Mercedes-Benz, Toyota, Honda and Kia). JCC also owns Indonesian automotive giant stock, Astra International (listed in Indonesia Stock Exchange).

JMH owns JSH, JSH owns JCC, JCC owns Astra. So, it is as if 4 levels of stock connection but stock performances are close. JMH and JSH could be considered together (either one). Similarly, JCC and Astra may be considered together through JCC (if easier to invest in Singapore stock than Indonesian stock, Astra).

JCC is a dividend growth giant stock (not for Astra), suitable for investing during low optimism stock market, protected by nearly 6% dividend yield (assuming car business drops during crisis, 50% cut in dividend still has about 3% dividend yield left, more than 1% bank interest rate for cash). When crisis is over, likely the growing business will justify for normal distribution of dividend. However, since it is not a REIT (by law needs to distribute 90% taxable income to shareholders as dividend), the company has the right to choose not to give dividend. Over the past 10 years, JCC has record of giving around 3% dividend yield, current high dividend yield of nearly 6% is mainly due to price dropped by about 50% over the past few months of global stock crisis, therefore dividend yield is doubled from 3 to 6%.

If one believes the Coronavirus crisis or any future crisis are unlikely to stop people from buying cars more than 1 year (eg. could not get out of home for 1 year to view the cars in showroom), then crisis in JCC stock prices could be an opportunity. However, for Q1-Q2/2020 with less shoppers due to global lockdown, there could be temporary drop in business which may be justified by 50% discount in share price.

5) Hongkong Land (SGX: H78)

Hongkong Land is a well-known property stock, owning grade-A commercial properties in both Hong Kong central and Singapore marina area. There are quite a few past articles by Dr Tee on Hongkong Land (https://www.ein55.com/tag/hongkong-land/), mainly an undervalue property stock. However, over the past few years, buy low may get lower as Hongkong Land is not only following Jardine group, also affected by Level 2 property sector (Hong Kong / Singapore) and Level 3 stock property, as well as political economy (eg. over 100 days of Hong Kong protesters last year before Coronavirus crisis).

Among all the 7 Jardine giant stocks, Hongkong Land is the “safest” due to property asset selling at over 70% discount (price to book ratio, PB, is less than 0.3). The high dividend yield of 5% (eg from property rental) is a bonus for long term investor of Hongkong Land, providing passive income (even if 5% dividend yield is cut by half for next 12 months, still suitable as defender), no issue even if “crisis” of any form (protester, virus, etc) may last more than 5 years. During Coronavirus crisis, tenants of property could lose money due to less shoppers but landlord (Hongkong Land) still could collect stable rental.

Mid-term risk of Hongkong Land could be high property valuation in Hong Kong may not be sustainable if the average 20 years property cycle of Hong Kong falls from high optimism. So far Coronavirus only affects global stock markets and badly affect business of certain sectors, but not yet on property sector. Even so, long term outlook for Hong Kong and Singapore property sectors are steady gradual growth as a country surrounded by sea with limited land but nearly unlimited future population (both has the top 10 highest population density in the world with growing economy for decades) would support the growing property prices in decades to come.

In short, investing in Hongkong Land stock is an investment in Singapore and Hong Kong countries through as integrated stock and property markets.

6) Mandarin Oriental Hotel (SGX: M04)

Mandarin Oriental Hotel is not only a hotel in Singapore, it has many hotels globally. During Coronavirus crisis, hotel (hospitality sector) is badly affected. So, investor needs to monitor Q1 and Q2/2020 results of Mandarin Oriental Hotel before making decision.

Mandarin Oriental Hotel is a marginal giant stock, the weakest among 7 Jardine stocks. Even before Coronavirus crisis, business fundamental has been declining. Despite 60% discount in hotel asset with PB of 0.4, Mandarin Oriental Hotel is not as valuable as Hongkong Land.

For short term or mid-term cyclic trading strategy, this stock may be considered if there is a strong reversal in price trend, especially when Coronavirus condition may improve but risk is relatively higher than other 6 Jardine stocks.


7) Dairy Farm International (SGX: D01)

Dairy Farm is famous of its supermarket and consumer business (Wellcome, Cold Storage, Seven Eleven, IDEA, etc) in Hong Kong, Singapore and regional countries. During Coronavirus period, supermarket business should perform better (see how crowded when lockdown was announced) as is a consumer staples business, people still need to eat and drink, if they could not go out from home.

However, before Coronavirus crisis, Dairy Farm only has average business performance. It even sells some its seven eleven stores. It has stable dividend payment record, about 4% yield currently, possible to position as midfielder role. Competitor supermarket stock, Sheng Siong (SGX: OV8) performs better than Dairy Farm for business and stock prices. Sheng Siong has recovered the “losses” in stock prices as business is doing too good during Coronavirus period. Sheng Siong is only a young giant stock but does well in the current global stock crisis, having potential to be a true giant stock in future with more proven record.

Therefore, not all sectors are affected by the same crisis. Investor may explore stocks with stable businesses, leveraging on market fear to ask for over 20% discount in those growth stocks. Crisis is Opportunity when stock prices fall due to fear but business is still strong. Crisis is crisis when stock prices fall mainly due to weaker business.

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In summary, all 7 Jardine stocks are giant stocks at low optimism. However, the stock prices have been bearish for a few years, undervalue asset becomes more undervalue each year. Therefore, these Jardine stocks may not possible for traders without strong holding power as buy low may get lower in short term to medium term, unless there is a clear reversal in stock prices to uptrend again.

For long term investors who apply undervalue investing may consider Hongkong Land and Jardine Cycle & carriage stocks which pay over 5% dividend yield (but assume this amount may be cut by 50%). For very conservative investor, Hongkong Land with over 70% discount in asset value (PB < 0.3) is another strong consideration, even if Hongkong Land could not survive the unlikely Great Depression (<5% chance it may happen), investors may not lose the capital due to high safety of margin.

Strategies for investing in Jardine group is similar as other giant stocks at low optimism, multiple entries, eg 1, 3 or 5 “bullets” of capital, first entry at low optimism < 25%, subsequently optional entries could be either downtrend (5-10% lower, average down for investing) counter-trend investing or uptrend (5-10% higher, average high for trading) follow-trend trading if optimism is still less than 25%. It is fine if only 1 “bullet” (1 entry) is triggered (eg. stock market has V-shape recovery), future may follow short term or mid term trading for actions, to be reviewed again.

Sharing above for 7 Jardine stocks are for educational purpose (almost spend 1 day of Dr Tee valuable time writing this long article, hope it is an useful reference for readers). Please make your own decision with independent thinking. If you could read until this sentence, implying you have the determination to learn and apply stock investing.

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3M of Stock Investment Plan (Hongkong Land)

3M of Stock Investment Plan Hongkong Land

Some investors may think Hongkong Land (SGX: H78) or any giant stock at 0% optimism is a no-brainer stock investment, simply buy now (Price-to-Book, PB ratio of 0.26 with 74% discount in price for high quality property asset) and hold long term for crisis to be over with price recovery, sure will make money with capital gains.

Above is half understanding based on pure “Method”. There are 3M to consider:

3M Investment = Method x Mind X Money Management.

Whenever any 1 of the 3M is weak or zero, entire investment plan would fail due to multiplication effect.

Let me extend the earlier sentence from 1M to 3M:

Hongkong Land is a good buy now at current price, if one is prepared to hold long term with contrarian strategy (including diversification over a portfolio of 10 global giant stocks) which is comfortable with one’s personality (eg. the person will not check share price daily, will not be sleepless each night when seeing Hongkong Land stock price may fall by another 50% in next 6-12 months). If the person is willing to lock the Hongkong Land stock share in a drawer for at least 5 years (only check the price and business fundamental quarterly), then probably near to the rare quality of 5% group of contrarian investors. The person would be similar to Warren Buffett mindset, able to take the finger pointing by others (eg. “you are wrong, should not buy, now is a bad market, etc”).

Let’s do a simulation of application of only 1M (Method). After buying Hongkong Land (assuming the same low price now with PB ratio = 0.26), assuming Coronavirus could be out of control in US & Europe in next few months, many death reported, global stock markets drop from current mid optimism to low optimism, Hongkong Land may fall down another 25% in price. If global financial crisis is induced due to weaker economy over 6-12 months, then Hongkong Land could fall down another 25%, perhaps the PB could be 0.26/2 = 0.13 then (more discount given).

If the person is very comfortable with falling in share prices (treat is as different degree of discount, no need to buy at the most discount with the lowest price) as main concern is to ensure asset value with business won’t be affected in long term. If there is a global financial crisis, it is possible for Hong Kong property valuation to drop 20%, especially Hong Kong property market is at relatively higher price or optimism level over the past 20+ years but it usually won’t last long in this way), then it is a good buy for this person, especially if the position of Hongkong Land stock is no more than 10% of entire portfolio.

Some investors may think if one follows exactly as the Method required (either long term investing or short term trading), then there is no harm to follow. However, once the person make an surprised loss (Mind Control is affected), especially over trade or invest in only 1 stock (poor Money Management).

In short, when finding a Method for stock investment, learn and choose a strategy aligned with own personality (many factors to consider), not just because it is a “sure win” Method. Due to mismatch of personality, this is why traders mindset may fail in investing, while investor mindset may fail in trading. There is also 5% of rare group which could invest and trade, having “dual” personalities, able to make money in both short term trading and long term investing. For majority of the people, there is no need to be greedy to earn all the money in the market, just focus on 1 way comfortable with oneself, be the master with years of practice with stock market experience as the teacher.

There are 30 STI index component stocks including Hongkong Land (investor has to focus only on giant stocks for investing):
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).

There is no get-rich-quick or sure-win investment or trading method. Each “Method” requires own experience with own “Money” through own “Mind” to convert into a skill which is repeated. Some may take more time, some may be faster to achieve this goal. The current stock market crisis could be a pain to many people but will be helpful in reshaping one’s strategy (经一事、长一智).

Apply probability investing in planning of stock investment or trading. High probability does not mean 100%, even cash deposit in bank is not 100% safe. A weak bank could go bankrupt, $1 Million deposit could only get $75k compensation. Risk tolerance level is also one of the “PA” (Personal Analysis).

There are 140 property & construction stocks in Singapore including Hongkong Land (47 of them are undervalue with PB<1):
3Cnergy (SGX: 502), A-Smart (SGX: BQC), AEI^ (SGX: AWG), AIMS Property (SGX: BVP), APAC Realty (SGX: CLN), Abterra (SGX: L5I), Acromec (SGX: 43F), Amara (SGX: A34), Amcorp Global (SGX: S9B), AnnAik (SGX: A52), Astaka (SGX: 42S), BBR (SGX: KJ5), BRC Asia (SGX: BEC), BlackGoldNatural (SGX: 41H), Boldtek (SGX: 5VI), Bonvests (SGX: B28), Boustead (SGX: F9D), Boustead Projects (SGX: AVM), Bukit Sembawang (SGX: B61), Bund Center (SGX: BTE), CSC (SGX: C06), CapitaLand (SGX: C31), Casa (SGX: C04), Chemical Industries (SGX: C05), China Great Land (SGX: D50), China International (SGX: BEH), China Real Estate (SGX: 5RA), China Yuanbang (SGX: BCD), Chip Eng Seng (SGX: C29), City Development (SGX: C09), DISA (SGX: 532), Debao Property (SGX: BTF), ETC Singapore (SGX: 1C0), Edition (SGX: 5HG), EnGro Corporation (SGX: S44), Fraser and Neave F&N (SGX: F99), Far East Orchard (SGX: O10), Figtree (SGX: 5F4), First Sponsor (SGX: ADN), Fragrance (SGX: F31), Frasers Property (SGX: TQ5), GYP Properties (SGX: AWS), Gallant Venture (SGX: 5IG), Golden Energy (SGX: AUE), Goodland (SGX: 5PC), GuocoLand (SGX: F17), HL Global Enterprises (SGX: AVX), Hatten Land (SGX: PH0), Heeton (SGX: 5DP), Hiap Hoe (SGX: 5JK), Hiap Seng (SGX: 510), Ho Bee Land (SGX: H13), Hock Lian Seng (SGX: J2T), Hong Fok (SGX: H30), Hong Lai Huat (SGX: CTO), Hong Leong Asia (SGX: H22), Hongkong Land USD (SGX: H78), Hor Kew (SGX: BBP), Huationg Global (SGX: 41B), Hwa Hong (SGX: H19), IPC Corp (SGX: AZA), ISOTeam (SGX: 5WF), Imperium Crown (SGX: 5HT), Jasper Investments (SGX: FQ7), KOP (SGX: 5I1), KSH (SGX: ER0), Keong Hong (SGX: 5TT), Keppel Corp (SGX: BN4), Keppel Reit (SGX: K71U), King Wan (SGX: 554), Koh Brothers (SGX: K75), Koon (SGX: 5DL), Kori (SGX: 5VC), LHN (SGX: 41O), Ley Choon (SGX: Q0X), Lian Beng (SGX: L03), Low Keng Huat (SGX: F1E), Lum Chang (SGX: L19), MMP Resources (SGX: F3V), MYP (SGX: F86), Metro (SGX: M01), OIO (SGX: KUX), OKH Global (SGX: S3N), OKP (SGX: 5CF), OneApex (SGX: 5SY), Oxley (SGX: 5UX), PSL (SGX: BLL), Pacific Century (SGX: P15), Pacific Star Development (SGX: 1C5), Pan Hong (SGX: P36), Pavillon (SGX: 596), Perennial Holdings (SGX: 40S), Pollux Properties (SGX: 5AE), PropNex (SGX: OYY), Raffles Infrastructure (SGX: LUY), Regal International (SGX: UV1), Renaissance United (SGX: I11), Rich Capital (SGX: 5G4), Roxy-Pacific (SGX: E8Z), Ryobi Kiso (SGX: BDN), SHS (SGX: 566), SLB Development (SGX: 1J0), SP Corporation (SGX: AWE), Sasseur Reit (SGX: CRPU), Second Chance (SGX: 528), Sin Heng Mach (SGX: BKA), Sinarmas Land (SGX: A26), SingHaiyi (SGX: 5H0), SingHoldings (SGX: 5IC), Singapore-eDev (SGX: 40V), Sinjia Land (SGX: 5HH), Soilbuild Construction Group (SGX: S7P), Starland (SGX: 5UA), Straits Trading (SGX: S20), Swee Hong (SGX: QF6), Sysma (SGX: 5UO), TA (SGX: PA3), TTJ (SGX: K1Q), Tai Sin Electric (SGX: 500), Thakral (SGX: AWI), Thomson Medical Group (SGX: A50), Tiong Seng (SGX: BFI), Top Global (SGX: BHO), Tosei (SGX: S2D), Transcorp (SGX: T19), Tritech (SGX: 5G9), UIC (SGX: U06), UOA (SGX: EH5), UOL (SGX: U14), USP Group (SGX: BRS), Vibrant Group (SGX: BIP), Wee Hur (SGX: E3B), Wing Tai (SGX: W05), Yanlord Land (SGX: Z25), Yeo Hiap Seng (SGX: Y03), Ying Li International (SGX: 5DM), Yoma Strategic (SGX: Z59), Yongmao (SGX: BKX), Yongnam (SGX: AXB), Yorkshine (SGX: MR8).

For students before joining 6-day Ein55 course (www.ein55.com/course), they would do this homework (a series of psychological tests) to know their unique personality better, before aligning with the strategies later.

Stock investment is not as easy as it sounds but when one aligns with own personality, it would become a positive habit, as easy as breathing or drinking water.

Learn from Dr Tee 4hr free investment course on 3M way of stock investment or trading with a dream team of global giant stocks. Register Here: www.ein55.com

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Contrarian Investing Stock – Hongkong Land (SGX: H78)

Contrarian Investing Stock Hongkong Land

Hongkong Land (SGX: H78) is at 0% Optimism after falling in share prices over the past few years (especially over the past few months), very bearish (similar situation for other Jardine Group siblings of giant stocks – JMH, JSH, Jardine C&C, Dairy Farm, etc). Jardine Group of stocks are mainly suitable for contrarian investors (i.e. Warren Buffett styles) who only buy based on price below value, ignoring the falling knife of share prices.

There are 30 STI index component stocks including Hongkong Land (investor has to focus only on giant stocks for investing):
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).

Price to book ratio (PB) of Hongkong Land is around 0.26 based on my memory (presented in yesterday workshop), implying 74% discount of price below net asset value which mostly is property. This is the lowest PB or most undervalue stage of Hongkong Land history over the past 10+ years.

If one could buy a giant stock with 50% discount in high quality asset (property or cash), even the company go bankrupt immediately, still can make money as the person only pays for 50% of the value, could get at 70% of remaining asset when company go under liquidation.

Of course, Jardine Group with nearly 200 years of history may disappoint investor for not able to go bankrupt immediately (it is a game of patience), Hongkong Land buildings still stand firm despite Hong Kong protesters 1 year ago and current with Coronavirus or global stock market meltdown.

It is not easy to be a contrarian investor (Be greedy when others are fearful; Be fearful when others are greedy), one needs to have independent thinking (eg. many people point fingers at Warren Buffett for wrong move to buy airline stocks with falling in prices and businesses). Alternatively, one has to switch off all the channels (eg. social media, news, newspaper, etc) to prevent the noises. Investment journey is lonely, especially for this group of rare contrarian investors, only 5% of investors may have this personality.

Most investors are more suitable for trend-following trading or investing as it is human nature to investor making money, not making loss (even it may be for a limited period of time). Either contrarian investors or trend-following traders are fine, more importantly one needs to align with own personality, do not force oneself to copy another expert’s best method (eg. Warren Buffett styles), ending up regret for life as could not follow through.

There are 140 property & construction stocks in Singapore including Hongkong Land (47 of them are undervalue with PB<1):
3Cnergy (SGX: 502), A-Smart (SGX: BQC), AEI^ (SGX: AWG), AIMS Property (SGX: BVP), APAC Realty (SGX: CLN), Abterra (SGX: L5I), Acromec (SGX: 43F), Amara (SGX: A34), Amcorp Global (SGX: S9B), AnnAik (SGX: A52), Astaka (SGX: 42S), BBR (SGX: KJ5), BRC Asia (SGX: BEC), BlackGoldNatural (SGX: 41H), Boldtek (SGX: 5VI), Bonvests (SGX: B28), Boustead (SGX: F9D), Boustead Projects (SGX: AVM), Bukit Sembawang (SGX: B61), Bund Center (SGX: BTE), CSC (SGX: C06), CapitaLand (SGX: C31), Casa (SGX: C04), Chemical Industries (SGX: C05), China Great Land (SGX: D50), China International (SGX: BEH), China Real Estate (SGX: 5RA), China Yuanbang (SGX: BCD), Chip Eng Seng (SGX: C29), City Development (SGX: C09), DISA (SGX: 532), Debao Property (SGX: BTF), ETC Singapore (SGX: 1C0), Edition (SGX: 5HG), EnGro Corporation (SGX: S44), Fraser and Neave F&N (SGX: F99), Far East Orchard (SGX: O10), Figtree (SGX: 5F4), First Sponsor (SGX: ADN), Fragrance (SGX: F31), Frasers Property (SGX: TQ5), GYP Properties (SGX: AWS), Gallant Venture (SGX: 5IG), Golden Energy (SGX: AUE), Goodland (SGX: 5PC), GuocoLand (SGX: F17), HL Global Enterprises (SGX: AVX), Hatten Land (SGX: PH0), Heeton (SGX: 5DP), Hiap Hoe (SGX: 5JK), Hiap Seng (SGX: 510), Ho Bee Land (SGX: H13), Hock Lian Seng (SGX: J2T), Hong Fok (SGX: H30), Hong Lai Huat (SGX: CTO), Hong Leong Asia (SGX: H22), Hongkong Land USD (SGX: H78), Hor Kew (SGX: BBP), Huationg Global (SGX: 41B), Hwa Hong (SGX: H19), IPC Corp (SGX: AZA), ISOTeam (SGX: 5WF), Imperium Crown (SGX: 5HT), Jasper Investments (SGX: FQ7), KOP (SGX: 5I1), KSH (SGX: ER0), Keong Hong (SGX: 5TT), Keppel Corp (SGX: BN4), Keppel Reit (SGX: K71U), King Wan (SGX: 554), Koh Brothers (SGX: K75), Koon (SGX: 5DL), Kori (SGX: 5VC), LHN (SGX: 41O), Ley Choon (SGX: Q0X), Lian Beng (SGX: L03), Low Keng Huat (SGX: F1E), Lum Chang (SGX: L19), MMP Resources (SGX: F3V), MYP (SGX: F86), Metro (SGX: M01), OIO (SGX: KUX), OKH Global (SGX: S3N), OKP (SGX: 5CF), OneApex (SGX: 5SY), Oxley (SGX: 5UX), PSL (SGX: BLL), Pacific Century (SGX: P15), Pacific Star Development (SGX: 1C5), Pan Hong (SGX: P36), Pavillon (SGX: 596), Perennial Holdings (SGX: 40S), Pollux Properties (SGX: 5AE), PropNex (SGX: OYY), Raffles Infrastructure (SGX: LUY), Regal International (SGX: UV1), Renaissance United (SGX: I11), Rich Capital (SGX: 5G4), Roxy-Pacific (SGX: E8Z), Ryobi Kiso (SGX: BDN), SHS (SGX: 566), SLB Development (SGX: 1J0), SP Corporation (SGX: AWE), Sasseur Reit (SGX: CRPU), Second Chance (SGX: 528), Sin Heng Mach (SGX: BKA), Sinarmas Land (SGX: A26), SingHaiyi (SGX: 5H0), SingHoldings (SGX: 5IC), Singapore-eDev (SGX: 40V), Sinjia Land (SGX: 5HH), Soilbuild Construction Group (SGX: S7P), Starland (SGX: 5UA), Straits Trading (SGX: S20), Swee Hong (SGX: QF6), Sysma (SGX: 5UO), TA (SGX: PA3), TTJ (SGX: K1Q), Tai Sin Electric (SGX: 500), Thakral (SGX: AWI), Thomson Medical Group (SGX: A50), Tiong Seng (SGX: BFI), Top Global (SGX: BHO), Tosei (SGX: S2D), Transcorp (SGX: T19), Tritech (SGX: 5G9), UIC (SGX: U06), UOA (SGX: EH5), UOL (SGX: U14), USP Group (SGX: BRS), Vibrant Group (SGX: BIP), Wee Hur (SGX: E3B), Wing Tai (SGX: W05), Yanlord Land (SGX: Z25), Yeo Hiap Seng (SGX: Y03), Ying Li International (SGX: 5DM), Yoma Strategic (SGX: Z59), Yongmao (SGX: BKX), Yongnam (SGX: AXB), Yorkshine (SGX: MR8).

Learn from Dr Tee free 4hr investment course to apply 10 different strategies for 10 unique personalities for stock trading or investing, including contrarian investing and trend-following trading. Register Here: www.ein55.com

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Jardine Group and UOB Group with Cross-Holding Stock Network

Ein55 Newsletter No 059 - 2017-03-07 - Jardine Cross Holding

Company A owns Company B. In return, Company B also owns Company A. This is a complex cross-holding of stock network. Let’s learn how smart investors in Jardine Group and UOB Group, using the complex structure to hide their undervalue gem of stock.

Jardine is a giant group of stocks with nearly 200 years of history for Jardine Matheson Holdings, originally from China/Hong Kong, then having dual stock listing in London and Singapore stock exchanges. Ein55 Graduates have already considered Jardine Group of stocks: Jardine Strategic Holdings (SGX: JSH), Jardine Matheson Holdings (SGX: JMH), Jardine Cycle & Carriage (SGXL C07), Hong Kong Land (SGX: H78) last year when their Optimism levels were still low, share prices have gone up more than 20% since then when the market fear has subsided.

There is an interesting history for the cross-holding structure for Jardine group (image source: seekingalpha).  Hong Kong richest person, Mr Li Ka-Shing planned to increase ownership in Hong Kong Land in 1980s, the Jardine group with Keswick family defended their control, forming JSH which owns JMH, in return JMH also owns JSH, very hard for any hostile takeover with this complex share structure.

UOB chairman, Mr Wee Cho Yaw also has a similar cross-holding network of stocks under UOB Group. There is a hidden gem in Wee family stock portfolio.  Ein55 Graduates have learned in the last Charity Course (Discounted Asset Stock) on this special stock.  The stock structure is so complex that undervalued stock could not be seen easily.

Ein55 Newsletter No 059 - 2017-03-07 - Wee Cho Yaw

Normal investors could only buy at fair price because they don’t know how low is considered low for a share price. Traders would buy at high price, following trend to sell at higher price.  Speculators would consider when there is good news with surge of more than 20%, buying at higher price, hoping to sell at highest price.  Due to difference in entry prices, their reward / risk ratio will be different.

Ein55 Graduates have learned to buy giant stocks at unfair price with low optimism.  For long term investors, some even consider low optimism from level 1 (business), level 2 (sector), level 3 (country) to level 4 (world).