US Stock Watchlist

US Stock Watchlist:

High returns potential:

1. CVS Health Corporation Common
2. Sanderson Farms Inc.
3. Centene Corporation Common Stoc
4. Phillips 66 Partners LP Common 
5. Amgen Inc.
6. NetEase Inc.
7. Autohome Inc. American Deposita
8. Alphabet Inc.
9. Cirrus Logic Inc.
10. YY Inc.
11. Acacia Communications Inc.
12. AAC TECH HOLDINGS

More stocks:

1. Huntington Ingalls Industries 
2. American Outdoor Brands Corpora
3. Gentex Corporation
4. Dorman Products Inc.
5. Constellation Brands Inc. Comm
6. Boston Beer Company Inc. (The)
7. Patrick Industries Inc.
8. Apogee Enterprises Inc.
9. Watsco Inc. Common Stock
10. American Woodmark Corporation
11. Hollysys Automation Technologie
12. Orbotech Ltd.
13. IPG Photonics Corporation
14. Hormel Foods Corporation Common
15. Foot Locker Inc.
16. Lithia Motors Inc. Common Stoc
17. Stamps.com Inc.
18. Grand Canyon Education Inc.
19. Alibaba Group Holding Limited A
20. Copart Inc.
21. Universal Health Services Inc.
22. Mednax Inc. Common Stock
23. LGI Homes Inc.
24. Century Communities Inc. Commo
25. Wabash National Corporation Com
26. Dynagas LNG Partners LP Common 
27. GasLog Partners LP Common Units
28. ZTO Express (Cayman) Inc. Ameri
29. Air Lease Corporation Class A C
30. LCI Industries
31. Nautilus Inc. Common Stock
32. Spectra Energy Partners LP Com
33. EQT Midstream Partners LP Comm
34. United Therapeutics Corporation
35. Novo Nordisk A/S Common Stock
36. China Biologic Products Inc.
37. Sapiens International Corporati
38. Facebook Inc.
39. NIC Inc.
40. ASHTEAD GROUP PLC
41. Cardtronics plc
42. Stericycle Inc.
43. CBIZ Inc. Common Stock
44. Ubiquiti Networks Inc.
45. Taiwan Semiconductor Manufactur
46. Skyworks Solutions Inc.
47. Silicon Motion Technology Corpo
48. Texas Instruments Incorporated
49. JetBlue Airways Corporation
50. Monarch Casino & Resort Inc.
51. Spirit Airlines Inc.
52. Southwest Airlines Company Comm
53. Ruth's Hospitality Group Inc.

Australia Stock Watchlist

Australian ASX stock watchlist:

Retail food group Mcmillan Shakespeare Ltd Dicker Data Ltd Virtus Health Ltd SG Fleet Group Ltd AP Eagers Ltd Star Entertainment Group Ltd Credit Corp Group Ltd Event Hospitality and Entertainment Ltd Skydive Beach Group Ltd Blackmores Ltd Magellan Financial Group Ltd Hansen Technologies Ltd Smartgroup Corporation Ltd A2 MILK FPO NZ TechnologyOne Ltd Ramsay Health Care Ltd Idp Education Ltd Fisher & Paykel Healthcare Corporation Ltd Rural Funds Group

Ascendas India Trust

18/4/2017
Accumulate

1. Strong fundamentals
2. Favorable conditions in India
3. Clear growth strategy

Metrics

• Last done (as of 18/4/2017) S$1.115
• AUM S$1.484bn, Floor area CAGR 11% since 2008
• Debt: gearing 30%, well spread out debt maturity, 85% fixed, cost of debt 6.1%, INR and SGD
• Occupancy: 97%, WALE 3.5 years, retention rate 78%, 29% leases expiring in 2017, 43% expiring 2020 and beyond
• NAV: S$0.71, adjusted NAV S$0.90, PNAV ~1.24
• Dividend: S$0.0616 TTM 4QFY15/16 to 3QFY16/17, Dividend yield ~5.5%
• Net property income: CAGR 13% since 2013

Operations

• Owns six IT parks in India - Bangalore (42%), Chennai (29%) and Hyderabad (29%)
• Our strategy is simple – to generate attractive portfolio returns for Unitholders by investing in IT parks and office properties in key Indian cities 
• Total number of tenants: 284, largest tenant accounts for 7% of the portfolio base rent, top 10 tenants accounted for 37% of portfolio base rent, ~50% of tenants in IT sector

Investment thesis

• Clear growth strategy: 
• Development pipeline: 2.24m sq ft in Bangalore, 0.37m sq ft in Chennai, 0.41m sq ft in Hyderabad
• Sponsor assets: 3 sponsors - Ascendas Land International Pte Ltd, Ascendas India Development Trust, Ascendas India Growth Programme, all Right Of First Refusal
• 3rd party acquisitions: 2.40m sq ft aVance Business Hub, 1.50m sq ft BlueRidge 2
• Floor area to increase 24% based on committed pipeline
• Favorable conditions in India
• One of the fastest growing major economy in the world with GDP growth estimated at 6.6% in 2016
• India moving up value chain to offer cutting edge product development and R&D hubs for global tech companies
• Highly cost competitive environment - Occupancy costs up to 10 times cheaper than other low-cost sourcing destinations 
• Robust IT-BPM revenue growth - Forecast to achieve 10-12% growth in FY16/17 to US$157-160 billion

Risks

• Investment risks - failure in developing new assets
• Currency risk - INR to SGD
• Interest rate risk
• Refinancing risk - however debt is well spread and debt levels not too high

Sheng Siong

12/4/2017
Accumulate

1. Attractive dividend yield 3.83% and growing consistently
2. Decent valuation PE 23.5 with strong fundamentals - no debt, consistent profitability, stable industry
3. Growth story - expansion into China

Metrics

• Market Cap S$1.47bn, Float 34.41%
• Last done (as of 12/4/2017) S$0.995
• PE 23.5, PB 5.8, EV/EBITDA 15.7
• Dividend yield 3.83%, Dividend CAGR 5.7%, very consistent
• Revenue CAGR 4.5%, Earnings CAGR 8.4%, very consistent
• Total Debt to Equity 0%
• ROE 25.1%, ROA 12.4%

Operations

• Supermarkets - 43 locations all across Singapore as at October 2016
• As of April 2015, the company offers over 400 products under their 10 house-brands
• Extensive distribution network, food-processing facilities, and warehousing facilities
• Currently revenue only from Singapore, but soon to include China

Investment thesis

• Expansion into China - "The Group envisaged that the supermarket in Kunming, China may be operational from 3Q2017" - 4Q2016 report
• The group will continue to expand its store count and improve its current stores through renovation or refitting

Risks

• Increased competition
• Failure to bid for new stores
• Delays in expansion into China
• Increased food prices and the company is unable to pass on higher costs to consumers

Sinostar PEC

12/4/2017
Accumulate - tp 0.36

1. Attractive valuation - PE 7.2, EV/EBITDA 1.161
2. Decent Dividend yield 2.44% and consistent
3. Favorable petrochemical outlook in PRC - shown in Revenues and Earnings
4. Strong fundamentals - low debt, positive cash flow, high cash holdings

Metrics

• Market Cap S$131.2m, Float 45.91%
• Last done (as of 12/4/2017) S$0.205
• PE 7.2, PB 1.023, EV/EBITDA 1.161
• Total Debt to Equity 0.05%
• Dividend yield 2.44%, just started paying, consistent
• ROE 15.5%, ROA 8.8%

Operations

• Downstream petrochemical products - Propylene, LPG, Polypropylene
• Situated within the Zhongyuan Oilfield—one of PRC’s largest oilfields
• Near populous and industrialised provinces such as Shandong, Henan, Anhui, Jiangsu, Shaanxi, Hebei and Zhejiang
• Transportation and Logistics - Subsidiary Dongming Changshun Transport Company Ltd
• Recent acquisition in 2015 - positive contribution that year
• Annual capacity to process 550,000 tonnes of raw LPG and is able to further process part of generated propylene into 50,000 tonnes of polypropylene annually
• Strategic affiliate - Shandong Dongming Petrochem Group, China’s largest independent oil refiner with primary processing capacity of 15 million tons per year

Investment thesis

• "We believe that the demand for LPG is set to rise, buoyed by robust demand from the residential sector" - annual report 2015
• "The Chinese government is looking to ease policies further in light of the slowdown in the market of which likewise extend to invest and further the growth of the petrochemical industry of the state" - annual report 2015
• Turnaround play - Divested from previous operations to specialize in Petrochemical segment. Was loss making but recently turned profitable

Singtel

11/4/2017
Accumulate:

1. Attractive dividend yield 4.5% and stable
2. Singapore defensive stock - Telco sector with strong fundamentals
3. Growth story - developing countries, Cloud and Cyber Security

Metrics

• Market Cap S$63.4bn, Float 50.05%
• Last done (as of 11/4/2017): S$3.88
• PE 16.2, PB 2.33, EV/EBITDA 10.5
• 10 year: Revenue CAGR ~2.4%, Earnings CAGR ~2.4%
• Total Debt to Equity 41.8%
• Dividend yield 4.5%, Dividend CAGR 3.4% and stable
• ROE 14.8%, ROA 3.8%

Operations

• Business segments:
• Group Consumer - Mobile, Broadband, Fibre, Data, Pay-TV
• Group Enterprise - Networks, Smart Cities, Cloud Computing, Cyber Security, Business Mobility, IT Services, Data Centres, Satellite Communications
• 13 Data Centres in Asia Pacific
• 2015 acquisition of Trustwave, the largest independent managed security services provider in North America
• Group Digital Life - Digital Marketing (Amobee), Geoanalytics (Dataspark), Accessing Innovation (Innov8), Mobile Video Streaming (HOOQ)
• Ownership companies: 
• 33% Airtel - #1 in India, 24% market share, has business in Africa
• 100% Singtel - #1 in Singapore, 50% mobile market share, 76% broadband market share
• 47% Globe - #2 in Philippines, 46% market share
• 23% AIS - #1 in Thailand, 47% market share
• 35% Telkomsel - #1 in Indonesia, 48% market share
• 100% Optus - #2 in Australia, 30% market share
• Net profit: Australia 24%, Singapore 29%, 47% Rest of world

Growth story

• Growth in developing countries mobile usage - India, Thailand, Philippines, Indonesia. Singtel investing heavily to meet rising demand, S$8bn capital expenditure in FY2016
• Cloud computing demand growing - US$175bn in 2015 to US$204bn in 2016
• Cyber security demand growing - US$15bn in 2015 to US$27bn in 2019

Risks

• Highly competitive mobile and broadband market
• Economic, Regulatory, Political risks
• Failure to expand/acquire new businesses

Thaibev

8/4/2017
Accumulate:

• Attractive valuation - PE 21.7 for stable and growing consumer staple business
• Established brands and market share 
• Attractive dividend yield 3.44% and growing consistently
• Clear vision growth strategy - growing and ample cash for acquisitions

Metrics

• Market cap S$23.6bil, Float 28.8%
• Last done (as of 8/4/2017): S$0.94
• PE 21.7, PB 4.7, EV/EBITDA 16.6
• Revenue CAGR ~5%, Earnings CAGR ~10%
• Total Debt to Equity ~31%
• Dividend yield 3.44%, Dividend CAGR ~17%
• ROE 16%, ROA 10%

Operations

• Business segments: Spirits (55%), beer (32%), non-alcoholic beverage (9%), and food (4%)
• Core products: “Ruangkhao”, “Hongthong”, “Blend 285”, “Chang” beer, “est” soft drinks, “Oishi” green tea, and “100PLUS”
• Oishi food: Japanese restaurant and ready-to-cook and ready-to-eat food
• Revenue: 96% Thailand, Rest international
• Thailand market share: Beer >40%, Spirits >90%

Investment thesis

• Established and strong market share in Thailand - Spirits and beer
• Vision: The company's target is to have more than 50% revenue contribution from non-alcohol beverages by 2020 and more than 50% of sales from overseas. Therefore we could see many more M&A deals
• Resilient demand for Spirits, even in poor economic conditions
• Chang beer re-branding might gain more market share
• Bottle change from brown to green - more premium look
• Keep only Chang Classic
• Alcohol level drop from 6 to 5.5% - easier to drink
• "Brew the friendship" slogan
• Selling price increased to same level as competitor

Risks

• Hikes in excise tax and production costs
• Competition
• Beers main competitor - Boonrawd: Leo Brand
• Strong competition in non-alcoholic beverage segment