[Post 100]Trip To Invest Fair 2019! part 2

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Valuation model

Discounted cash flow model 

Company Name:Singapore O&G(Listed on SGX)
Market cap: 188.337
Last Done:0.395
Free cash flow per share:0.02764
Intrinsic value:0.326

Company Name:Raffles Medical(Local Peer SGX)
Market cap :1,882.653
Last Done:1.030
Free cash flow per share:0.03504
Intrinsic Value:0.414

Company Name: TalkMed(Local Peer SGX)
Market cap:657.251
Last Done:0.500
Free cash flow per share:0.01989
Intrinsic Value:0.235

Discounted Earning Model 

Company Name: Singapore O&G(Listed on SGX)
Market Cap: 188.337
Last Done:0.395
Earnings Per Share:0.01919
Intrinsic value:0.227

Company Name:Raffles Medical( Local Peer SGX)
Market Cap:1,882,653
Last Done: 1.030
Earnings Per Share:0.03887
Intrinsic Value:0.459

Company Name:Talkmed(Local Peer SGX)
Market Cap:657.251
Last Done:0.500
Earnings Per Share:0.02199
Intrinsic Value:0.260

Financial Analysis

Strong Financial Results Last 3 Years

• It has increasing revenue increase in last 3 consecutive years
• The company has strong financial strength(Piotroski F-score 8-9)
• It has good cash ratio of at least 0.8 for 3 consecutive years and no debt as net cash
• It has consistently high profit margin of at least 40% for 3 years
• It has consistent high net profit of at least 20% for last 3 years
• ROA(Return of asset) is above 10% for 3 consecutive years 

Compound Annual Growth Rare(CAGR) 

Notes:

1.CAGR calculation are based on Full year financial results announcements over the past few years

2.CAGR calculation will not be made if any of the Full Year Financial are not based on 12 months 

3.Adjusted CAGR calculations takes into account effects of applicable corporate action(e.g stock splits and consolidation) and the current number of shares

Revenue 

Over the last 3 year:+28.22%

Net earnings

Over the last 3 year:+19.65%

Earning Per Share(EPS)- Historical

Over the last 3 year:-10.43%

Earning Per Share(Adjusted)

Over the last 3 year:+19.65%

Dividend Per Share(DPS) -Historical

Over the last 3 year:-5.74%

Dividend Per Share(DPS)- Adjusted

Over the last 3 year:+22.35%

Technical Overview below

Investment Summary 

Evaluation

Summary

• The company has strong financial strength,no debt,high profit margin and in a recession proof industry 

• Based on Lyn's Research Technical chart also indicate a BUY for this stock(BULLISH)

• Based on Discounted Cash Flow model(DCF) and Discounted Earning Model(DCM),it is trading at a discount in terns of its intrinsic value as compared to its peer Talk Med and Raffle Hospital 

• Singapore O&G is lagging behind the market due to uncertainties regarding the healthcare industry due to rising trade war tension between US and China,leading to less medical tourist.This seems to put this stock in what we call a special situation: a potentially undervalued stock due to great concerns regarding its future earnings.Also a recession may happen in Singapore within the next 2 years ,hence we like it as an investment in a well-diversified portfolio,as it could yield an asymmetric return in a relatively short period of time 
• Strong BUY

(Quite an interesting presentation i must say, next up i have an presentation on stock pitch kimly,but it seem i have only one picture,somehow the other pictures were lost)

Thesis

• PE ratio 13.8 is relatively cheap
• Dividend yield of 5.37% is relatively good
• Balance sheet relatively strong
• Weighing the risk and reward,recommend a buy/long position for Kimly at $0.235
• For conservative investors,recommend a buy/long position at $0.210(10% margin of safety based on $0.235)

Other interesting brochures that i have collected during the event...

What is a CFD?

A contact for Difference(CFD) is a tradable instrument that mirror the movement of the underlying asset.It allow traders to take advantage of the asset price movement without physical ownership 

CFD Benefits 

• CFDs add a greater flexibility to traders in their trading strategies.In addition to trading long position as traditional stock investors. CFD traders have the options to take on short position.Hence,gain can potentially made in both bull or bear market

• CFD provide the ability to hedge an existing physical portfolio

• No expiry mean no time delay

• Access a wide range of global markets and trade multi assets thorough a single online CFD trading account

• Efficient use of traders capital 

• CFD provide leverage to traders so that they can trade without the need of depositing the full value of a position.This allows traders to utilize excess capital more efficiently rather than being committed to one transaction

Dividend Portfolio

Dividend investing is an investment strategy which focus on purchasing dividend paying stocks or REITS to generate a steady stream of passive income

Metrics to screen for Dividend Stocks/REITS

• Dividend Yield > 4%
• Dividend Pay-out Ratio < 1x
• Net Debt to Equity <0.5x
• CAGR of DPU >2% for past 3 year
• Total Debt to Total Assets < 0.4x (for REITs and Trusts)

Dividend is most suitable for investors with the below characteristic:

1.Low-Moderate Risk Tolerance Level 

2. Long investment Horizon

3.Low Effort & Time & Portfolio Monitoring

Growth Portfolio 

Growth investing aims to identify companies that have promising future growth potential,even if they have high valuation ratio

Metrics to screen for Growth Stocks 

Revenue Growth >15% for past 3 years 

Gross Margins > 25% for past 3 years

Price Upside from Analyst Consensus Estimates > 20%

Growth investing is most suitable for investors with the below characteristics 

1.High Risk Tolerance Level

2.Long Investment Horizon

3.Moderate Effort & Time for Portfolio Monitoring

Value Portfolio

Value investing focuses on buying companies for less than what they are worth (margin of safety),and then selling them when they approach their actual value (Intrinsic value)

Metrics to screen for undervalued Stocks

• Compounded Earnings Growth  > 10% for past 3 years
• Return Equity > 10% for past 1 year
• Net Debt to Equity < 1x
• Trailing P/E Ratio  < 15x

Value Investing is most suitable for investors with the below characteristics:

1.Moderate Risk Tolerance Level 

2.Moderate-Long Investment Horizon

3.Moderate & time for Portfolio Monitoring

Trend Following Portfolio 

Trend Following is a technical analysis approach that detect stocks in the initial stage of a trend and aims to ride on the trend for big profit

Metrics to screen for Trend Following Stocks

• RSI (n =20) > 50 FOR 1 day
• ADX Trend( N=20) above 25 for 1 day 
• Bullish ADX + DI  > -DI(N =20)
• Price >MA50 for 1 day 

Trend Following is most suitable for investors with the below characteristics:

1.High Risk Tolerance Level 

2.Short Investment Horizon 

3.High Effort & Time for Portfolio Monitoring

SGX Investor Resources

Be empowered by SGX's suite of investor resources.Designed and developed for all investments,from novices to professionals,we provide you the tools and technique to achieved informed investment decisions

Research- sgx.com/mygateway

Stay in touch with Singapore stock market with weekly curation of market news and investor education events

On-the-go- SGX Mobile App

Get first-hand news with live market updates on your customised watchlists through SGX Mobile App

Tool - sgx.com/stockfacts

Plug into SGX Stockfacts to access the stock fundamentals on all SGX-listed companies

Education - sgx.com/academy

Sharpen your investment acumen at SGX Academy with our team of professional trainers

That's basically sums up the brochure and the event,all in all a great convention to go full of like-minded people.Looking forward to the FSM invest EXPO 2020!