Breaking News

Food Empire;

1.oil at US$52
2.Russian ruble strengthens to 64 from a low of 72
3.Malaysian ringgit weakened to its lowest level which is good for the Malaysian plant that produces non-dairy creamer and potato chips
4. India rupee also at its low also good for Indian plant that produces instant coffee powder for export
5. one director just sold 50 lots for pocket money

(new update)

-Cafe Show Seoul – 10 to 13th Nov 2016

-MacCoffee has been awarded Product of the Year within the coffee mix category in Russia.

Mun Siong Engg

Mun Siong Engineering Limited is an integrated mechanical engineering and electrical and instrumentation service provider for the Process Industries. The Group's two core business segments are the provision of (i) mechanical engineering services in project works and maintenance services under the Mechanical Engineering Segment, and (ii) electrical and instrumentation services in project works and maintenance services under the Electrical and Instrumentation Segment.

The Group's major customers include petroleum majors, petrochemical companies, and multi-national EPC contractors.

Current price 0.066 (05/12/12)

My investment thesis;
1.NTA per share 0.095 , NAV IS 0.099
2.TTM PE is 14, hist PE was 8
3.Dividend yields was 5%
4.Mkt Cap $37m with 589m issued shares
5.cash $18m or 0.03 per share ($4m was spent on capex to expand scope of work)
6.Current Assets $58m, Fixed Assets $20m, Total Assets $78m
7.Current Liabilities $22m, Fixed Liabilities $1m, Total Liabilities $23m

The company is a victim of the low oil price in the oil and gas industry. With the recent oil output cut by the OPEC and other members, the oil price has recovered from the low of US$45 to about US$53.

if the oil price can recover to $60 by 2017 as predicted by IEA, earnings should be able to recover for the company as oil giants allocate more resources for exploration and maintenance contracts. This should benefit the company being a mid-steam player.

Furthermore, the Spore Govt is extending loan to companies in the O&G industry to help them to tide over this downturn.

Breaking points;
Both fundamentally and technically, this stock has bottomed out.

--Bloomberg News

Gold has been approved by the Islamic Finance as an investment product for the first time!

Breaking Points;
CNMC (0.41) and the Gold Trust will be the benefactors.

Food Empire

The Board of Directors of Food Empire Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) wishes to announce that the Company’s wholly-owned subsidiary, Future Enterprises Pte Ltd has increased the registered capital of its wholly-owned subsidiary, FES Products LLC, a limited liability company incorporated in Russia, from RUB 773,457,374.70 (equivalent to USD16,020,255.60) to RUB 1,400,000,000.00 (approximately USD 25,678,689.78) with a capital injection of RUB 626,542,625.30 (approximately USD 9,658,434.18) by way of cash.

The new registered capital which amounts to RUB 626,542,625.30 will be paid-up in tranches.

The above transaction was funded through internal resources and is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Group for the current financial year.

None of the Directors or controlling shareholders of the Company has any interest, direct or indirect,in the above transaction.

New rules for gold investing may open the market to 1.6 billion Muslims
Published: Dec 8, 2016 MarketWatch

‘Ground breaking initiative for Islamic investors” and the gold industry: WGC

The gold market saw the establishment this week of a new set of rules that has the ability to shake up the industry.

The launch of the Shariah Standard on Gold, which offers guidance on the use of modern gold financial products that meet the requirements of the religious law governing members of Islam, opens the market for the yellow metal to potentially significant demand from the Muslim world.

In a market update Tuesday, GoldCore’s research executive Jan Skoyles and Editor Mark O’Byrne pointed out that as many as 1.6 billion Muslims in the world, or 25% of the population, will have “far greater access to the gold market than they have since the birth of modern finance, which has been primarily structured towards Western ideals.”

The Shariah Gold Standard allows Islamic investors to invest in vaulted gold, gold savings plans, gold certificates, physical gold exchange-traded funds and gold-mining shares within certain Shariah parameters, according to GoldCore.

GoldCore will launch a fully-compliant Shariah bullion investment offering in the first quarter of next year.

“This is a ground breaking initiative for Islamic investors and for the gold industry at large,” Aram Shishmanian, chief executive officer of the World Gold Council said in a statement.

Gold futures for February GCG7, +0.08% climbed Wednesday to snap a two-day skid and settle at $1,177.50 an ounce.

Before the Standard, there was a lack of clarity when it came to Islamic investment in gold, the WGC said. Investment in gold was permissible provided that relevant Shariah rulings are satisfied including those relating to taking possession and proper calculation of Zakah [an Islamic requirement to contribute to charity], among others,” the WGC said.

Gold is also one of Islam’s Ribawi items and “practitioners need to be cautious when transacting in gold to ensure they meet all Shariah requirements,” according to the WGC. Ribawi refers to six substances that are sold by weight and measure, including gold.

(I am vested int this stock 09/12/12)

The business was established in the mid-1980s by its founder and CEO, Mr James Koh. Subsequent to a corporate restructruring exercise, the Company was incorporated in Singapore on 28 July 2000 and assumed the present name on 27 December 2004.

The Group's core business activities include property development which emcompasses mainly residential properties and commercial properties such as offices and hotels, and the investment and management of hotel properties. For its property development arm, the Group specialises in boutique residential developments, developing low-to-medium-rise private apartments with a relatively small number of units, typically less than 100 units in each development.

The Group is also involved in the investment and management of hotel properties. The Group has established a chain of hotels with 13 branches in Singapore. The Fragrance Chain of Hotels is currently located in Balestier, Geylang and Joo Chiat in Singapore. Its strategy is to establish a chain of budget hotels in Singapore which provides quality hotel accommodation at affordable rates.

My investment thesis:


1.Market Cap S$1b with issued share of 6,712m shares ($0.15 08/12/12)
2.NAV 0.155
3.hist PE 14x, ttm PE 49x
4,Div yield 1%
5. Profit down 80% for 9 months ended 2016 to S$12m

(At first glance, the above doesn't seem to attract the attention of an investor)

4.Total Current Assets (S$'000) 700m
-cash 60m
-receivables 107m
-development properties 468m
-properties fro sale 66m

5.Total Current Liabilities 300m
-payables 105m, loans 185m

6.Total Fixed assets 1,300m
-investment properties 1,175m

7.Total Fixed Liabilities 643m in term loans

Amount repayable in one year or less, or on demand:
Secured 90m, Unsecured 85m

Amount repayable after one year :
650m


Property Development Segment:

Singapore: The third quarter 2016 real estate statistics released by the Urban Redevelopment Authority, indicate that the prices of private residential properties decreased by 1.5% in third quarter of 2016, following the 0.4% decline in the previous quarter. The market sentiment continues to be weak given the global economic uncertainties. The Group has sold almost all of its residential units in Singapore. The Group has only one significant ongoing development project currently in Singapore which is as follows.

Construction works for City Gate commenced during the second quarter of 2016. The Group has started to, and may progressively recognise revenue from sales of about $326 million (our 50% share of the joint operations), based on the percentage of completion method.

Australia: Of the above, Premier Tower has been launched for sale and about 70% of residential units are sold

2 . NV Apartments has been launched for sale in 2016 and is 19% sold. Based on the nature of the sales and purchase agreement and payment terms, revenue and profits from sale of properites in Australia will be recognised on completion of development in accordance with financial reporting standards.

The development works at 173-177 Macquarie Street, Hobart is progressing well for the development of a hotel building with 296 rooms, with retail/restaurant and full amenities.

The Group is currently working on the redevelopment plans/works for the rest of the Australian portfolio of properties.

Property Investment Segment: The real estate statistics for the third quarter 2016 released by the URA indicate that rental of office space had declined by 1.1% for the third quarter compared to second quarter of 2016. The island-wide vacancy rate of office space at the end of third quarter of 2016 increased to 10.4% from 9.1% at the end of second quarter of 2016.

The Group’s two major properties Tower 15 and Fragrance Empire Building, are located in/near CBD thus giving us the competitive edge in our marketing efforts.

Overall Summary

In summary, the Group is well positioned to seize new market opportunities in Singapore, having sold almost all of its residential properties in Singapore.

With the timely diversification of operations into Australia, the Group has laid a good foundation for sustainable growth in future years.

However, the revenue stream for the near to mid-term will be subject to potentially significant amount of fluctuations due to the following factors:
i) Construction of City Gate has commenced in the second quarter of 2016. Approximately 283 million of balance attributable revenue, from the units sold, will be recognised progressively henceforth.

ii) Revenue from sales of our Australian property portfolio will only be recognised on completion of development of the respective properties. As of 9 November 2016, sales of units in Premier Tower and NV Apartments amounts to approximately $440 million. The remaining Australian properties, subject to the Group obtaining all necessary regulatory approvals and depending upon the level of sales and completion of construction, will contribute significantly to the Group’s revenue and profits in future years.

Source: Company's Third Quarter Results'16

Breaking points:
1, the company has a long track record of being a developer and hotel operator.
2. the company early entry into the Australia market has gained foothold and waiting to reap its profits in the near term. The appreciation of AUD/sgd and low interest rates in Australia also bodes well for the housing market.
3.the husband and wife team, collectively owns about 86% of the company and have been buying shares from the market (0.21) since early of this year, almost every day till now (0.15). ( a potential privatisation in the making from the founders?)
4.Barring unseen circumstances, a patient investor should be able to reap rewards from the company's future cashflows or a privatisation offer.
5.Both fundamentally and technically, this stock has bottomed out!
6.Since the founders hold majority stake, a special dividend cannot be rule out once cashflows improve.

I am vested in this stock.