Inphyy Corner

ST Kinetics sets up specialty vehicles subsidiary in Brazil

Also acquires manufacturing assets for S$9.2m.

Singapore Technologies Engineering Ltd (ST Engineering) announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) has, through its wholly owned subsidiaries, SDG Kinetics Pte. Ltd. (SDGK) and Autonomous Technology Pte Ltd (ATPL), set up a wholly owned subsidiary, LeeBoy Brazil Equipamentos De Contrução Ltda. (LeeBoyBrazil) in Canoas, Brazil.

The new setup with a paid-up capital of BRL20m (approximately S$10.8m) issued 20 million new shares at BRL1 per share, of which SDGK holds 19,999,999 shares and ATPL holds 1 share. To fund the paid-up capital by SDGK into LeeBoyBrazil, ST Kinetics has increased SDGK’s capital by S$11.3m to S$11.8m.

ST Kinetics said it formed LeeBoy Brazil to establish a manufacturing base in Brazil and further grow the brand presence of its LeeBoyTM brand which makes road construction equipment in Brazil and eventually throughout South America. LeeBoy Brazil will provide ST Kinetics with direct access to opportunities driven by Brazil’s economic growth and the government’s commitment to improve the country’s infrastructure, the firm added.

To kick-start its manufacturing operations in Brazil, LeeBoy Brazil has entered into an asset purchase agreement to acquire the manufacturing assets, intellectual property and relevant manufacturing expertise from Ticel Equipamentos Ltda (Ticel), a Brazilian construction equipment company, for a total purchase consideration of BRL17.1m (approximately S$9.2m). The purchase consideration was arrived at on a willing buyer willing seller basis, after negotiations between the parties, taking into account the fair market value of the assets.

The completion of the proposed acquisition is subject to the satisfactory completion of conditions precedent.

The setting up of LeeBoy Brazil and the acquisition of Ticel’s manufacturing assets are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

SingPost hopes to become regional e-commerce giant

Written by Reuters
Thursday, 19 December 2013 10:32

Singapore Post is setting up an online store venture called Omigo as it steps up efforts to diversify from postal services and transform itself into a regional e-commerce firm, the Straits Times reported.

The Omigo portal, which is still in the pilot stage, carries more than 10,000 consumer electronic and baby products.

SingPost began its foray into online sales in 2003 with a digital concierge service called vPost, which consolidates purchases from different U.S. online merchants into one parcel to be shipped to Singapore.

E-Commerce accounted for a quarter of SingPost’s $658.8 million turnover in its last financial year.

Yoma in JV to distribute Hino trucks in Myanmar

Written by Reuters
Thursday, 19 December 2013 09:34

Singapore-listed Yoma Strategic Holdings said on Thursday it had signed a joint venture agreement with Japanese trading house Sumitomo Corp to distribute and service Hino trucks and buses in Myanmar.

Sumitomo will own 60% of the joint venture while Yoma will have 20%, the Singapore conglomerate with various businesses in Myanmar said in a statement.

First Myanmar Investment Co., a firm controlled by Yoma founder and executive chairman Serge Pun, will own the remaining 20% stake.

Hino Motors, a unit of Toyota Motor Corp, is Japan's largest manufacturer of heavy- and medium-duty trucks.

Viking: Wins S$20 Million Contract From ST Marine

19 Dec 2013 14:21

Viking Offshore and Marine Limited's subsidiary company Viking Airtech Pte Ltd has been awarded a contract by Singapore Technologies Marine Ltd for the provision of turnkey solution to design, supply, install and commission of heating, ventilation, air conditioning and refrigeration systems for a contract value of about SGD 20 million...

vikingom.listedcompany.com/newsroom/2013...257C460020B176.1.pdf

Pacific Radiance: Ramps Up Expansion Plans, Moving To Boost Fleet With 2 More Newbuilds.

19 Dec 2013 10:01

Adds 2 advanced PSVs to its newbuild programme, which already has 17 offshore vessels in the line-up. Move dovetails with plans to expand presence in targeted high-growth markets following successful IPO in November. Group's in-depth knowledge of newbuild process gives it strong competitive edge and ability to rein in acquisition costs...

pacificradiance.listedcompany.com/newsro...257C4500802C15.1.pdf

How To Invest Like Templeton

By Stanley Lim - December 21, 2013



"Invest at the point of maximum pessimism.“

Sir John Marks Templeton is considered by some to be one of the most famous value investors. Sir Templeton is a contrarian, a value investor, and a bargain hunter. Well-known for his Templeton funds, Templeton’s flagship Templeton Growth Fund posted a 13.8% annualized average return over a period of 50 years.

Templeton’s investing mantra was to “search for companies that offered low prices and an excellent long term outlook.” Given his enormous success, it would be interesting for us to use Templeton’s criteria to screen the shares on our very own Straits Times Index (SGX: ^STI).

A screen is a rough search through the companies listed on the Singapore Exchange (SGX: S68) that fulfills the criteria we determine. Let’s take a look at some of Templeton’s criteria, and apply them to some local shares.

Low Price

This means that companies with a lower price to earnings (P/E) ratio as compared to the Straits Times Index current P /E ratio (right now, it’s 13) and a low price to book (P/ ratio. A P/B ratio is the price per share of the company dividend by its net asset value per share. For this exercise, we will just use a P/B ratio of below 1.5 for illustration purposes.

Excellent long term outlook

While a successful history does not necessarily mean a successful future, an easy way to find a stable company would be those that have had positive operating profit margins and consistent growth in revenue and earnings over the past 5 years. This is to ensure that the companies have a long history of growth.

Companies that fulfilled this criteria include DBS Group Holdings Ltd (SGX: D05) and United Overseas Bank Ltd (SGX: U11). the largest bank by market capitalisation in South East Asia, DBS Group has earnings of over SGD 3.3billion in the last financial year, and is currently trading at a P/E ratio of 10.4 and a P/B ratio of 1.25. UOB, the third largest banking group in Singapore, is currently trading at a P/E ratio of 11.4, and has a P/B ratio of 1.4.

Foolish Bottom Line

These two criteria can only act as the starting point for a prudent investor’s decision-making process. While it is a good idea to learn from the masters, it is still important to invest in a style that you are comfortable with. Happy investing.


Courtesy of The Motley Fool