Weekly | SIA Leads the Market Demand for Air Travel Remains Strong

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,186.97 points, up 0.65% points last week.

During the last 5 trading days, $SINGAPORE AIRLINES LTD(C6L.SI)$, $PTT Exploration & Production NVDR(TPED.SI)$, $YANLORD LAND GROUP LIMITED(Z25.SI)$, $TAN CHONG INT'L LTD(T15.SI)$ and $SEMBCORP INDUSTRIES LTD(U96.SI)$ are the top 5 Weekly gainers, up 9.85%, 9.11%, 7.79%, 5.95% and 5.40% respectively.

$TOP GLOVE CORPORATION BHD(BVA.SI)$, $GENTING SINGAPORE LIMITED(G13.SI)$, $FRASERS LOGISTICS & IND TRUST(BUOU.SI)$, $COMFORTDELGRO CORPORATION LTD(C52.SI)$ and $Lendlease Global Commercial REIT(JYEU.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $SINGAPORE AIRLINES LTD(C6L.SI)$

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. In the case of Singapore Airlines, it has a TSR of 55% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

We're pleased to report that Singapore Airlines shareholders have received a total shareholder return of 23% over one year. And that does include the dividend. There's no doubt those recent returns are much better than the TSR loss of 2% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future.

2. $PTT Exploration & Production NVDR(TPED.SI)$

SGX Group announced the launched of a new product, Singapore Depository Receipt (SDR) under the Thailand-Singapore DR Linkage on 30 May. This marks the first exchange-level DR corporation in ASEAN, demonstrating an important step forward in enhancing regional connectivity.

The first batch of 3 SDRs to be launched are issued by Phillip Securities and represent the beneficial ownership interest in the underlying securities of Airports of Thailand (AOT), CP All (CPALL) and PTT Exploration & Production (PTTEP), which are constituents of the benchmark SET50 Index.

SDRs are instruments each representing beneficial interest in an underlying security listed on an overseas exchange. This means that investors are now able to gain access, via SDRs traded on the SGX, to an underlying security which is currently listed on an overseas exchange.

3. $YANLORD LAND GROUP LIMITED(Z25.SI)$

SWOT Analysis for Yanlord Land Group

Strength

• Debt is well covered by earnings.

• Balance sheet summary for Z25.

Weakness

• Earnings declined over the past year.

Opportunity

• Annual earnings are forecast to grow faster than the Singaporean market.

• Good value based on P/E ratio and estimated fair value.

Threat

• Debt is not well covered by operating cash flow.

4. $TAN CHONG INT'L LTD(T15.SI)$

Tan Chong International Ltd. operates as an investment holding company, which engages in the distribution of motor vehicles and industrial equipment.

It operates through the following business lines: Motor Vehicle Distribution and Dealership Business, Heavy Commercial Vehicle and Industrial Equipment Distribution Business, Property Rentals and Development, Transportation, and Other Operations.

5. $SEMBCORP INDUSTRIES LTD(U96.SI)$

The 'return' is the income the business earned over the last year. So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.17.

Sembcorp Industries' Debt And Its 17% ROE

Sembcorp Industries does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.68. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use.