6 Trade Ideas from the Singapore Trading Festival
The first half of the Singapore Trading Festival organised by SGX and EquitiesTracker has just ended over the weekend. Royston from New Academy of Finance and I took to the stage to share about 6 trade ideas for 2022. We agreed to each share an idea for every angle - value, dividend and momentum. I thought it would be good to repeat it here.
These are not investment advice. They are just ideas for you to explore further should you be interested.
Royston shared about $SEMBCORP INDUSTRIES LTD(U96.SI)$Sembcorp Industries (U96) and how the restructured Sembcorp Ind is more attractive to institutions after divesting Sembcorp Marine and the move to the greener, ESG direction.
He thinks $ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$Ascendas REIT (A17U) is a blue chip REIT that is yielding at an attractive 5+%, coupled with new economy assets such as data centres and business spaces.
His momentum pick was The Hour Glass (AGS). It has trended very well and the opening up of Singapore's borders could bring in more tourists and spending at its shops, further fuelling the momentum.
I started off with a momentum trade idea on $GEO ENERGY RESOURCES LIMITED(RE4.SI)$GeoEnergy (RE4). It is an Indonesian coal miner and has benefited from the boom in coal prices (4x from a year ago) as well as the increase in exports to China (because Australia stop exporting coal due to geopolitical tension with China).
My second trade idea was $SHENG SIONG GROUP LTD(OV8.SI)$Sheng Siong (OV8) as a dividend counter. Sheng Siong is the third largest supermarket chain in Singapore, behind NTUC Fairprice and Dairy Farm. But it performed much better than Dairy Farm as the former was able to raise dividends while the latter was cutting theirs.
As a consumer staple stock, it will be resilient to inflation as cost increases could be passed down to the consumers. The current dividend yield of 4.1% is slightly above the 5y average of 3.9%. Coupled with dividend growth, the yield-on-cost is expected to increase over time.
My last idea was on $GENTING SINGAPORE LIMITED(G13.SI)$Genting Singapore (G13) as a value play. I expect it to be the biggest beneficiary of Singapore's reopening. It has hotels, casinos, theme park and restaurants; aka an integrated resort. This is a key tourist attraction in Singapore.
Genting SG has survived the worst of times. Despite being hard hit by Covid for the past 2 years, it managed to remain profitable and cash flow positive, and holding more than S$3 billion cash in the bank.
The gaming and non-gaming revenues have dipped about 50% and 70% from pre-Covid days. There's a lot of room to catch up and a potential turnaround play.
The general mood is good about Singapore's reopening. People are going overseas, eating out and meeting people. Some of these good mood should spill over to the Singapore stock market as well as showing improved financial results among the companies. Inflation remains a threat but it isn't seriously impacting our lives yet.
The Singapore Trading Festival is still going on this weekend if you want to get more ideas from the speakers.
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First time registered at Singapore Trading Festival, thank you for the recap 🙏