To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,300.48 points, up 1.28% points in the past 5 days.

During the last 5 trading days,  $TJ DaRenTang(T14.SI)$, $TAN CHONG INT'L LTD(T15.SI)$, $BUMITAMA AGRI LTD.(P8Z.SI)$, $TOP GLOVE CORPORATION BHD(BVA.SI)$ and $SHANGRI-LA ASIA LIMITED(S07.SI)$ are the top 5 Weekly gainers, up 26.17%, 12.50%, 9.82%, 8.77% and 8.60% respectively.

$NIO Inc.(NIO.SI)$, $BEST WORLD INTERNATIONAL LTD(CGN.SI)$, $MANDARIN ORIENTAL INTL LTD(M04.SI)$, $HONGKONG LAND HOLDINGS LIMITED(H78.SI)$ and $SATS LTD.(S58.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $TJ DaRenTang(T14.SI)$

Compared Tianjin Pharmaceutical Da Ren Tang Group's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 12% in the same period.

Tianjin Pharmaceutical Da Ren Tang Group has a healthy combination of a moderate three-year median payout ratio of 37% (or a retention ratio of 63%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.

Additionally, Tianjin Pharmaceutical Da Ren Tang Group has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.

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

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.

3. $BUMITAMA AGRI LTD.(P8Z.SI)$

The latest balance sheet data shows that Bumitama Agri had liabilities of Rp1.86t due within a year, and liabilities of Rp3.58t falling due after that. Offsetting these obligations, it had cash of Rp826.2b as well as receivables valued at Rp498.4b due within 12 months. So its liabilities total Rp4.12t more than the combination of its cash and short-term receivables.

Bumitama Agri has a low debt to EBITDA ratio of only 0.45. And remarkably, despite having net debt, it actually received more in interest over the last twelve months than it had to pay.

On top of that, Bumitama Agri grew its EBIT by 71% over the last twelve months, and that growth will make it easier to handle its debt.

Over the most recent three years, Bumitama Agri recorded free cash flow worth 54% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.

4. $TOP GLOVE CORPORATION BHD(BVA.SI)$

Top Glove released its fiscal 2023’s second quarter earnings for the period ending 28 February 2023. On a quarter on quarter basis, its numbers remained relatively flat. Revenue dipped by 2% qoq from RM 633 million in 1Q FY2023 while net loss was 2% lower qoq.

The good news is that sales volume grew 6% qoq as customers showed signs of replenishing their inventories.

The group reported a free cash outflow of RM 272.2 million for 1H FY2023, a sharp improvement over the free cash outflow of RM 571.3 million in the previous corresponding period.

5. $SHANGRI-LA ASIA LIMITED(S07.SI)$

Shangri-La Asia Limited, an investment holding company, develops, owns/leases, operates, and manages hotels and associated properties. It operates through Hotel Properties, Hotel Management and Related Services, Investment Properties, and Property Development for Sale segments.

The company develops, owns, and operates office and commercial properties, and serviced apartments/residences; and operates restaurants and amusement parks. In addition, it is involved in the hotel ownership, and property rental and sale business; and property investment, as well as wines trading activities.