To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,266.63 points, down 0.12% points last week. The earnings calendar is attached at the end of the article.

During the last 5 trading days, $AEM HOLDINGS LTD(AWX.SI)$, $Nanofilm(MZH.SI)$, $TAN CHONG INT'L LTD(T15.SI)$, $SEMBCORP MARINE LTD(S51.SI)$ and $SEMBCORP INDUSTRIES LTD(U96.SI)$ are the top 5 Weekly gainers, up 9.15%, 8.84%, 7.74%, 7.44% and 7.26% respectively.

$IFAST CORPORATION LTD.(AIY.SI)$, $MANDARIN ORIENTAL INTL LTD(M04.SI)$, $THAI BEVERAGE PUBLIC CO LTD(Y92.SI)$, $DBS GROUP HOLDINGS LTD(D05.SI)$ and $WILMAR INTERNATIONAL LIMITED(F34.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $AEM HOLDINGS LTD(AWX.SI)$

Here are SWOT analysis for AEM Holdings:

Strength includes earnings growth over the past year exceeded its 5-year average and debt is well covered by earnings.

Weakness shows on earnings growth over the past year underperformed the Semiconductor industry. Also, the dividend is low compared to the top 25% of dividend payers in the Semiconductor market.

Opportunity mainly focuses on annual earnings are forecast to grow for the next 3 years and good value based on P/E ratio and estimated fair value.

Threat covers debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual earnings are forecast to grow slower than the Singaporean market.

2. $Nanofilm(MZH.SI)$

Nanofilm Technologies International Limited will increase its dividend on the 18th of May to SGD0.011, which is 10.0% higher than last year's payment from the same period of SGD0.01. Even though the dividend went up, the yield is still quite low at only 1.5%.

Prior to this announcement, Nanofilm Technologies International's dividend was only 33% of earnings, however it was paying out 126% of free cash flows.

Looking forward, earnings per share is forecast to rise by 78.3% over the next year.

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

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. The Motor Vehicle Distribution and Dealership Business line distributes various models of Nissan, Subaru passenger cars, and Nissan light commercial vehicles.

4. $SEMBCORP MARINE LTD(S51.SI)$

The company post its quarterly earnings for the period that ended on March 31 this week on Wednesday. Analysts expect the company to be poised for a more promising outlook after completing its acquisition of the offshore and marine division of Keppel Corporation Limited $KEPPEL CORPORATION LIMITED(BN4.SI)$.

Furthermore, Sembcorp is following a “bottom-up” strategic assessment aimed at restoring profitability based on its solid order backlog. This gives new hope to investors as they look forward to the company turning profitable sometime soon.

Analysts remain highly bullish on the company’s enhanced capabilities to meet its order pipeline post-acquisition. The combined entity now has an expanded order backlog of S$18 billion, extending over the next three years. Nevertheless, successful execution remains critical, and the company must guarantee the fulfillment of its commitments while managing costs proficiently.

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

The Sembcorp Industries Ltd share price has soared 164% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 21% gain in the last three months.

Sembcorp Industries was able to grow its EPS at 38% per year over three years, sending the share price higher. This EPS growth is remarkably close to the 38% average annual increase in the share price.

TSR gives a more complete picture for stocks that pay a dividend. In the case of Sembcorp Industries, it has a TSR of 474% 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.

The SG earnings for next week: