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3rd Quarter Stock Picks: Experts’ Picks
Perspective | 25 October 2013
Related stocks:
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By: Choo Hao Xiang
Articles (151) Profile
By: Louis Kent Lee
Articles (199) Profile

Expert Picks
In our previous stock pick piece, we featured the stocks that our investment experts, Collin Seow and Willie Tan favoured in 2013. Collin and Willie are both experienced in technical analysis and chart readings.

Collin’s Picks

2Q13 Picks: Ho Bee Land, Yanlord Land Group, United Envirotech

Ho Bee Land
In terms of technical chart readings, Ho Bee Land, previous known as Ho Bee Investment, is well supported by an apparent uptrend line. Its 40-day moving average (MA), is also sloping upwards, indicating an uptrend potential. A resistance to reach out for would be around the $2.20 region, which was tested twice this year, while support is seen around the $1.90 region. On the fundamental front, the Metropolis commercial project (The Metropolis), which is also officially Ho Bee’s new headquarters have already as at 30 June 2013 seen a pre commitment lease level of more than 82 percent. The Metropolis will be fully completed in October 2013. Its acquisition of Rose Court office building in London, coupled with the completion of The Metropolis, is expected to see recurring rental income flowing into its coffers, which will underpin its bottom line for the next few years. As at time of writing, Ho Bee is trading at a discount to its book value with a price to book ratio of 0.77. Ho Bee’s PE ratio is currently 7.7.

Yanlord Land Group
For Yanlord Land Group, I mentioned previously that it has broken below its uptrend line and the price is currently continuing its downtrend move. As both the 20 and 40-day MAs are both sloping down, support is visible at around $1.15, followed by $1. It is noteworthy that although 1H13’s results for Yanlord was not exactly fantastic, its strong cash position despite the tough operating conditions it is operating in is a superior thing to have. Also, Yanlord expects to deliver most of its pre-sold units in the subsequent quarters which will serve to enhance its recognised value for FY13. Yanlord has already on 30 June 2013, received advances for pre-sold properties amounting to some Rmb5.874 billion, which dependant on the recognition period, will have a significant positive impact for Yanlord’s overall performance. It is currently trading at a price to book ratio of 0.73, with a PE ratio of 6.6.

United Envirotech
The 40-day MA of United Envirotech (UE) is still sloping upwards, while the commodity channel index is currently below 100. The trend line’s support is near where UE’s prices have been seen trading at lately. UE’s price hit a high of $1.05 in late July and the support to look out for is around $0.80 and $0.65 thereafter. On the corporate front, UE has won two contracts in Jiangsu (28 August) and Shandong (20 August, 21 October) since its 1Q14 results release in early August. These wins, depending on the revenue translation front will be a good thing to watch in terms of revenue recognition and how it affects the bottom line.

Willie’s Picks

2Q13 Picks: Pan-United Corporation, Sembcorp Marine, Vard Holdings

Global Logistic Properties (*new)
Geographically, Global Logistic Properties’ (GLP) performances in China and Japan have been outstanding. With these two economies recovering, the company’s outlook seems bright. In terms of share price, GLP has been continuously scaling new highs recently, which signals that momentum for this stock is strong.

Pan-United Corporation
The company staged strong results for its basic building resources business segment. Looking at its price chart, shares of Pan-United Corporation have started to rebound after undergoing a period of consolidation.

Yangzijiang Shipbuilding (Holdings) (*new)
Shares of Yangzijiang Shipbuilding (Holdings) have recovered after hitting a low of $0.795 on 13 June 2013. The counter is now trading at around $1.195. I view the move upwards as a strong one. As long as the stock stays above $1.155, it may perform quite well.

Now that you have seen the experts’ picks, you can check out what our in house picks are.

This is a co-written article of Shares Investment, which lays out the analytical ideas and thoughts of the authors, who are well versed in investments and market concepts.

Ho Bee Land  2.300 -- --   
Business: Invests in & develops real estate properties in Singapore. [FY18 Turnover] Rental income (91.3%), sale of development properties (8.7%).

Insight: Apr-19, 1Q19 revenue rose 7.7% due to increased re... Read More
Yanlord Land Group  1.160 -0.020 -1.69%   
Business: A real estate developer. [FY18 Turnover] Property development (95.2%), others (2.7%), property investment & hotel operations (2.1%).

Insight: May-19, 1Q19 revenue were halved to Rmb3.6b due to... Read More
Pan-United Corp  -- -- --   
Business: An Asian multinational corporation focused on concrete & cement and ports. [FY18 Turnover] Concrete & cement (63.2%), trading & shipping (36.8%).

Insight: May-19, 1Q19 revenue fell 8.5% to $196m attributed... Read More
Sembcorp Marine  1.200 -- --   
Business: Co is a leading global marine & offshore engineering group. [FY18 Turnover] rigs & floaters, repairs & upgrades, offshore platforms (98.8%), ship chartering (1%), others activities (0.2%).

Insight: May-19, 1Q19 revenue fell 31.3% to $810.6m due to ... Read More
Yangzijiang Shipbuilding (Hldgs)  0.940 -0.010 -1.05%   
Business: Co is one of the largest non-state owned shipbuilders in China. [FY18 Turnover] Shipbuilding (58.1%), trading (32.8%), investments (6.7%), others (2.4%).

Insight: Apr-19, 1Q19 revenue jumped 26.8% to Rmb6.3b due t... Read More


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The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

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