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Singapore Shipping – Poised For A Chart Breakout?
Corporate Digest | 28 July 2015
Related stocks:
S19
By: Ernest Lim
Articles (134) Profile

Singapore Shipping caught my eye while I am doing the usual chart screening. Based on Chart 1 below, Singapore Shipping has been trading between $0.325 – 0.350 since 13 Apr 2015.

ADX has been strengthening since 24 Jun 2015 and it is now around 31.1, indicative of a trend. All the exponential moving averages (EMAs) are rising which represent a strong uptrend.

Indicators such as MACD, RSI have strengthened since 13 Apr 2015. As a result, odds are higher for an upside breakout from its three month trading range $0.325 – 0.350 in the next couple of months. In the event of a breakout, a measured technical target is around $0.375.

Near term supports: $0.340 / $0.335 / $0.325

Near term resistances: $0.350 / $0.360 / $0.375 – $0.385

Chart 1: Singapore Shipping poised for a potential chart breakout

Source: CIMB chart as of 23 Jul 15

Some Noteworthy Developments

FY16F Results Are Likely To Be Strong; Backed By Long Term Contracts

FY15 (financial year ended in Mar) revenue and net profit rose 2 percent and 9 percent to US$35.1 million and US$9.3 million respectively.

Based on their FY15 results, management indicated that they have obtained delivery of three vessels and these vessels were secured to blue chip customers via long term 10 year charters in the 2HFY15.

These vessels would have their maiden full year contribution in FY16F. Consequently, management believes that they should perform better in FY16F.

According to Lim & Tan, there is scope that Singapore Shipping may be able to double their fleet in the next 2-3 years to further boost growth under the stewardship of the new CEO, Mr Ow Yew Heng, son of Chairman & Founder Mr Ow Chio Kiat.

Shareholder friendly with dividends

Since 2005, Singapore Shipping has returned $250 million to shareholders through dividends. Singapore Shipping has paid $0.01 / share for the past five financial years.

AGM on 30 Jul; ex div S$0.01 / share on 5 Aug

Singapore Shipping’s AGM is on 30 Jul 2015. It is going to ex div of $0.01 / share on 5 Aug 2015.

It is expected to report 1QFY16F results in the next three weeks. Previously, its 1QFY15 results was announced on 29 Jul 2014, same day as their AGM.

Conclusion

This is just a brief introduction on Singapore Shipping. Readers who are interested to know more can check out their annual report FY15.

It is informative and presented in a unique manner via question and answer. Furthermore, you can email me for the unrated reports (without target price) on Singapore Shipping.

Ernest Lim is a CFA, CA and has worked at GIC Special Investment. He has a solid feel of the markets and financial world and is now a remisier.

Please click here for more information about this author.

Singapore Shipping Corp  0.285 -- --   
Business: A spin-off from Stamford Land Corp that engages in ship owning and management, shipping agency and terminal operations as well as logistics services. [FY18 Turnover] Ship owning (69.9%), Agency and Logistics (30.1%).

Insight: Feb-19, 9M19 revenue edged up 3.3% to US$36m due t... Read More


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