Tuesday, 30 May 2017

NEW CEO FOR SPH

The media industry is undergoing structural changes, with a shift away from traditional printed media sources towards digital media. Another company here undergoing structural changes would be SingPost, which appointed Mr Paul Coutts as their new CEO. Mr Coutts has more than 20 years of experience in C-suite positions at major global logistics and postal companies.

Therefore, when SPH announced that Mr Ng Yat Chung would take over the role of CEO from Mr Alan Chan, an industry veteran, many investors wondered if Mr Ng was the right person to have the responsibility of turning around SPH's business. Most cited his poor record at Neptune Orient Lines, and lack of industry experience, given that he was previously from the military. 

I have summarised the various business segments of SPH. 

Friday, 26 May 2017

CAPITAMALL TRUST OR FRASERS CENTERPOINT TRUST?

CMT's Bedok Mall

Recently, there has been a lot of negative news regarding the retail industry. Island-wide vacancy stock reached 5 million sq ft or 7.7 per cent, which is equivalent to the size of about five VivoCities. To experience how online shopping has affected retailers here, I decided to work in the retail sector during my school holidays. I am currently working at a suburban mall in the east. From my observations, the prospects of the retail sector is rather bleak. Sales are tepid and the store holds quite a large amount of inventory. Most common items can also be bought online, at a lower price.  

Nonetheless, dividend-seeking investors may still be interested in retail REITs, if they are priced at a attractive valuation. Much would depend on the innovative ability of retail malls to fend off intense competition from e-commerce. Retail REITs would have to redefine the retail experience when they upgrade or develop future malls. For example, CMT's redevelopment of Funan Mall focuses on providing an experiential retail concept for consumers, allowing them to test and feel products, which online shopping cannot offer. 

Capitamall Trust (CMT) and Frasers Centerpoint Trust (FCT) are two large retail REITs listed here, and I decided to compare their portfolio performance and financial strength, to see which REIT is a better investment.

Thursday, 11 May 2017

QAF LIMITED'S STRATEGIC REVIEW



Last Friday, QAF announced that it would be conducting a strategic review of its Primary Production business, which may include a listing in Australia or a sale of the business in its entirety. I decided to write about my analysis of QAF's business segments, as well as the potential impact of the strategic review.