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4 Stocks This Week – [9 Jan 2017 To 13 Jan 2017]

ISOTeam, Golden Energy and Resources, Yoma Strategic Holdings and Singapore Press Holdings.


Too busy to stay up to date with what’s happening each week on the Singapore Exchange (SGX)? We are here to help.

In our weekly column 4 Stocks This Week, we will be featuring 4 stocks listed on the SGX that have caught our attention each week. Some of these are stocks that have performed well. Others may have caught our attention for less positive reasons. Some of them are big blue-chip companies; others are smaller cap stocks that we think are worth a closer look for investors.

Starting the week at 2972.14, the Straits Times Index (STI) ended up approximately 1.8% higher on Friday at 3025.07. It’s worth noting that this marks the first week the STI has ended above the 3000 points mark in more than a year.

The rise in the STI has mimicked global markets which reacted positively to Donald Trump’s election victory back in early November. With Mr Trump set to take office on 20 January 2017, next week will be another interesting week for the stock market.

#1 ISOTeam

Listed on the Singapore stock exchange in July 2013, ISOTeam is a home-grown building maintenance and estate upgrading company focused on both public and private sector projects. The company works on government-related HDB projects such as Neighbourhood Renewal Programme (NRP), Estate Upgrading Programme (EUP), Hawker Centres Upgrading Programme (HUP) and other hospital, school and other projects, as well as private sector projects for condominiums, shopping malls, factories, hotels and other facilities.

This week, on 12 January 2017, the company announced that it had completed the acquisition of Rong Shun Engineering and Construction Pte Ltd, marking the sixth acquisition since its public listing. This paves the way for the business to offer a full suite of complementary mechanical and electrical solutions including air conditioning, mechanical ventilation works, security, fire protection system as well as sanitary and plumbing services.

On 10 January 2017, it also announced $22.7 million worth of public and private projects. Continuing its regular project wins momentum. These projects also included a $6.3 million renewable energy project, a sector the group is placing a greater emphasis on, making it the largest such project it has won to date.

For the week, the company’s share price increased 7.6% to $0.425 from $0.395.

#2 Golden Energy and Resources

With over 2.1 billion tonnes of thermal coal resources at its mining concessions in Indonesia, Golden Energy and Resources is backed by one of largest Indonesian conglomerates Sinar Mas Group. It is involved in three main business segments, namely its coal mining division, coal trading and forestry concessions.

This week, local brokerage house, KGI Securities released a report initiating coverage on the stock. Its 12-month target price is $0.95, more than double its price as at $0.48. There are two main drivers for this, one is the expected strong demand for coal to continue in Asia and secondly, coal prices is expected to improve.

For the week, the company’s share price increased 3.1% to $0.505 from $0.49.

#3 Yoma Strategic Holdings

Yoma Strategic Holdings is one of the few listed companies that offer investors the ability to jump on the growth prospects in newly opened for business – Myanmar. With the lifting of the U.S. sanctions on the country, it is expected to propel business activities and create new opportunities for investors.

The company has four main groups of businesses – i) real estate; ii) automotive equipment; iii) consumer; and iv) investments.

This week, the company announced that its redevelopment projects for a mixed-used facility in the heart of Yangon – The Peninsula Yangon – has been approved by the authorities there.

Its stock price has decreased 1.7% this week, from $0.595 to $0.585.

#4 Singapore Press Holdings

SPH, one of Singapore best 30 stocks, and listed on the Straits Times Index (STI), released its results on 13 January 2017, Friday. It posted a 43.8% decrease in net profit compared to a year ago, while revenue slipped 6% mainly due to a close to 10% drop in its media business revenue.

This does not bode well for its media business, which continues to see headwinds as more advertisers seek other platforms to spend their money. This week, the share price of the company did not take this result into consideration and we can expect to see this reflected in next week’s prices.

In the lead up to this announcement, SPH’s share price had actually gained 1.9% to $3.69 from $3.62.

4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.

 

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