FIP Main Assignment
BAAFM 16 FT
UP970525
CT0348036
I declare that all materials included in this
essay/report/project/dissertation are the result of my work and that due
acknowledgement has been given in the bibliography and references to
all sources be they printed, electronic or persona.
Contents
1. Introduction ..................................................................................................................................... 3
2. Literature Review ........................................................................................................................... 3
3. Investment Strategies & Stock Selection ................................................................................ 4
3.1 January Portfolio ..................................................................................................................... 4
3.2 January Portfolio Table.......................................................................................................... 7
3.3 February Portfolio ................................................................................................................... 8
3.4 Febuary Portfolio Table ....................................................................................................... 10
3.5 March Portfolio....................................................................................................................... 12
3.6 March Portfolio Table ........................................................................................................... 13
3.7 July Portfolio .......................................................................................................................... 14
3.8 July Portfolio Table ............................................................................................................... 15
3.9 August Portfolio..................................................................................................................... 16
3.10 August Portfolio Table ....................................................................................................... 17
4. Result .............................................................................................................................................. 19
4.1 UK Portfolio Performance ................................................................................................... 19
4.2 Singapore Portfolio Performance ..................................................................................... 20
4.3 Overall Performance ............................................................................................................. 22
5. Conclusion .................................................................................................................................... 22
Appendix I – January report .......................................................................................................... 24
Appendix II – February report ....................................................................................................... 28
Appendix III – March report ........................................................................................................... 33
Appendix IV – July report .............................................................................................................. 35
Appendix V – August report .......................................................................................................... 37
6. References..................................................................................................................................... 40
1. Introduction
A notional amount of SGD 200,000 was invested on a 50:50 basis on the Singapore
and UK stock market over a short period. The shares are all selected from the list of
companies under the FTSE-ST-ALL-Share Index and FTSE 100 Index. Active value
investing was the main investment strategy used in trading to look for cheap or value
stock that is under-priced relatives to its fundamental value which was due to
temporary misprice or market inefficiency. Some key ratios used in the report would
be the price-earnings ratio, price-to-sales ratio, and the book-to-market ratio. In
Summary, the returns of both the Singapore and UK portfolio has outperformed the
market. The return of the UK portfolio, 13.76% have beat the FTSE 100 Index return
of 7.46%. On the other hand, the return from the Singapore Portfolio has reached a
high of 24.49% comparing to the FTSE-ST-ALL-Share Index return of 5.65%. In
total, a return of 19.13% was made from the investment.
2. Literature Review
The weak form of efficient market hypothesis states that the current prices of stocks
fully incorporate all available information of previous share prices (Fama, 1970).
Future share prices are not able to be predicted from the use of past share prices.
The share prices would move randomly and unpredictably. Because of these
independencies, Magnus (2008) noted that the efficiency analysis implies that all
markets can be weak form, but the reverse cannot be the case. The Semi-Strong
efficiency assumes that asset prices have factored in all publicly available
information and asset prices adjust rapidly to the release of new public information.
Leigh (1997) confirms weak form and semi-strong form efficiencies of the Singapore
stock market, and the market performance is systematically tied with Singapore’s
economy. Paula et al. (2020) has conducted a new round of efficiency test on
Asean-5 markets, Singapore one of them to analyse efficiency, in its weak form
during the Global Covid19 pandemic. The empirical result has indicated that for
these periods, prices do not fully reflect the available information and that price
change are not independent and identically distributed showing signs of market
inefficiency in its weak form.
Lucrezia & Vijay (2020) conducted a research study on the London Stock Market to
examine the weak form efficiency and to test the presence of the Calendar
anomalies for the period 2007 to 2016. From the empirical results of the test, London
Stock Market was observed as a dynamic market whose efficiency is switching from
efficient to inefficient and vice versa. Moreover, Calendar anomalies observations
were inconsistent and time-varying, but its coexistence with the market efficiency is
supported.
Gerhard Reon Odendaal (2014) has conducted an event study of the impact of
earnings announcements on stock prices of the London stock exchange from 1
January 2010 to 31 December 2012, a period where the international market is just
recovering from the Global Financial Crisis. Based on the empirical results, a positive
pre-event to post-event trend was observed, with a significant rise in the cumulative
average abnormal return (CAAR) before the event date showing the markets
expectation for the result and a sudden rise on the event day indicating the markets’
reaction for positive news and lastly an insignificant continuous upward drift after the
event. This indicates the information efficiency of the FTSE 100 stocks according to
the semi-strong form efficiency. However, post-earnings announcement drift was
also observed over certain industries where it did produces abnormal return
contradicts the EMH.
Behaviour finance was always the most enduring critiques to the EMH, criticized on
the idea of rational investor but with the fact that irrationality of investment decision is
made in reality under uncertainty due to behavioural biases (such as overconfidence,
overreaction, loss aversion) are very common among investors (Lo, 2004).
Grossman (1976) and Grossman and Stiglitz (1980) further argue that a perfectly
efficient market is impossible, as there would be little reason for trade when there
was no profit from information gathering. Furthermore. evidence has shown that
investor does not like to admit their mistake, resulting in them holding losing stock for
too long or in some case increase their bet on the losing stock hope for future
increment. Also, more, and efficient information available to them does not always
lead to better investment decisions, an investor tends to be overload and
overreacting to the newest information neglecting past performance in determining
an investment decision resulting in lower return in the long run.
3. Investment Strategies & Stock Selection
During this short period of investment, I decided to use an active strategy in trading
and fundamental analysis for the selection of stocks. I will be mainly looking at
relative valuation ratios such as the price-to-sales ratio, price-to-earnings ratio, etc,
and together in collaboration with the news announcement regarding the company
and the overall economy. In total, I had bought 20 stocks, 10 each from UK and
Singapore stock markets. For each stock, I would invest around SGD 10,000.
3.1 January Portfolio
For the month of January, 7 stocks were purchased. On 5 Jan 2021, DCC plc
announced its completion in the acquisition of United Propane Gas for its further
expansion into the US liquefied petroleum gas market (Alliance News, 2021).
Moreover, DCC plc has a low P/E ratio of 18.54 and a price-to-sales ratio of 0.40x.
Considering its debt ratio of 68%. DCC plc is an undervalued stock.
7 Jan, B&M European Value Retail announced a £200m special dividend, mainly
due to a surge in its revenue up to 22.5% in its third-quarter performance (B&M,
2021). Being an essential goods seller, the company is reported to be not affected by
the COVID19 lockdown but a boom during the crisis. B&M also has a P/E ratio of
17.83x, below the average of 23.44x for the past three years. The company also has
a good current and total asset turnover of 1.19x and 1.39x respectively.
11 Jan 2021, HKSTP and China Everbright signed a Cooperation Framework
agreement to establish an Innovation Centre to drive its development of I&T in Hong
Kong (HKSTP, 2021). The company has a low P/E ratio in the utility industry and
was lower than the average of 10.02x for the past 3 years. At the same time, its
increasing dividend per share shows a positive future outlook.
China Everbright
Water
Sembcrop
SIIC Environment
China Everbright
SIIC Environment
P/E 2021
4.36
2020
6.07
2019
8.46
2018
15.53
22.24
3.94
15.59
5.1
www.capitaliq.com
15.53
7.55
30.71
12.22
DPS 2021
0.0104
0.01
2020
0.067
0.01
www.capitaliq.com
2019
0.065
0.01
2018
0.049
0.01
New Silkroutes Group entered into an agreement with Huawei International to
develop an AI platform to be used in genomics-driven healthcare on 18 Jan 21
(Sharon, 2021). The CEO also announced its new strategic focus towards AI-driven
solutions and digital transformation in the healthcare sector. It has a low Price-toSales ratio of 0.03. At the same time, it has a healthy debt ratio of 30.25% to its low
PSR.
2020
Revenue (SGD)
499M
Market Cap
16.26M
www.capitaliq.com
PSR
0.03
21 Jan 2021, Aviva announced its expansion of investment in fintech and insurtech
through a new collaboration with venture capital firm Anthemis that is advancing the
digital transformation of the financial services sector. Due to the covid pandemic,
digital transformation would be one of the top trends for the financial service sector
for 2021. Aviva plc also has a PSR of 0.37x in 2021 which was in decreasing trend
as compared to the past few years. At the same time, a high BE/ME ratio of 1.56.
AVIVA PLC
LTM4 2020
Aviva Plc
PSR 2021
0.35
2020
0.43
www.capitaliq.com
2019
0.55
BE per share
ME per share
4.93
3.16
www.capitaliq.com
BE/ME
1.56
On 25 Jan 2021, LyondellBasell, one of the largest plastics, chemicals, and refining
companies in the world have finalized an agreement with Sinostar Pec to form the
50:50 joint venture to produce propylene oxide (PO) and styrene monomer(SM) in
China's domestic market (LyondellBasell, 2021). Together, Sinostar PEC has a High
BE/ME ratio of 2.2x in the energy-fossil fuel industry. At the same time with a low P/E
ratio of 3.5x.
LTM4 2020
Hai leck
China Aviation oil
Sinostar Pec
BE per share
0.56
1.38
0.33
ME per share
0.43
1.02
0.15
www.capitaliq.com
BE/ME
1.3
1.35
2.2
P/E
11.72
10.7
3.5
The Land Transport Authority has announced that the land transport worker has
begun to received vaccination on Monday (25 Jan) for those in the first line and
progressively to all others in the coming month. Together with the pandemic
recovery in 2021, revenue and ridership for land transport are expected to increase.
Among the companies in the transportation industry, SBS transit has a low P/E ratio
was below the average of 14.46x for the past 3 years.
SBS Transit
ComfortDelGro
SIA Engineering
P/E 2021
13.6
17.21
25.89
2020
13.31
17.01
18.43
www.capitaliq.com
2019
12.1
16.51
13.51
2018
18.53
14.08
20.53
3.2 January Portfolio Table
JANUARY
FTSE 100
SGD 100,000
DATE OF Purchase
CODE
COMPANY NAME
SHARE PRICE (PENCE)
SHARE PRICE (£)
NUMBER OF SHARES
SHARE VALUE (£)
STAMP DUTY
0.20%
COMMISSION FEE
10
TOTAL COST OF SHARES(GBP)
FX RATE (DAILYFX)
TOTAL COST OF SHARES(SGD)
AMOUNT REMAINING(SGD)
100000
SHARE PRICE (MONTH ENDED)
% GAIN/LOSS
5-Jan-21
7-Jan-21
DCC
BME
DCC plc B&M European Value
5386
531
53.86
5.31
103
1044
5547.58
5543.64
11.10
11.09
10
10
5568.68
5564.73
1.79800
1.80305
10012.48
10033.48
89987.52
79954.04
55.160
5.352
2.41%
0.79%
21-Jan-21
AV.
Aviva plc
349.5
3.495
1589
5553.56
11.11
10
5574.66
1.76014
9812.19
70141.85
3.352
-4.09%
FTSE ST ALL SHARE
SGD 100,000
DATE OF Purchase
11-Jan-21
18-Jan-21
25-Jan-21 25-Jan-21
CODE
U9E
BMT
C9Q
S61
COMPANY NAME
China Everbright Water New Silkroutes Group Sinostar PEC Holdings SBS Transit
SHARE PRICE (SGD)
0.2350
0.0780
0.1550
3.0100
NUMBER OF SHARES
42450
127828
64260
3310
SHARE VALUE (£)
9975.75
9970.58
9960.30
9963.10
STAMP DUTY
0.20%
19.95
19.94
19.92
19.93
COMMISSION FEE
10
10
10
10
10
TOTAL COST OF SHARES
10005.70
10000.53
9990.22
9993.03
UNINVESTED CASH
100000
89994.30
79993.77
70003.55 60010.53
SHARE PRICE (MONTH ENDED)
0.2250
0.1500
0.1550
2.9500
% GAIN/LOSS
-4.26%
92.31%
0.00%
-1.99%
16644.78
33.29
30.00
16708.06
29858.15
39869.73
79.74
40
39989.47
3.3 February Portfolio
For the month of February, 9 stocks were purchased. Imperial Brands has a price-toearnings ratio that drop by near half from the average of 18.58x for the past 3 years
to 9.3x. At the same time, Imperial Brands announces its new tobacco-focused
Strategy with a 5-year plan and strategic review on 27 Jan 2021 (Tobacco reporter,
2021). The share prices have dropped by 4.9% with the announcement, however
looking at its P/E ratio, it would be a good opportunity to buy in on 3 Feb 21.
3 Feb 21, GlaxoSmithKline plc and CureVac N.V. have come into a €150m
collaboration to jointly develop the next-generation vaccines for COVID-19.
(GSK,2021). The vaccine is currently in Phase 2b/3 trials and would target to
introduce in 2022 subject to approval. GlaxoSmithKline plc also has a P/E ratio that
is below the healthcare industry average and is falling below its average three year
high.
P/E 2021
GLAXOSMITHKLINE 10.74
PLC
Healthcare
20.17
industry
2020
19.55
2019
39.36
2018
27.94
22.49
24.77
44.63
Hargreaves Lansdown plc’s 2021 P/E was 22.23x below the average three year high
of 33.81 showing it been an undervalued stock. Peter Hargreaves, co-founder of
Hargreaves Lansdown and currently the biggest shareholder with a near 24% stake
worth almost £1.9 Billion is planning to sell £300 million worth of shares (Walmsley,
2021). The share prices are expected to fall and were a good timing to buy on 24
Feb 21 when the share prices rebound.
P/E
2021
22.23
2020
2019
30.98
33.73
www.capitaliq.com
2018
36.72
Captii released its FY2020 preliminary annual report on 23 Feb 21. From the report,
the company is experiencing a net loss of 18.8% as compared to FY2019 mainly due
to the COVID pandemic. Despite the overall decrease in earnings, the company is
still able to achieve a positive net income. Captii has the highest BE/ME ratio of
3.74x among the competitor in the telecommunication industry indicating it being a
undervalue stock.
CSE Global announced it earnings result for the full year ended 2020, achieving a
16.42% increase in net income and a 10.55% increase in its EPS on 23 Feb 2021.
Moreover, affirming its dividend for 2021. CSE Global has the lowest P/E among its
competitor in the software and IT services industry which also been decreasing from
one year to another.
P/E 2021
2020
2019
Azeus
14.6
10.76
6.13
Procurri
21.98
18.07
33.49
CSE Global
9.52
11.08
13.25
www.capitaliq.com
Hotung Investment announced its earnings on 24 Feb 2021 for its FY2020
performance. With a 100% increase in sales revenue and a 70% increase in net
income. The positive earnings surprise is expecting to drive the share price upward.
Among the small-cap company of the sector, Hotung investment holding has a high
BE/ME ratio together with low P/E ratios showing it being an undervalued stock.
LTM4 2020
Spura Finance
Sing Investment
Hotung Investment
Value Max
Spura Finance
Sing Investment
Hotung
Investment
Value Max
BE per share
1.6
2.46
3.15
0.43
P/E 2021
36.98
11.63
7.3
7.06
ME per share
0.81
1.22
1.46
0.31
2020
15.91
10.6
10.53
7.36
www.capitaliq.com
BE/ME
1.97
2.02
2.16
1.38
2019
26.94
9.93
10.05
2018
23.33
11.73
11.55
7.41
8.77
Coca-Cola HBC entered into a share purchase agreement to acquire a 50% stake in
Stockday S.R.L. on February 24, 2021. It also announced the redesign of its
distribution partnership with Heineken to allow both parties to explore further
opportunities in both the alcoholic and non-alcoholic segments in Brazil (Reuters,
2021). Coca-cola HBC has a low P/E that was below the industry average and the
average of 25.13x for the past three year.
Coca cola HBC AG
Soft drink industry
P/E 2021
20.85
29.72
2020
27.04
23.34
www.capitaliq.com
2019
23.52
19.91
2018
25.01
23.63
25 Feb 2021, St. James's Place plc released its FY2020 result with a 78% increase
in net income (Capitaliq, 2021). Moreover, the company managed to notch up
£2.3bn of net inflows during the final three months of 2020 where the overall
economy is on a downside. St. James's Place plc has a P/E ratio of 22.49x in 2021,
which was nearly half of its average high of 41.22x for the past 3 years. It also has a
price-to-sales ratio of 0.86x.
Mewah International announced it earnings on 26 Feb 2021 with a 600% increase
compared to FY2019, showing a positive performance disregard the COVID
pandemic. It has a low Price-to-sales ratio of 0.11x. Moreover, its debt ratio is only
22.02% in respect to the low PSR.
2020
Revenue (SGD)
4576.5M
Market Cap
517M
PSR
0.11x
3.4 Febuary Portfolio Table
FEBRUARY
FTSE 100
SGD 100,000
DATE OF Purchase
CODE
COMPANY NAME
SHARE PRICE (PENCE)
SHARE PRICE (£)
NUMBER OF SHARES
SHARE VALUE (£)
STAMP DUTY
0.20%
COMMISSION FEE
10
TOTAL COST OF SHARES(GBP)
FX RATE (DAILYFX)
TOTAL COST OF SHARES(SGD)
AMOUNT REMAINING(SGD)
100000
SHARE PRICE (MONTH ENDED)
% GAIN/LOSS
5-Jan-21
7-Jan-21
DCC
BME
DCC plc B&M European Value
5386
531
53.86
5.31
100
1000
5386.00
5310.00
10.77
10.62
10
10
5406.77
5330.62
1.79800
1.80305
9721.38
9611.37
90278.62
80667.25
57.700
5.464
7.13%
2.90%
21-Jan-21
AV.
Aviva plc
349.5
3.495
1501
5246.00
10.49
10
5266.49
1.76014
9269.75
71397.50
3.619
3.55%
3.5 March Portfolio
In the month of March, 4 stocks were purchased. 11 March 2021, Hikma
Pharmaceuticals has cancelled the acquisition of GlaxoSmithKline S.A.E that was
announced in early January 2021 (Hikma,2021). With this announcement, Hikma’s
share price has dropped by 1.1%. Looking at its earnings result release earlier, the
company has a strong performance growth in 2020. Hikma Pharmaceuticals PLC
has a P/E ratio of 14.07x which is falling compared to its previous years. Moreover,
the company has had an increasing DPS over the years.
Bapcor Limited entered into an agreement to acquire a 25% stake in Tye Soon
Limited for SGD 12.5 million on March 19, 2021. A fresh board and director were
expected for the purchase. Tye Soon Limited possesses a higher BE/ME ratio
comparing to its competitor in the automobile and parts industry of 6.9x.
LTM4 2020
Tye Soon
YHI Int Ltd
Stamford Tyres
BV per share
0.62
0.95
0.49
MV per share
0.09
0.38
0.2
www.capitaliq.com
BE/ME
6.9
2.5
2.3
The Sage Group has launched its new product, the cloud-first Sage Data & Analytics
service integration for Sage 300 and Sage 100. A powerful business intelligence (BI)
toolkit with AI and machine learning capabilities (Sage, 2021). Further adding
competitive advantage in the business management software market. The Sage
Group has a P/E ratio of 20.95x, below the average 28.34x for the past 3 years.
Zhongmin Baihui Retail announced an expansion of a new store in Quanzhou City
on 26 March 2021. Together with a positive earnings announcement in early March,
the company shows confidence in overcoming the covid pandemic. Zhongmin Baihui
is also having a Price-to-sales ratio below 1 and being falling from one year to
another. Moreover, it has a healthy debt level of 28.11%
Cortina
Zhongmin
MDR Limited
PSR 2021
0.81
0.55
0.26
2020
0.53
0.73
0.2
www.capitaliq.com
2019
0.35
0.85
0.07
3.6 March Portfolio Table
3.7 July Portfolio
7 Stock were sold for the month of July. CSE Global announced a S$104m secure in
new orders for 2Q2011 on 26 Jul 2021. However, the order intake has decreased by
13.9% and 8.11% compared to the 1Q2020 and 2Q2020 respectively (CSE Global,
2021). Moreover, the company will release its 2021 half-year earnings on 11 August
2021 and expecting the share price to fall by then.
27 July, The RPC Capital market has downgraded B&M European Value stock from
sector outperform to sector perform when the prices reach its target of 575p
(Michele. 2021). The share prices drop immediately and are the time to sell.
The World Health Organisation has called for greater regulation of smoke-free
devices containing nicotine on 27 July 2021. WHO critics that the tobacco industry is
promoting e-cigarette through sleek product design, social media influencers, and
flavors that are attracting youngsters leading to tobacco addiction (Stephanie,2021).
Imperial Brand’s share price is expecting to drop, thus sell.
St. James's Place plc announced its 2021 half-year earnings result on 28 Jul 2021,
based on its half-year performance there was a sharp increase in its share price,
together with a 10x increase in its P/E ratio to the current 42.76x which is above its
average high of 40.23x for the past three years.
Zhongmin Baihui Retail Group announced a huge executive and board change in its
annual meeting on 29 Jul 2021. Including the retirement of two directors and the reelection of the new directors. The huge change in the board may not be good news
in the current unpredictable business environment.
GlaxoSmithKline announced its half-year earnings for 2021 on 29 July 2021, a
35.5% decline in net income is observed (Capitaliq, 2021). Together with its product
announcements, the share price has moved up and this would be a good time to sell.
29 Jul 2021, Hargreaves Lansdown plc announced a change in its Chief Financial
Officer stating a step down for its personal reason and currently the successor of the
role is still unclear (Maria, 2021).
3.8 July Portfolio Table
3.9 August Portfolio
For the month of August, 13 stocks were sold Aviva plc. On 3 August, Coca-Cola
HBC AG and The Sage Group has a P/E ratio that is in an increasing trend which is
moving towards a level above its average high for the past three years it would be
good timing to sell before reaching the intrinsic value.
Aviva plc
Coca-Cola HBC
The Sage Group
2021
8.16
27.09
34.09
2020
4.34
17.94
24.05
2019
10.18
26.35
24.47
2018
17.83
26.58
27.88
DCC plc has a P/E ratio of 20.50x which still falls below the average high of the past
three years, indicating it is still a undervalue stock and recommend holding.
New silk routes, Sinostar pec, Captii, Mewah International, and Tye Soon Limited
have a PSR that is in an upward trend that is closing to its previous years value, and
it is time to sell.
PSR
New silkroutes
Sinostar pec
Captii Limited
Mewah
International
Tye Soon Limited
2021
0.04
0.35
0.58
0.13
2020
0.06
0.13
0.52
0.08
2019
0.06
0.19
0.38
0.1
2018
0.06
0.28
0.56
0.11
0.17
0.04
0.05
0.1
China Everbright Water announced its payment of interest for the Second Tranche
Corporate Bonds on the Shanghai Stock Exchange. The company would have two
interest payments with the principal amount of RMB1,000,000,000 and
RMB400,000,000 at a rate of 3.6% and 4.58% respectively. It would be a negative
impact on the company’s cash flow in the unpredictable covid situation.
Due to an increase in confirmed cases in Singapore, restrictions returning to Phase 2
(Heightened Alert) are announced (Jalelah, 2021). SBS transit’s share price is falling
and is expected to continue.
From the recent quarterly result of the Singapore banks, there is a slowdown in the
growth of the banking and investment service sector in Singapore (Anshuman,
2021). To sell Hotung Investment share.
Hikma Pharmaceuticals’s P/E ratio has reached the current 20.28x which is above
the average high of 17.91. Moreover, the company is going to release its interim
financial results for the six months ended 30 June 2021 on Friday 6 August 2021,
looking at the performance of its competitor healthcare industry, the share price is
expected to drop on the announcement.
3.10 August Portfolio Table
4. Result
4.1 UK Portfolio Performance
As shown from the table below, the UK portfolio had outperformed the FTSE 100
Index by 6.3% with a portfolio return of 13.76% compared to the Index return of
7.46%. Among the 10 companies in the portfolio, St. James’s Place performed
exceptionally well, with a 30.34% gain on investment. The main reason for the profit
was due to the sharp drop in its share prices during the first outbreak of the Covid
pandemic in early 2020. By the start of 2021, its P/E ratios still fall around half its
pre-pandemic level and at the same time, the Covid pandemic shows signs of
recovery which being a good time for the purchase at a low price. During the year
2021, the company’s positive earnings announcement together with the growing UK
economy is boosting its share price up. The recent half-year earnings announcement
leads to a spike in the share price together with its P/E ratio to the pre-pandemic
level and a good time to sell high.
From the half-year report on 2021, we could see that the company’s gross profit and
operating profit have grown by 46.4% and 101.76% respectively showing its ability to
increase sales and manage cost in the COVID affecting the business environment.
At the same time, the company has a healthy quick ratio of 4x which was nearly 3
times higher than the 1.2x report at year ended 2020 showing its strong ability in
repaying debt in the unpredictable environment.
On the other hand, the B&M European value retail has a 4.53% gain, the lowest in
the portfolio. The main reason may be that as a retailer for essential goods, the
company has outperformed during the early stage of the pandemic outbreak, and
now the situation has lifted and its growth slows down. From the recent earnings
announcement, even though shows an increase in revenue and net income, the
share prices are dropping showing lower than expected earnings from the investor.
As shown in the half-year report 2021, the company has an operating profit growth of
84.31% compared to the 16.16% growth in the year ended March 2020. Showing its
good performance during the Covid environment. The company has a good
inventory turnover of 5.1x, however, a low asset turnover of 1.4x below the retail
industry average of 2.5x.
4.2 Singapore Portfolio Performance
The Singapore portfolio has achieved a return of 24.49% as compared to the FTSEST-ALL-SHARE-INDEX return of 5.65%, outperforming the index by 18.84%. The
main contributor to the performance was the 141.11% gain on shares of Sinostar
PEC Holdings which was mainly due to the surging of profit from a net loss of 58k to
a net profit of 15.36m in Q1 2021 (SBR, 2021). There was a spike in share prices
that lasted for two days on its announcement of earnings from 0.19 to 0.42 SGD.
Moreover, the energy sector is the best performing sector for the first half of 2021
especially those companies that produce or store oil and gas (Forbes, 2021).
Sinostar Pec has a healthy current ratio of 2.5x which is above the industry average
of 1.03x. The company also has had an increasing EPS for the past three years,
39.5% growth in EPS for the year ended 2020 despite overall downside on the
energy sector and a 141.5% growth in 2021 when the situation recovers.
On the other hand, shares of Zhongmin Baihui retail suffer a loss of 14.55% which
was mainly due to its delay for AGM and FY2020 financial report since 12 Apr 2021.
In total, the company has submitted 2 applications for an extension. This also delays
the final dividend payment that is to be approved during AGM. The company has a
poor asset turnover of 1.2x which has been decreasing over the years and is below
the retail industry average of 2.5x. It also has a quick ratio of 0.7x below a healthy
level of 1.
4.3 Overall Performance
The overall portfolio returns of 19.13% have beat the overall market return of 6.56 by
12.57%. Mainly due to the active investment strategy adopted, and the use of
fundamental analysis to buy the stock when the share price is below its intrinsic
value and sell when it reaches. Moreover, due to the eased in Covid19 restriction,
industries heavily impacted have started to recover leading the energy and
construction sector, many underperformed firms in 2020 are booming the investor
with positive earnings announcement that leads to an increase in share prices. Both
UK and Singapore economies show signs of growing in 2021, with the UK having a
GDP of -1.6% in the first quarter followed by a 4.8% grew in the second quarter.
Singapore's economy was observed the opposite, a 3.1% growth in quarter 1 and
contracted 2% in the second quarter but both showing a huge growth for a year-toyear basis.
5. Conclusion
In Conclusion, the Singapore stock market and the London stock market did
examine to be information efficient according to the semi-strong form of EMH,
announcement, and news had an immediate effect on the share prices of the stock.
However, abnormal profit could still be made by taking advantage of the anomalies
such as the post-earnings announcement drift and calendar effect which supports
Lucrezia & Vijay's (2020) research. Noise traders were also observed during these
periods of trade, overreacting to certain news and pushes the share price 2 to 3
times higher. This evidenced the irrational investment decision by the investor during
uncertainties (Lo, 2004). The results from the portfolio return indicate that adopting
an active strategy and the use of fundamental analysis to search for undervalue
stock during an uncertain market environment tends to beat the market index on a
passive strategy. However, this trading strategy has certain limitations, a bigger
sample portfolio size and longer trading period could provide a more significant
result. Moreover, I believed that certain stocks in the portfolio that achieved great
returns are due to luck instead of the strategies adopted, the return might still beat
the market but not by such a significant percentage. All in last, I believed that both
the stock market might be information efficient to EMH and minimal abnormal return
could be obtained during a normal market environment but due to the Covid
pandemic, investors’ behaviour bias in uncertainties has a greater influence.
Appendix I – January report
Monthly Report - JANUARY
January 2021 – Overall market performance for FTSE ST All Share Index and FTSE
100
During the month of January 2021, the FTSE ST All Share index gained 2.2% as
compared to the previous month. A similar trend to 2020 was observed, with the
healthcare sector experiencing the strongest performance, follow by the Technology
and consumer non-cyclical sector.
Source: Ig.com.sg
During the month of January 2021, the FTSE 100 has fell by 0.8% which were
mainly due to the spread of the COVID virus that led to the announcement of the
COVID-19 lockdown in England till 8 March 2021 by UK Prime Minister. The delay of
the vaccine rolls out and the unemployment rate in UK also constitute to the
expectation of a recession in the UK economy.
Source: Care ratings
Stock 1: DCC plc (LSE: DCC)
5 Jan 2021
DCC plc announced its completion in the acquisition of United Propane Gas for its
further expansion into the US liquefied petroleum gas market. Following the
acquisition of UPG, DCC have a business of real scale with a presence in 21 states
(Alliance News, 2021)
DCC plc has a P/E ratio of 18.54x and a price to sales ratio of 0.40x. Considering its
debt ratio of 68%. DCC plc are undervalue.
DECISION: BUY 100 Shares @ GBP 53.86
Stock 2: B&M European Value Retail S.A. (LSE: BME)
7 Jan 2021
B&M European Value Retail announce a £200m special dividend, mainly due to a
surge in its revenue up to 22.5 in its third quarter performance (B&M, 2021).
Moreover, it is also paying extra week wages to its store and distribution worker.
Being an essential goods seller, the company is reported being not affected by the
COVID19 lockdown but a boom during the crisis.
B&M European value has a P/E ratio of 17.83x, below the average of 23.44x for the
past three years. The company also has a good current and total asset turnover of
1.19x and 1.39x respectively.
DECISION: BUY 1000 Shares @ GBP 5.31
Stock 3: China Everbright Water Limited (SGX: U9E)
11 Jan 2021
Hong Kong Science and Technology Parks Corporation and China Everbright
Limited sign a Cooperation Framework agreement to establish the CEL Hong Kong
Innovation Centre in the Hong Kong Science Park on 11 Jan 2021 (HKSTP, 2021).
The CEBIC Centre focusing on fund investment, enterprise incubation, industry
chain introduction and market matching, to drive the development of I&T in Hong
Kong.
China Everbright Water has a low P/E ratio of 4.55 in the utilities industry and was
lower than the average high of 10.02 for the past 3 years. On the same time, its
increasing dividend per share over the years shows a positive future outlook.
DECISION: BUY 42,450 Shares @ SGD 0.2350
China
Everbright
Water
Sembcrop
SIIC
Environment
P/E 2021
4.36
2020
6.07
2019
8.46
2018
15.53
22.24
3.94
15.59
5.1
15.53
7.55
30.71
12.22
www.capitaliq.com
China
Everbright
SIIC
Environment
DPS 2021
0.0104
2020
0.067
2019
0.065
2018
0.049
0.01
0.01
0.01
0.01
www.capitaliq.com
Stock 4: New Silkroutes Group Limited (SGX: BMT)
18 Jan 2021
New Silkroutes Group has entered into an agreement with Huawei International to
develop an artificial intelligence (AI) platform to be used in genomics-driven
healthcare (Sharon,2021). Moreover, the CEO of New Silkroutes also announce its
It has a low Price-to-Sales ratio of 0.03. At the same time, it has a healthy debt ratio
of 30.25% to its low PSR.
DECISION: BUY 127,828 Shares @ SGD 0.078
2020
Revenue (SGD)
499M
Market Cap
16.26M
PSR
0.03
www.capitaliq.com
Stock 5: Aviva plc (LSE: AV.)
21 Jan 2021
Aviva announces its expansion of investment in fintech and insurtech through a new
collaboration with venture capital firm Anthemis that are advancing the digital
transformation of the financial services sector. Due to the covid pandemic digital
transformation would be one of the top trends for the financial service sector for
2021.
Aviva plc has a price to sales ratios of 0.37 in 2021 which was in decreasing trend as
compared to the past few years. On the same time, a high BE/ME ratio of 1.56.
DECISION: BUY 1501 Shares @ GBP 3.495
AVIVA PLC
LTM4 2020
Aviva Plc
PSR 2021
0.35
2020
0.43
www.capitaliq.com
BE per share
ME per share
4.93
3.16
www.capitaliq.com
2019
0.55
BE/ME
1.56
Stock 6: Sinostar PEC Holdings Limited (SGX:C9Q)
25 Jan 2021
LyondellBasell, one of the largest plastics, chemicals and refining companies in the
world has finalised an agreement with Sinostar Pec to form the 50:50 joint venture to
produce propylene oxide (PO) and styrene monomer (SM) in China's domestic
market (LyondellBasell, 2021). China, accounting for more than 60% chemical
demand in Asia and represents 40 percent of global chemical market growth over
the next decade presents a positive prospective for the joint venture.
Sinostar PEC has a High BE/ME ratio of 2.2x in the energy-fossil fuel industry. On
the same time with a low P/E ratio of 3.5x.
DECISION: BUY 64,260 Shares @ SGD 0.1550
LTM4 2020
Hai leck
China Aviation
oil
Sinostar Pec
BE per share
0.56
1.38
0.33
ME per share
0.43
1.02
BE/ME
1.3
1.35
0.15
2.2
www.capitaliq.com
P/E
11.72
10.7
3.5
Stock 7: SBS Transit Ltd (SGX: S61)
25 Jan 2021
Due to the COVID19 pandemic in 2020, there has been a decrease in demand for
public transportation ride. The situation has lifted in 2021 with the decrease in recent
confirm cases and the roll out of vaccination. The Land transport Authority has
announced that the land transport worker has begun to received vaccination on
Monday (25 Jan) for those in the first line and progressively to all other in the coming
month.
Among the companies in the transportation industry, SBS transit has a low P/E
earnings ratio of 13.6x and was below the average high of 14.46x for the past 3
years which were mainly affected by the falling in ridership due to the pandemic.
DECISION: BUY 3,310 Shares @ SGD 3.01
SBS Transit
ComfortDelGro
SIA
Engineering
P/E 2021
13.6
17.21
25.89
2020
13.31
17.01
18.43
www.capitaliq.com
2019
12.1
16.51
13.51
2018
18.53
14.08
20.53
Appendix II – February report
February 2021 – Overall market performance for FTSE ST All Share Index and
FTSE 100
During the month of February, the FTSE ST All Share index has a gain of 1.24%.
Ministry of Trade and Industry forecasted a 4 to 6 percent growth in Singapore’s
GDP for 2021. The unemployment rate has been falling for the second straight
month, and the economy is gradually recovering over the course of the year (See Kit,
2021).
The FTSE 100 index has a 1.18% gain for the month of February 2021. The shares
have jumped as the bond market jitters eased (Wearden, 2021). Moreover, the index
is also driven high by the resurgent housebuilding, mining, technology stocks and
aviation stock with the optimism economic outlook.
Stock 8: IMPERIAL BRANDS PLC (LSE: IMB)
03 Feb 2021
Imperial Brands has a price to sales ratio of 0.83 which falls from 1.55 and 1.13 in
2019 and 2020 respectively. It Price to earnings ratio has drop by near half from the
average of 18.58x for the past 3 year to 9.3x.
Imperial Brands announces its new tobacco-focused Strategy with a 5-year plan and
strategic review on 27 Jan 2021. To focus on priority combustible markets, drive
value from its broader market portfolio and build a targeted next-generation products
(NGP) business (Tobacco reporter, 2021). The share prices have drop by 4.9% with
the announcement, however looking at its P/E and PSR ratio, it would be a good
opportunity to buy in.
DECISION: BUY 380 Shares @ GBP 14.62
Stock 9: GlaxoSmithKline plc (LSE: GSK)
03 Feb 2021
GlaxoSmithKline plc and CureVac N.V. has come into a €150m collaboration to
jointly develop next generation mRNA vaccines for COVID-19 with the potential for a
multi-valent approach to address multiple emerging variants in one vaccine
(GSK,2021). The vaccine is currently in Phase 2b/3 trials and would target to
introduce in 2022 subject to approval.
GlaxoSmithKline plc has a P/E ratio that is below the healthcare industry average
and is falling below its average high for the past three year.
DECISION: BUY 400 Shares @ GBP 12.82
P/E 2021
2020
GLAXOSMITHKLINE 10.74
19.55
PLC
Healthcare industry
20.17
22.49
www.capitaliq.com
2019
39.36
2018
27.94
24.77
44.63
Stock 10: Hargreaves Lansdown plc (LSE: HL.)
22 Feb 2021
Peter Hargreaves, Co-founder of Hargreaves Lansdown plc and currently the biggest
shareholder with a near 24% stake worth almost £1.9 Billion is planning to sell £300
million worth of share (Walmsley, 2021). The share prices are expected to fall and
was a good timing to buy when the share prices rebound.
Hargreaves Lansdown plc’s 2021 P/E was 22.23 which has been falling since the
covid pandemic in 2019 showing it been an undervalued stock that are worth to
invest.
P/E
2021
22.23
2020
2019
30.98
33.73
www.capitaliq.com
2018
36.72
DECISION: BUY 360 Shares @ GBP 15.275
Stock 11: Captii Limited (SGX: AWV)
23 Feb 2021
Captii release its FY2020 preliminary annual report on 23 Feb 21. From the report,
the company is experiencing a net loss of 18.8% as compared to FY2019 which is
mainly due to the COVID pandemic. Despite the overall decrease in earnings, the
company is still able to achieve a positive net income. Moreover, the company has
an 42% increase in its cash flow further add confident for the company to survive
through the pandemic.
DECISION: BUY 29,300 Shares @ SGD 0.3400
Stock 12: CSE Global Limited (SGX:544)
23 Feb 2021
CSE Global announce it earning result for the full year ended 31 December 2020,
achieving a 16.42% increase in net income and a 10.55% increase in its earning per
share on 23 Feb 2021. Moreover, affirming its dividend for 2021.
CSE Global has a price earnings ratio of 9.52x, lowest among its competitor in the
software and IT services industry. Its P/E ratio is also decreasing from one year to
another.
DECISION: BUY 20,150 Shares @ SGD 0.4950
P/E 2021
2020
2019
Azeus
14.6
10.76
6.13
Procurri
21.98
18.07
33.49
CSE Global
9.52
11.08
13.25
www.capitaliq.com
Stock 13: Hotung Investment Holdings Limited (SGX: BLS)
24 Feb 2021
Hotung Investment announced it earning on 24 Feb 2021 for its FY2020
performance. With an 100% increase in sales revenue and a 70% increase in net
income. The positive earnings surprise are expecting to drive the share price
upward.
P/E and BE/ME was a key ratio for the stock valuation of the stocks in the banking
and financial service sector, among the small cap company of the sector, Hotung
investment holding has a high BE/ME ratio together with low P/E ratios showing it
being an undervalue stock.
DECISION: BUY 5,850 Shares @ SGD 1.7100
LTM4 2020
Spura Finance
Sing Investment
Hotung Investment
Value Max
Spura Finance
Sing
Investment
Hotung
Investment
Value Max
BE per share
1.6
2.46
3.15
0.43
ME per share
0.81
1.22
1.46
0.31
BE/ME
1.97
2.02
2.16
1.38
P/E 2021
36.98
11.63
2020
15.91
10.6
2019
26.94
9.93
2018
23.33
11.73
7.3
10.53
10.05
11.55
7.06
7.36
7.41
www.capitaliq.com
8.77
Stock 14: Coca-Cola HBC AG (LSE: CCH)
24 Feb 2021
Coca-Cola HBC entered into a share and purchase agreement to acquire 50% stake
in Stockday S.R.L. from Heineken Romania SA on February 24, 2021. Coca-Cola
company has also announcement the redesign of its distribution partnership in Brazil
with Heineken to allow both parties to explore further opportunity in both alcoholic
and non-alcoholic segment (Reuters, 2021).
Coca cola HBC has a low P/E of 20.85 in 2021 which was below the industry
average of 29.72. Furthermore, the P/E ratio is also below the average of 25.13 for
the past 3 years.
DECISION: BUY 250 Shares @ GBP 22.94
P/E 2021
Coca cola HBC 20.85
AG
Soft drink
29.72
industry
2020
27.04
2019
23.52
2018
25.01
23.34
19.91
23.63
www.capitaliq.com
Stock 15: St. James's Place plc (LSE: STJ)
25 Feb 2021
On 25 Feb 2021, St. James's Place plc release it FY2020 result with a 78% increase
in net income (Capitaliq, 2021). Moreover, the company managed to notch up
£2.3bn of net inflows during the final three months of 2020 where the overall
economy is in a downside.
St. James's Place plc has a P/E ratio of 22.49x in 2021, which was nearly half from it
average high of 41.22 for the past 3 years. It also has a price to sales ratio of 0.86x.
DECISION: BUY 460 Shares @ GBP 12.155
Stock 16: Mewah International Inc. (SGX:MV4)
26 Feb 2021
Mewah international announced it earning on 26 Feb 2021 with a 600% increase
compared to FY2019, showing a positive performance disregard the COVID
pandemic. Its total revenue reported for the FY2020 was 4,576.5M SGD. Its market
cap was 517M SGD. It Price-to-sales ratio was 0.11x. Moreover, its debt ratio is only
22.02% in respect to the low PSR.
DECISION: BUY 28,900 Shares @ SGD 0.3450
Appendix III – March report
March 2021 – Overall market performance for FTSE ST All Share Index and FTSE
100
The FTSE ST All Share Index has rises by 6.76% for the month of March 2021.
Securities market turnover and Securities daily average value has rose robustly for
the month (SGX, 2021).
During the month of March 2021, FTSE 100 index has a gained of 3.55%. With a big
chunk of pandemic restriction lifted on the non-essential businesses, the UK
construction is booming at six-year highs (Jasper, 2021).
Stock 17: Hikma Pharmaceuticals PLC (LSE: HIK)
11 Mar 2021
On 11 March 2021, Hikma Pharmaceuticals has cancelled the acquisition of
GlaxoSmithKline S.A.E that was announced on end January 2021 (Hikma,2021).
With this announcement, Hikma’s share price has drop by 1.1%. Looking at its
earning result release on end February, the company has a strong performance
growth in 2020.
Hikma Pharmaceuticals PLC has a P/E ratio of 14.07x which is falling comparing to
its previous year. Moreover, the company has an increasing DPS over the years.
DECISION: BUY 250 Shares @ GBP 22.31
HIKMA
PHARMACEUTICALS
PLC
P/E 2021
14.07
2020
15.94
2019
19.6
2018
18.2
www.capitaliq.com
Stock 18: Tye Soon Limited (SGX: BFU)
22 Mar 2021
Bapcor Limited entered into an agreement to acquire 25% stake in Tye Soon Limited
for SGD 12.5 million on March 19, 2021. It is expecting to have a refresh of the
board and the new director were to be nominated by the purchaser. As the target
company of a M&A, the share price is expected to raise.
Tye Soon Limited possess a higher BE/ME ratio comparing to its competitor in the
automobile and parts industry of 6.9x and P/E ratio of 8.57 which was falling due to
the covid pandemic showing it been an undervalue stock.
DECISION: BUY 39,840 Shares @ SGD 0.25
LTM4 2020
Tye Soon
YHI Int Ltd
Stamford Tyres
BV per share
MV per share
0.62
0.09
0.95
0.38
0.49
0.2
www.capitaliq.com
BE/ME
6.9
2.5
2.3
Stock 19: The Sage Group plc (LSE: SGE)
24 March 2021
The Sage Group has launched its new product, the cloud-first Sage Data & Analytics
service integration in Canada and the U.S. for Sage 300 and Sage 100. A powerful
business intelligence (BI) toolkit with AI and machine learning capabilities (Sage,
2021). Further adding competitive advantage in the business management software
market.
The Sage Group has a P/E ratio of 20.95x, it is below the average 28.34x for the
past 3 years and far below the industry average of 140x.
DECISION: BUY 939 Shares @ GBP 6.014
Stock 20: Zhongmin Baihui Retail Group Ltd. (SGX:5SR)
26 Mar 2021
Zhongmin Baihui Retail announced an expansion of a new store in Quanzhou City,
Fujian Province on 26th March 2021. Together with positive earnings announcement
in the early March, the company shows confident in overcoming the covid pandemic.
Moreover, the China economy is in a fast-growing trend and is recovering well from
the COVID pandemic.
Zhongmin Baihui is having a Price-to-sales ratio below 1 and being falling from one
year to another. Moreover, its total debt for the company was 307M, a healthy level
to its 1092M total asset.
DECISION: BUY 12,297 Shares @ SGD 0.81
Cortina
Zhongmin
MDR Limited
PSR 2021
0.81
0.55
0.26
2020
0.53
0.73
0.2
www.capitaliq.com
2019
0.35
0.85
0.07
Appendix IV – July report
July 2021 – Overall market performance for FTSE ST All Share Index and FTSE 100
The FTSE 100 index has fall by 0.07% for the month ended July 2021. Mainly due to
the rising coronavirus infection global that are affecting the economic growth and the
concern for rising inflation rate that led to a risk aversion amount investor (Reuters,
2021).
The FTSE ST ALL SHARE INDEX has increase by 1.12% for the month ended July
2021, with the energy sector leading, follow by the Technology Sector.
Stock 12: CSE Global Limited (SGX:544)
26 Jul 2021
CSE Global announced a S$104m secure in new orders for 2Q2011 on 26 Jul 2021.
However, the order intake has decrease by 13.9% and 8.11% comparing to the
1Q2021 and 2Q2020 respectively (CSE Global, 2021). Moreover, the company will
release its 2021 half year earning on 11 August 2021 and expecting the share price
to fall by then.
Decision: SELL 20,150 Shares @ SGD 0.5100
Stock 2: B&M European Value Retail S.A. (LSE: BME)
27 Jul 2021
At end July, The RPC Capital market has downgraded B&M European Value stock
from sector outperform to sector perform when the prices reach its target of 575p
(Michele. 2021).
Decision: SELL 1000 Shares @ GBP 5.582
Stock 8: IMPERIAL BRANDS PLC (LSE: IMB)
27 Jul 2021
The World Health Organisation has called for a greater regulation of smoke-free
devices containing nicotine on 27 July 2021. WHO critics that the tobacco industry is
promoting e-cigarette through sleek product design, social media influencers and
flavours that is attracting to youngsters leading to tobacco addiction
(Stephanie,2021).
Decision: SELL 380 Shares @ GBP 15.525
Stock 15: St. James's Place plc (LSE: STJ)
28 Jul 2021
St. James's Place plc announced its 2021 half year earnings result on 28 Jul 2021,
based on its half year performance there was a sharp increase in its share price,
together a 10x increases in its P/E ratio to the current 42.76 which is above it
average high of 40.23x for the past three years.
Decision: SELL 400 Shares @ GBP 14.064
Stock 9: GlaxoSmithKline plc (LSE: GSK)
29 Jul 2021
GlaxoSmithKline plc announcement its half year earnings for 2021 on 29 July 2021,
a 35.5% decline in net income is observed (Capitaliq, 2021). Together with its
product announcements, the share price has moves up and this would be a good
time to sell.
Decision: SELL 360 Shares @ GBP 16.385
Stock 10: Hargreaves Lansdown plc (LSE: HL.)
29 Jul 2021
On 29 Jul 2021, Hargreaves Lansdown plc announced a change in its Chief
Financial Officer stating a step down for its personal reason and currently the
successor of the role is still unclear (Maria, 2021).
Decision: SELL 460 Shares @ GBP 15.925
Stock 20: Zhongmin Baihui Retail Group Ltd. (SGX:5SR)
Zhongmin Baihui Retail Group announced a huge executive and board change in its
annual meeting on 29 Jul 2021. Including the retirement of two director and the reelection of the new directors. The huge change in board may not be an good news
especially in the current unpredictable covid pandemic business environment.
Decision: SELL 12,297 Shares @ SGD 0.6950
Appendix V – August report
August 2021 – Overall market performance for FTSE ST All Share Index and FTSE
100
FTSE 100 reports a 1.3% gain compared to end July 2021 supported optimism about
a faster economic recovery. Mainly constitute by a 3% and 1.4% increase in oil and
base metal miner stocks respectively.
FTSE ST All Share Index has risen by 0.4% since the month ended July 2021.
Singapore has open restriction for certain activities for the vaccinated peoples which
drives the share price up.
3 August 2021
Stock 1: DCC plc (LSE: DCC)
DCC plc’s P/E ratio still falls below the average high of the past three years.
Decision: SELL 100 Shares @ GBP 60.08
Stock 3: China Everbright Water Limited (SGX: U9E)
China Everbright Water Limited announces its payment of interest for the Second
Tranche Corporate Bonds on the Shanghai Stock Exchange. The company would
have two interest payment with the principal amount of RMB1,000,000,000 and
RMB400,000,000 at a rate of 3.6% and 4.58% respectively. It would be a negative
impact to the company’s cash flow especially in this unpredictable covid situation.
Decision: SELL 42,450 Shares @ SGD 0.2350
Stock 4: New Silkroutes Group Limited (SGX: BMT)
New Silkroutes’s price to sales ratio is in an increasing trend raising from 0.03x to
the current 0.04x, closing to its average high of 0.06x.
Decision: SELL 127,828 Shares @ SGD 0.1010
Stock 5: Aviva plc (LSE: AV.)
Aviva plc’s P/E ratio was currently 8.16x which was bounding back rapidly in the year
of 2021 and is slowly reaching the 10.18x of the pre-pandemic level.
Decision: SELL 1501 Shares @ GBP 3.902
Stock 6: Sinostar PEC Holdings Limited (SGX:C9Q)
Sinostar PEC Holdings’s PSR ratio was currently 0.35x exceeding its past year
average of 0.2x. Thus, it was time to sell the stock.
Decision: SELL 64,260 Shares @ SGD 0.3750
Stock 7: SBS Transit Ltd (SGX: S61)
Due to an increased in confirmed cases in Singapore, it has announced the again
tighten restrictions returning to Phase 2 (Heightened Alert) till 18 Aug (Jalelah,
2021). The restriction for dinning in and gathering would heavily impact the
company. SBS transit’s share price is falling and expected to continue.
Decision: SELL 3,310 Shares @ SGD 2.9800
Stock 11: Captii Limited (SGX: AWV)
Captii Limited has a PSR ratio of 0.58x which is in a raising trend over the month of
2021 and is currently above the average high of 0.51 for the past three years. This
indicates the time to sell the stock.
Decision: SELL 29,300 Shares @ SGD 0.4000
Stock 13: Hotung Investment Holdings Limited (SGX: BLS)
From the recent quarterly result of the Singapore banks, we could see a slowdown in
growth in the banking and investment service sector in Singapore. A strong
performance follow by a fall in the second quarter (Anshuman, 2021).
Decision: SELL 5,850 Shares @ SGD 1.7700
Stock 14: Coca-Cola HBC AG (LSE: CCH)
Coca-Cola HBC AG’s P/E ratio has reaches the current 27.09x which is above the
average high of 25.19x and should consider selling it.
Decision: SELL 250 Shares @ GBP 27.67
Stock 16: Mewah International Inc. (SGX:MV4)
Mewah international Inc currently has a PSR of 0.13x, above its average high of 0.1x
for the past three years.
Decision: SELL 28,900 Shares @ SGD 0.4050
Stock 17: Hikma Pharmaceuticals PLC (LSE: HIK)
Hikma Pharmaceuticals’s P/E ratio has reaches the current 20.28x which is above
the average high of 17.91. Moreover, the company is going to release its interim
financial results for the six months ended 30 June 2021 on Friday 6 August 2021,
looking at the performance of its competitor healthcare industry, the share price is
expected to drop on the announcement.
Decision: SELL 250 Shares @ GBP 26.90
Stock 18: Tye Soon Limited (SGX:BFU)
Tye Soon Limited currently has a PSR of 0.17x, above its average high of 0.07x for
the past three years.
Decision: SELL 39,840 Shares @ SGD 0.3800
Stock 19: The Sage Group plc (LSE: SGE)
The Sage Group plc announced its 2021 half year earnings result on the 29 Jul
2021, a 2.5% increase in total revenue and a 4.9% increase in recurring revenue.
The share prices together with the its P/E ratio has risen. Its current P/E ratio was
34.09x, above the average high of 28.34x.
Decision: SELL 939 Shares @ GBP 7.134
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