Terence Wong, CEO of Azure Capital, recently presented his stock picks for 2H2019 at The Edge Singapore's mid-year investment outlook event. We publish, with permission, excerpts from his slide presentation.
Terence Wong, CFA, CEO of Azure Capital. Photo: Azure CapitalSectors to watch:
• Property
• Construction
• Manufacturing
• Services
PROPERTY
• Few positives emerging
• Interest rates
• More buyers coming out
• Expected to boost the economy
• Supply side
• Government Land Sales (GLS) very muted
• 2H19: 6,430 private residential units
• Lowest since 1H07
• Full year of 12,905 units – lowest since 2006
• Supply largely from the last en-boc boom in 2017
→ Sing Holdings
| • Sing Holdings is one of the niche developers in town • Has one of the fattest margins • Parc Bottania is already 85% sold • Propensity to dish out special dividends after its projects complete in FY13, FY14, FY16 and FY17 |
CONSTRUCTION
• Sector has seen very challenging times
• But it is countercyclical; govt will step in
• Also election period will see more tenders
• Integrated resorts
| • Marina Bay Sands ~ S$8b • Resorts World Sentosa ~ S$6.6b |
→ Yongnam
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Manufacturing • Largely due to trade war |
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→ Fu Yu Corporation
→ Innotek
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Three stocks highlighted above -- Sing Holdings, Fu Yu and Innotek -- have been featured at various times on NextInsight. You can do a search, for more information.
