Generalizing S-Chips?

With the recent fiasco with 2 S-Chips listed on the SGX, namely, China Hongxing and Hongwei Technologies and their accounting irregularities in their financials, I think many now have nodded their heads in agreement in general that S-Chips are indeed unreliable and dangerous to invest in.

However, looking at the current S-Chips in my portfolio, namely JES International and Fuxing China Group, I think that the stereotype of S-Chips being poorly run and managed is unfair to these well performing S-Chips.
JES International and Fuxing recently posted good results for their FY10, with Fuxing continuing the policy of declaring dividends. Fuxing declared a 0.02 CNY dividend for FY10 even though they are in the midst of acquiring 3 companies for their horizontal expansion. JES reversed a loss in FY09 to post a better than expected  profit and currently have a huge orderbook worth 1.6billion which would keep JES's shipyard busy for the next 2 years as explained by their CEO Jin Xin.

I am optimistic of both companies growth in the years to come and if you have missed taking a position on JES when the Libya unrest caused the STI to fall for the past 2 weeks, the price now at 31 cents still represent a good opportunity to enter. Fuxing on the other hand has been holding steady at 16.5/17 cents since the start of the year. With continued good results and dividends, both companies share prices look good to rise with the investors' increased confidence when they are announced.

Pending IPOs

October went by with at least 8 IPOs. Well it's just going to get better isn't it. Mewah and SabanaREIT's both seeking to list on the SGX in time to come. Both of these IPOs will definitely interest most investors.  


For Mewah, its looking to list at a price of $1.25 to $1.55, with about 35million shares issued to the general public for ballot. With the recent price increases in commodities, I think Mewah will be well oversubscribed come the IPO date.
For more, go to http://www.reuters.com/article/idUSTRE6642OB20100705


SabanaREIT's REIT manager forecasts a distribution yield of about 8.02% for next year and 8.05% for year 2012 as written in the Business Times (or 8.45%  for next year and 8.48% for 2012" written in the Straits Times). The REIT will be priced between $1 to $1.10. Apparently this REIT holds some $850 million worth of 15 industrial properties in Singapore, making it the world's largest Reit by asset value. One thing worth noting, Freight Links Express Holdings has a 51% stake in the Sabana Investment Partners. Will it rise when Sabana successfully lists on the SGX? Well, Freight Links rose from 5 cents to about 9 cents in the past month.
For more, go to http://www.businesstimes.com.sg/sub/news/story/0,4574,412539,00.html?
                            http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_601475.html


Also, Fuxing yesterday announced better than expected results, a 129% net profit growth to 22.7million. Hoping for a good dividend come 4th quarter results!