AZURE CAPITAL: Our stock picks for 2H2019 are ...

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

CONSTRUCTION

• Sector has seen very challenging times

• But it is countercyclical; govt will step in

• Also election period will see more tenders

• Integrated resorts

→ Yongnam

Manufacturing Manufacturing output contracts for the first time since 2017 at the start of 2019 and it continued to be down in May 2019 • Largely due to trade war • Now that US and China are back on the table ….

→ Fu Yu Corporation • One of the largest plastic manufacturer in Singapore • Mgmt has turned the ship around • In the early turnaround years, it was all cost cutting; but revenue is now perking up • Cash generating machine • Strong   → Innotek Innotek CEO Lou Yiliang• Serves the consumer electronics, office automation and automotive industries • Products used in printers, copiers, TVs and cars • Restructuring efforts have paid off since 2016 • Trading at 5x trailing PE

 
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.