Thursday, November 27, 2014

UAE Day 1 part 1 - Dubai

13-Nov - After a tiring midnight flight from Singapore, we landed safely in Dubai just in time to catch the sun rise. ^_^ Sleepy.... Lucky for us, this is the start of the cooler season for UAE. Temperature will typically range in the high twenties to low thirties instead of the burning forties just a few week ago!

Sun Rise in Dubai 

 The clock tower near our hotel

However, there is no time for us to rest as immediately, we are off to our desert camel farm visiting, sand biking and sand wakeboarding tour!

The desert falcon at the farm site

 First time experience with desert sand, which feels just like smooth silk

Our 4 x 4 bikes to roam the desert sands 

 Camels on the desert farm

The chosen ones who will be giving us a ride across the desert.

Sunday, September 07, 2014

K:Missing Kings

Synopsis: The “Academy Island Incident” in which all four “kings” cross paths... Since then, Silver Clansmen Kuroh Yatogami and Neko have been searching for their master, Shiro. Without finding any clues to Shiro's whereabouts, the two became disheartened. However, one day, they see HOMRA members Rikio Kamamoto and Anna Kushina being chased by someone. [Source: Cathay Cineplexes]


Finally, a movie to continue the story where the anime left off. However, the first 30 minutes is really uncalled for as it just show a summary of what happens from the anime. Nonetheless, an interesting new clan has emerged. This new clan, known as the "green" jungle has unique abilities that can be quite handful. The Red King which was killed in the anime has now been replaced. One thing that I am unhappy about this movie is that there was no formal ending. The author has took the trouble to introduce the green clan, but left a lot of questions unanswered. This left me thinking there will definitely be a part two to this movie.

Rate: 7/10

Sunday, August 17, 2014

Marvels Guardians of the Galaxy

Synopsis: Marvel's “Guardians of the Galaxy” expands the Marvel Cinematic Universe into the cosmos, where brash adventurer Peter Quill finds himself the object of an unrelenting bounty hunt after stealing a mysterious orb coveted by Ronan, a powerful villain with ambitions that threaten the entire universe. To evade the ever-persistent Ronan, Quill is forced into an uneasy truce with a quartet of disparate misfits—Rocket, a gun-toting raccoon, Groot, a tree-like humanoid, the deadly and enigmatic Gamora and the revenge-driven Drax the Destroyer. But when Quill discovers the true power of the orb and the menace it poses to the cosmos, he must do his best to rally his ragtag rivals for a last, desperate stand—with the galaxy's fate in the balance. [Source: Cathay Cineplexes]

One word: Nonsense. The misfit team of the guardians took the Marvel's movie to a whole "new" level. There are no big heroes with supernatural powers, the theme of the movie is barely acceptable at best, and anything goes in the movie. Don't expect too much from the usual normal Marvel's franchise. If you are in search of something to have a good laugh with over the weekend, this might just be the movie for you.

Rate: 6/10

Sunday, August 10, 2014

Japfa Ltd

Short Summary:
Japfa is a leading agri-food company that produces multiple protein foods, with operations in five high growth emerging Asian markets. Japfa has, over 40 years, developed core competencies across the agri-food value chain, including animal feed production, animal breeding, livestock fattening and consumer food. Japfa is a market leader across multiple classes of protein foods, with an emphasis on milk, poultry and beef, complemented by growing businesses in swine and aquaculture.

The Deal:
Offering Price: S$0.80
The Offering: 248,000,000 Shares (Include 16,800,000 Offering Shares to Singapore Public)
Cornerstone Investors:
928,368,240 (52.61%) Rangi Management Limited.
282,527,085 (16.01%) Morze International Limited.
Forecast Dividend Yield:
2014: 0.00%
2015: 0.00%
2016: 0.00%
*Based on issue price of $0.80, 1,764,670,391 units after IPO.
Dividend Policy:
We do not have a fixed dividend policy. Our Company will pay dividends, if any, out of our profits as permitted under Singapore law. Dividends will be declared and paid in Singapore dollars. The Board of Directors of our Company has discretion to recommend payment of dividends. Any profits our Company declares as dividends will not be available to be reinvested in our operations. We cannot assure you that our Company will declare or pay any dividends, and you should not anticipate receiving dividends with respect to Shares that you purchase and/or subscribe in the Offering.
- Our industrialized approach to agri-food production and our vertical integration drive our leadership positions and growth strategies.
- We operate in five large, high-growth emerging Asian markets where protein consumption is low and expected to increase.
- We operate our business in multiple protein segments with leading market positions.
- We have established a leading premium dairy business in China and Indonesia, which is poised for substantial growth.
- We have created leading downstream consumer food brands, which we expect to be a key driver for future growth.
Future Strategy
- Expand our dairy business in China through the continued replication of our successful business model.
- Continue to grow and enhance the profitability of our core poultry business in Indonesia.
- Expand our animal protein business in our target markets.
- Build on our high-growth consumer food brands.
- Outbreaks of livestock diseases could have a material adverse effect on our business, financial condition and results of operations.
- Operate one dairy farm in Indonesia which supplies all of the premium raw milk used as the raw material for the dairy products produced under our “Greenfields” brand. Any outbreak of cattle disease at this farm or any other stoppage of operations at this farm could materially and adversely affect our business, financial condition and/or results of operations.
- Exchange rate fluctuations and exchange controls and policies may materially adversely affect our business, financial condition, results of operations and/or prospects and the foreign currency value of our Shares and any future dividend distributions.
- Our business is dependent upon the price and availability of corn and other feed raw materials.
- We have been and could in the future be subject to restrictive governmental measures, such as price or volume controls.
- Dongying Japfa (in respect of the beef feedlot in the PRC) has not submitted its environmental impact assessment report. Dongying Japfa had commenced construction at the beef feedlot prior to obtaining approval for its environmental impact assessment reports. Four dairy farms and the beef feedlot began operations prior to obtaining all necessary approvals and opinions. Under the relevant regulations, the competent authorities may order us to suspend our production and may also impose penalties of up to RMB100,000 per farm or feedlot for commencing operations without undergoing inspections. Pollution discharge permits have also not been applied for and under the relevant regulations, orders may be made for corrective measures to be undertaken within a specified time limit and for a fine of up to RMB50,000 per farm or feedlot. (My opinion: High risk as they are in violation of PRC regulation)
- As at the Latest Practicable Date, 42 of the 64 swine and poultry farms operated by Japfa Comfeed Vietnam Limited Company (“JCVN”), Japfa Comfeed Long An Limited Company (“JCLA”) and Japfa Comfeed Binh Thuan Limited Company (“JCBT”) have been leased from lessors who, in breach of their obligations under the respective leases, have not obtained all environmental licenses and permissions necessary for these farming activities. In addition, JCLA’s feedmill has not obtained a license to discharge waste. The lack of such licenses and permissions may result in a suspension of the operations of the said farms. (My opinion: High risk as they are in violation of Vietnam regulation)
- The investment certificates of JCVN, JCLA and JCBT have not been updated to reflect the expanded scope of business of these companies. The authorities also have the power to require JCVN, JCLA and/or JCBT to cease such non-compliance, which may result in these farm leases being terminated, resulting in a material adverse effect on our business, financial condition, results of operations and/or prospects. (My opinion: High risk as they are in violation of Vietnam regulation)
- Our dairy business is influenced by a number of factors, some of which are beyond our control.
- High gearing of 50.45%
Finally, something different on the Singapore IPO list other than the usual REITS, Business Trust and O&G related companies. In this entry, we are looking at an IPO company headquartered in Singapore doing agri-food related activities that has control of its operation all the way from up-stream of food sourcing and breeding to the down-stream of final product food processing. Personally, I do not like this kind of business as their profitability are subject to the home country Forex exchange, outbreak of disease and government policy, which are usually extremely volatile and something that's beyond the company control. A deeper look at the prospectus reveals that the company regulatory compliance portion are very lacking and I am extremely concern and not comfortable with that. The company operations are big and "IF" the government strikes....I do not dare to think further. Outbreak of disease is also another issue. A huge part of the company operation is based in Indonesia. If an animal disease should strike there, the company will suffer significant loss. Lastly, not to mention that this year, the profit has dipped even though their revenue has increased, which I suspected partly is due to the increase in cost out-stripping the increase in revenue. Bearing all these, I will be staying far far away from this IPO. I do not want to deal with a company that has a huge potential regulatory issue with the government.
Some useful information:
[08 Aug 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[13 Aug 2014], [12,00 p.m.] : Closing date and time for the Public Offer.
[14 Aug 2014]: Balloting of applications under the Public Offer, if necessary.
[15 Aug 2014], [9,00 a.m.]: Commence trading on a “ready” basis.
Rating for investment: 0.0/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment.

Saturday, August 09, 2014

IREIT Global

Short Summary:IREIT is a Singapore real estate investment trust (“REIT”) established with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office purposes, as well as real estate-related assets. With an initial portfolio of four properties in Germany (the “IPO Portfolio”), IREIT is expected to have an initial primary focus on Germany and the United Kingdom.

The Deal:
Offering Price: S$0.88
The Offering: 167,733,000 Shares (Include 11,360,000 Offering Shares to Singapore Public)
Cornerstone Investors:
240,243,000 (57.3%) Mr Tong Jinquan and Summit SPV.
79,675,000 (19.0%) Mr Lim Chap Huat.
Forecast Dividend Yield:
2014: 3.78%
2015: 8.00%
2016: 8.00%
*Based on issue price of $0.88, 419,337,000 units after IPO.
Dividend Policy:
Distributions from IREIT to Unitholders will be computed based on 100.0% of IREIT’s Annual Distributable Income for the period from the Listing Date to the end of Projection Year 2016. Thereafter, IREIT will distribute at least 90.0% of its Annual Distributable Income on a semi-annual basis. The first distribution, which will be in respect of the period from the Listing Date to 31 December 2014 (“First Distribution”), will be paid by the Manager on or before 31 March 2015.
- First SGX-ST listed office REIT with an investment mandate solely focused on Europe, with an initial four portfolio of properties in Germany
- The four properties are strategically located key German cities (Bonn, Darmstadt, Munster, Munich)
- Recently built or refurbished high quality assets with freehold land titles
- Strong tenants anchored by a wholly-owned subsidiary of Deutsche Telekom with long-term leases and potential rental uplift
- Stable and growing distributions
- Platform for robust growth through active acquisition strategy
- IREIT is reliant on the three properties leased to GMG for a substantial portion of its Net Property Income.
- IREIT is subject to the risk of non-renewal and non-replacement of leases, and the loss of anchor tenants or a significant number of tenants of any of the Properties, or a downturn in the businesses of anchor tenants or a significant number of tenants, could have an adverse effect on the business, financial condition and results of operations of IREIT.
- The potential increase in rental income pursuant to rent adjustment clauses for certain of the leases may not eventuate if the CPI does not cross the relevant prescribed hurdles, or the rental income may be adjusted downward if the CPI crosses the lower prescribed hurdle.
- Gearing of 30.58%
Looks like Singapore is becoming a market for more interesting IPOs. First with the Japanese Golf Trust with prospect that's not really good (my analysis here), resulting in the share tanking during the first day of trading. And now, we have an IPO with properties in Germany. This time though, I feel this IPO is worth the shot for an investment. Germany has always been the crown jewel of Europe. Its industry are mature and the properties on offer are all relatively new and looks refreshing, hence justifying the increase in rental gradually. The only point I do not like is the rental increase / decrease peg to Germany CPI. Luckily, right now, Europe is gradually coming out of its downturn and I don't really foresee something bad to happen to the economy in the next 1 year. On a bright side, Euro should be recovering with the economy becoming better, so that's a plus as well for the IPO. However, I hope the tit-for-tat political issue on-going with Russia over Ukraine will not drag on further as this will ultimately have an impact on the Europe economy in the long run. Overall, I feel this IPO is good and I will be participating in the public trench.
Some useful information:
[05 Aug 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[11 Aug 2014], [12,00 p.m.] : Closing date and time for the Public Offer.
[12 Aug 2014]: Balloting of applications under the Public Offer, if necessary.
[13 Aug 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
Rating for investment: 7.5/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment.

Detective Conan: Dimensional Sniper

Synopsis: Shuichi Akai is targeted by a mysterious sniper and Masumi Sera is shot. Tokyo is in panic, citizens are taken in the shooting of a sniper. Nothing is known about him. Why was Sera targeted? Will Akai survive from this? Jodie Starling and Subaru Okiya are also in this one. Will Conan be able to find and apprehend the culprit? [Source: Cathay Cineplexes]

The 18th movie for detective Conan. I applaud the movie team for their faithfulness and consistency in releasing one movie per year for 18 years running. Like the typical Conan anime, this little boy went about solving crimes and apprehending the culprits as murder seems to follow him wherever he went. At the end of the day, he will manage to solve the crime and bring the bad guys to justice. A relaxing movie to catch for the weekend.

Rate: 6.5/10

Sunday, July 27, 2014

Jersey Boys

Synopsis: The film tells the story of four young men from the wrong side of the tracks in New Jersey who came together to form the iconic 1960s rock group The Four Seasons. The story of their trials and triumphs are accompanied by the songs that influenced a generation, including “Sherry,” “Big Girls Don’t Cry,” “Walk Like a Man,” “Dawn,” “Rag Doll,” “Bye Bye Baby,” “Who Loves You,” and many more. [Source: Cathay Cineplexes]

Nice vocals and get ready to immerse yourself in the music of The Four Seasons! The movie tells the story of the entire life journey of the band, from its rise to eventually its fall. It also showcases hits from the band that are still very well known today. Not a bad movie to catch for the long weekend holiday.

Rate: 7/10

Thursday, July 24, 2014

Accordia Golf Trust

Short Summary:
AG Trust is the first business trust comprising investments in golf course assets in Japan to be listed on the SGX-ST. The Trustee-Manager’s key objectives are to invest in golf courses, driving ranges and golf course related assets that are able to generate long-term, stable cash flows, while paying continuous distributions to Unitholders and maximising long-term investment returns of Unitholders by generating long-term capital value growth through future acquisitions. AG Trust’s initial portfolio (the “Initial Portfolio”) will comprise 89 golf courses (including the golf course related assets relating to such golf courses) located across Japan (the “Initial Portfolio Golf Courses”), with 86.4% of the Initial Portfolio Golf Courses, based on their appraised values as at 30 September 2013, located in the three largest metropolitan areas in Japan, namely, the Greater Tokyo Region, the Greater Nagoya Region and the Greater Osaka Region.

The Deal:
Offering Price: S$0.97 - $1.00
The Offering: 782,025,000 Shares (Include 41,163,000 Offering Shares to Singapore Public)
Cornerstone Investors:
275,880,000 (25%) Accordia Golf Co., Ltd.
Forecast Dividend Yield:
2015: 9.10% (Including non-recurring items from restructuring)
2016: 7.00% (Excluding non-recurring items from restructuring)
*Based on issue price of $0.97, 1,099,122,000 units after IPO.
Dividend Policy:
AG Trust has adopted the following policy in respect of distributions to be made to Unitholders out of Distributable Income:
(i) in respect of Forecast Year 2015, the Trustee-Manager shall make distributions of 100.0% of Distributable Income to Unitholders; and
(ii) in respect of FY2016 onwards, the Trustee-Manager shall make distributions of at least 90.0% of Distributable Income to Unitholders.
AG Trust will make distributions to Unitholders on a semi-annual basis, with the amount calculated as at 31 March and 30 September each year for the six-month period ending on each of the said dates
- A unique opportunity to invest in the first SGX-ST listed business trust with an initial portfolio comprising golf course assets located in Japan
- Access and exposure to the golf course industry in Japan
- Quality initial portfolio of golf courses to provide stable and attractive yield
- Strong growth opportunities
- Sponsor’s comprehensive support under the Sponsor Support Agreement
- The financial performance of AG Trust is dependent on the condition and outlook of the golf course and golf course related industries, which are in turn susceptible to cyclicality and other factors outside the control of AG Trust or the Trustee-Manager
- Future acquisition of golf courses by AG Trust (through New SPC or otherwise) may not provide the anticipated benefits and may ultimately fail
- New SPC and/or AG Trust may not be able to divest under performing golf courses on a timely basis and on acceptable terms in order to optimize its portfolio
- The performance, commercial viability and profitability of the Initial Portfolio Golf Courses are or will be dependent upon weather conditions and seasonality factors
- Further decline in the golfing population in Japan may adversely and materially affect the golf course business and operations of AG Trust
- AG Trust’s business is subject to fluctuations in Japan’s overall demographics and economic environment
- Average gearing of 35%

An interesting business trust IPO that sells golf courses to retail investors. On the whole, the yield by itself doesn't look particularly attractive. With recurring yield forecast at 7.0%, I can easily get better deals elsewhere. Personally, I do not agree with some of the strengths that the sponsor is promoting. For example "Strong growth opportunities" that is mentioned in the prospectus, does it really have "strong growth" opportunities? In the information disclosed, the sponsor has put in the below graphs:

As we can see, the total number of golfers is on a downward trend even though Japan's population are aging. With the overall reduction in golfers, how is it possible for the trust to sustain strong growth opportunities?

Golf revenues, like what the prospectus has indicated, are highly cyclical. Since the financial crisis hit in 2009, golfing industry has drastically declined and has yet to recover to the pre-crisis level. From the trend, it looks unlikely that the trust will be able to deliver stellar results in the coming few years. Given the available information, I will give this IPO a miss.
Some useful information:
[21 Jul 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[24 Jul 2014], [4,00 p.m.] : Closing date and time for the Public Offer.
[25 Jul 2014]: Balloting of applications under the Public Offer, if necessary.
[01 Aug 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
Rating for investment: 1.5/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment.