Tuesday, January 7, 2014

INVESTMENT: 5 ASEAN Stock To Consider In 2014

ASEAN is an organization of countries in southeast Asia set up to promote cultural, economic and political development in the region. ASEAN was officially formed in 1967 with the signing of the Bangkok Declaration.

The original five members included Indonesia, Malaysia, Philippines, Singapore, and Thailand. Since its formation, ASEAN has been growing slowly, and more countries in the region have gained membership. Through co-operation the goal of the organization is to increase the welfare of the people in the region, both economically and culturally. http://www.investopedia.com

Personal Money, magazine on managing your finances, in January 2014 issue have listed 5 ASEAN stock picks(Value Buy).

1. Semen Indonesia

Semen Indonesia, formerly known as Semen Gresik, is the largest cement producing company in Indonesia with an annual cement producing capacity of 29 million tonnes in 2012. Wikipedia

Cement company PT Semen Indonesia said it needed Rp 6 trillion (US$ 508.9 million) capital expenditure (capex) for expansion in 2014.

Its estimated dividend yield of 2013 is 3.2%.

The company’s president director Dwi Soetjipto said that it had between Rp 4 trillion and Rp 5 trillion.

“The available capex currently does not include expansion plans in Myanmar and Bangladesh. To do that, we need a total of Rp 6 trillion,” Dwi said as quoted by Kontan.co.id.

He added that the company would seek external financing to meet its capex target in 2014. - http://www.thejakartapost.com/

2. Charoen Pokphand Foods

Charoen Pokphand Foods Public Company Limited is Thailand's largest agribusiness firm. It is a publicly traded subsidiary of the Charoen Pokphand Group. Wikipedia

The company plans to invest 50 billion baht ($1.6 billion) during 2014-2016 to expand the capacity of its feed, farm and food businesses.

Its estimated dividend yield of 2013 is 1.2%.

3.  PTT Global Chemical

PTT Global Chemical Public Company Limited is a Thailand-based integrated petrochemical and refining company with a total olefins and aromatics production capacity of 8.2 million tons per year and petroleum production capacity of 280,000 barrels per day. The Company is emerged from the amalgamation of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited. As of June 30, 2011, the Company had 13 subsidiaries including Bangkok Polyethylene Plc., Bio Creation Co., Ltd., TOC Glycol Co., Ltd., Thai Ethanolamines Co., Ltd., Thai Oleochemicals Co., Ltd., PTT Polyethylene Co., Ltd., NPC Safety and Environmental Service Co., Ltd., PTT Chemical International Pte. Ltd., Bio Spectrum Co., Ltd., PTT Maintenance and Engineering Co., Ltd., Thai Tank Terminal Limited, PTT Phenol Co., Ltd. and PTT Utility Co., Ltd. On May 31, 2012, the Company acquired 51% shares of Perstorp Holding France SAS and renamed it to VENCOREX Holding.  http://www.forbes.com

Its estimated dividend yield of 2013 is 4.3%.

4. Oversea-Chinese Banking Corp (OCBC)

The Oversea-Chinese Banking Corporation Limited (SGX: O39, OTC Pink: OVCHY) , is a publicly listed financial services organisation with its head office in Singapore. OCBC Bank has assets of more than 224 billion SGD. As of November 2010, the bank is the largest local bank in Singapore by market capitalisation. However, it is the smallest local bank in Singapore by global presence. Based on Bloomberg, in 2011 OCBC is the number one of World's 10 strongest $100 billion assets banks.

The bank's global network has grown to comprise more than 530 branches with representative offices in 15 countries and territories, including Singapore, Malaysia, Indonesia and a few small branches in China, Hong Kong SAR, Japan, Australia, UK and USA. The branches include the 411 branches and offices in Indonesia operated by its subsidiary, Bank OCBC NISP. wikipedia

Its estimated dividend yield of 2013 is 3.2%.

Oversea-Chinese Banking Corp. (OCBC), Southeast Asia’s second-biggest lender, made a binding bid for Hong Kong’s family-run Wing Hang Bank Ltd. (302), two people with knowledge of the matter said.

Singapore-based OCBC conducted due diligence and offered less than the two times book value Wing Hang was seeking, said the people, who asked not to be identified as the information is private. The companies are discussing if they can bridge the valuation gap, the people said. The Hong Kong bank has a market value of $4.6 billion, which is 1.7 times its estimated 2013 book value, data compiled by Bloomberg show.
businessweek: Jan 03, 2014


Noble Group Limited manages a portfolio of global supply chains covering a range of agricultural and energy products, as well as metals, minerals and ores. Wikipedia

As of Dec 28, 2013, the consensus forecast amongst 24 polled investment analysts covering Noble Group Limited advises investors to hold their position in the company. This has been the consensus forecast since the sentiment of investment analysts deteriorated on May 15, 2013. The previous consensus forecast advised that Noble Group Limited would outperform the market. ft.com