(February 2026 Results) How i would invest in the singapore stock market if i had 100k of spare money

 

February 2026 Returns: 0.85%

Year to Date Returns: 13.27%

Since Inception (9 Sept 2020) Returns: 434.60%

6 Companies reported results. Will start from the most crap one. Will not make any changes to the portfolio as some reported on 27 Feb, will think about it in the next few days/weeks and see if a mid month adjustment or end of month adjustment is needed.

Hor Kew - 2H Results is crap. Revenue is lower and Gross Profit Margin is lower. 2H 2025 Business is actually loss making and profitability is held up by Other Income and Reversal of receivables and contract assets. Dividend has been cut by half as the group increased borrowings due to a new lease. 

Any Bright Spots? Inventory increased from 9.3m in 1H 25 to 16.1m in 2H 25 to cater for higher upcoming deliveries

A reversal in receivables, could it indicate better economic environment?

Overall, it is still a poor result and this is a pivot towards a value stock for now and whether the Msia land will be sold.

Will have to see the Annual Report and AGM to decide if the new lease will contribute more to revenue and whether revenue / margins can improve. The commentary on business part has no mention of poor margins or competition though....

Hong Leong Asia: China Yuchai's poorer than expected result caused a sharp plunge but share price has recovered slightly since then.

Haw Par - Results improved due to better dividend income but healthcare dipped slightly. Otherwise, another stable year

Centurion - The redevelopment to a more management and pipeline based company. Core Profits should be lower in 2026 compared to 2025. The distribution of 1 REIT for every 10 shares will contribute to this lower earnings too.

Far East Orchard - Looks stable

Engro - China JV Losses ruined an otherwise decent results. Investment Gains at a record since 2021 and SG/MY Cement Segment at record revenue and profit since 2021

28 Cm Dive into Engro Corporation (SGX: S44)

As the title suggest, it will be a shallow 28 cm dive into Engro Corporation as a CNY Post.

CNY is a good time for gambling, one of the higher risk stocks that i have screened stocks is the company below.

At a Trailing PE of 13 and book value of 0.48 , Engro Corporation looks attractive in price to book terms and might have attracted some value hunters to take a look at it.

Ownership

Largely owned by Afro-Asia with ties to Ho Bee Investments. In other words, the ownership is the same as the ones who owned Ho Bee Land. In this aspect, the ownership definitely has  credibility as Ho Bee Land has 1.64B Market Cap.

In fact, the company has paid a dividend in the past 5 years. However, equity has stagnated since 2020 and profits are actually lumpy.

Business

I will break their business into 4 parts.

1) Polymer ( Owned Operations in Singapore and Indonesia)

JV in China. 

Owned Operations contribute around 4% of revenue. Its SG and Indo Operations continues to be affected as its SG Plant faces oversupply of polypropylene and Indo plant has just set up in 2024 and mass production/ customer traction takes time. Fortunately, the JV in China has turned profitable in FY 2024 and has carried the momentum in 2025 1H.

For this segment, making around 1m for 2025 would be ideal.

2) Specialty Cement (China)

This is listed under JV of Cement and Building Materials

In 2023 and 2024, it has recorded huge writedowns and losses of  9.2m and 6.9m. In fact i am not optimistic about this portion as it is largely exposed to the poor housing market in China.

Whether this gets written down further in 2H 2025.........well depends on the performance of the joint ventures.

There is only 33.64 million left to be write-off.  In fact, i will not count this under the book value for now unless the company show that they have turned around operations.

From the looks of 1H 2025 where negative profits from JV under Cement is seen, i highly doubt so.

3) Investments

Largely Technology Focused Investments into VCs.

57% into Venture Capital Funds ,15% in equities, 17% in Investment Funds.

While the net change in financial assets was 6m in 1H 2025, representing roughly 7% gain, a longer time horizon has to be studied.

Unfortunately, since 2021, the overall is a loss. Having said that, tech has been a good performer in 2H 2025.  What is admirable is that despite an overall loss, the company remains confident in putting more money into investments.

Given that some of its names that it has revealed in the 2024 annual report has seen gains in valuation. I believe this could be reflected in 2H 2025 as i believe the fair value gain of not even 1% in 1H 2025 does not seem to reflect the headlines.

4) Singapore and Malaysia Cement. 

Finally I am at the part where i think the company golden goose is and has done well in the past few years.

The company does concrete and ready-mix concrete. It is one of the 14 players in Singapore that does ready-mix

Among the bigger players (classified as those with L6 and no limits on tendering) it is 1 of 7 such players.

The other names (some might be familar with) are Pan United (Listed), Sinmix (Under Lian Beng which was previously listed), Island Concrete (Part of Hong Leong Asia), Alliance Concrete (JV between Msia YTL Cement and TW Asia Cement) , Huation Contractor (Part Of Huationg Global which is listed)

Now that the introduction is over, lets take a look at the financials.

2H 2025 tend to have better revenue and in the 22,23,24 have shown better profitability than their 1H counterparts. 

1H 2025 Segment Result of 7.2m is also their best result in the past 5 years 1H. 

Looking at BCA Data, 2H 2025 has outperformed 1H by 22%.    

2026 Demand looks solid as well with 3% to 10% growth estimated.

2025 Actual came in at the top end of its 2025 forecast.

Following the data above, we could see higher revenue and earnings from this segment.

Maybe 10m in segment result?

Valuation Review

By Book Value, stripping off the China Specialty Cement JV and the China Associate (involved in property development) which is 33.64 million. The Book Value Per Share is $1.87. 

Implying a PB of 0.56.

If Pan United can trade at a PB of 3.25 , i think its fair to say Engro is undervalued by PB.

Looking at Engro's Balance Sheet, 62m of cash against 44.4m of current liablity. 

57m of receivables means that Cash + Receivables(119.6m) cover the whole of liablities (71.5m)

Worth noting that much of liablities is lease liablities and borrowings is only 9m (3% of assets)

The financial health is pretty solid.

Looking at earnings, if Pan United is valued by research brokers at 14x PE Forward Earnings,

I think Engro's Singapore and Malaysia cement can make around 9.5m net profit in FY 2025.

This implies that the cement segment alone is valued at 133m ( and is above its current valuation of 123.45m).  The investments of 70+m is literally free along with a China JV that has turned around. (the rest is not as worthwhile)

Conclusion

Although high risk (due to the potential write-offs as well as other potentially poor business segments) and net asset value has fell since 2021 as i think that the relatively low book to value and potential earnings in cement and investments makes it look somewhat attractive.

 

Previewing Dream International (Hkex:1126) FY 2025 Results

 As per previous post, i will write the conclusion first. 

I believe that earnings will be around -10% to 20% of FY 2024. As such, in March, we are unlikely to see a positive profit alert. EPS should come in at around 98 cents to 129 cents. This implies a 2H 2025 EPS range of 53 cents to 84 cents.

1H 2025 has seen an improvement of results due to Positive Yen Movement against the USD. However, this has reversed in 2H 2025.

However, i have been proven wrong in my analysis at times so its hard to be 100% right.

Revenue in FY 2025 should beat FY 2024 but Gross Profit Margin should be lower.

(Popmart is now a customer but traction needs to be tracked)

From the 1H 2025 Results Release, it is well understood that they have new customers and full utilisation. 

As such, based on the 40k workers mentioned, i think revenue has a chance to hit 3.5 to 4 billion in 2H 2025.

However, management has mentioned that new orders tend to have lower margin as the orders are lower and more standardisation would result in better margins. In a smartkarma report, they mentioned that management mentioned they will look to improve margins in 2026. This made me believe that margins are still likely depressed.

This means that current customers which has a sizable revenue increasing their orders is more likely than a new customer.

To give an example, 2023 had better margins than 2024

Top 4 customers in 2024 accounted for 67% of the revenue

Top 4 customers in 2023 accounted for 68% of the revenue

With more revenue coming in 2H 2023 but a lower margin is recorded, we could think about how the reduction of Customer B from 1.1B to 770M has hurt the margins.

Customer B from my research is likely Funko

Customer A is likely Disney

Customer C or D is likely Spinmaster / OLC / Bandai / Hasbro

My estimation of the revenue should be as follows.

Segment	Revenue	Level of Confidence (1 to 10)
Disney (Shanghai and Hong Kong)	Positive (+5% to +20%)	6
Oriental Land (Disney Japan)	Negative (-10% to 20%)	8
Funko	Negative (-10% to 20%)	8
Hasbro	Negative (Hard to assess)	5
Spinmaster	Negative (-5% to 10%)	5
Bandai Namco	Positive (5% to 20%)	3

Reasons for the above estimation

Disney - Strong Revenue for International Park , Visitorship to Shanghai is stronger in 2H 2025 vs 2H 2024

Oriental Land - Inventory Level Falling while merchandise revenue gain is not sufficient to make up the shortfall

Funko - Q3 2025 Inventory and revenue lower than Q3 2024. Inventory drop from Q2 2025 to Q3 2025 compared to increase in Q2 2024 to Q3 2024.

Hasbro - Inventory Fall quite significant. But too much product lines makes assessing revenue difficult

Spinmaster - Monster Jam weaker in Q3 2025

Bandi Namco - Positive Inventory Increase + One Piece Strong Performance.

As a result, i think that the customer diversification effect will be even stronger in FY 2025 which will in turn affect margins. It will be interesting to see how many customers account for at least 10% of revenue and if there is any new customers.

Possible Reasons for Analysis to be wrong (Leading to better profit growth or even positive profit announcement)

1) Winning Orders from current customers due to shift in manufacturing to Vietnam

2) Improved Margins seen due to economies of scale

3) Stronger than expected revenue from Disney China and Shanghai

4) New Customer Orders is strong and becomes a huge % of revenue

Possible Reasons for Earnings to be lower in 2H 25 vs 2H 24

1) Margins Erode due to New Customer and Diverse Orders

2) Other Income affected by JPY Weakening vs

3) Japan Theme Park Weakened in Revenue and is the strongest part of earnings margin

4) 3 Rounds of Raising Salary in Vietnam with 2 rounds being in 2025 and around 7% to 10% per increase eating into margins