Josephine Teo: GIC, Temasek won't take more risks

[Blueray]

Singapore Wealth Fund GIC Invests in Crypto Exchange Coinbase

 

Singapore’s sovereign wealth fund GIC Pte was among investors that helped U.S. cryptocurrency exchange Coinbase Inc. raise $300 million last year, according to people familiar with the matter.

While Coinbase said it garnered investment in its October funding round from firms including Tiger Global Management, Wellington Management and Andreessen Horowitz, GIC’s participation hasn’t previously been disclosed. GIC declined to comment, while an official for Coinbase also declined to comment.

 

With the foray into digital assets, possibly its first, GIC joins a select group of large sophisticated investors including Yale University willing to dip their toes into the crypto industry. Most institutional money managers have shunned digital assets because they’re largely unregulated and have been used to finance illicit trade.

 

GIC has more than $100 billion of assets in over 40 countries and has investments in everything from government bonds to private equity.

 

Coinbase’s October funding round gave it a valuation of $8 billion, placing it among the ranks of the world’s most-valuable startups. That’s all the more impressive given the collapse in crypto prices last year.

 

According to documents seen by Bloomberg late last year, the firm was forecasting revenue for 2018 of almost $1.3 billion, a figure that largely comes from the commissions on trades on its platform, as well as gains and losses in its own crypto holdings.

 

https://www.bloomberg.com/news/articles/2019-02-28/singapore-wealth-fund-said-to-invest-in-crypto-exchange-coinbase

 

[Sdf4786k]

Looks like 2018 was not that great a year. About 25% of the listed company was in the red

 

https://www.businesstimes.com.sg/companies-markets/1-in-3-sgx-listed-companies-in-the-red-total-profits-down-19

 

1-in-4 SGX listed companies in the red; total profits down 19%.

 

On the hardcopy news paper is 1 in 3. 

 

latest earnings season is tapering off with over 300 companies having given investors the chance to do a reality check.

The verdict so far: one in four companies was in the red, according to data compiled by The Business Times, and overall, total earnings of almost S$40 billion were down 19 per cent. The big downers include telcos and commodities, with risk aversion amid a slowing global economy and trade war fears taking a toll on many corporates.

Among the 30 Singapore Exchange heavyweights that make up the Straits Times Index, there were as many misses as there were hits.

As of last Friday evening, 336 SGX companies have issued report cards for the full year ended December 2018. BT's computation showed that among those in the black, more pared their profit than raised it - 115 vs 105.

Of those mired in losses, 24 sank deeper into the red while 33 posted smaller losses. A total of 29 companies swung back to earnings from losses, while 27 suffered a reverse fate.

"Generally speaking, macroeconomic and trade headwinds put pressure on Singapore listed companies at the end of 2018, as many companies suffered unrealised fair value losses in investment securities and a challenging operating environment," said CMC Markets' Margaret Yang.

The fourth-quarter reports especially were a let-down and signalled a "deepening earnings recession", said DBS Group Research.

Its prognosis is even less cheerful: "We maintain our view that the earnings recession trend will extend for another quarter into first quarter FY2019 given the US-China trade uncertainties, before it ends."

There has been some optimism of late as the world's two largest economies reach the finish line of a trade deal but analysts say uncertainties still abound.

Singapore's three banking bigwigs - DBS, OCBC and UOB - recorded full-year record profits, but fourth-quarter numbers were moderated by December's global market sell-off.

For full year 2019, things could turn soft, warned Moody's Investors Service, as waning macro-economic conditions heighten asset risks and net interest margins stagnate on a slowing pace of interest rate hikes.

Telcos were hurt by intense competition and rising costs, with both StarHub and M1 slashing dividend payouts in light of further earnings weakness. The view for Singtel was downbeat with a pallid third quarter. Analysts believe things could get gloomier for the incumbents with the entry of Australian telco TPG, which could pile more pressure on the telcos' average revenue per user (ARPU).

Among industrials, higher fuel prices hurt Singapore Airlines' third-quarter bottomline but sequential improvement in load factors and non-fuel cost controls inspired expectations that things are getting better. Lower fuel costs and the carrier's ongoing transformation plan are also expected to lift revenue.

After drowning in the red for three quarters, Sembcorp Marine turned around for the final quarter with its full-year net loss of S$74 million beating analyst estimates, thanks to a surprise pick-up in the marine business and a recovering India power operations.

That has imbued a little hope for the battered offshore and marine (O&M) space. But CMC's Ms Yang cautioned that while the "industrial group sees early sign of bottoming out in the O&M sector... a full turnaround is yet to come amid persistent supply-demand imbalances in offshore drilling segment".

"Crude oil prices need to not only gain further but also sustain at higher levels for longer to restore deep-sea exploration activities," Ms Yang added.

In the consumer space, Dairy Farm International's 2018 results were hit by hefty one-offs largely attributed to its Southeast Asian grocery store business. While the company has in place a transformation plan, analysts are not holding their breath as they reckon it would take more time before the regional operations see some light.

As for Singapore's popular real estate investment trusts, OCBC's research head Carmen Lee deemed their showing as "healthy" with average distribution per unit (DPU) up 2 per cent year-on-year.

The bulk of the S-Reits outperformance was due to one-off gains, said CGS-CIMB Research, referring to Ascott Residence Trust, CDL Hospitality Trust and CapitaLand Mall Trust, while it added that Parkway Life Reit and OUE Commercial Reit posted organic improvements in occupancy and operating performance.

Weak crude palm oil prices and downstream margins hurt Golden Agri-Resources which incurred a full-year net loss while Wilmar International benefited from higher margins from oilseeds. Wilmar is analysts' top pick among plantation companies, partly because of the imminent listing of its China business in Shanghai.

In the technology space, Venture Corp's "neat" set of fourth-quarter results sparked joy for OCBC Investment, while NetLink NBN Trust's third-quarter results exceeded its initial public offering (IPO) projections across several metrics including revenue and the number of residential fibre connections.

What does all this mean for the STI, which has closed two straight months with gains? There may be some upside since it has come off by some 1.6 per cent from its February high of 3,286 points.

Furthermore, DBS expects the upcoming April-May ex-dividend period to attract some bargain hunters. The house added that barring a negative turn in the macro backdrop, 3,500 by year end under its bull case scenario remains a possible outcome.

 

Edited March 7, 2019 by Sdf4786k

[Blueray]

Singtel, GIC to subscribe to India telco giant Bharti Airtel's 250b rupee rights issue

 

https://www.businesstimes.com.sg/companies-markets/singtel-gic-to-subscribe-to-india-telco-giant-bharti-airtels-250b-rupee-rights

 

 

 

 

Moody’s Downgrades Bharti Airtel’s Debt To Below Investment Grade

 

Read more at: https://www.bloombergquint.com/business/bharti-airtel-downgraded-to-junk-rating-by-moodys#gs.0ymooe

 

 

 

[Blueray]

Temasek stake values Salt Bae Turkish restaurant owner at $1.6 billion

 

 

http://www.straitstimes.com/business/companies-markets/temasek-stake-values-salt-bae-turkish-restaurant-owner-at-16-billion

 

还我 CPF ！

 

 

Debt Is Piling Up for Owner of Salt Bae Steakhouse

 

 

Like many other Turkish companies, the owner of the Nusr-Et steakhouse, popularly known by its founder chef’s meme Salt Bae, is struggling to repay foreign-exchange loans after the lira plunged in value. The firm also has interests spanning marina and entertainment businesses.

 

https://www.bloomberg.com/news/articles/2019-03-20/dogus-debt-piles-up-as-salt-bae-owner-restructures-2-5-billion

 

the investment is less than 12 months old and already in trouble  ... 

[mersaylee]

Whenever I see that stylo milo sprinkles salt onto the meat...I also see my sinkdolar...

[Wt_know]

hearsay, whatever “you-know-who” touch .... will be

Edited March 28, 2019 by Wt_know

[Watwheels]

When they have a room full of board members who are either yes-men or strap-on-balls lickers.....who will stand up and say "no" to such decision making?

[Blueray]

April 2018

 

Temasek to buy 3.6% stake in German drugmaker Bayer for nearly S$5 billion

 

Read more at https://www.channelnewsasia.com/news/business/temasek-bayer-investment-10144932

 

 

 

August 2018

Bayer shares slide after Monsanto's Roundup cancer trial

 

 

https://www.cnbc.com/2018/08/13/bayer-shares-down-after-monsanto-ordered-to-pay-damages.html

 

 

Really consistent track record ... 

 

 

US jury says Bayer must pay US$80 million to man in Roundup cancer trial

 

Read more at https://www.channelnewsasia.com/news/health/us-jury-says-bayer-must-pay-us-81m-to-man-in-roundup-cancer-11387164

[Throttle2]

*shake head*

*swallow saliva*

*Unbutton top button*

 

Sibei stress

[zipping]

 

 

https://www.straitstimes.com/business/companies-markets/luckin-coffee-burns-investors-in-39-plunge-from-high-after-ipo

 

 

GIC-backed Luckin Coffee burns investors in 39% plunge from high after IPO

Since its inception in June 2017, Luckin has quickly expanded into 2,370 stores in 28 cities.PHOTO: REUTERS

Published

11 hours ago

 

NEW YORK (BLOOMBERG) - Luckin Coffee Inc's initial public offering (IPO) was met with great fanfare - and then it wasn't.

Shares of China's answer to Starbucks soared as much as 53 per cent to US$25.96 on May 17, their first day of trading in the US. Since then, the stock has plunged 39 per cent from that peak, even with a rally in the final half hour of trading on Thursday that gave Luckin a 7.1 per cent gain for the day.

Since its inception in June 2017, Luckin has quickly expanded into 2,370 stores in 28 cities, with backing from investors including Singapore sovereign wealth fund GIC and China International Capital Corp.

But investors have questioned the company's sacrifice of profits in favor of a cash-burn strategy at the same time as the rocky China-US trade relationship weighs on global markets. The Chinese startup is seeking to overtake Starbucks Corp, opening more stores in two years than the industry giant has in 20 years.

Luckin's 7.1 per cent decline from its IPO price of US$17 per share - to US$15.79 as of Thursday's close - isn't as bad as the performance from ride-hailing company Lyft Inc, which is down 20 per cent from its offering price of US$72 in late March. But it's a frustration for market watchers such as Hedgeye Risk Management analyst Howard Penney, who last week projected 50 per cent upside for the stock.

 

 

 

https://www.forbes.com/sites/ywang/2019/05/23/luckin-coffee-shares-slide-after-ipo-as-analysts-question-profitability-prospects/#e4c43ac3e19a

 

https://www.bloomberg.com/news/articles/2019-05-23/starbucks-rival-burns-investors-as-stock-sinks-43-from-highs

 

 

 

[Sdf4786k]

 

 

 

 

https://www.straitstimes.com/business/companies-markets/luckin-coffee-burns-investors-in-39-plunge-from-high-after-ipo

 

 

GIC-backed Luckin Coffee burns investors in 39% plunge from high after IPO

Since its inception in June 2017, Luckin has quickly expanded into 2,370 stores in 28 cities.PHOTO: REUTERS

Published

11 hours ago

 

NEW YORK (BLOOMBERG) - Luckin Coffee Inc's initial public offering (IPO) was met with great fanfare - and then it wasn't.

Shares of China's answer to Starbucks soared as much as 53 per cent to US$25.96 on May 17, their first day of trading in the US. Since then, the stock has plunged 39 per cent from that peak, even with a rally in the final half hour of trading on Thursday that gave Luckin a 7.1 per cent gain for the day.

Since its inception in June 2017, Luckin has quickly expanded into 2,370 stores in 28 cities, with backing from investors including Singapore sovereign wealth fund GIC and China International Capital Corp.

But investors have questioned the company's sacrifice of profits in favor of a cash-burn strategy at the same time as the rocky China-US trade relationship weighs on global markets. The Chinese startup is seeking to overtake Starbucks Corp, opening more stores in two years than the industry giant has in 20 years.

Luckin's 7.1 per cent decline from its IPO price of US$17 per share - to US$15.79 as of Thursday's close - isn't as bad as the performance from ride-hailing company Lyft Inc, which is down 20 per cent from its offering price of US$72 in late March. But it's a frustration for market watchers such as Hedgeye Risk Management analyst Howard Penney, who last week projected 50 per cent upside for the stock.

 

 

 

https://www.forbes.com/sites/ywang/2019/05/23/luckin-coffee-shares-slide-after-ipo-as-analysts-question-profitability-prospects/#e4c43ac3e19a

 

https://www.bloomberg.com/news/articles/2019-05-23/starbucks-rival-burns-investors-as-stock-sinks-43-from-highs

 

 

with a 39% plunge, is it worth while to look at nibbling a bit ?

[Evillusion]

After reading all these, i am very scare. If I withdraw my billion now, where to put har?

you can keep with me......at age 65 i give you $1,000,000 month........ai my?

[Blueray]

Salt Bae backers seeking partner and US$1b valuation: sources

https://www.businesstimes.com.sg/consumer/salt-bae-backers-seeking-partner-and-us1b-valuation-sources

Edited December 2, 2019 by Blueray

[Blueray]

Shares of Luckin Coffee, China's Starbucks rival, sink after company says COO fabricated sales

https://www.straitstimes.com/business/companies-markets/shares-of-luckin-coffee-chinas-starbucks-rival-sink-after-probe-finds-coo

GIC invested in this, iirc ...

[Blueray]

Luckin Coffee chairman defaults on loan, surrenders company shares

Quote

Luckin Coffee Chairman Charles Zhengyao Lu and Chief Executive Jenny Zhiya Qian have handed over shares in the embattled Chinese coffee chain to lenders after a company controlled by Lu's family defaulted on a US$518 margin loan, one of the banks said on Monday.

https://www.channelnewsasia.com/news/business/luckin-coffee-chairman-defaults-on-loan--surrenders-company-shares-12615496

[Volvobrick]

12 hours ago, Blueray said:

Luckin Coffee chairman defaults on loan, surrenders company shares

https://www.channelnewsasia.com/news/business/luckin-coffee-chairman-defaults-on-loan--surrenders-company-shares-12615496

Don't worry about GIC investment. Luckin coffee app downloads in China is shooting through the roof:

https://www.channelnewsasia.com/news/business/demand-for-luckin-app-surges-as-chinese-rush-to-drink-up-after-admission-of-fraud-12617674

 

Oops! Becos new users want to claim free coffee with the download before it goes belly up! 

😅

 

[Blueray]

Luckin Coffee Trading Halt to Last Until Nasdaq Requests Are Met

(Bloomberg) -- Luckin Coffee Inc.’s stock, which hasn’t traded since April 6, will remain frozen until it satisfies the Nasdaq’s request for additional information, the stock exchange said Thursday.

The formerly high-flying Chinese coffee chain is enmeshed in an accounting scandal that saw its shares plunge almost 80% last week. The Nasdaq, which had halted Luckin trading with a “news pending” alert, has now changed that status to “additional information requested.” The exchange declined to specify what information is being requested.

Luckin last week disclosed an internal investigation into alleged misconduct by Chief Operating Officer Jian Liu, saying his team may have fabricated sales that could represent a significant portion of the company’s revenue last year.

This has sparked the worst crisis in confidence for Chinese companies listed in the U.S. since a decade ago. The disclosure surprised big name backers, such as Citron Research, as well as investment banks including Morgan Stanley and Credit Suisse, which extended margin loans to Luckin Coffee’s founder Lu Zhengyao, who defaulted after a collapse in Luckin stock.

Goldman Sachs said on April 6 that an entity controlled by Lu’s family trust reneged on $518 million of margin debt and that lenders had seized as many as 76.4 million Luckin shares -- almost 80% of the company’s total float.

The stake was worth about $335 million based on the closing price Monday, down from more than $2 billion before the scandal emerged. It’s unclear whether the banks have sold the shares or whether they’ll be forced to book losses on their loans. Goldman, which didn’t elaborate on individual banks’ exposures, was given the role of handling the share disposal.

https://finance.yahoo.com/news/luckin-coffee-trading-halt-last-184815649.html

[Blueray]

Luckin Coffee: Scandal-hit chain raided by regulators in China

Quote

The firm's shares slumped this month after it revealed that it had uncovered $310m (£250m) in fake transactions.

Luckin vowed to overtake Starbucks as China's biggest coffee chain when it launched shares in the US last year.

The Nasdaq listing had been one of China's few successful American stock market debuts of 2019.

Luckin Coffee confirmed on its official Weibo account that it was being inspected by the State Administration for Market Regulation (SAMR).

https://www.bbc.com/news/business-52438399

GIC should seize the coffee beans to add to strategic stockpile.