ST Engineering - Buy or Sell?

ST Engineering has been on a downward trend. The initial reasons why i purchase this share is for dividends but i can't lose track of the profitability of the company. 

This is my first time attempting to make sense of the finance statements so let's give it a go! Grateful for any tips and tricks along the way!

ST Marine
- one of the subsidiaries of ST Engineering
- (36%) fall in EBIT 
- shipbuilding (one of three main areas of business beside ship repair and engineering) took a bit hit of (75%) for second quarter
- industry trend: Shipbuilding is in a difficult period due to too many shipping orders. Unlikely to trend up in near term. 

ST Kinetics
- one of the subsidiaries of ST Engineering
- (50)% fall in EBIT 
- automative dropped 89% 
- other areas would include: 

ST Electronics
- one of the few subsidiaries with higher profit of 10%
- software system up 33%

ST Aerospace
- (5%) in EBIT

Well, no good news at all, no wonder ST Engineering is on a downward trend. Better keep this on my watchlist. 

Grabbed this off Yahoo Finance. 

Market Cap (intraday)5: 11.41B Enterprise Value (Aug 29, 2014)3: 10.88B Trailing P/E (ttm, intraday): 19.57 Forward P/E (fye Dec 31, 2015)1: 18.30 PEG Ratio (5 yr expected)1: 2.34 Price/Sales (ttm): 1.74 Price/Book (mrq): 5.77 Enterprise Value/Revenue (ttm)3: 1.64 Enterprise Value/EBITDA (ttm)6: 13.77

Financial Highlights

Fiscal Year Fiscal Year Ends: 31 Dec Most Recent Quarter (mrq): Jun 30, 2014

Profitability Profit Margin (ttm): 8.59% Operating Margin (ttm): 9.60%

Management Effectiveness Return on Assets (ttm): 4.81% Return on Equity (ttm): 28.14%

Income Statement Revenue (ttm): 6.63B Revenue Per Share (ttm): 2.13 Qtrly Revenue Growth (yoy): -0.70% Gross Profit (ttm): 1.43B EBITDA (ttm)6: 789.72M Net Income Avl to Common (ttm): 569.31M Diluted EPS (ttm): 0.19 Qtrly Earnings Growth (yoy): -10.00%

Balance Sheet Total Cash (mrq): 1.61B Total Cash Per Share (mrq): 0.52 Total Debt (mrq): 983.98M Total Debt/Equity (mrq): 46.16 Current Ratio (mrq): 1.47 Book Value Per Share (mrq): 0.64

Cash Flow Statement Operating Cash Flow (ttm): 844.22M Levered Free Cash Flow (ttm): 118.87M

SIA Engineering

SIA Engineering just came out with their quarterly results and its a bad bad thing.

Revenue is up a mere 1.6%, but expenditure increased 4.5%.

Contribution from JV decreased by 28.8%. And they just inked a JV agreement with Boeing lately.

The plane industry isn't doing too well what with the recent spates of plane crashes. Pretty scary shit indeed. Will people still travel?

I think the answer to that question is still a resounding yes. The general prediction is yes, flight travel looks set to increase and more carriers will ply the ASEAN route. Perhaps there will be more budget travellers and not first class passenger anymore. But planes would still have to be serviced. I see their tie up with Boeing as a big plus sign that they will get better deals in the future. SIA Engineering would have to be careful to take care of costs.

my money is still on this one.

Moving to Share Builders Plan

Goodbye OCBC.

So i was a fan of the OCBC blue chip investment plan but i bid goodbye to it a few months ago when June 2014 came to an end. Why? The promotional period was over and the cost price was to increase to a minimum fee of $5 per transaction instead of the 0.3%. The fundamental of a DCA ETF is to keep cost low. I understand later that the promotion was continued which made me really annoyed because I had already sold my shares in the blue chip investment plan.

So annoying.

But moving on. I have moved to the Share Builders Plan and hopefully, there will be no change in the long run. So yes, $6 so i can buy a piece of mind for no more unwanted increase in costs! This is going to be used for a fund for my kid's education as well as my hubby's and I's semi-retirement fund.

I am not one of those parents who believe in planning my kid's future right down to the property they are going to buy. I shudder when I think of my financial adviser's kinda crazy advice to me - he told me to purchase a life insurance for my kid, and think about putting lots of money into some investment plan on a monthly basis so that when my kid grows up, i can help him buy a PROPERTY! WTF?! I am not sure if he was trying desperately to make a sale but he started talking about how it is very common among his clients. But i do believe in helping my kid get a leg up so if there is something that he is passionate about later, whether starting a business or furthering his education, then at least i have funds for him. But it is not going to be handed to him on a platter.

Anyway, that is my round up on my moving to Share Builders Plan.

Update: I am still going to use OCBC though for my SRS account. I know it doesn't really make sense but SBP is not linked to SRS. And OCBC has not enough sense to allow one person to pay for their blue chip plan via SRS and ordinary account.