Since my last company update on Sapphire on 10 Mar 2017 (see HERE), Sapphire has unveiled other interesting updates. Although the share price did appreciate 15% from $0.310 on 10 Mar 2017 to a high of $0.355 on 3 Apr 2017, it has since slid back to $0.320 on 2 Jun 2017. What are the recent updates and why are they interesting?
Strategic collaboration with Beijing Enterprises Water and China Railway
On 16 May 2017, Sapphire announced that its wholly owned infrastructure business, Ranken has entered strategic partnerships with major Chinese conglomerates and state-owned enterprises to explore civil engineering and infrastructure projects in China. Through the strategic partnerships with Beijing Enterprises Water Group and China Railway Investment Group, Ranken will explore and evaluate large scale and long-term infrastructure projects related to environmental conservation and water management.
a) What is so significant on the above collaboration?
As per Sapphire’s press release, Sapphire’s Ranken will explore and evaluate projects related to environmental conservation and water management. My personal interpretation from the above announcement means that it may include (but not limited to) projects such as sponge cities.
Based on an article on China Daily dated 5 March 2017, Premier Li Keqiang included sponge city in the central government’s work report which he delivered to the nation’s top legislature on 5 March. A sponge city places significant attention to the underground pipe network design and construction such that it allows rainwater to be collected and recycled. This is environmental friendly as it recycles rainwater for other uses and solves flooding issues. Based on statistics, from 2014 – 2016, urban flooding has occurred in 180 cities in China per year. Some of you would remember the flooding in Beijing in July 2012 which killed 79 people and sparked nationwide fury over China’s lack of water / flood management. Thus, China does place great emphasis on such projects.
Previously, China has set an ambitious plan in 2015 to transform 80% of China’s urban area to be a “sponge” by 2030. Progress has been slow. However, it is noteworthy that 2017 is the first-year which sponge cities are included in the government’s work report, thus there may be more focus and more funds to be set aside for such projects in the future. In the report, there are plans to construct at least 2,000 km of underground pipes this year.
b) Why does a HKD54b market cap company such as Beijing Enterprises Water Group want to partner with Ranken?
As you are aware, Beijing Enterprises Water is a specialist in water management and environmental services. As per the above, sponge cities require massive expertise in civil engineering, major tunnelling works, underground structures etc which Ranken possesses. For example, Ranken has completed projects such as Luguoqiao Covered Culvert of South-North Water Transfer Project, improvements to Funan River at Wuding Bridge, and the Dragon-Shaped Artificial Lake / Water System in the Beijing Olympic Park. Given such track record, it is apparent why Beijing Enterprises Water has chosen Ranken as its partner.
Clinched RMB432m contracts with largest consultancy contracts won till date
On 24 Apr 2017, Sapphire announced that it won RMB432m of Infrastructure Construction and Consultancy Contracts in China (click HERE). Sapphire said Ranken has secured RMB 342m (S$70m) worth of transport infrastructure contracts, as well as RMB 90m (S$18m) worth of design consultancy contracts, which by far is Ranken’s largest consultancy contract to date in mainland Chinese cities. It is noteworthy that consultancy contracts typically carry higher margins than EPC contracts. With these contracts, Sapphire’s order book has increased to RMB2.5b.
Annual report reveals interesting points
Readers who have read Sapphire’s annual report 2016 released on Apr 2016 (click HERE) would also have noted the following interesting points.
a) Mr Teh, CEO of Sapphire has crafted his CEO’s review in a succinct yet engaging manner. He even left his email address in the annual report for shareholders to contact him;
b) Sapphire mentioned that they have paid down close to $60m loans including interest in FY16 and they are reviewing the various re-financing structures for the Group. In an article published by The Edge on 16 Jan 2017, it was reported that any fund raising (fund raising may also be considered part of various re-financing structure in my interpretation) may include a good balance of debt and equity and will not be unfriendly to shareholders. Furthermore, any new strategic shareholder should add value to the company by opening doors to new markets or new project types;
c) Sapphire also mentioned that it is exploring opportunities via the public private partnership (“PPP”) model in China and South Asia with their partners. Sapphire sees a possible meaningful pickup in their contracts under the PPP model if regulatory and institutional reforms for PPP in China are successful.
Formation of Strategy Committee
On 24 Mar 2017, Sapphire announced the formation of a Strategy Committee. Based on Figure 1 below, besides Mr Teh, the other three members are from Ranken. For example, Ms Wang Heng is the co-founder of Ranken. The purpose of the formation of this Strategy Committee is to oversee the formulation, review and execution of the Group’s strategies in relation to its core business in the infrastructure sector.
Examples of strategies may include strategic collaborations with renowned partners in potential PPP projects. Other strategies may include potential acquisition of companies in complementary sectors.
Figure 1: Strategy Committee composition
Source: Company
Even a fraction of Belt and Road Initiative spells immense long-term opportunities
China first proposed “One Belt, One Road” in 2013. This is now renamed to “Belt Road Initiative (“BRI”). This is an ambitious plan to connect 65 countries across Asia, and the Middle East to Europe by land along the historic Silk Route and another maritime route, down the Pacific and Indian Ocean and up the Mediterranean Sea.
According to some estimates reported in an article on Straits Times on 2 Jun 2017, “Asia Pacific needs to allocate US$26 trillion from now to 2030 on infrastructure”. Thus, even a fraction of the above translates to immense long-term opportunities. It is noteworthy that Sapphire revenue comprised of 80% from railway and 20% from roads.
Overall industry dynamics remain positive
Notwithstanding the above Belt and Road Initiative, based on an article in China’s state news agency Xinhua in January 2017, similar to last year, China intends to spend RMB800b on railway construction this year. From 2016 – 2020, China targets to spend an aggregate RMB3.5 trillion on railway construction.
Chart analysis
Based on Chart 1 below, Sapphire has been forming higher lows since Jun 2016. Since 1 Feb 2017, it has been range trading between $0.310 – 0.350. Although the directional indicators are positively placed, ADX remains low at 11.8. Most indicators such as RSI and MACD do not exhibit any bearish divergences. Based on the chart’s current developments, it seems likely to trade within the range 0.310 – 0.350, albeit with a slight upward bias. A sustained break above $0.350 is very positive for the chart as it will also break the long-term downtrend line established since Nov 2014.
Near term supports: $0.315 / 0.310 / 0.305
Near term resistances: $0.330 – 0.335 / 0.350 / 0.355
Chart 1: Forming higher lows since Jun 2016
Source: Chartnexus 2 Jun 17
Conclusion
The above is just a write-up to summarise the recent interesting updates on Sapphire.
P.S: As with all investments (most investments carry at least some degree of risk), readers should carefully evaluate each investment decision with care. Readers who wish to know more about Sapphire can refer to their informative website HERE.
Disclaimer
Please refer to the disclaimer here
I really liked your blog.Really looking forward to read more. Want more.
Or if you’re more into swiping, why not try out the Carousel, which additionally allows you to price singles and gives us an insight into your style. The interest in online dating decreased a bit during the pandemic, it’s true, however now, with the reopenings and returning to normal life, it’s anticipated to develop at an excellent greater rate than earlier than 2020. This applies to international dating as properly, but there are some completely different patterns for local and worldwide relationship. Over 90% are upfront about on the lookout for one thing serious out of online dating. Make sure to state what sort of relationship you are in search of as people on this site are accustomed to loads of different options. It doesn’t matter what type of relationship you’re searching for, the next online dating tips can enhance the possibility that you meet someone who is a good fit for you. Its users start by making a profile, entering particulars such as where they’re primarily based, the kind of function they are searching for, how many hours they ideally need to work per week, and whether they’re trying for someone with comparable or complementary skillsets. Men are required to purchase credit to do most things on the positioning.
People on this site is likely to be open to a touring partnership the place you simply trip together. AshleyMadison first made a splash as the first devoted relationship site particularly for folks seeking to have an affair. Plus, some people merely don’t want to date someone they’ve recognized all their lives. When you date on-line, it’s a lot cheaper – usually, the web sites for international relationships price about $50-$a hundred per 30 days. For instance you select Tinder to use for the first month, you then delete it and move onto a distinct app for the next month. You need to use our superior search filters to set your personal preferences. So as to use the America Online Dating Site, you first must register an account. †or they need a solution to a question that is a little more particular, “I have a service gentle on in my Honda Accord. Here are another edited highlights from the online chat, which began with a question about the Antisec motion to which Lulzsec appear just lately to have aligned themselves. I know that there are loads of emotions that go into discovering a soul mate, many web sites know this as effectively and may be willing to prey on these feelings involved to rip-off you, so take some of the following advice into consideration before selecting an organization to work with.
Ashley Madison does have a big worldwide presence so you’ll have an easy time discovering someone abroad. While a few ideas in the past I advised you not to spend a lot time online with this guy earlier than assembly him, I absolutely encourage you to have stipulations so that you can decide a man is definitely price meeting. But opting away learn extra from some of these cookies would possibly have an impact on your looking data. Prepare for Language Barriers: If you’re looking to fulfill singles from a distinct tradition, you would possibly join with someone who speaks a different language. While online dating internationally affords extra than just seeking a partner, many singles usually have this as charmdate their end objective. The IDL shouldn’t be a think about the beginning and finish of Islamic lunar months. While you begin international dating, you may overcome the boundaries of geography and culture, and it’s exciting. Seeking Arrangements goals to get collectively a very specific type of couple all in favour of international dating. These components mean that online dating companies are in a singular place at this time to benefit from altering demographics and tendencies inside the US populace if they stay alert.
Lots of the relationships on Seeking are sugar daddy-sugar child relationships. A brief take a look at the most well-liked emoticons at one among the largest download websites confirmed that the evergreens are nonetheless there: the smiling faces, the frowns, the crimson hearts of love and the broken hearts of failed relationships. Lots of the singles on this site are in pursuit of a gradual physical connection and they aren’t shy about it. Online dating community enable thousands and thousands of singles to meet potential partners they in any other case wouldn’t have met. Once your profile is set, you’ll be given a collage of potential matches every day. That means no lengthy questionnaires about personality, habits, or traits in a possible partner. That does not imply it’s important to declare you’re on the hunt for a FWB or life associate (please do not do that). Have Fun: While we’ve talked about limitations, we know international dating is fun! Keep it Fresh: Should you aren’t ready to meet up straight away, you’ll must work a little tougher to maintain the enjoyable and flirting up. Because of its ease and limitless proper swipes, Tinder is certainly the most effective dating site for casual relationship.
While it could actually feel a bit odd getting to know a stranger over textual content, it could possibly show you how to weed out who you’re all for going out on an in-particular person date with. Dating in your 40s can be a bit intimidating, nevertheless it doesn’t should be! You may have had some dangerous experiences dating in your 20s and 30s, however dating over 40 permits you to start out with a clear slate. There could also be more to the story that leads them to consider one thing over one other. I’ve been doing this for a long time and in summing up all of my experiences, there are definitive common denominators in how women go about attempting to win a man over and get him to like her… To get good love in the life is difficult job for everybody as a result of it is not so easy that each one things. Good, because we’ve obtained the right date idea for you. In spite of everything, we’ve all heard of catfishing! As an illustration, let’s say Hot Person texted you 33 instances in an hour and you texted back angrily that you hope they’re “on fire someplace.†Your speedy response could be, “I’m a crappy particular person.†But you’re not. Let’s be honest: relationship isn’t the way it used to be.
While online relationship apps have some detrimental points, they aren’t all bad. Stepping again into the courting pool at forty can appear intimidating, however we’re right here to tell you it’s not that bad! When the red flags start popping up and the uneasy feeling starts sinking in, know that it’s time to trust yourself. It’s tough to know where to begin. The weblog goes into extra detail and special circumstances, but the final idea is no. If the date goes awful, they now know where you reside, which isn’t supreme. With house to journal after every activity, your e book becomes a time capsule of reminiscences for you and your particular somebody. For example, if you happen to lead a life up to now of raising kids, you could find yourself being urged to bring up reminiscences and talk rather a lot in regards to the children. For the good and the bad, how we find our accomplice has changed. That being stated, don’t let the adrenaline rush of some good first few dates cause you to make a rash choice. That complete faux-it-until-you-make-it factor solely works when you’re still being genuine.
But, if you’re on the prowl for a severe relationship, you still need to maintain issues gentle and airy on the primary date. And never assume your date will need to complete the evening with a drink at your house. We’ll assist you find a date, provide you with dating advice, ideas and tricks to get the guy or woman you need. They like all men don’t marry for skin but want such a girl would understand him fully share all there emotions collectively and above all be in a love relationship for ever. The traits I’m going to share with you could seem like they go against everything you considered learn how to make a man like you, however follow me and you’ll see all of it is sensible. Share your pursuits, favorite issues to do, and tales that make you chortle. If you may comply with the following pointers, I assure you’ll see a dramatic shift in your love life so make sure you observe via until the end and no skipping! A date full of surprises can be cherished for all times. Adventures From Scratch: Date Edition is a thrilling yet delicate exploration of your distinctive connection.
Attempt to be alert and by no means determine to go to your associate’s house in your first date. Make your first date an journey! While on date, solely the 2 of you might be collectively and charmdate scam nothing else on the planet should interfere along with your date. Are you just courting to have some fun? If you happen to go rollerblading it cannot be that awkward as a result of you need to get stuck in. Ever wonder why some guys act like they can’t get enough of you regardless that you’re not doing anything or even displaying interest? While you date someone for the primary time, you need to be smart sufficient to speak with confidence and impress her. Learning these first date ideas, your dating life is going to change for the higher. This text will offer you useful dating tips for dating over 40. We’ll make it easier to perceive trendy courting life and learn how to navigate it successfully.