My Investment Portfolio (January 2012)
2012 started off with a bang in January. STI powered ahead to above 2900 points on high volume. High beta stocks and penny stocks finally had their day in the field. It seems that investors had already forgotten those issues that we had in 2011.
For this month, I have attended the following AGMs/EGMs - L-Jacob, Lafe Corp, WBL Corp, HG Metal, Japan Land, Etika and Tye Soon.
KepLand re-entered my top 30 holdings list this month, due to price appreciation. Investors are happy with the special dividend being declared after they sold Ocean Financial Centre to K-REIT. Hong Leong Finance is a new entry to my top 30 list this month as I accumulated the stock on price weakness.
I have bought the following companies from the open market this month - BBR Holdings, Casa Holdings, Guthrie GTS, Hong Leong Finance, Hotel Grand Central, Miyoshi, Singapore Land, SHC Capital, Sin Heng, Soon Lian, Singapore Reinsurance, Superior Multi-Packaging, Tat Seng, TTJ and Venture. As usual, there is no sales transaction done.
I have accepted the following voluntary cash/delisting offers - Leeden and SMB United.
February 2012 will be a result reporting month. Many companies with financial year ending December 2011 will be reporting their full-year results. I will be spending quite some time to go through those results. I will also seek to re-invest my proceeds from Leeden and SMB United back to the market.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2012)
Top 30 Holdings (Sing$ Denominated shares)
1. Jardine C&C
2. F&N
3. Noble Group
4. SembCorp Marine
5. SGX
6. UIS
7. Bukit Sembawang Estates
8. A-REIT
9. CapitaMall Trust
10. Metro Holdings
11. Viz Branz
12. Sing Investment & Finance
13. Singapura Finance
14. OSIM International
15. Wheelock Properties
16. KepLand
17. SP AusNet
18. PSL Holdings
19. Hong Leong Finance
20. APB
21. Fragrance Group
22. Keppel Corp
23. Bonvests
24. United Engineers
25. The Hour Glass
26. VICOM
27. Transpac Industrial Holdings
28. ABR Holdings
29. Aspial
30. Hersing
Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Jardine Matheson
4. Hong Kong Land
5. Mandarin Oriental
Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. Tan Chong International
Top Holdings (Aust$ Denominated shares)
1. AV Jennings
Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. Challenger Technologies
My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. China Printing & Dyeing Holdings
5. General Magnetics
6. Fastech Synergy
7. Beauty China
8. Memory Devices
9. Jurong Tech
10. FM Holdings
11. Japan Land - Under Members' Voluntary Liquidation
12. Zhonghui - Under Judicial Management
13. FerroChina - Under Liquidation
14. FirstLink Investments
15. Maveric Ltd - Under Members' Voluntary Liquidation
My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199
Labels: Portfolio
posted by ghchua at 4:39 PM
13 Comments:
ghchua, may I ask you for your comments on Lafe ? It does look attractive given its big discount to RNAV. However, there is no analyst coverage and nobody seems to have any good understanding of this stock. Thanks in advance.
Hi Unknown,
I don't have a good impression on the management after I attended their EGM on change of auditors.
Firstly, they wanted to go into property development in HK and China. But they end up disposing those properties after spending so much on consultancy fees.
Now, they are focusing on S'pore only, with an eye on land banking after receiving the proceeds from those disposal of properties.
Much of their NAV currently is with Emerald Hill. Like any other property developer, the discount to RNAV is justified. But Lafe is just a small property developer now and that might explain the bigger discount.
Unless the company can show good execution of their property projects, I am afraid the stock might be undervalued for quite some time.
Uncle Chua,
When did you buy Etika? In anycase, how was the AGM? Did the management take questions on how to improve their margins as well as lower expenses from their acquisitions?
Many thanks
SGSP
Hi SGSP,
Aiyoh, don't call me Uncle Chua lah. I am not so old leh. Call me ghchua instead :)
I dunno when I got Etika. Must be during my early investment days. Didn't add onto it for the past few years except conversion of warrants.
The AGM went quite well. About margins, they cited high raw material costs as the main drag. The problem is that they cannot increase the prices of their products immediately when raw material cost raises. There is a time gap in between which explains why they suffer from margin compression last year. Going forward, they should be able to achieve better margins.
They cited they need time for those acquisitions that they made to bear fruit and need at least one to two years to be profitable. Therefore, though there are expenses involved when they first made those acquisitions, they are quite confident that they can turn them around.
My apologies Brother Chua.
You got such a long blog history and wide ranging stock holdings I would think you are more seniorer than me!
Hi, GHChua
It is interesting to note that there are three finance companies in your top holdings but no banks.
Sing Inv, Singapura Finance and HL Finance
Can you share your rationale for overweighting on the finance companies?
I find that they don't seem to have good growth because they just do deposits and loans. But their dividend yields are quite good.
Is the low interest-rate environment good for the finance companies? Or they are relatively undervalued?
Are they more defensive than the big banks?
What may be their advantages over the banks for long-term investment?
Which one is your favorite among the finance companies?
Thank you.
Hi JTK,
I do hold the 3 local banks in my portfolio but they are currently not in my top holdings list.
The rationale to overweight finance companies in my portfolio is because I wanted to position my portfolio more defensively. Finance companies in S'pore are actually less risky than big banks. They are regulated by MAS and they do not have "toxic" foreign assets. They have a solid capital base. Take for example, Singapura Finance's capital adequacy ratio is 31.67%. The other two finance companies are in low 20%. Our 3 local banks is only in its teens.
There is a trade-off between growth and value. To put it simply, it is difficult to have both at the same time. Finance companies can certainly give you growth, by growing their loans and deposits. However, they do not have the scale and capacity to grow as fast as banks. S'pore market is quite saturated. To grow big, you have to go overseas and that means buying overseas assets. Our 3 local banks do venture overseas with mixed results.
Low interest rate environment is not good for finance companies and banks. You can see their net interest margin going down. But finance companies have a niche market where they can operate in like SME loans, car loans etc which banks might not bother. So, each have their own playground.
Personally, I think finance companies represent good value because all of them are profitable and trading below NTA. As you have noted, they pay good dividends as well.
It is difficult for me to pick my favorite among the 3 as it depends on their valuation at any point in time. But currently, I think Sing Investments represent the best value among the 3. Sing Investments has a 17-storey office building at Robinson Road which is carried much lower than its market value in their balance sheet. So, its RNAV should be higher.
But in terms of capital base, Singapura Finance is the strongest.
Hi ghchua, really wish to know what are the stocks you will invest now if you are the beginner.
Hi HITOMI FASHION HOUSE,
It is difficult for me to recommend stocks to someone without first knowing his/her risk profile and investment objective.
However, for a begineer, I would suggest it is safer to look at blue chip stocks and companies with long operating history. Also, one can start with managed products like unit trusts or ETFs to have an idea first on how to manage a portfolio, before venturing into individual stocks.
The important attribute for a beginner is actually to have the interest to embark on his/her investing journey and learn as he goes along. Don't afraid to make mistakes. Along the way, the lessons learnt will be useful to your investment journey later on in your life.
Hi ghchua,
I am a Singapore PR and would like to start in investing. Right now, I am planning to use my CPF-OA to invest, and I am initially thinking of buying funds. I already have opened a DBS investment account as well. Now, I don't know how to start about this:
1. Do I open an account with an IA, or just go through DBS? I read that normally, banks will have higher charges.
2. If I go through an IA, can you recommend which one should I open an account at?
I have looked at your portfolio at fundsupermart and it seems to be quite good.
Is there an organization out there that can help me in my CPF investment? I still have a number of questions in my mind, but I can't seem to find all the information in the web in one place. Thanks and good luck in your investing!
Hi roosechua,
1. I normally invest through online distributors like Fundsupermart,dollarDEX,POEMS etc. They offer sales charge from as low as 0.75%. You can open account with all of them to try it out and see which one suites you. Personally, I do invest more with Fundsupermart as I like their platform tools.
I have invested with DBS but via their internet banking platform.
2. Well, I would advise you to open account with each of them to try it out. There is no fees when opening account so why hesitate? I have accounts with many online distributors but I normally only use one of them frequently.
I think you can surf the CPF Board website for FAQs on CPF Investment Scheme. There are plenty of information there. Also, you can visit Fundsupermart website for some FAQs:
http://ask-us.cpf.gov.sg
http://www.fundsupermart.com/main/faq/introduction.tpl
Hi. I am a full time investor who owns quite a few stocks that is in your portfolio. I am hoping to meet up with u during the coming AGMs for a short chat. How do I send a private email to u?
Hi Teak,
You can email me at chua73@singnet.com.sg
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