My Investment Portfolio (February 2013)
February 2013 started well but the momentum was lost towards the end of the month as investors took profits after the Italian election results. Interests were seen in micro-cap penny stocks which were heavily traded. STI ended at 3269.
For this month, I have attended the following AGMs/EGMs/briefings - CM Pacific, Ossia, Petra, Yoma and Transview.
For my top 30 holdings, Sarin Technologies continued its good run after announcing a decent set of FY2012 results and also provided dividend guidance. Guthrie GTS was another big mover this month and I also added more onto the counter. Haw Par performed well as investors cheered its bonus issue that had been declared after they announced their FY2012 results towards the end of the month.
I have bought the following companies from the market this month - 2nd Chance, BBR Holdings, Chosen, Eu Yan Sang, Guthrie GTS, Haw Par, Ho Bee, Intraco, Keppel T&T, LC Development, LHT, Nam Lee, Popular, Sakae Holdings, SBS Transit, Sing Holdings, Singapore Reinsurance, Stamford Land, Tuan Sing, YHI and Zagro Asia. There is no sale done this month.
I have accepted the following voluntary delisting/cash offers - Rokko. My shares in Kian Ann had been acquired via Scheme of Arrangement. I have also subscribed to the following rights issue - Moya Asia.
I have participated in the following scrip dividend schemes - Cambridge, MapleTree Industrial Trust and MapleTree Logistics Trust. I have also converted the following company warrants to shares - UPP Holdings.
For next month, companies with financial year ending 31 December 2012 will be starting to conduct their AGMs. I will be reading up their annual reports and attending their AGMs. Also, I need to recap and go through those results announcements again to decide which AGMs I wish to attend in April as there might not be enough time for me to go through all the annual reports in April.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2013)
Top 30 Holdings (Sing$ Denominated shares)
1. F&N
2. Jardine C&C
3. Bukit Sembawang Estates
4. Viz Branz
5. United Engineers
6. A-REIT
7. SGX
8. Aspial
9. Sing Investment & Finance
10. Sarin Technologies
11. Guthrie GTS
12. CapitaMall Trust
13. Noble Group
14. SembCorp Marine
15. Far East Orchard
16. UIS
17. Metro Holdings
18. The Hour Glass
19. Bonvests
20. Haw Par
21. Old Chang Kee
22. KepLand
23. OSIM International
24. Hong Leong Finance
25. Fragrance Group
26. VICOM
27. Low Keng Huat
28. Wheelock Properties
29. Singapura Finance
30. SP AusNet
Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Hong Kong Land
4. Jardine Matheson
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 - Under Liquidation
5. General Magnetics
6. Fastech Synergy
7. Beauty China- Under Liquidation
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. NEL Group
16. LMA - Under Liquidation
My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199
Labels: Portfolio
posted by ghchua at 6:19 AM
13 Comments:
Hi ghchua,
Looks like you have bought quite a bit of shares last month. With your limited income, now mainly from the dividends collected, you are able to purchase numerous share counters practically every month, quite amazing!
I have always wondered: do we really need to submit the form to SGX, if the stock eventually got delisted because the Offeror reached 90% accepted offer? Would I get back the delisting offer money back even I absent-mindedly forgotten to send out the form on time? or the form got delayed by mail or for some other reasons?
Hi Everlearning,
For last month, I was lucky to have some proceeds from the Scheme of Arrangement for my stake in Kian Ann. Also, there is a special dividend from Old Chang Kee. That explains why I could re-invest into some of these counters without selling anything in my portfolio.
For your second question, it is a long story and I will answer it by parts.
1. If the company intends to compulsory acquire all the remaining shares out there and delist from SGX, you do not need to do anything and wait for your shares to be acquired and they will pay you the delisting proceeds at offer price.
2. However, some companies might not be able to compulsory acquire the remaining shares out there even if they reached 90% acceptance level due to technical issues or they don't wish to. If that is the case, you still have the right to require them to acquire your shares at offer price within 3 months (I think) after the offer closes. You have to write to them to exercise your right but sometimes they will send you a form for you to exercise that right. Otherwise, you hold shares of a private company after the company had been delisted from SGX.
3. Do note that not all companies will want to delist from SGX even if they have reached more than 90% acceptance level after the offer closes. They might decide to place out some shares to restore the public float to more than 10% to keep the company listed. If that is the case, no worries for you as the company is still listed and you can decide what to do with your shares. However, do note that you will still have the right as stated in 2. and you might wish to exercise it.
why do u like sbs
Hi GHChua
Do you still see value in Popular with the current price of 26.5 cents which is greater than NAV of 25 cents?
Is 2nd Chance for dividend? Or Growth?
Can you share the rationale behind the buying of Intraco and Chosen which are losing money?
It looks like they are burning cash.
Is Guthrie GTS worth buying even after the price rise? Has Jurong Point factor already been priced in?
Are you still bullish on Singapore Property Developers?
Construction companies/Developers may probably be hit by the tightening on foreign workers. Ship builders may be hit as well.
Thank you
JTK
Hi Unknown,
SBS Transit is a decent stock that is trading currently at around 52 weeks low. I had been holding this stock for more than 10 years.
It has a well operated bus business which had been hit by raising labour costs and renewal of their bus fleet. Also, depreciation of their buses eats their expenses, resulting in losses in this part of their business. However, do note that depreciation does not eat into the cash flow.
The other parts of the business - i.e. rail, advertising and retail rental businesses are profitable.
Going forward, I still see increase in ridership with population increase. The new bus purchase costs will be shared with LTA. New rail lines will also lead to higher revenue for their rail business, but initial start-up costs might eat to their profitability. There is still room for them to ramp up the retail rental side of their business, with more new air-con bus interchanges.
I suspect after the fare review, there will be increase in bus fare and that is a slight positive for the company going forward.
Hi ghchua,
Thanks for your detailed explanation on this issue of delisting shares from SGX.
Actually, I personally went down to SGX to submit the acceptance letter for ROKKO; thinking that if I missed the closing day, I would not get back the delisting proceeds.
"Holding shares of a private company that had gone through delisting from SGX", I think, would be a disadvantage to retail investor. Retail investor has no choice, but being coerced to accept the delisting.
Hi JTK,
You asked a few questions about some of the companies, so I think I will answer them one by one.
1. Popular. You can't value Popular on NAV alone as it is not a pure property play. In fact, if you really wanted to use NAV, it should trade at a premium and not at a discount. Why? Its retail Division is a solid business franchise in Singapore and Malaysia markets and sells on cash terms. They also have a textbook publishing business in Hong Kong which sells to schools. I guess the strength of Popular is not easily re-produced by any other company.
2. 2nd Chance. I like this company because of its prudent management. In fact, they had been right during the crisis period whereby they bought retail outlets and are now sitting on them collecting good rental income. Their retail business is also doing ok. This stock is not for growth, but for steady dividend play.
3. Intraco. I don't think this company is burning cash. If you look at the cash flow from operations, it generated $3.6 Million. The loss is mainly due to impairment losses. This company needs restructing to sell off its unprofitable business. But the company is sitting on cash per share of 50cts and with new controlling shareholder, I believe that things will get better.
4. Chosen. This company suffered during the 1st half of 2013 due to low orders and higher costs. But I don't think it is burning cash too. It has $16.4 Million in the balance sheet vs $7.3 Million loan as at 31 Dec 2012. NAV is 22cts. Current share price is undervalued. I had also been following this company for quite sometime. They have been paying dividend every year since 1999.
5. Guthrie GTS. Jurong Point is classified as an investment property and therefore they re-valued it every year. Their engineering and property development business is lumpy, but I like the fact that they owns good properties for stable rental income. Latest reported NAV is 97cts. At current price, I don't think it is expensive. They have also declared a final dividend of 1.25cts + special dividend of 2cts.
Hi JTK,
Outlook for Singapore Property Developers. Developers revenue had always been lumpy. I guess there is still demand for developers who have a niche market and also able to time the market well or hold a huge land bank. Some developers are also exposed to foreign markets and therefore there is diversification.
I like Bukit Sembawang Estates because of its good land bank acquired at low costs decades ago. It is still my favourite developer listed on SGX to date.
Yes, tightening on foreign workers will hit them down the road. For construction companies, they would have to increase productivity. A lot of construction companies had also turned into mini property developers so they are not really pure construction play. I do like those who have niche areas like TTJ, BRC Asia, BBR Holdings etc.
Hi GHChua
Thank you for the comprehensive explanations and sharing of the good companies.
Popular has shot up recently and it is a good business. But for me the price looks high.
Intraco: NAV drops from 0.70 to 0.61 in a year. From NAV point of view, not much margin of safety with current price.
It could have hidden value in its long established brand name and its extensive regional network.
I agree with you that Chosen is undervalued provided it can turnaround.
NAV is reduced from 23.05 to 22.34 during 6-month period.
"Gross margin declined from 5.8% to 3.3% due mainly to lower sales
of higher value-added products by the Singapore operation and high testing cost on new programs by
the Malaysian operation."
I am a bit cautious on Property Developers and construction companies because of
government policies on Property and foreign workers.
If I were not wrong, Aberdeen asset management has a stake in Bukit Sembawang. So I believe it has good value even though its NAV is only $4.38.
I prefer TTJ to BBR and BRC Asia since it owns dormitory.
What is your view on Low Keng Huat and Chip Eng Seng? Their dividends are high. Which one do you prefer?
For me, I am biased towards LKH due to Malaysia Land Bank.
JTK
Hi JTK,
I do agree with you that Popular is a good business. However, we can't control the market and we just need to get it at a good price.
The catalyst for Intraco might be the entry of a new substantial shareholder, TH Investments. Besides its distribution network, Intraco holds stake in listed companies like Dynamic Colours and Pacific Century Regional Development etc. I believe that value could be unlocked in this company.
Bukit Sembawang's RNAV should be much higher than the reported NAV. Remember that those land were bought ages ago. There is potential for the company to give higher dividend too as they almost pay down all their debt.
BRC Asia is interesting because they do pre-fab. With the govt emphasis on productivity, I believe they will benefit from it as more and more construction players will use their Prefabricated solutions. This is one company that can benefit from tightening on foreign workers.
I think LKH is more interesting than Chip Eng Seng simply because their projects had been well-sold and they also have stable and growing stream of recurrent income from their hotel in Australia and upcoming PL Sq retail. Of course, there is development potential of their cheap Malaysian land bank.
Chip Eng Seng is more exposed to low margin HDB market but they are doing well for Tower Melbourne in Australia.
Hi ghchua,
thanks for the explaination on delisting. I miss out F&N buyout offer due to busy over work. Was quite worry when they Halt the trading.
will patiently wait for their offer now
Hi GH Chua,
What is your take on Breadtalk and Boustead? Do you think they are value stocks? Which Stock do you think is more promising - Oldchangkee or Breadtalk? Thank you!
Faith
Hi faith,
I think Breadtalk is more of a growth story. They had been very innovative in growing their outlets and developing new brands/concepts.
Boustead is more of a value stock. Slow and steady. I do like its Geo-Spatial business as it deliver good recurring revenue for the company. The other part of their business (with the exception of water treatment) are also doing well.
Old Chang Kee is one of my top 30 holdings currently and I continue to like the stock. If you observe, their store space is not huge and that saves on rental costs. The concept is really to takeway and enjoy their snacks. They also have a few other brands and these new brands might contribute more to their revenue few years down the road.
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