Wednesday, April 30, 2014

My Investment Portfolio (April 2014)

STI ended the month up at 3264 points. It had been a month of buyouts as companies with good asset backing had been a target of takeover offers and privatisation. The companies in question include CapitaMalls Asia, Hotel Properties, LCD Global Investments Ltd etc. This had led the market re-rating some of the stocks in this category which supported the market somewhat. There is also some speculation as to which company will be next in the list of buyout. The 3 local banks also reported their first quarter results which beat market expectation.

For this month, I have attended the following AGMs/EGMs/briefings - M1, MFS Tech, Cityneon, BH Global, CapitaMall Trust, Noble Group, CapitaRetail China Trust, IFS Capital, Koyo International, ITE Electric, Sing Investment & Finance, Intraco, Hwa Hong, CapitaLand, Hoe Leong, Ho Bee Land, ECS, Amara, Bonvests and Hotel Grand Central.

For my top 30 holdings, the main mover is obviously Hotel Properties. A privately held vehicle 68 Holdings had been used to hold Hotel Properties shares owned by a few substantial shareholders which trigger a mandatory offer for the company. Most of the other stocks in the list had done well last month with the exception of SGX, which releases a poor set of quarterly results.

I have bought the following companies from the market this month - Amara, CapitaMalls Asia, HupSteel and Singapura Finance. There is no sale done this month.

I have participated in the following scrip dividend scheme this month - Global Investments. I have also accepted the following voluntary delisting/cash offers - Chemoil Energy and Singapore Land.

Next month will be a quiet month for me but most companies with financial year ending 31 December 2013 will be paying their dividends. I will seek to re-invest those dividends prudently back into the market. I will also do some catch-up reading on those annual reports which I had missed out in April.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 April 2014)

Top 30 Holdings (Sing$ Denominated shares)
1. Sarine Technologies
2. United Engineers
3. Jardine C&C
4. Old Chang Kee
5. Metro Holdings
6. Bukit Sembawang Estates
7. OSIM International
8. Aspial 
9. Haw Par
10. Bonvests
11. Hong Fok
12. Noble Group
13. SGX
14. Hotel Properties 
15. A-REIT
16. MTQ Corp 
17. Sing Investment & Finance
18. Far East Orchard 
19. Hotel Grand Central
20. Hotel Royal 
21. Hiap Hoe
22. CapitaMall Trust 
24. Keppel Land 
25. SembCorp Marine
26. Singapura Finance
27. SP AusNet
28. Hong Leong Finance
29. The Hour Glass
30. Low Keng Huat

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
5. Challenger Technologies

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. General Magnetics
5. Fastech Synergy
6. Beauty China- Under Liquidation
7. Memory Devices
8. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
9. FM Holdings
10. Japan Land - In liquidation - Members' voluntary winding up
11. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
12. FerroChina - Under Liquidation
13. FirstLink Investments
14. NEL Group
15. KXD Digital Entertainment - In liquidation - Compulsory winding up (Insolvency)
16. Shanghai Asia Holdings - In liquidation - Members' voluntary winding up
17. Jets Technics
18. UIS - In liquidation - Members' voluntary winding up
19. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
20. Hongwei Technologies Limited (In Provisional Liquidation)
21. FDS Networks Group
22. Aussino Group
23. Sunray Holdings

My Unit Trust Portfolio:



Blogger Chong said...

Hi ghchua,

Saw that your unlisted holdings has a new addition of Sunray. Not sure if you attended their SGM. It's rare that they will proposed a special dividend just before a delist. Would like to hear your view?


6:29 PM  
Blogger ghchua said...

Hi Chong,

No. I didn't attend their SGM.

Sunray is actually not a bad company but they had been affected by sales of their medical products. Since they had been making losses and couldn't turnaround after 2 years in the SGX watchlist, SGX will have to delist them. Sunray has actually tried other alternatives like sourcing an exit offer from the major shareholders, but it had not been successful.

Finally, they managed to obtain a bank loan by mortgaging the Company’s office in Guangzhou, PRC for a special dividend before delisting. Shareholders also voted against the winding up of the company and therefore they will continue operating as an unlisted company.

They also managed to secure another RMB13 million bank loan for working capital.

From their moves after SGX announced the decision to delist them, you can sense that they are sincere in turning around the company. This is unlike most s-chips which just became quiet when their stock had been suspended. I don't even know what is happening to the likes of FibreChem, China Milk, China Sun etc after suspension.

Sunray's pro-active moves to prevent the company from delisting had failed. Howeever, all is not lost and I hope that they can make a comeback after delisting.

10:00 PM  
Blogger SAYwei said...

Dear ghchua
Noted you have purchased some capitamallasia shares in April. Given capitaland's intention to delist this reit, I will like to hear your opinion on the pros and cons of being a minority shareholder of a delisted company and also, if you could, share on your intention for these shares.

8:11 AM  
Blogger ghchua said...

Hi SAYwei,

CapitaMalls Asia(aka CMA) is not a REIT. It is more of a property developer and manager.

I think being a minority shareholder of an unlisted company has more cons than pros. Reason being there is no market value for your shares. The only way you can sell your shares is to approach the majority shareholder and see whether they are interested to buy your shares. I doubt other minorities are interested in buying shares of unlisted company, unless the dividend payout is very attractive.

Also, unlisted companies normally are not very transparent. They only send you a set of accounts for you to approve during AGMs. I don't even know what is happening to some of these unlisted companies.

I don't like holding unlisted companies. Normally, I will accept the offer if the offeror wants to delist the company. Of course, I will wait and see whether the offeror will get 90% of the shares and if they did, I will accept the offer.

10:21 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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