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Thursday, January 31, 2019

My Investment Portfolio (January 2019)

STI started the first month of 2019 on a good note, up more than 3% from last month to close at around 3190 points. It had been a good month all round for markets around the world, with investors now pricing in a slower interest rate hike from US Fed this year and also optimism of some resolution of trade war between US and China.

For this month, I have attended the following AGMs/EGMs/briefing - Frasers Commercial Trust, Frasers Centrepoint Trust, F&N and Frasers Property Limited.

For my top 30 holdings, UIC entered the list for the first time as property counters recovered some lost ground this month. Venture also returned to the list as technology stocks recovered from the sell down last month. As usual, I will selectively add onto some counters in the list whenever there is an opportunity to do so.

I have bought the following companies from the market this month - Amara, Bonvests, Bund Center, EnGro, GK Goh, Heeton, Hotel Grand Central, Isetan, Kingsmen, Koh Brothers, Lion AsiaPac, Low Keng Huat, Metro, Sing Investment & Finance, Tan Chong International, Teck Wah and Willas Array. I have reduced my positions in Camsing Healthcare and Halcyon Agri. I have also closed my position in Ouhua Energy.

I have accepted the following voluntary delisting/cash offer this month - Sunrise Shares.

Next month will be a very busy result month as most companies with financial year ending 31 December 2018 will be announcing their full year results. As usual, I will be going through some of these result releases.

Gong Xi Fa Cai!

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2019

Top 30 Holdings (Sing$ Denominated shares)
1. Best World
2. Jardine C&C
3. Keppel T&T
4. United Engineers
5. Haw Par
6. Hong Leong Finance
7. Bonvests
8. Hotel Grand Central
9. Hotel Properties
10. Metro Holdings
11. Sing Investment & Finance
12. Hong Fok
13. Singapura Finance
14. Stamford Land
15. Far East Orchard
16. Bukit Sembawang Estates
17. Hiap Hoe
18. Tat Seng
19. A-REIT
20. UOL
21. Hotel Royal
22. ComfortDelgro
23. GK Goh
24. PM Data
25. Isetan
26. Old Chang Kee
27. SGX
28. UIC
29. EnGro
30. Venture

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Hongkong Land
3. Mandarin Oriental
4. Dairy Farm
5. Jardine Matheson

Top Holdings (HK$ Denominated shares)
1. Shangri-La Asia
2. Tan Chong International
3. Fortune REIT

Top Holdings (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Streettracks STI ETF
2. CapitaLand Mall Trust
3. Keppel Corp
4. Best World
5. A-REIT

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
2. Z-Obee Holdings Ltd

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Dongshan Group Ltd (formerly known as 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. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
11. FerroChina - Under Liquidation
12. FirstLink Investments
13. NEL Group
14. Jets Technics
15. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
16. Hongwei Technologies Limited (In Provisional Liquidation)
17. FDS Networks Group
18. Aussino Group - In Liquidation - Creditors' voluntary winding up
19. China Oilfield Technology
20. China Milk Products Group - Under Liquidation
21. Pacific Healthcare
22. Eratat Lifestyle - In Liquidation
23. Fung Choi Media - In Liquidation
24. K1 Ventures - In Liquidation
25. Jaya Holdings - In Liquidation
26. DMX Technologies - In Liquidation
27. Europtronic Group

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

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20 Comments:

Blogger Clement Ong said...

Hi ghchua

Can I check what is your investing rationale for buying tan Chong international? Thanks

6:07 PM  
Blogger ghchua said...

Hi Clement,

Tan Chong International is a deep value stock with assets like properties in their books. It is trading at more than 50% discount from its book value. Recently, they have issued a profit warning on unrealized loss of their investments which resulted in a sell down of their shares. I don't see anything bad about this as market fluctuations often resulted in movements of securities prices. I suspect those investments might be their stake in Fuji Heavy Industry (Subaru).

If you look back, the company have a decent track record of dividend payout and also solid balance sheet. Though its motor distribution business is tough, they have managed to maintain or even grow their business at a decent rate. This plus their cash level, investments and property assets meant that there is a decent margin of safety for this stock if things gets worse.

6:38 PM  
Blogger Sanye ◎ 三页 said...

Hi ghchua,

Will you accept M1 tender offer?

Happy CNY.

5:01 PM  
Blogger ghchua said...

Hi Sanye,

Happy CNY!

Most likely I will accept the M1 offer, since chances of a completing offer is now slim. Having said that, I haven't make up my mind yet.

5:31 PM  
Blogger Ben said...

Hi Ghchua,

Wishing you a blessed and bountiful CNY year.

Ben

6:15 AM  
Blogger ghchua said...

Hi Ben,

Happy CNY to you too!

Gong Xi Fa Cai.

9:50 AM  
Blogger Everlearning said...

Hi ghchua,

A blessed and blossoming Lunar New Year to you!

Many unpleasant things have been happening to me that caused me unable to keep up with the stock investment last year. I have literally left everything untouched and statements unread. I do know something: that I could put aside this investment unattended: to look into matters that needed my full attention.

Life has its ups and downs at certain point of one's life. Either we face it or take the easiest way out: to run away from it. I tend to choose the former one. When it did not work out the way I wanted, at least, I could say, I had already put in 99.9% of my effort to resolve the issues.

It is always good to come here to read your comments monthly. It does help me at least to have a brief idea what the outlook is liked with your genuine sharing. I am still holding a substantial amount of stock holdings and they have already formed a part of my investment portfolio. To disassociate from it is easier said than done!

7:03 PM  
Blogger ghchua said...

Hi Everlearning,

Happy CNY to you! Nice to hear from you again.

Indeed, life is unpredictable and certain things in life are definitely more important than one's investment portfolio. I am glad that my monthly investment update here on my portfolio is useful to you. Hope that you can resolve your other matters soon and return to investing.

Investment is like growing a plant. You can ignore it for a while and it might still grow. However, as time goes by, there might be weeds and insects around your plant and these might affect the "health" of your investment portfolio. Once in a while, it is good to look at them and clean up some dead woods. I have been doing this consistently since I started doing it full-time.

All the best to your investment and many happy returns in the Year of the Pig.

9:20 PM  
Blogger Ben said...

Hi Ghchua,

Let me share my views on the investment portfolio.

Frankly speaking, I treat the investment portfolio as one which will give me the generated interest on a regular basis. I do not bother with the ups and downs of the portfolio as my main concern is the generated dividends. I allocate $10,000 per counter to ensure that I am not exposed to a particular counter which suddenly plunges its share price. I made mistake in which I allocated about 75% of the investment proceeds in one counter. The counter dropped from the purchased price of $1.71 till the current price of $0.31. The regular investment in other counters has reduced the weightage to the current 45% of the investment portfolio.

The diversification of proceeds into various counters indeed reduced my exposure to the one counter.

The above circumstance reinforces the lesson in not relying too much on one counter.

Ben

7:46 PM  
Blogger ghchua said...

Hi Ben,

Certainly, diversification is important. What I am saying is that as time goes by, there are some counters which does not make sense anymore to keep so it is best to get rid of them.

12:23 AM  
Blogger Ben said...

Hi Ghchua,

The market is dominated by the big players who can make the affect the share price at their whim. You are right to mention that the diversification is important. As for me, it makes sense for me to buy and hold for the generated dividends. I will rather spend the time focusing on my interest and hobbies. This is the way how life should be led as per my perspective.

Ben

1:20 AM  
Blogger quek keng joo said...

Hi GhChua,

Can i check why you would want to accept the offer when the likelihood of them completing the offer is low?

Thanks.

5:07 AM  
Blogger ghchua said...

Hi quek keng joo,

If there is no completing offer, most likely that the free float of M1 after the offer closes will be low. In fact, it might not be able to meet the 10% free float requirement stipulated by SGX to maintain its listing status.

Having said that, I still leave my options open as I have not accepted the offer to date. I want to wait and see whether they can secure 50% of the shares first, which will make the offer unconditional.

5:08 PM  
Blogger Ben said...

I will not accept the offer. It will be interesting to know how it is like to be a shareholder of the company which is delisted from the market (if it happens). This will be another new experience for me.

Ben

8:00 PM  
Blogger quek keng joo said...

Many thanks GhChua :)

4:35 AM  
Blogger Clement Ong said...

Hi ghchua,

Thanks for your earlier reply on Tan Chong International.

I was hoping to hear your opinion on whether you think Tan Chong International will ever realise the value of their assets like property and investment securities?

Thank you.

7:06 AM  
Blogger ghchua said...

Hi Clement,

Unfortunately, for deep value stocks like Tan Chong International, it is really difficult to say when will they realize value. Ultimately, for these stocks, the reason why they are trading at a discount to book is because the market believed that its assets could not be realized in the short term. Otherwise, the market will not offer it at a discount to you.

What I can say is that at least with a discount to book, the stock's downside risk is limited, as long as the management did not destroy value.

We have to be patient with deep value stocks, with an intention to hold them for very long term. Otherwise, one might be disappointed with them and deemed them as "value traps".

7:25 AM  
Blogger ghchua said...

Dear all fellow M1 shareholders,

As there had been some interest in M1 at this comment section lately, I would like to provide an update on my investment decision on the stock.

I have made my final decision to accept the offer. The offer had turned unconditional after Axiata had thrown in the towel. With the offeror now holding 76.35% of M1, the chances of them getting 90% stake is very high now. As this is a major milestone for the offer, I suspect the others will follow and thrown in the towel too.

6:17 PM  
Blogger quek keng joo said...

Thanks GHChua

6:11 PM  
Blogger Ben said...

Hi ghchua,

My decision is in contrast with you. Let's see how it goes.

Ben

6:30 AM  

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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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