Friday, November 29, 2019

My Investment Portfolio (November 2019)

STI closed the month of November down slightly to 3193 points. Market movements this month had been surrounded with Hong Kong protests and the US-China trade deal situation.

For this month, I have attended the following AGMs/EGMs/briefing - China Sunsine, Delfi, Mapletree Logistics Trust, A-REIT, Khong Guan and Vicplas.

For my top 30 holdings, the major mover had been PM Data after the company announced a decent set of half year results. United Engineers was also in the news after the offeror raised the offer price for their mandatory cash offer for the company. Yeo Hiap Seng also did well this month. The main laggard in the list had been Hotel Properties.

I have bought the following companies from the market this month - Amara, Bonvests, Bukit Sembawang Estates, Bund Center, Chuan Hup, Delfi, F&N, Far East Orchard, Frasers Property, GK Goh, Hiap Hoe, Hong Fok, Hongkong Land, Hotel Properties, Hotel Royal, IHH, Intraco, Jardine C&C, Jardine Matheson, Jardine Strategic, Khong Guan, LHT, Low Keng Huat, OUE Lippo Healthcare, Pacific Century, Shangri-La Asia, Sin Ghee Huat, Sin Heng, Stamford Land, TIH, UIC, Wing Tai and Yeo Hiap Seng. I have also reduced my stake in A-REIT R in order to extract cash from the proceeds to apply for their rights issue.

I have accepted the following voluntary delisting/cash offers this month - Avic International and Raffles United. My shares in TPV Tech had also been acquired via Scheme of Arrangement.

I have participated in the following preferential offer/rights issue this month - Mapletree Commercial Trust and A-REIT. I have also participated in the following scrip dividend schemes - AA Reit, Frasers Commercial Trust, Far East Hospitality Trust, Oxley, Tai Sin and UOA.

Activities in the markets will be expected to slow down during the last month of the year in December. With the holiday season also approaching, many investors are also looking to close their books before the end of the year. As such, it will be a good time to do some review and reflections for my investments in 2019 and prepare to tackle the markets again in 2020. Happy Holidays!

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 November 2019)

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

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

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

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
5. SBS Transit

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
2. Alpha Professional Holdings Ltd (formerly known as Z-Obee Holdings Ltd)

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Iconic Global Limited
2. Dongshan Group Ltd (formerly known as Greatronic Limited)
3. General Magnetics
4. Fastech Synergy
5. Beauty China - Under Liquidation
6. Memory Devices
7. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
8. FM Holdings
9. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
10. FerroChina - Under Liquidation
11. FirstLink Investments
12. NEL Group
13. Jets Technics
14. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
15. Hongwei Technologies Limited (In Provisional Liquidation)
16. FDS Networks Group
17. Aussino Group - In Liquidation - Creditors' voluntary winding up
18. China Oilfield Technology
19. China Milk Products Group - Under Liquidation
20. Pacific Healthcare
21. Eratat Lifestyle - In Liquidation
22. Fung Choi Media - In Liquidation
23. K1 Ventures - In Liquidation
24. DMX Technologies - In Liquidation
25. Europtronic Group
26. China Sun Bio-chem Technology
27. Attilan Group

My Unit Trust Portfolio:



Blogger Clement Ong said...

Hi ghchua,

Do you see any value in Chuan hup now that they have sold off tjeir cash cow PCI?

3:24 AM  
Blogger ghchua said...

Hi Clement,

Definitely. Their balance sheet is quite clean with more than US$119m in cash after paying out the special dividend for PCI disposal (which translates into cash per share of around 17cts), almost zero borrowings and NAV is US28.2cts per share (which is roughly 38.5cts).

Going forward, I think their result might not be as good as previous years due to absence of PCI profits. However, I think current valuation is ok as we awaits their next move.

3:51 AM  
Blogger Elizabeth said...

Hello Mr Chua,

like to seek your advice on the following:
"2nd Chance W200123 - Pursuant to the terms and conditions of the instrument executed by the Company by way of a deed poll on 23 January 2017 (the “Deed Poll”), 753,797,352 warrants were issued by the Company and will all expire on 23 January 2020 (the “Existing Warrants”). As at the date of this Announcement, the Company has 747,709,180 Existing Warrants that have yet to be exercised."

What should I do? HOW do you go about to "exercise" the warrants?

thanks much, Elizabeth

2:57 AM  
Blogger ghchua said...

Hi Elizabeth,

You can call up the warrant agent to send you the exercise form and you could fill it up, attach a cashier's order and send it back to them.

However, it is not advisable to exercise the warrants as the market price of 2nd Chance is currently lower than the warrant exercise price. So, I guess it is best to just leave it as it is or try to sell it off when there is a chance to do so. As you might have noted, the market is pricing those warrants almost worthless, with zero buyer and seller looking to sell at only 0.1cts per warrant.

5:51 PM  
Blogger Elizabeth said...

Noted with much thanks, Elizabeth

7:02 AM  
Blogger Elizabeth said...

Hello Mr Chua,

Would you have any idea WHY the stock price of Bukit Sembawang Estates keeps dropping recently?
thought it is a good stock with lots of "legacy landbank"??

thanks much, Elizabeth

12:22 AM  
Blogger Sunny said...

Shifu Chua

Any market talk about potential privatization of MO like previousely by it's mother company, it's getting stronger by days.

Thanks 😊

1:01 AM  
Blogger ghchua said...

Hi Elizabeth,

Unfortunately, I could not explain stock movements in the short term as I am a long term investor. But I do suspect that some funds had been selling down Bukit Sembawang Estates lately to switch to other property stocks.

Yes, Bukit Sembawang Estates do have a lot of legacy landbank which they have yet to develop and sell. But the weak private residential property market condition in Singapore lately had hit them as they are 100% focused in Singapore currently, unlike most of the other listed developers out there.

Therefore, investors might be factoring in slower sales and also lower margin moving forward. Having said that, the company landed property developments is still one of the best in Singapore and command a premium margin. So, I am not worried about its long term prospects though there are short term challenges.

3:48 AM  
Blogger ghchua said...

Hi Sunny,

Again, I could not comment about market talk and short term market movements.

However, I do like MO due to its undervalued assets and also its brand value. It had been trading way below its NTA for quite sometime, especially during the earlier part of the Hong Kong protests. I guess for a stock like MO, patience is needed to wait for the market to realize its value. I do not know when it will be, but hopefully it will be come soon.

3:58 AM  
Blogger Elizabeth said...

Good morning, Mr Chua,

Thanks very much.
I am a long-term investor too..bought Bukit Sembawang after checking its fundamentals etc.. and was a bit surprised and worried that the price keeps dropping..;p


4:08 PM  
Blogger ghchua said...

Hi Elizabeth,

I guess as a long term investor, we should ignore short term market movements and stay on course. Granted, markets might be volatile in the short term due to news flow and funds buying/selling, but as long as the fundamentals of the company is good, its share price should recover and do well in the long term. This plus the decent dividends they had been paying out throughout the years, I think investors will be rewarded if they are patient.

8:48 PM  
Blogger Tan said...

Hi Mr Chua,

Merry Christmas to you!

I see that you have been buying bund center and koh bros almost every month. They seem to be very undervalued but recent sunday times featured an article from smart karma stating bund center is a value trap. What are your thoughts and opinions on these two companies and their management?

8:02 PM  
Blogger ghchua said...

Hi Tan,

Merry Christmas to you too!

I don't see any stocks as a value trap as long as it is undervalued by the market. So, it really depends on whether there is any catalyst to unlock the value being taken into account by the market. If not, it is cheap and being cheap itself is a catalyst to buy an undervalued stock. The key is to diversify your holdings to avoid being "locked" into an under performing undervalued stock for a long time.

For Bund Center, it is unique in a sense that it owns two main assets in China and it had zero debt. The face that these assets are income generating meant that it is stable. The main issue is RMB currency fluctuation since their income is collected in RMB and assets are valued also in RMB with no debt. As for dividends, they had been paying out almost every year so I don't see it as an issue here. The problem is what they are going to do with a bigger cash holdings going forward and whether they will be selling those assets. Yes, the stock is trading way below the valuation of their assets so there is value here.

For Koh Brothers, I guess market might be concerned on their low dividend payout and high gearing. Gearing wise, most of the borrowings are in their construction business and they have already "ring fenced" it by listing Koh Eco. Therefore, there should not be much debt in the parent company level which basically do property developments and holding assets and JVs like Oxford hotel, Sun Plaza etc. Their property development JV in Korea is doing well, and they will be launching their freehold development project in Holland area, Van Holland soon early next year. I do see these two projects contributing positively to their bottom line going forward in the next few years. Yes, the stock is also trading way below its NAV, so I also see value here.

Hope the above helps.

5:36 PM  
Blogger Tan said...

Hi Mr Chua,

Thank you very much, your views really helps. I wish you all the best.

5:31 AM  
Blogger Sunny said...

Shifu Chua

Merry Christmas!

Saw Heeton XB, not sure what is about? Anything that I need to follow up as a shareholder? Any future development from here? With Eric Tong step down, any -ve impact to us as minor shareholders?


5:18 PM  
Blogger JTK said...

Hi GH Chua

Do you have any concern on GK Goh which is losing money?

What is your view on Bonvests which is also losing money and has high debt?

Thank you

7:55 PM  
Blogger ghchua said...

Hi Sunny,

Merry Christmas to you too!

XB just means ex-bonus issue. So, if you buy Heeton today, you will not be entitled to the bonus shares that had been declared. However, the market had also adjusted Heeton share price downwards to take into account the additional bonus shares being issued to shareholders.

For existing shareholders, no action is needed on your part. You just need to wait for the bonus shares to be credited into your account.

I guess for Heeton, which is a very tightly held company by the controlling family, losing a CEO might not be a big deal as some other bigger listed companies. The reason being, the family members are also in the business and therefore they would be able to run it as usual. Furthermore, I understand that they have also appointed a COO recently. Anyway, going forward, the company had already articulated their strategy of growing more recurring income which means buying more investment properties and hospitality assets. So, execution wise, it should be more straight forward than doing developments.

10:04 PM  
Blogger ghchua said...


If you look at the first 9 months result of GK Goh this year, they are actually profitable. But yes, there are some concerns which resulted in some losses. The main one is their stake in Malaysia listed property developer, E&O. But those are paper losses and they haven't sold their stake yet. The second concern to me is their start up losses in Allium Healthcare, which will take some time to be profitable. The last one is currency translation losses, which is mainly because of weakness in Australian dollars when translated into Singapore dollars for reporting results.

However, their two main operating business, Boardroom and Opal Aged Care Group are actually profitable businesses and cash flow generative. Their investments are also doing well, especially those private-equity funds and unlisted investments. So, overall, though I have some concerns on GK Goh, I am quite comfortable with the company and valuation is decent as the stock is trading below NAV.

For Bonvests, you must understand that it is an asset heavy company. As they continue to build more resorts and hotels, they will incur initial development costs without revenue contribution. Also, as they buy more assets, there are more depreciation costs on those assets, which again will incur more costs. With flat revenue and more costs, I am not surprised that they will incur losses. Also, this year there is a new accounting policy for right-of-use assets which needs to be depreciated which added into those costs.

I don't think Bonvests gearing is high if you re-valued all their assets to market value. This is especially true for Sheraton Towers and Liat Towers, which are both sitting on freehold land in prime areas in Singapore.

10:47 PM  
Blogger JTK said...

Hi GH Chua

Thank you very much for the detailed explanation.


3:46 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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