Friday, February 28, 2020

My Investment Portfolio (February 2020)

Covid-19. The only keyword that determines market movements these days as investors sold down stocks globally as markets started to price in the risk of a global recession as the virus continues to spread further beyond Asia. Locally, STI lost about 4.5% for the month to hold on just above 3000 points. The selloff had been across the board so there is nowhere to hide.

For my top 30 holdings, Venture returned to the list after outperforming most of the other stocks. Companies in the list reporting their full year result for FY2019 had been mostly maintaining or cutting their dividend payout, in anticipation of tougher times ahead. Most of the stocks in the list had been sold down this month, though not as much as those more volatile earnings based stocks.

I have bought the following companies from the market this month - Avarga, Amara, Bukit Sembawang Estates, Chuan Hup, Dairy Farm, Delfi, EnGro, F&N, Far East Orchard, Frasers Property, GK Goh, Guocoland, Hong Fok, Hong Leong Finance, Hongkong Land, Hotel Grand Central, Hotel Royal, Hotel Properties, HRnetgroup, Jardine C&C, Jardine Strategic, Khong Guan, Lion AsiaPac, Metro, NSL, Sembcorp Industries, Singapura Finance, Stamford Land, UIC, UOB Kay Hian, Wing Tai and Yeo Hiap Seng. I have also closed my position in Pan Ocean.

I have also accepted the following voluntary delisting/cash offer this month - Tee Land.

Markets is now undergoing another round of sell down, after recovering from the first one early this month. The impact of the current one is more deep and expected to be more long drawn. Having stepped up my purchases this month, I will slow down a bit going forward in case there will be another round of deep selloff. I will still continue to focus on less volatile stocks, and selectively increase my stake in more deep value stocks.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2020)

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

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. Tan Chong International
2. Shangri-La Asia

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 D said...

Hi GH Chua,

The link on your unit trust does not work. It links me to the home page of FSM.

4:59 PM  
Blogger ghchua said...

Hi D,

I have already complained to FSM. Unfortunately, they have decided not to port over those public unit trust portfolios from their old website to the new one. They have since removed their old website.

There is no feature currently on the new FSM website to put up one's unit trust portfolio publicly. Therefore, I guess I would not be able to publish my unit trust portfolio until I could find another good site to upload it.

9:41 PM  
Blogger retnuoc said...

Hi GH,

May I know what's your strategy to ride through current situation as a long term value investor? Is there any advice?

Thank you.

2:46 AM  
Blogger ghchua said...

Hi retnuoc,

My strategy doesn't change much as I have been buying stocks every month. Therefore, no change in my main strategy.

Some slight changes though is to buy slowly as markets swing widely during the past two months. I will only accelerate my buys if the market falls a lot, while slowing down when it moves up.

3:52 AM  
Blogger AppShadow said...

Hi GH,

Is your transaction cost very low so that you can purchase so many stocks in a month? I suppose you do not sell your stocks since you hardly mention.


2:51 AM  
Blogger WTK said...

Hi Ghchua,

Your strategy during the market fall is a good one. I think that this is suitable for the investors who are inclined for the dividend growth approach.


4:57 AM  
Blogger ghchua said...

Hi AppShadow,

I diversified away from stock specific risk, which is why I bought so many stocks. Also, as the market continues to fall, it is very likely that most stocks will become less liquid, especially those that are outside the STI index. Therefore, I need to be diversified in order not to be concentrated in illiquid stocks.

As for transaction costs, my minimum brokerage is $10 when I bought less than 1000 shares of a counter each time. As markets continue to fall, it is better to spread your purchases across days rather than to focus on one big buy to save on brokerage.

I do sell some stocks every now and then, as mentioned in this blog. However, most of my proceeds are from takeover/delisting offers. I do not need to sell stocks often as I do not buy on contra or leverage, so there is no need to raise cash.

6:46 PM  
Blogger ghchua said...


Thanks for your comments. Always much appreciated.

These are tough times. Stay invested and ride through this period. Meanwhile, take care and remember to spread your investments throughout this period.

6:50 PM  
Blogger WTK said...

Hi Ghchua,

Thanks for your well wishes.

You too also take care and stay healthy.


9:49 PM  
Blogger Sunny said...

Shifu Chua

Is it okay to have some Kep Infra Trust as at whatever times, people still need water treatment, telecommunications, etc, but I am unsure it's cashflow, current valuation and future prospects like etc? Will you mind shed some light here especially on dividend payout and sustainability? Thanks

12:39 AM  
Blogger ghchua said...

Hi Sunny,

Cash flow from infrastructure type of business should be stable, since most of these are essential consumption. Also, some of the cash flow are from availability, which means as long as they are able to generate output for those assets by meeting certain standards, they will get paid. It doesn't matter what price the market is buying these output.

For Kep Infra Trust, I think one of the issue is that their concessions have expiry date. Which means, they are contracted to operate those assets up till a certain date. If these are not renewed, it will affect their cash flow. However, they have since acquired evergreen operating assets to ensure that their cash flow is sustainable even as these concessions expire.

Short term wise, I don't see their dividend payout being affected by Covid-19. Having said that, there is also not much room for them to increase their dividend payout, unless they acquire more assets. That will need another round of equity funding which might be dilutive to existing unitholders.

Infrastructure assets are also asset heavy business, so do take note of their debt level as well.

4:49 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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