Tuesday, March 31, 2020

My Investment Portfolio (March 2020)

Covid-19 and oil price. These are two main factors contributing to market performance this month. STI closes this month at around 2481 points, down a massive 17.9% from last month. The sell-off was steep and furious in some days, though rate cuts and massive stimulus efforts by governments across the world managed to help STI to reduce some of its losses towards the end of the month.

For my top 30 holdings, SGX had been an outperformer as market volatility is expected to increase trading volume. Bonvests has also been in the news as they have withdrawn their final dividend declared in order to cut costs. LHT is back in the list as it outperformed the other stocks after purchases by a director.

I have bought the following companies from the market this month - Amara, Asia Enterprises, Bonvests, Bukit Sembawang Estates, Chuan Hup, Dairy Farm, Delfi, F&N, Far East Orchard, Frasers Property, GK Goh, Guocoland, Hong Fok, Hong Leong Finance, Hotel Grand Central, Hotel Properties, HRnetgroup, Intraco, Jardine C&C, Jardine Strategic, Koh Brothers, Metro, NSL, Pacific Century, Sembcorp Industries, Sing Investment & Finance, Singapura Finance, Stamford Land, Straits Trading, UIC, Wing Tai and Yeo Hiap Seng. No sale trade was done.

I have participated in the following scrip dividend scheme - AA Reit. I have also accepted the following voluntary delisting/cash offer this month - Breadtalk.

This has clearly been the most difficult period for me since I have turned to full-time investing 8.5 years ago. With most companies having financial year ending 31 December 2019 changing their scheduled AGM dates mostly in April to a later date due to Covid-19, they are expected to push back their dividend payment dates too. This is expected to affect my cash flow planning to deploy those dividends back into the markets. The most likely consequence is that I have to slow down my purchases in the markets significantly for the next few months in order not to use up all my reserves before those dividends had been paid out. The alternative, of course, is to sell some stocks now in order to build up a war chest in order to deploy them into the markets later. However, as I do not know whether the markets will move up or down in the near future, I do not think selling now and buying back stocks later is a wise move. In fact, one will be incurring more transaction charges.

I will continue to maintain zero gearing for my portfolio. Which means, no margin, no borrowing, no contra etc as I continue to navigate these difficult market conditions. Hope that all of you out there stay safe and healthy. Tough times won't last forever so stay invested.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 March 2020)

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

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



Blogger retnuoc said...

Hi GH,

Can you share your view on SREIT in current market situation? Thank you.

6:23 PM  
Blogger ghchua said...

Hi retnuoc,

I am negative in general on SREIT. If you have monitored my purchases for the past few months, I have not added any SREIT into my portfolio despite seeing heavy sell-off in most of them.

I think DPU of SREIT in general will go down. Asset prices of SREIT will go down as well. Gearing level will go up as a result. As SREIT do not hold a lot of cash since they have to pay out at least 90% of their earnings as DPU to unitholders, chances are very likely that some of them might need to do rights issue in the near future to bring down their gearing level.

The above plus the fact that their unit prices are low, makes them difficult to acquire assets by issuing units as it is not DPU accretive. This will mean that they cannot grow their REITs as aggressively any more with deals like last year, which would also mean lower NAV in general. Most of them will also not be trading at a premium to NAV like last year, since there is no longer any growth story to tell.

6:47 PM  
Blogger Sunny said...

Shifu Chua

Guess you may have Elec & Eletek. Do you think the offer is attractive enough to privatize it? The dividend yield is just so so in recent years, the trading price to offer price got a gap of more than 13%, isn't a good buy in now and wait for things to unfold by itself?


1:18 AM  
Blogger ghchua said...

Hi Sunny,

I think the offer is attractive and most likely I will accept the offer. But they have to reach compulsory acquisition level under Singapore and Hong Kong company Act for it to go unconditional. Which means, they must gather acceptance of 90% of the outstanding shares they do not own presently for the offer to go through.

The gap between the current price and the offer price is to factor in the uncertainty as detailed by me above. So, it is not a done deal.

2:00 AM  
Blogger Sunny said...

Shifu Chua

How many percentage of total shares do they own up to now? When will the offer close? When will shareholder receive cash in SG Dollars if the deal going through? If the deal fails, how do we know earliest so that can sell at open mar6 at possible higher price? Thanks 😊

5:09 AM  
Blogger ghchua said...

Hi Sunny,

The offeror and concerted parties currently owns around 75.9% of Elec & Eletek. So, they need acceptance of 90% of the remaining 24.1% outstanding shares out there for the offer to go unconditional.

As for the dates, you have to refer to the offer document. Since it is not out yet, I am unable answer your question on the offer closing date and when one would receive the cash proceeds. But if the offer went unconditional, it will be paid out within 7 business days after it turned unconditional.

6:12 AM  
Blogger Sunny said...

Shifu Chua

When companies postpone AGM, do the companies push back pubilshing quarterly results to a later date as well?

4:23 PM  
Blogger ghchua said...

Hi Sunny,

I don't think so. But most companies have already stopped doing quarterly reporting, under the new regulation from SGX.

7:43 PM  
Blogger Sunny said...

Shifu Chua

Have you received any form for handling over E16 to the offerer?


6:38 AM  
Blogger ghchua said...

Hi Sunny,

Not yet. Haven't received anything from the offeror yet.

8:15 PM  
Blogger Sunny said...

Shifu Chua

On Apr 28, E16 will have AGM in HK, does it mean AGM will finalize the proposal of general offer?


11:22 PM  
Blogger ghchua said...

Hi Sunny,

The AGM has got nothing to do with the general offeer. AGM is once in a year kind of meeting for shareholders, to approve standard stuff like audited accounts, appointment of directors etc. The general offer does not need to go through any meetings. They just need to launch the offer and see how much acceptance they got at the end of the day to determine whether it will go through or not.

Hope that the above clarifies.

4:33 AM  
Blogger Sunny said...

Shifu Chua

Now I got it. We just need to wait for the launch of the general offer. Please contact me if wrong.

Thanks 😊

12:07 AM  
Blogger WTK said...

Hi Ghchua,

It makes more sense to stay invested at all time. This is regardless of whether there are any crisis. I believe that this will reap rewards in term of generated dividend for the dividend growth investors.


4:40 AM  
Blogger ghchua said...


In any crisis like one we are experiencing now, there will always be buying opportunities. But there are mainly two school of thoughts here.

One is that they want to wait for the lowest (or near low) level and then buy in big amounts. However, the risk is that they might not buy at all because the low might have passed them before they knew it. Is STI at 2200+ points that we experienced last month the lowest in this current crisis? I don't know.

Another group is to consistently buy all the way down in a crisis like normal times. Granted, we might not buy everything when STI was at 2200+ points, but we are putting money into work in the markets. We might see stock prices going down immediately after we bought, but we are quite sure that this current crisis, like previous ones, will pass eventually.

I think each have its own merits but I prefer a more consistent method of staying invested at all times. At least I do not have to second guess virus numbers and actions by governments around the world.

7:24 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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