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Thursday, April 30, 2020

My Investment Portfolio (April 2020)

STI closes this month at around 2624 points, ending the month on a high note and recovered more than 100 points from last month. It looks like markets are factoring in the prospects of Covid-19 treatment and economy around the world starting to open up soon as virus numbers seems to peak. Volatility across various markets has also gone down during the month.

For my top 30 holdings, Hong Fok is the new top holding in the list as the company benefited from consistent share buybacks executed during the month. Old Chang Kee and Tat Seng returned to the list. Old Chang Kee was allowed to operate during the circuit breaker period as they are deemed essential services. LHT continued to make progress in the list as they are expected to benefit from panic buying in supermarkets as rental of pallets is expected to increase due to more inventory movement in warehouses. Elec & Eltek returned to the top 5 holdings (US$ denominated shares) list after the company received a voluntary conditional cash offer this month from its controlling shareholder.

I have bought the following companies from the market this month - Amara, Bonvests, Chuan Hup, Delfi, Far East Orchard, Guocoland, Hiap Hoe, HL Global, Hongkong Land, Hotel Grand Central, Hotel Properties, Intraco, Isetan, Jardine Strategic, Lion AsiaPac, NSL, OUE, Samudera, Shangri-La Asia, Sing Investment & Finance and Stamford Land. No sale trade was done.

I have also participated in the following scrip dividend scheme - Oxley.

Though markets have recovered somewhat this month, I will continue to slow down my purchases going forward. With companies now starting to report bad results and updates from the Covid-19 fallout, it will take sometime for markets to fully digest these news. Having gotten some certainty from dividend payout dates for companies with financial year ending 31 December 2019 holding their AGMs in April, May and June, I will be able to do some cash flow planning to reinvest those dividends back into the markets going forward. I will continue to spread my purchases across different stocks at various price points, with focus on deep value stocks and also those who had been sold down significantly due to Covid-19 concerns.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 April 2020)

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

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

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
4. A-REIT
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

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15 Comments:

Blogger faith said...

Hi G H Chua,

I realised that you do not have banking stocks. May I know the rationale behind? Also, what is your take on AEM? Thank you!


Faith

7:25 PM  
Blogger ghchua said...

Hi faith,

I do have the 3 local banks in my portfolio, but they are not in my top 30 holdings list. Currently, I prefer finance companies over banks as they are trading at more decent valuation. Banks in Singapore will be facing the dimming growth outlook, rising credit risks and lower rate environment. What this means is that they will be reporting profit decline for this year.

As for AEM, I do have the stock in my portfolio but again, it is not in my top 30 holdings list. AEM's fortunes is closely tied with Intel, and with disruption in global supply chain, I would expect them to report lower earnings going forward. Current valuation is not cheap enough for me to consider adding more into it.

7:37 PM  
Blogger JTK said...

Hi GHChua

It looks like you are buying Hotel and Property stocks. Any rationale behind your purchase?
I think Hotel and Property busineeses have been badly hit by Covid-19.

Amara, Bonvests, Far East Orchard, Guocoland, Hiap Hoe, HL Global,
Hongkong Land, Hotel Grand Central, Hotel Properties
OUE, Shangri-La Asia
Stamford Land

Among them, which one you like the most? Far East Orchard?

Thank you
JTK

8:38 PM  
Blogger ghchua said...

Hi JTK,

I will not go into details on each individual stock in the list as each has its own investment merit and it will be a very long post if I do that. Instead, I will make some general comments here.

Yes, hotel and property stocks will be badly hit by Covid-19. However, it is important to instead look beyond Covid-19 and see whether its current share price presents good value, despite short term challenges. Most of these companies are trading at 0.5x book value and below, with most of them holding assets in prime locations, and in some instances, sitting on freehold land. With exception of HL Global (which is more of a net cash company), the other companies in the list had been consistently profitable pre Covid-19 days.

So, the rationale behind my purchases of these companies is very simple. They are stocks currently trading at deep value and backed by solid physical assets.

11:18 PM  
Blogger JTK said...

Thank you, Sifu Chua for the explanations.

10:00 PM  
Blogger WTK said...

Hi Ghchua,

One will have to expect the "ups" and "downs" for the market. It does not matter if one is on for the long term. This is most relevant for one who is inclined for dividend growth investment.

WTK

5:32 AM  
Blogger Sunny said...

Shifu Chua
Any update on E16 general offer?

Thanks 😊

9:54 AM  
Blogger ghchua said...

Hi Sunny,

There has been a delay. The date of despatch for offer document has now been extended to latest 31 May 2020.

6:48 PM  
Blogger donmihaihai said...

Hi ghchua

I have a question on getting script from Jardine Matheson. Any diff compare to primary listings?

Thanks

10:01 PM  
Blogger ghchua said...

Hi donmihaihai,

No difference. Shares will be credited into your CDP account. Formula for calculating the scrip dividend price is based on volume weighted average price over 5 trading days on SGX.

1:58 AM  
Blogger donmihaihai said...

Thank you!

2:42 AM  
Blogger Sunny said...

Shifu Chua

Do you have Reits like Crownwell, ESR? Any information about these 2 to share with us especially on future earnings prospects, possible right issue, worthwhile to invest if compared with big names like Mapletree, Fraser, Ascendas, Capital.
Thanks
😊

8:05 PM  
Blogger ghchua said...

Hi Sunny,

I only hold a small stake in ESR REIT but do not hold Cromwell REIT. I do not like most of the smaller cap REITs especially those with overseas exposure, as it exposes an investor to all sort of risks like currency, overseas regulations etc.

If you are asking me about ESR REIT, I personally do not like the Reit but my small stake is just for the dividend yield. ESR REIT had been too aggressive in their acquisitions so far and their gearing ratio is still quite high presently. Yes, I forsee future fund raising again for this REIT. Earnings and DPU will definitely drop this year for ESR REIT. They have already withhold some of the DPU in the latest quarter to prepare for tougher times.

I guess for REITs, it is better to stick with the bigger and better managed ones for peace of mind. Yes, once in a while you can take a look at the smaller ones if they are trading at attractive valuations but you have to be very selective.

8:25 PM  
Blogger Sunny said...

Shifu Chua

Thanks for the reply 😊 👍

Usually, for share placement, a listed company has to looks for issuing Banks, right? How about right/warrant issue? Not sure how the process like.

Thanks 😊

1:05 AM  
Blogger ghchua said...

Hi Sunny,

On placements. For bigger companies, they normally do it through the banks via high net worth individuals or funds. For smaller companies, they might do it through contacts.

Rights are given to all existing shareholders and they can choose whether to subscribe or not. Warrants is just another instrument for companies to raise money via rights and they can be converted to shares.

1:32 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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