My Investment Portfolio (May 2020)
STI closes this month at around 2510 points, down more than 100 points as compared to last month. Tension between US and China dominated headlines, in addition to the usual Covid-19 related news. China's imposition of a new national security law in Hong Kong also added to the volatility towards the end of the month.
For my top 30 holdings, A-REIT is the new top holding as REITs did well near the end of the month, with industrial REITs being viewed as more resilient as compared to other categories of REITs. SGX had been a major laggard, after announcing reduction of licence agreement with MSCI. Not much changes seen in the other stocks in the list. Jardine group of companies though, had experienced another round of selloff due to ongoing issues in Hong Kong.
I have bought the following companies from the market this month - A-Sonic, AF Global, Chuan Hup, Heeton, Hiap Hoe, Hongkong Land, Hotel Grand Central, Isetan, Jardine C&C, Jardine Matheson, Jardine Strategic, NSL, Pacific Century, Perennial, SBS Transit, Sin Ghee Huat, Stamford Land, Tan Chong International and UIC. I have also reduced my stake in SIA and SIA R to extract cash to participate in the company's rights issue.
I have participated in the following rights issue - SIA. I have also participated in the following scrip dividend schemes - Tuan Sing, UOA and UOB Kay Hian.
With circuit breaker measures on track to ease next month, it remains to be seen what is the impact on the performance of listed companies. I will remain cautious and continue to spread my investments across different stocks with the dividend payouts received.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 May 2020)
Top 30 Holdings (Sing$ Denominated shares)
For my top 30 holdings, A-REIT is the new top holding as REITs did well near the end of the month, with industrial REITs being viewed as more resilient as compared to other categories of REITs. SGX had been a major laggard, after announcing reduction of licence agreement with MSCI. Not much changes seen in the other stocks in the list. Jardine group of companies though, had experienced another round of selloff due to ongoing issues in Hong Kong.
I have bought the following companies from the market this month - A-Sonic, AF Global, Chuan Hup, Heeton, Hiap Hoe, Hongkong Land, Hotel Grand Central, Isetan, Jardine C&C, Jardine Matheson, Jardine Strategic, NSL, Pacific Century, Perennial, SBS Transit, Sin Ghee Huat, Stamford Land, Tan Chong International and UIC. I have also reduced my stake in SIA and SIA R to extract cash to participate in the company's rights issue.
I have participated in the following rights issue - SIA. I have also participated in the following scrip dividend schemes - Tuan Sing, UOA and UOB Kay Hian.
With circuit breaker measures on track to ease next month, it remains to be seen what is the impact on the performance of listed companies. I will remain cautious and continue to spread my investments across different stocks with the dividend payouts received.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 May 2020)
Top 30 Holdings (Sing$ Denominated shares)
2. PM Data
3. Hong Fok
4. Hong Leong Finance
5. GK Goh
6. Sing Investment & Finance
7. Hotel Properties
8. Far East Orchard
9. Haw Par
10. Hotel Grand Central
11. Hotel Royal
12. Bonvests
13. Singapura Finance
14. Jardine C&C
15. Stamford Land
16. Metro Holdings
17. VICOM
18. UOL
19. Hiap Hoe
20. Bukit Sembawang Estates
21. SGX
22. Yeo Hiap Seng
23. Isetan
24. LHT
25. Amara
26. EnGro
27. UIC
28. Old Chang Kee
29. Venture
30. Singapore Reinsurance
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
Labels: Portfolio
posted by ghchua at 9:57 PM
26 Comments:
Shifu Chua
Now it's May 30, not sure E16 starting to distribute out the general offer letter for us to hand over the shares? Have you finalized to pass or to keep your E16?
THANKS 😊
Hi Sunny,
The circular should be out already. But it will take sometime to reach your mailbox. Please refer to the announcement below:
https://links.sgx.com/1.0.0/corporate-announcements/E9AGRZBT2BOP88H0/ba37ea2a41a7038e4f2afee7964f55f981b4b520a83ca3375e289e00acd1d2d2
Hi GH,
Based on current price ratio (1:2), do you think either JMH or JSH presents better investment opportunity?
Thank you.
Hi retnuoc,
I don't look at the price ratio between JMH and JSH, though I understand that some investors in the market are doing so. But based on its share price movements in recent months, obviously JSH had corrected more than JMH.
JSH provides more direct exposure to listed entities under the Jardine group of companies, while JMH gains exposure to them via JSH. JMH though, owns directly those unlisted entities within the group. Another point to note is that JMH always trade at a higher dividend yield than JSH.
But if you really wants an answer from me, then yes, JSH seems to be more attractive than JMH at current valuation.
Hi GH,
Yes, JSH seems has better valuation compare to JMH. The only downside is lower dividend yield in my opinion. Thanks for your comments.
eltek and dymamic color offer can accept ?
Hi steven,
For Elec&Eltek, the IFA for both Hong Kong and Singapore sides already said that it is fair and reasonable. So, I think its OK to accept. But they need to reach compulsory acquisition level for the offer to be unconditional.
For Dynamic Colours, I personally feel that the offer is on a low side, though they already got 86%+ and the offer is likely to go through. I will wait for the IFA opinion before deciding.
Shifu Chua
I already mailed out the letter I accept the offer for E16. Not say where to see IFA says about general offer...
Thanks 😊
Shifu Chua
Heard Singtel invested telecom in India which Amazon is to plunge 2bil us. Anything good to Singtel regarding to this?
Hi Sunny,
The IFA report for both Hong Kong and Singapore sides is inside the thick book that comes with the offer form and envelope.
I think you are referring to SingTel's associate Bharti Airtel. Yes, Bharti seems to be on track for recovery this year but I don't know if that is the reason for Amazon to have an intention to invest in it. Though Bharti recovery will benefit Singtel, the other major parts of SingTel business (like Singapore and Australia) is still challenging. This plus the expected capex for 5G means that SingTel might not be increasing their dividend payout of 12.5cts per share in the short term. I am neutral on SingTel currently.
Shifu Chua
When and howw will we be notified that E16 is successful?
Thanks 😊
Hi Sunny,
You would have to monitor their announcements on SGX website.
https://www2.sgx.com/securities/company-announcements
Shifu Chua
I bought H78, believe it's most under valued in the Jardine group, the security law to be enforced in HK can only bring long term properties in HK where HK Land owns great premium office and shopping Ctr. What do you think, shifu? Any update on it's business development? Thanks
Hi Sunny,
My view is that HK Land is trying to diversify out of Hong Kong by building assets in China cities. They will sell some and keep some. Going forward, Hong Kong will still be core to them, but exposure will be reduced due to China.
As for security law, we still don't know the long term impact of businesses staying or leaving Hong Kong. But Hong Kong strategic importance of being a gateway to mainland China remains unchanged. Yes, with these new developments, valuation of their investment properties in Hong Kong might come down. But the stock had been sold down and coupled with its low gearing, I think valuation remains depressed.
Shifu Chua
Market seems prefer M04 than H78, not sure y. Can Shifu share your take? In Jardine group, which is good to be in at this moment give our limited fund size. I thought Jardine C&C is a quite diversified one in high growth markets like Vietnam, Thailand, Indonesia, etc
Thanks 😊
Hi Sunny,
I think both M04 than H78 are quite different. One is focused on hotels, and the other on properties. M04 is also more diversified in a sense that they are exposed to more countries.
There is no one preference for me among the stocks in the Jardine group of companies. It really depends on which stock is available at a decent valuation at any point in time. Yes, Jardine C&C is quite diversified, but so is Jardine Matheson and Jardine Strategic.
Shifu Chua
What's your take on Haw Par for its valuation, future prospects, possibility of being offered, dividend? My thoughts it's quite lagged as UOB UOL all went up bit it's not yet.
The other is SBS, doesn't it make sense to be in like comfort? which is better one, btw comfort and SBS?
THANKS 😊
Hi Sunny,
Haw Par is basically an investment holding company with interests in Healthcare, Leisure, Property and Investments. The main contributors are actually its Tiger Balm brand in Healthcare segment and strategic stakes in UOB and UOL for their Investments segment.
Since it is a holding company, Haw Par will most likely to be always trading at a discount from its book value, but the discount has narrowed in recent years due to its good performance in their Healthcare segment. It is unlikely to be as volatile as UOB and UOL, but in terms of valuation, I think it is fair currently as the discount is not as much as earlier years. Dividend yield is near 3%pa at current levels, not really high unless they gave a special dividend like in FY18.
SBS Transit is part of ComfortDelgo group, but it do not have their overseas bus business and only focus on Singapore bus and rail business. I prefer SBS Transit over ComfortDelgro as their asset light bus contracting model with LTA eliminates fare revenue risk, which is a big part of their business. The rail business have revenue risk for old lines (i.e. North East line), while new ones under New Rail Financing Framework (“NRFF”) have lesser revenue risk, though there is still some revenue risk under this model due to revenue shortfall sharing. Finally, their advertising business for SBS Transit is more volatile due to economic conditions
I think the big drag for ComfortDelgo this year is their taxi business which SBS Transit do not have. Having said that, SBS Transit will still suffer this year due to losses to their rail business and their bus business will not be able to make up for it.
Shifu Chua
First reit has gone through a lot changes recently, it is quite complicated to me and would you enlighten me at current price,
What would be possible dividend yield like in the future?
How long wld be the lease of asset from OUE?
Any positive expansion plan?
Last Rights issue price and future right issue?
Thanks
Hi Sunny,
I think you have mistaken. First REIT derive most of their lease income from PT Lippo Karawaci, not OUE as you have stated.
Those master leases with PT Lippo Karawaci are long term in nature. However, 5 master leases are up for renewal in 2021 and these take up about a quarter of the rental income received by the trust. Therefore, future dividend yield would likely to be based on whether they can maintain the same rent that they were getting from these master leases previously. Market is discounting the REIT currently because their view is that those leases might be renewed at lower levels and also peg to the rupiah instead of Sing dollar, which will increase its uncertainty.
About future expansion plan. I think there are a pipeline of assets from OUE Lippo Healthcare and PT Lippo Karawaci. Their strategy is to diversify away from Indonesia and tenant concentration risk, so I think maybe they will be looking at Japan, China, Myanmar, Malaysia etc, countries which OUE Lippo Healthcare have exposure in.
I don't know about future rights issue, but the last rights issue they have done is quite sometime ago in 2010.
Shifu Chua
Any update on E16 general offer result? I already passed my shares to the offeror, but haven't heard anything yet.
Thanks
Hi Sunny,
They have gained more than 90% of the shares outstanding, but still short of 97%+ for the offer to become unconditional. Therefore, they will not be able to pay you yet.
Shifu Chua
Just curious, did you pass your share in E16 to the offeror? Any link to check if the offeror got 97%?
Thanks
Hi Sunny,
Yes. I have accepted the offer for E16. You could refer to my latest blog post for my portfolio moves in June.
The latest status for E16 acceptance level is at:
https://links.sgx.com/1.0.0/corporate-announcements/ACK88GOHG6XPLKFZ/2879c85327911dc5fac5eb307a44a4fd796216763b4881e90d0d3c25950526a3
Shifu Chua
Do you see D05 and iFast good buy at current and why? For its valuation, yield,Future growth? It's not for stock recommendations, but on purely discussion purposes. do you see possibility of ifast get the digital license? Not sure when it will be announced? How is ifast 2Q result? How will be 2Q D05 result will be? I know some of answers can only b personal view and some from best guess only. No worries, just like have a investment senior's thought or food for think purpose.
Thanks a lot
Hi Sunny,
I think I have mentioned previously at one of the discussion here that I don't quite like banks at current levels. Reasons being lower growth outlook, rising credit risks and lower rate environment. Valuation wise, they are trading close to book level. As for yield, I think they might cut dividends this FY if result is not good. I do expect all 3 local banks to report lower earnings in months ahead.
As for iFAST, I do like the stock as it is one of the earlier fintech companies that was listed on SGX. Possibility of getting the digital bank license? I don't factor that into my investment consideration for the company as I am more interested in their growth via AUA. I think their recurring income from fees is more sticky at this moment and that would enable them to continue paying quarterly dividends. Getting the digital bank license is a bonus.
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