My Investment Portfolio (October 2020)
STI closes this month down at around 2423 points. As we moved towards the end of the month, markets had been sold down due to concerns on the result of the upcoming US Election, raising Covid-19 cases around the world and uncertainty of a second stimulus package in US. STI had fallen for the last 5 consecutive trading days of the month after a promising start during the earlier part of the month.
For my top 30 holdings, iFAST surged past the other stocks in the list to capture top spot for the first time. Accelerated digitization due to Covid-19, more retail investor interest as can be seen in the B2C segment revenue in their reported 3Q20 result and increasing trading activities due to volatility in financial markets had benefited them. CapitaLand Integrated Commercial Trust is a new entry in the list after the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust had been completed. My holdings in both trusts had now been combined and therefore its market value is now the combination of them. Not much changes had been observed for the other stocks in the list.
I have bought the following companies from the market this month - AF Global, Amara, Bukit Sembawang Estates, CapitaLand, City Developments, Dairy Farm, Delfi, EnGro, F&N, Far East Orchard, Global Testing, Hongkong Land, Hong Leong Finance, Hotel Grand Central, Hotel Properties, Jardine C&C, Keppel Corp, Khong Guan, Lion AsiaPac, Metro, NSL, OUE, PEC, Penguin, Singapura Finance, Stamford Land, Tan Chong International, Tiong Woon, UIC and Yeo Hiap Seng. No sale was done.
I have accepted the following voluntary delisting/cash offer this month - Teckwah.
I have participated in the following preferential offer - Frasers Centrepoint Trust. I have also participated in the following scrip dividend schemes - Jardine Matheson and Jardine Strategic.
With STI continuing its downward movement, I had started to deploy cash into some selected blue chip stocks as they were being sold down ahead of the US Election taking place early next month. Volatility in the markets is expected to increase going forward and therefore I will spread my purchase in batches. I will also continue to add onto my list of value stocks, as they offer some protection in terms of downside risk for the entire portfolio. I will continue to remain cautious though and will reserve some spare cash in case markets went through another wave of correction after the US Election.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 October 2020)
Top 30 Holdings (Sing$ Denominated shares)
1. iFAST
2. PM Data
3. Hong Leong Finance
4. A-REIT
5. Hong Fok
4. A-REIT
5. Hong Fok
6. Hotel Properties
7. Sing Investment & Finance
8. GK Goh
9. Hotel Grand Central
10. Far East Orchard
11. Bonvests
12. Singapura Finance
13. Haw Par
14. Metro Holdings
11. Bonvests
12. Singapura Finance
13. Haw Par
14. Metro Holdings
15. VICOM
16. Hotel Royal
17. EnGro
18. Stamford Land
19. LHT
20. Venture
21. SGX
22. CapitaLand Integrated Commercial Trust
23. Hiap Hoe
24. Bukit Sembawang Estates
25. UOL
26. Tat Seng
27. UIC
28. Jardine C&C
29. Isetan
30. Yeo Hiap Seng
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 Integrated Commercial Trust
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 Integrated Commercial Trust
3. A-REIT
4. Keppel Corp
5. Challenger
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 u p (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
28. Winas - In Liquidation
4. Keppel Corp
5. Challenger
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 u p (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
28. Winas - In Liquidation
Labels: Portfolio
posted by ghchua at 4:43 AM
20 Comments:
Hi GH,
May I know what's your view on Sunningdale SOA offer? Will you accept/reject the offer?
Thank you
Hi retnuoc,
I think the Sunningdale SOA offer is priced at a low end. From 3Q20 update, we can see that the business momentum has improved, backed by the Automotive segment. The SOA offer priced the company at price to book of only 0.78x and EV/EBITDA is less than 5x. Dividend yield also a decent 4%+pa at current levels. I think FY20 will be a much better year as compared to last FY so I would reject the SOA.
Hi GH,
Thanks for your comment. I also think the SOA offer is on the low side. Sunningdale business is improving and could be better due to new factories in China and Malaysia. However, this SOA offer may go through. If so, will you consider to hold the private co instead of take cash?
Shifu Chua
A17U is to place shares at ratio of 0.37 to 1, not sure when we have to pay money. Have you received any letter regarding to this? Do you think the offer is fair? Mine is at SRS,need to go to bank to do it?
The other one HMN, not sure why it does not move up? Possible for share placement?
Do you think G07 is undervalued at current price?
Thanks
Hi retnuoc,
There is no point holding a private company if they do not have a timeline to IPO the business again in the near future. You might be stuck with it for a long term, with no news whatsoever from them. Also, they can do a selective capital reduction to cancel your private company shares after delisting and pay you off. They can also sell out the business to another private company, leaving you with a shell private company.
Ultimately, it all boils down to whether you trust the people controlling the private company and running the show. If you are comfortable, there is no harm exchanging for the private company share. Otherwise, my advice is to take the cash and re-invest in other companies if the SOA goes through.
Hi Sunny,
For Ascendes Reit, yes, the preferential offer is on after XR. You should receive a letter from your SRS agent bank and you need to fill it up and submit if you wish to subscribe. As to whether its fair or not, I guess one have to access its merits based on the Reit itself. Ascendes Reit trading yield is at around 5%pa, not really cheap but also not very expensive. I think I will take up my portion of the preferential offer but will not apply for a lot of excess shares as the discount to the market price is not good enough.
Ascott Residence Trust is a hospitality REIT. As you might have read, another wave of Covid-19 outbreak is currently going on in US and Europe, where the Reit have assets. Although master lease arrangement with minimum rent might have stablized the income a bit, there were still concerns on its overseas exposure. I guess for this Reit, you have to be patient to ride out the outbreak.
For Great Eastern, I guess it really depends on stock market movements as it invest its premiums on behalf of policyholders. Obviously, when markets are down, it will be sold off. However, based on its embedded value, it does seems to be undervalued. Having said that, I do prefer direct exposure to insurance underwriting and investment via a general insurance company like UOI. Great Eastern have to share its investment profits with participating policyholders, which takes a big cut from shareholders of the company.
Shifu Chua
Thanks a lot, it's very helpful! So can I say UOI is sort of fintech just like ifast?
Pomes thinks Z59 is cheap and target price is 0.46 per share, do you have 2nd thought on this analysis?
Thanks 😊
Hi Sunny,
Nope. UOI is not a fintech company. It is an insurance company, similar to Great Eastern. The difference is that Great Eastern is a life insurance company whereas UOI is a general insurance company. But there are two main differentiation here. Great Eastern relies on their agency network for sales whereas UOI mostly tap onto UOB bank branches for cross selling. Cost of sales is definitely lower at UOI. Secondly, Great Eastern, being a life insurance company, will need to share their investment returns with participating policyholders. This will mean lower return for shareholders since you need to set aside most of your investment returns for them. There is no such restriction for general insurance companies like UOI.
I am neutral on Yoma currently. Though I like the potential their investments in Fintech like Wave Money, they had been slow in unlocking their land bank via property sales.
Hi GH Chua,
Which brokerage are you using for your shares please, care to share with me? I see that you are buying a substantial amount of shares monthly. What is your take on Wilmar? Thanks!
Faith
Hi faith,
There is no specific brokers that I use. I just use those that offer competitive brokerage like Lim&Tan, iFAST etc.
I have been buying every month (though not substantially), regardless of market movements. It is just part of my plan to re-invest income from my investments back into the markets consistently.
I haven't bought Wilmar for quite a long time. I don't really like the stock due to its commodity based business. Though its China consumer business is doing well, they have IPOed the business at high valuation. They also dabble into a series of unrelated investments (like property) which I find it puzzling. Even after taking all these into consideration, it is still not cheap enough for me to consider buying at this moment.
Hi GH Chua
Thanks for your comments. Have a wonderful Thanksgiving & Christmas! Cheers!
Faith
Hi! GH Chua,
May i know what is your view on Lum Chang?
Do you trade in hk stock and what is the pros and cons?
Thank you.
Hi Unknown,
As you might have known, there is currently a general offer for Lum Chang shares. The offer price seems low to me, as compared to its NAV. I will not be accepting the offer.
As for the company, my view is they are one of the better construction companies here based in Singapore. They had been able to secure projects from many big local companies, with the likes of Frasers Property, CapitaLand and Mapletree (just to name a few) and government agencies like LTA, JTC, PSA etc. As for their property development and investments, they had also been able to generate decent returns throughout the years as they are able to divest assets to realize profits and not just holding for investment income.
I don't really deal with Hong Kong shares as my focus is currently only on Singapore listed companies.
Hi! GH Chua,
Thank you for your input.
Have a nice weekend!
Shifu Chua
Can I have your comments on Olam? Thanks
Hi Sunny,
Olam had been a pretty disappointing stock in my view. It is difficult to analyze the stock as they have operations in so many countries. Following Temasek's takeover of the company, they seem to be more quiet now in terms of releasing updates to the market. Not much analyst covering it too. I guess we just need to use its NAV as a guide to the stock's value, since they are involved in so many soft commodities products.
Hi GH sifu,
what is you view of af global, as i see that you have been acquiring since quite some time ago. It seems that the revenue (and profit) has been dropping while P/B remains very depressed.
Hi bamboo,
Revenue and profit had dropped for AF Global due to Covid-19 challenges, affecting their hotels and service residence businesses. Also, their Xuzhou JV had hit a deadlock in selling it as their JV partner could not secure financing. But Knight Frank business is still doing ok.
In summary, AF Global is not really a typical type of company that one is looking to invest for revenue and profit. Similar to another company which I have discussed here earlier (i.e. NSL), it is a liquidation play. Since Mr Koh had taken control of the company in late 2014, the company had paid out a total dividend of around 14.5c per share for the past 5 years. Despite all these massive payouts, NAV of the company still remained at around mid 20c per share.
I believe that AF Global will eventually sell all their non-core assets and return cash to shareholders. One just have to be patient enough to ride out Covid-19.
Shifu Chua
Do you like Delfi and why? Does its business do well? How is it's balance sheet like?
Thanks
Hi Sunny,
Simple answer to your question is Yes. I like Delfi and had been accumulating the stock for the past few months. I think my monthly blog posting reflects that.
It has a market leading position in Indonesia. It is difficult for new entries or even foreign players to duplicate the sort of network and relationships they have in place. They have also captured the taste of Indonesians. Finally, they have brand value and margin is decent for the higher end brands like SilverQueen. Besides their own brand, they also do agency and distribution for other brands.
Their balance sheet is quite ok as their operations are cash flow positive. No high debt here. They have been able to pay out dividends from their profits every year, with a bonus capital reduction in the earlier years due to their sale of cocoa ingredients business.
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