My Investment Portfolio (November 2020)
STI closes this month up more than 15%. Post US Election rally plus positive news on vaccine development front for Covid-19 had encouraged investors to get back into the markets. Investors had also rotate from growth stocks to cyclical and value ones. However, towards the end of the month, it becomes weaker but still manage to close the month at above 2800 points.
For my top 30 holdings, most stocks in the list did well this month as they are mostly value stocks like finance companies, property developers and hotel companies. Jardine related group of companies also did well as they lead the STI surge. Frencken also returned to the list after delivering a set of 3Q20 result that is above market expectations.
I have bought the following companies from the market this month - Amara, AP Oil, Bonvests, Bukit Sembawang Estates, CapitaLand, Chemical Industries, Chuan Hup, ComfortDelgro, Dairy Farm, Delfi, EnGro, F&N, Frasers Property, GK Goh, Heeton, Hiap Hoe, HL Global, Hong Leong Finance, Hotel Royal, Indofood Agri, Khong Guan, Koh Brothers, Metro, OUE, Pacific Century, PEC, Sin Ghee Huat, Straits Trading, Willas Array and Wing Tai. No sale was done.
I have participated in the following preferential offers - A-REIT and Mapletree Logistics Trust. I have also participated in the following scrip dividend scheme - DBS.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 November 2020)
Top 30 Holdings (Sing$ Denominated shares)
1. iFAST
18. 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
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 8:01 PM
22 Comments:
Morning Chua..What do you see in Hong Leong Finance? It looks more like a Div stock to me and even tho PB is low, its growth potential is not really there.
Hi [R]ay,
Hong Leong Finance is not a growth stock. If you want to buy for growth, you should consider banks instead.
Most of my top 30 holdings are value stocks. You might have missed out my blog posting and I re-produced it below:
"For my top 30 holdings, most stocks in the list did well this month as they are mostly value stocks like finance companies, property developers and hotel companies."
Shifu Chua
HMN & BTOU, are stagnant for long time, not sure their future growth like? Will they issue rights later that stops me from accumulation? C19 vaccine is in use soon, think demand will pick up.
Do you value SGX better than banks currently in terms growth and valuation? Which 1 oo our 3 banks do you think will have bigger growth?
Thanks
Hi Sunny,
I don't have BTOU so I can't really give much comments to the REIT. But in general, I think Covid-19 is the reason why it had been stagnant. As for HMN, again, it is due to Covid-19 as they are exposed to various countries, including Europe and US.
As for rights issue, I think you must be prepared to fork out money for them when REITs acquire assets. This is because they paid out most of their earnings and not much cash is left in the trust.
I think SGX will have more growth if markets are more volatile. This is because investors tends to trade more and also hedge their positions. If economy is doing well and markets are just going straight up, then banks will perform better. Among the 3 banks, I think DBS will have better growth profile.
Hi Mr chua,
What do you see in Wing Tai? From ShareInvestor’s Fundamental Analysis – Wing Tai :- Dividend is decreasing over the past 60 months..... High debt to cash flow for most recent year.... Low net profit margin for 3 years
what is your view of these?.... as I see that you are still acquiring...
Same for Koh’s Brothers..its FA is bad,,but you are also acquiring??
regards, Elizabeth
Hi Elizabeth,
As you might have known, developers profits are lumpy. You cannot just use the cash flow from one year and try to compute a ratio to do analysis. Even if a project is sold completely, it doesn't mean they will collect all the cash from the project within that reporting year. Therefore, they might experience negative operating cash flow for that particular year.
Wing Tai gearing ratio is definitely not high as compared to most other developers out there. As for profit margin, they might be affected by retail segment side of the business but their margin should be decent as they are selling mostly high end residential. As for dividend, their base line dividend is 3c per share. So, they are reducing the special dividend rather than the base dividend. This is because of the tough Covid situation currently.
For Koh Brothers, I am buying for recovery in construction sector post Covid. Therefore, fundamentals might look bad at this moment for them, but eventually when the sector kicks in, its share price should recover accordingly.
Both Wing Tai and Koh Brothers are value stocks. They are trading at significant discount from NAV. I don't buy stocks only when they announced good numbers or results. I normally buy when results are bad and look forward to future recovery. These stocks are normally supported by assets which caps its downside risk.
Hi Elizabeth,
I realized that you are talking about Wing Tai net profit margin. I normally look at their gross profit margin, not net profit margin.
But if you are talking about their latest FY20 result, their net profit margin is down mainly their Hong Kong associate. To be specific, its revaluation losses of their investment properties. Also, there is a increase in tax expense.
But you said low net profit margin for 3 years. This part I don't understand. FY19 net profit margin was more than 10%. FY18 was even much more. What kind of net profit margin you are looking at for a developer?
thanks much Mr Chua for sharing your knowledge & insights,
er, I am NOT very good in accounting so have been in a way depending on shareinvestors to compute the data...then decide to whether to invest in a particular stock..BUT also didn't want to just depend on one source..
so I was hoping to "double-check" with someone like you - a seasoned investor regarding these two stocks...;))...
I already owned some shares of these two stocks..want to find out more of their prospects to decide to hold or sell..before it is too late...
nowadays even those stocks that used to have good FA - may delist at low price...it is getting much tougher to "invest" in stocks for retirement income...;((
thanks again..
what is PEC that you bought?
Hi Unknown,
PEC is a contractor, mainly doing project and maintenance services. It serves the oil and gas industry. I guess if you are interested, you can read up more about the company and we can discuss more about it further here.
Hi mr chua
For cdg, recently theres news that grab n gojek will be consolidating. Do u see it as a threat for more downside for comfort?
Hi 1,
I think consolidation of players is better in the long run for ComfortDelgro. More players had resulted in price war which hits ComfortDelgro taxi business. Singapore is too small a market to have so many players, as we have recently also seen Uber exiting the market here.
Hi GH,
May I know what's your view on Chip Eng Seng? Will you avoid to invest in it after right issue to strengthen Tang family control?
Thank you.
Hi retnuoc,
I did have some holdings in Chip Eng Seng but I didn't subscribe for the rights issue. I don't think I will be adding onto my existing holdings anytime soon. Still have not seen any improvement in results with the new controlling shareholder. Plus, they have diversified into stuff like Education which I found no synergy with their current business. They also did some investment in China which I find they have no experience in doing so.
Dear GH Chua,
I am curious why you placed ifast as your most holding stock. Do you think the stock has upside despite not given wholesale digital license? Please enighten me. Thanks!
Faith
Hi faith,
iFast was due to share price appreciation. I didn't buy the stock for the past few months.
As for the digital bank license in Singapore, I think this is not the first setback that they have encountered. They have previously failed in their Hong Kong attempt.
I still believe in iFast despite their latest setback. I have followed them quite closely even before they were listed. I have used their platform and I like their strategy in growing their Assets Under Administration. The potential growth of the company is still quite big, especially in the China market. Given time, I think they will be able to grow their recurring income base and platforms.
Hi GH chua,
Thanks for your assurance. May I also know why do you invest in Capland IntCom T and not Capitaland itself. Is it because of its exposure to US? Thanks!
Faith
Hi faith,
I have invested in Capitaland. Just that it is currently not in my top 30 holdings list.
Shifu Chua
Maple Ind has come down to a PT that I am hardly refused. Not sure for its growth and valuation aspects. Wish to have sharing of insight, also wish to have your insights to the 3 banks.
Thanks
Hi Sunny,
Maple Ind do have growth potential due to their data centre portfolio. However, I think it is fairly valued at current levels. Yield at around 4%pa is reasonable but not fantastic.
As for the 3 banks, I think one should not expect a big run up since STI is currently around 2800 points. Most likely one will need to have a longer term horizon if you buy them now. Restoring their dividend back to previous level would be a decent catalyst.
Shifu Chua
AJBU is having the right issue, worth taking right @ 0.93 each? When will be the last of buying the mother's share in order to take the rights? What is the yield like?
Last time, I took the right placement of A17U, till now, the price is still underwater, A17U is really weak!
ME8U right issued in Jun 2020, but it is doing reasonably.
Among these 3, which is having better growth potential for the long term and which will be rewarding us in terms of combinations of dividend yield and share price appreciation by rough alkylation only?
Thanks and wish you a Happy New Year!
Thanks
Hi Sunny,
I don't think Keppel DC Reit is doing a rights issue currently. Could you check again where you have gotten the information?
I think you might have confused between rights and placements. I don't remember MIT doing any rights issue this year. However, they have conducted a placement exercise in Jun 2020.
As for Ascendas REIT preferential offer, yes, it is currently below its preferential offer price but normally for preferential offers, they don't give much discount from market price so it is expected to fluctuate below its offer price. The key is normally not to apply too much units.
As I am more of a value investor, I don't really try to look for growth when investing in stocks. But if you ask me, I think Ascendas REIT offers better value among the 3 as it is trading at around 5%pa yield. The other two are trading at a lower yield and also smaller in size than Ascendas REIT.
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