My Investment Portfolio (May 2021)
STI ended this month at around 3164 points, down more than 1% as compared to last month. Singapore had tightened its Covid-19 measures this month in view of raising community cases, resulting in higher volatility of STI. Initially, stocks were sold down but STI stayed above 3000 points despite fears of another round of circuit breaker restrictions to close the month strongly.
For my top 30 holdings, iFAST continued its good run after releasing a set of decent 1Q21 results and also attracted various brokerage houses target price upgrades after inclusion in MSCI Singapore Index. Frencken was among the major movers as investors cheered their 1Q21 business update due to increase in revenue for semiconductor segment. Metro Holdings and Bukit Sembawang Estates also did well after announcing their full year result, coupled with an increased dividend payouts. The Hour Glass returned to the list after announcing a much higher final dividend payout along with better full-year result. The two Reits in the list though, were laggards.
I have bought the following companies from the market this month - AF Global, Amara, Asia Enterprises, Bonvests, Brook Crompton, Bund Center, Captii, Chuan Hup, Dairy Farm, Delfi, F&N, Frasers Property, GK Goh, Global Testing, Great Eastern, GuocoLand, Heeton, Hong Leong Finance, Hongkong Land, Hotel Royal, IFS Capital, IPC, Kingsmen, Koh Brothers, KSH, LHT, Metro, Nam Lee, NSL, Ossia, OUE Lippo Healthcare, Overseas Education, PEC, SBS Transit, Singapore Shipping, SingTel, Wing Tai and Yeo Hiap Seng. No sale trade was done.
I have accepted the following voluntary delisting/cash offer this month - Top Global.
I have also participated in the following scrip dividend schemes - China International, DBS, Global Investments, OCBC, Tuan Sing, UOB, UOB Kay Hian and Yeo Hiap Seng.
Armed with dividend payouts from various stocks this month, I have increased the pace of my purchases from the market during the first half of the month. However, as Covid-19 cases seemed to be stable in Singapore towards the end of the month, I have slowed down my purchases. Some value could still be found in the market, but prices are no longer that attractive. Going forward, I will remain cautious and continue to hunt for value stocks, while keeping some cash in hand in case market presents opportunities for bargain hunting again. For growth stocks, inflation fears will meant that valuation might be elevated. I remain underweight on them.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 May 2021)
Top 30 Holdings (Sing$ Denominated shares)1. iFAST
1. Mandarin Oriental
2. Hongkong Land
3. Jardine Matheson
4. 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. Memory Devices
6. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
7. FM Holdings
8. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
9. FerroChina - Under Liquidation
10. FirstLink Investments
11. NEL Group
12. Jets Technics
13. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
14. Hongwei Technologies Limited (In Provisional Liquidation)
15. FDS Networks Group
16. Aussino Group - In Liquidation - Creditors' voluntary winding up
17. China Oilfield Technology
18. China Milk Products Group - Under Liquidation
19. Pacific Healthcare
20. Eratat Lifestyle - In Liquidation
21. Fung Choi Media - In Liquidation
22. K1 Ventures - In Liquidation
23. DMX Technologies - In Liquidation
24. Europtronic Group
25. China Sun Bio-chem Technology
26. Attilan Group
27. Winas - In Liquidation
Labels: Portfolio
posted by ghchua at 2:57 AM
16 Comments:
Hi Mr Chua,
Noted U have been & are still buying Chuan Hup..
May I ask what is your rationale for accumulating shares of Chuan Hup?
Do you still see any value in Chuan Hup now that they have sold off PCI?
From Shareinvestor’s website, the Financial Analysis for Chuan Hup:
• Revenue up and down in past years
• Profit to loss in most recent year
• Net Earnings Margin = Company is losing money and margin is not improving.
• Return on Assets (ROA) = Negative ROA for most recent year
• Return on Equity (ROE) = Negative ROE for most recent year
Thanks & warm regards, Elizabeth
Hi Elizabeth,
I bought Chuan Hup mainly because the stock is trading at 40% discount from NAV. Cash in the company is around 16.3cts per share. So, the margin of safety is there. The company had also been paying dividends every year, even when making losses.
Development projects tends to have lumpy revenue, therefore we have to take that into account as well. Also, some of those losses last FY will not be repeated. These include impairment losses on their investment in Pacific Star Development. Some of the other losses are revaluation losses of investment properties and investment securities.
Most of Chuan Hup's development projects are in Western Australia. With AUD$ strengthening against Sing$ lately, there should be some balance sheet translation gains. Perth should be doing ok as commodity prices had recovered a bit since then. So, I expect their investment in Finbar to do well too. Also, the company had invested in some investment properties office units in central locations lately in Singapore. These investments should bear fruits in future years.
Thanks very much Mr Chua, for always sharing so generously your analysis, knowledge & understanding of Stocks..
appreciate very much..Elizabeth
You are most welcome, Elizabeth.
Hi Ghim Hock, congratulations on the performance, especially for iFast. May I know what are your thoughts on Tiong Seng and Lian Beng? Thank you!
Hi Jem,
Both are trading at attractive valuation, at a decent discount from book value. But both have their own issues.
For Lian Beng, I think there are issues previously on the directors' pay. Having said that, I think the stock is cheap enough so I added some onto my current holdings in June. Lian Beng also have a portfolio of investment properties, which should be able to provide some steady rental income to offset lower construction revenue and higher cost due to Covid-19.
For Tiong Seng, although their order book is strong, their construction margin seems to be quite low. Also, I don't like the fact that they are doing China development projects. They took quite a while to be profitable in those projects, and the margin also ended up quite bad.
Good morning, Mr Chua,
What is your opinion of Lian Beng's latest mandatory cash offer of S$0.50 per share?
Would U take it up?
thank you & warm regards, Elizabeth
Hi Elizabeth,
I think the offer price for Lian Beng is too low. At 50c, they are only offering shareholders at around 0.34x PB. Last reported NAV for Lian Beng was around $1.45 per share.
Are you willing to sell something that is worth around $1.45 for only 50c? I will not. Therefore, I will not take up the offer.
Thanks much, Mr Chua..
Erm, so when the offer letter comes, just ignore it, correct?
Hi Elizabeth,
Oh yes. If you do not wish to accept the offer, just ignore the letter and form.
Hi GHChua,
What is your view on the recent run up of AF Global? Is it still cheap around 0.11?
Thank you,
JTK
Hi JTK,
I think regular readers of this blog would be aware that I have been buying AF Global aggressively for the past few months. There is no secret that I like the stock.
The recent run-up in AF Global might be due to news on re-opening of Phuket to tourists. As you might be aware, the company has a hotel and also a beach resort that is under redevelopment in Phuket.
Based on its NAV of 22cts as at end of 2020, the stock is priced at 0.5x NAV at around 11c. It is no longer as cheap as few months ago, but it is still decently priced.
Besides the two assets that I mentioned above, AF Global also holds two service residences in Vietnam, a mixed-use development project in Xuzhou, China and also a stake in Knight Frank Singapore. I believe these are valuable assets which could be unlocked when time is ripe.
Hi Mr Chua , do you own pne industries? Any view on this stock as it was quite off the radar in recent years.
Hi bamboo,
Yes. I still own the stock. Covid has affected PNE Industries somewhat, as they went into a small loss in 1H this FY. I think they are facing pricing pressure from customers and also cost increases.
The stock do yield a decent dividend payout but it is not cheap enough for me to buy more as it is trading at around its NAV.
Hi Ghim Hock, may I ask what's your rationale for buying Yeo Hiap Seng? In my opinion, the company's landholdings have been in Malaysia which may not be worth much and it seems to have divested its Singapore land holdings some time back.
Hi Jem,
Indeed, I bought Yeo Hiap Seng partly because of their freehold land bank, in particular, big plots of farm lands in Malaysia. These are legacy land so I don't know their current value. These land are currently not generating any revenue, so any action to develop them or unlock value should be positive for the company. We just have to be patient.
Besides land, the company is also cash rich, ending 2020 with a cash balance of around $264 million with zero borrowings. Also, under the new chairman and CEO, I am beginning to see some visible actions to create value for the company. Like refreshing their brands with new products and packaging, JV with Oatly to produce their products etc with focus on health and wellness.
Yeo Hiap Seng has a series of strong brands with 120 year history. I believe with time and effort, market will be able to re-rate the stock as they progress in their innovative efforts to transform the company.
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