My Investment Portfolio (August 2021)
STI ended this month lower at around 3055 points. Singapore began its economy re-opening plans after its population vaccination rate reached milestone. Chinese regulatory restrictions on companies and US central bank’s plans for tapering stimulus measures was also on most investors' mind as markets underwent volatility in response to various news flow.
For my top 30 holdings, GK Goh did well after receiving a general offer for its stake in Boardroom. Hiap Hoe was in the news after Orchard Towers collective sale committee appointed agent to look into selling the asset. Straits Trading returned to the list after quite sometime as it continued to do well on news of its stake sale in ARA. SGX was a main laggard though, after announcing a set of FY result that disappointed the market.
I have bought the following companies from the market this month - ABR, Amara, AP Oil, Asia Enterprises, AV Jennings, Bund Center, Chuan Hup, City Developments, ComfortDelgro, Delfi, Far East Orchard, F&N, First Sponsor, GK Goh, Hafary, Hiap Hoe, HL Global, Hong Fok, Hongkong Land, Hotel Grand Central, Hotel Properties, Hotung, Indofood Agri, Intraco, IPC, Jardine C&C, Jardine Matheson, Karin, Khong Guan, Kingsmen, Koh Brothers, LHT, Mandarin Oriental, Metro, Nam Lee, NSL, OUE, OUE Lippo HC, Sakae, Shangri-La Asia, Sing Investment & Finance, Singapore Shipping, SingTel, Straits Trading, Tan Chong International, TTJ, UOL, Wing Tai, Yanlord and Yeo Hiap Seng. I have also closed my position in Metal Component.
I have participated in the following preferential offer/rights issues - ESR Reit and King Wan. I have also participated in the following scrip dividend schemes - Sabana Reit and Starhill Global Reit.
I have accepted the following voluntary delisting/cash offers this month - Dutech and Fragrance.
Next month will be another quiet month for me. As usual, I will take some time out to reflect on my portfolio, while still continuing to seek value and invest in more deep value stocks.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 August 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. Transcorp
Labels: Portfolio
posted by ghchua at 3:47 AM
21 Comments:
Hi Ghim Hock, I noticed in the last 4 months you've been buying Frasers Property except for the month of August. May I ask why? Thank you!
Hi Jem,
No particular reason. Just that I have other better opportunities and therefore I give it a miss in August.
Hi Mr Chua,
May I know your view on King Wan..
surprised to see you had subscribed for the rights..this stock "gone case", right?
thanking U in advance,
warm regards Elizabeth
Hi Elizabeth,
I guess there is always risk in every investment and the key is to make decisions based on risk-reward analysis.
For King Wan, I believed that the rights issue price at 2c per share is priced at a decent discount from its post rights NAV of 9.43c (assuming maximum subscription).
King Wan businesses is actually not all "gone case". The most worryingly part for me is their Dalian property development project, which is still bleeding cash. The other parts are actually doing ok or recovering. Their core M&E business has decent order book, their dry bulk vessel chartering rate had gone up, the carrying value of their investment in KTIS listed on Thailand stock exchange had increased further due to higher share price and Tuas South Dormitory had recovered a bit.
All in, it is still a risky investment, but I guess it is too cheap to ignore.
Good morning Mr Chua,
Thanks much again for your sharing.
Appreciate very much.
warm regards, Elizabeth
Hi Mr Chua, I am surprised to see Sakae appearing in your latest buy list. My understanding is that its business has been bleeding rather badly for years. Other than that was a court case that was ruled in its favour. Would be happy to hear from you.
Hi Jamesbond007,
Sakae had been in my portfolio for quite sometime. I have added onto my holdings in August.
Sakae's NAV is around 40c per share, therefore its current share price is only around 0.3x book. A reasonable valuation for a bad business.
They have also declared a final dividend of 1.2c, so you are getting around 9% yield at current levels.
They have also aggressively paying down debt in recent years, so their gearing is not as high as last time.
I don't agree with you that their business had been bleeding badly. Yes, their F&B business is not doing well but they are cash flow positive. The losses you have seen for the past few years are mostly impairments from their bad investments and of course, the asset due to the court case that they have won. But you must understand that they have already made those impairments. There is only upside from now on. Upside can be from write-back from some of those impaired investments if they could recover some value, or from the liquidation of the assets from the court case. They are also disposing some non core assets to realize cash. So, I expect more cash to come back to the company.
One of the crown jewel of Sakae is actually their Sakae Building, located at 28 Tai Seng Street. That should provide some asset backing for the stock, which could limit further downside risk.
Thank you for the information.
Hi Mr Chua,
Any comments on Far East Orchard and Yeos?
the stock price has been on a great slide for several years.
Both majority owned by same family.
just DCA several years cause huge loss to average investor.
Thanks.
Hi Unknown,
I guess you have to look at total return for Far East Orchard throughout the years, rather than just focusing on the stock price. On normal years, Far East Orchard had been dishing out 6cts per share dividend, except for last FY when they paid out 3cts per share due to Covid-19. Also, they have done a dividend in-specie years ago when they gave out Yeo Hiap Seng shares. All in, though it is not a high performing stock, it can be a consistent dividend payer for a long term investor. Also, it is trading at a decent discount to its NAV, which provides asset backing for the stock and therefore downside risk is limited.
Yeo Hiap Seng is a different story altogether. Yes, it did not perform well but previously it was overvalued. I see value in the stock only in recent years as they are now holding a decent amount of cash with zero bank borrowings. Also, they are backed by legacy assets and land bank.
I guess when we are talking about DCA, we should not just do it blindly on any stock at any price level. We should only buy them when we see value in the price. Remember we are not buying into a unit trust or managed fund whereby there are fund managers buying and selling stocks on your behalf. We are talking about individual companies and we should only buy whenever we see value in the stock. If you are buying for growth, make sure that you are not paying a premium for future growth prospects, which might disappoint you if they did not deliver.
Hi Ghim Hock, I noticed you stopped buying Guccoland since July 2021. May I ask why? It looks quite decent. In addition, there was a recent Business Times article talking about it as well (got paywall though). I believe it's a good bargain. Your general thoughts? Thank you!
Hi Jem,
Yes, I do like Guccoland and if you read my past blog posts, I have been buying the stock consistently at various price levels for past few years. Normally, I won't be buying a stock every month unless I really like it very much. As Guccoland is not in my top 30 list, it is not a stock that I like very much, but it is a decent long term value stock.
I guess its discount to NAV is a big attraction to me, and their projects are normally being sold at premium price. My concerns are really their high gearing and they tend to bid for big projects which makes their earnings a bit more lumpy than other property developers. Big integrated projects comes with bigger risk, and unsold units might hit them in future if they did not manage to sell them quickly. But their track record is quite decent and so I am quite confident investing in the company for long term.
Hello, Mr Chua,
Can I know your take on Technic Oil & Gas Limited which had just been delisted...
will share-holders still get any $$ back even though the company is delisted?
thanks much,
warm regards, Elizabeth
Hi Elizabeth,
Unfortunately, I think shareholders will get nothing. Technics Oil & Gas will be wind up and liquidated because the JM could not restructure the company. Therefore, any proceeds from selling their assets will go to creditors. I am also not sure how much those assets are worth currently, since they have not been reporting their results for quite a number of years. I think they are worth much lesser now.
Hi, Mr Chua,
Thanks very much for the information.
warm regards, Elizabeth
Hi Ghim Hock,
I noticed you bought Intraco. May I ask why? I feel that the share price hasn't moved much in the past few years and their performance have not been consistent. The only plus point for me is that Oei Hong Leong is a shareholder...but that's not much of a plus point. Thank you!
Hi Jem,
This is not the first time I bought Intraco. In fact, I have been a shareholder for quite sometime.
Share price movements is not really a main consideration when I bought a value stock. Most likely, a lot of these companies are not performing well and therefore, their share price is quite stagnant or moving downwards.
The key thing about Intraco is that the company is in a net cash position. In fact, they have so much cash idling around that they spent $25m buying 5 short term money market funds. Their cash level have increased around $19m plus in last FY mainly from the sale of their stake in Dynamic Colours.
I guess their trading business is boring and generate very low returns. However, trading at around 50% discount from its NAV, I think it is a decent value bet.
Hi Ghim Hock, noted on the Intraco view, very insightful. Also, did you read about Roxy's potential offer? I noticed that you bought it also, wanna congratulate you on it. Cheers!
Hi Jem,
The offer for Roxy Pacific is actually quite low, since its RNAV is around 70cts+. But they already said the offer price is final. Having said that, I guess with the offeror and concerted parties already holding more than 70%+ of the shares, I think it will quite easy for them to secure 90% acceptance and compulsory acquire the remaining shares out there.
Hi Mr Chua,
With the impending EverGrande crisis, what will be the likely impact on the SG market?? Looking forward to your next post too. Thanks.
Hi David,
I guess Singapore market will more or less be affected in the short term, especially those with bigger exposure to China. Names like Yangzijiang, Yanlord, Hong Leong Asia etc. Definitely we are seeing some selling in the Singapore market in the last few trading days.
However, as a long term investor, I will normally ignore these short term fluctuations in the market and focused on seeking value and selectively buy stocks on weakness.
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