My Investment Portfolio (September 2021)
It had been a volatile month. However, STI ended this month up at around 3086 points. Singapore faces higher Covid-19 infection rate as re-opening plans had been paused. Concerns over property developer China Evergrande default risk and its impact on overall financial system, plus possible interest rate hike by US Fed next year also contributed to market volatility.
For my top 30 holdings, iFAST continued its good run this month to remain my top holding. The Hour Glass also did well after executing their share buyback mandate. Spindex returned to the list again after a long time absence while UOL dropped out due to poor relative share price performance. Meanwhile, CapitaLand Integrated Commercial Trust moved up due to dividend in specie distribution from CapitaLand delisting exercise.
I have bought the following companies from the market this month - ABR, AIMS Property, Amara, Asia Enterprises, Bund Center, Chemical Industries, City Developments, ComfortDelgro, Credit Bureau Asia, Delfi, F&N, Frasers Property, GK Goh, Global Testing, Hafary, HL Global, Hong Fok, Hong Leong Finance, Hongkong Land, Hotel Grand Central, Indofood Agri, Intraco, Jardine C&C, Jardine Matheson, Kingsmen, Koh Brothers, LHT, Ossia, Overseas Education, SingTel, TIH, UOL, Venture, Wing Tai, Yanlord and Yeo Hiap Seng. No sale trade was done.
I have participated in the following preferential offer/rights issue - Sembcorp Marine. I have also participated in the following scrip dividend schemes - Global Investments and Jardine Matheson.
I have accepted the following voluntary delisting/cash offer this month - Meghmani SDS.
How time files! We are going into last quarter of the year again. With increasing market volatility, I will continue to maintain a defensive stance in my portfolio management. Focus will still be on seeking value stocks, while making opportunistic moves on selected battled blue chip stocks. I am also open to adding limited number of growth stocks, provided their business model is attractive and valuation is decent.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 September 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 4:25 AM
32 Comments:
Hi GH, any thoughts on Chemical Industries and its recent drama (Grandson submitting a whistleblowing report on long time MD Mr LSP then later got the sack and LSP subsequently stepping down)?
Hi Janeo,
I guess from an outsider perspective, it is difficult to understand the disputes within family related members in a company. But what I can say is that MD Mr Lim had tried out various family members in different roles in the company, but none seems to meet his requirements. Therefore, he decided to professionalize the company by looking for outside talents. That might have created some tension among family members, leading to recent changes.
MD is already in his 90s. So, it is no surprise that he is stepping down now.
Aside from all these drama, the stock is decently priced at around 0.4x NTA. NTA is mostly backed by assets and cash, with not much liabilities.
Hi Mr GK，thank you for sharing your thoughts on this blog.
May I know what 3 stocks you would recommend for October 2021? Thanks so much
Hi traveleat,
I don't think I can give stock recommendations. I don't have a license to do so as I am a private investor.
However, we can share thoughts on stocks that are interesting and you can make your own decision from there. Also, you can look at the stocks that I had been adding onto my portfolio for the last few months. That will give you an idea on what are those stocks that I think are attractive and you might wish to look deeper into them.
All said, you should always make your own decision when deciding which stocks to buy, after doing careful analysis on them.
Noted with thanks :) Have a nice weekend... would like you advice: I bought OCBC but it has been dropping for this past week (27 Sep 2021 week). Should I sell it? Thanks
Hi GHChua,
Can you share the rationale behind buying Credit Bureau Asia because it looks expensive to me?
Is GK Goh still a buy after the price increase? There were several share buybacks recently though.
Thank you
JTK
Hi Unknown,
I guess you should look at why you bought OCBC in the first place and whether your thesis is still valid. Short term share price movements should not be the basis for your buy/sell decisions, if you are a long term investor.
Hi GH,
Yea it's hard for outsiders to understand those in house disputes.
That being said c05 has been cheap for a very long time and it's likely due to the lack of dividends. Have u attended any AGMs to hear what LSP has to say about them?
Hi JTK,
Credit Bureau Asia is a asset light company, and not a value stock. It had been on my radar since their IPO last year, and yes, I do think that it is a bit expensive which is why I did not bought the stock until last month.
Though it might look expensive in terms of P/B, it is a decent company with sound business model. As I have commented in my blog post, I do intend to add a limited number of growth stocks in my portfolio, but they must have a sound business model. The company is set to benefit from steady demand for high-quality credit, risk and business data. In fact, their business is scalable and asset light, which attracts me. It is a bit like iFAST and HRnetgroup, which are companies currently in my portfolio.
GK Goh had been a core stock in my portfolio for quite sometime. I don't think we should be distracted by short term share price movements. But rather, whether the stock still offers value despite the recent price increase. We must understand that the recent price increase is due to a GO for their stake in Boardroom, which they have stated their intention to sell. It does not account for the remaining part of their portfolio and businesses, which I believe is still undervalued by the market.
Hi Janeo,
I re-produced Chemical Industries dividend payout since 2016.
CHEMICAL INDUSTRIES (F.E.) LTD
13 Aug 2021
Rate: SGD 0.015 Per Security
04 Sep 2020
Rate: SGD 0.015 Per Security
18 Jul 2019
Rate: SGD 0.015 Per Security
18 Jul 2018
SGD 0.015 ONE-TIER TAX
19 Jul 2017
SGD 0.03 ONE-TIER TAX
18 Nov 2016
SGD 0.12 ONE-TIER TAX
19 Jul 2016
SGD 0.03 ONE-TIER TAX
19 Jul 2016
SGD 0.05 ONE-TIER TAX
Looking at the above, yes, dividend had been flat for the past 4 years at around 1.5cts per share. But you cannot say its lacking dividend payouts, since there are big payouts in 2016 of around 20cts per share in total.
Yes. I have attended some previous AGMs of the company. Normally, companies do not share disputes with family members publicly, even during AGMs. But looking at a value standpoint, I do note that the company have decent assets like investment properties shophouses located in central location in Singapore, plus their business is also profitable, with decent amount of cash in the company. For value stocks, I normally intend to hold for very long term, so I am comfortable with their stock underperformance in the short term.
Hi Mr GH,
I read the following:
Top 5 Holdings (CPF OA investment)
1. Streettracks STI ETF
2. CapitaLand Integrated Commercial Trust
3. A-REIT
4. Keppel Corp
5. Challenger
May I know how do you decide what stocks to use CPF OA and what to use cash? Thanks
I most likely will be buying 2 out of these 5 shares using CPF too...
As always, I am like the rest of the readers, thank you for your valuable advice and have a nice weekend.
Hi traveleat,
My CPF stock investment portfolio is a subset of my cash portfolio. Which means, I normally invest those stocks using cash first. After that, then I will pick some to include for CPF OA investments.
Since CPF agent bank charges fees on per 1000 shares basis for buy/sell, I would be careful to buy small cap stocks as they will incur extra fees. Therefore, you can see that most of my top holdings are big cap stocks, though I do have some small caps in my CPF portfolio.
But the main component of my CPF investments is still in unit trusts, since one could invest 100% into them.
Hi Mr GH,
Thank you for letting me know. I am very new to trading. After hearing your advice, I better use CPF to buy big cap stocks.
Quote: "Since CPF agent bank charges fees on per 1000 shares basis for buy/sell, I would be careful to buy small cap stocks as they will incur extra fees."
Is it possible to mention your top 3 unit trusts you buy? Thank you once again and sorry to disturb your weekend.
Quote: "But the main component of my CPF investments is still in unit trusts, since one could invest 100% into them."
Hi traveleat,
I don't think it will be useful to mention top 3 unit trusts, since you have to get your asset allocation right first before even starting to pick them. Depending on your asset allocation, then you start to pick funds that you are interested in to gain exposure.
So, my question back to you is that what is your asset allocation strategy for your unit trust portfolio?
Hi Mr GH,
On second thought, I better not go into unit trusts at the moment. Thank you for your reply. I shall continue to do more research.
Hi Mr. Chua, I notice that no reits feature in your top holdings nor your recent purchases. Would love to hear your reasonings. Thank you.
Hi Jamesbond007,
I think you have mistaken. There are two REITs currently in my top 30 holdings, namely A-REIT and CapitaLand Integrated Commercial Trust.
I don't normally purchase REITs from the market because they will normally have fund raising exercises like rights issues and preferential offers. Therefore, I will normally look to increase my stake in them via these corporate actions and apply for excess shares. Also, I took up scrip dividend schemes for some selected REITs.
Hi Mr GH,
I looked at the 2 REITS you mentioned.
If I only have funds to buy one, would you recommend A-REIT or CapitaLand Integrated Commercial Trust?
Thank you for your valuable advice to me who is just starting to invest.
Hi traveleat,
Why you only restrict yourself to only these two REITs? There are some other decent ones out there too.
But if you ask me, I would say its two different REITs. One is invested in the industrial sector, whereas the other is in Commercial and retail assets.
Limited funds :(
Hi Ghchua,
Dividend growth investments reward those who have the patience and weather the ups and downs of the market whilst focusing on the things of their interest.
WTK
Hi WTK,
Could you give an example of a dividend growth investment and how you have executed the strategy successfully? I know of one example listed on SGX, which is Micro Mechanics. Their dividend had grown consistently since IPO. But their share price also followed and I could not bring myself to buy more of the company at current levels.
It is very rare to find companies that can grow dividend consistently year after year. Some can do so, but there are some stagnant years in between.
Hi Ghchua,
Aimsreit and ARA Logs Trust are such examples.
WTK
Hi WTK,
For Aimsreit, I think their distribution actually decrease for the recent few FYs. So, I don't really think that it is a dividend growth investment anymore. More like a flat with a slight downward distribution. I remember some years ago when they were paying nearly 10cts per unit yearly distribution. Not the case anymore.
ARA Logs Trust is only recently that they manage to grow their distribution. Previously, there were actually instances whereby they cut their distribution due to CWT master lease expiry. I guess you have to look at their long term track record. I also don't think this is a dividend growth investment.
As I have said, for a stock to exhibit dividend growth, they must be able to grow dividends in the long term. The two above did not.
Hi GH, may I know yr view on Thai bev?
Hi Mr Chua, may i know your view on the report of the merger of Ara logos trust with ESR reit. Thank you.
Hi bamboo,
I guess Thai bev is still ok in terms of valuation, but I don't really like their low margin beer business. Their entry into F&B business is also yet to bear fruit. Therefore, I don't really like the stock.
Hi Unknown,
I think the rumor of a merger is basically due to conflict of interest, since both will be having the same manager and having similar mandate. But as it can been seen from the Sabana Reit case study, it doesn't mean that it will go through eventually.
Hi Mr Chua, thanks for your fast response and insights.
Hi Mr GH,
What are your thoughts on Frencken share (E28)? Is it still worth keeping?
The price has been dropping...Embarrassed to say I am making a loss :(
Thank you
Hi unknown,
Valuation for Frencken, frankly speaking, is on a high side. It is in my top 30 stock holdings list mainly because of share price appreciation. I haven't bought the stock for a very long time.
I think the recent supply chain issues had hit most tech stocks across the board, including Frencken. But they do have diversified business segments, and not concentrated on one sector alone, like semi-conductor.
You should have a diversified portfolio approach and not overly focused on one stock. Also, tech stocks are traditionally more volatile and could go up and down very quickly. If you have a lower risk profile, you should not have high exposure to them.
Sorry. I cannot give you advice for short term share price performance because I don't know which way the stock will go. I am more focused on buying stocks when there is value, and hold them for long term.
Hi Mr Chua,
Stamford Land. I would appreciate your insight on the company as I do not see its rnav any much higher fhan its current traded price, even if its hotels in Australia are sold away. Maybe, I have could have overlooked or missed out something. Thank you.
Hi Jamesbond007,
Why do you think so? Those hotels are being valued at cost less depreciation on Stamford Land books under PPE. Some of them are sitting on valuable freehold land. The numbers are also public from the link below:
https://www.businesstimes.com.sg/real-estate/stamford-land-puts-australia-nz-hotels-up-for-sale-for-a1b-report
RNAV is defintely higher than Stamford Land's current book value. And the share price is even lower than NAV, let alone RNAV.
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