My Investment Portfolio (October 2021)
STI ended this month at just below 3200 points with lower volatility as compared to previous month. Singapore extended its Stabilisation Phase of transition to living with Covid-19 for another month. Meanwhile, raising oil and energy prices had market participants concerned on raising inflation. Overall, it had been a good month for markets in general.
For my top 30 holdings, iFAST was sold down despite reporting improving 3Q result and increasing AUA. The Hour Glass continued its good run after Singapore opened up its VTLs (Vaccinated Travel Lanes) to more countries. Jardine C&C returned to the list after its share price recovered due to raising commodities prices, which might benefit its subsidiary Astra International. Straits Trading also make a return, benefiting from higher tin prices from its stake in MSC. Hotel Properties was in the news too, after being involved in the consortium that made a rival offer to acquire SPH. SGX dropped out of the list though, after weak relative share price performance.
I have bought the following companies from the market this month - A-Sonic(warrants), ABR, AIMS Property, Amara, AP Oil, Asia Enterprises, Bonvests, Bund Center, Chemical Industries, City Developments, Credit Bureau Asia, Delfi, EnGro, F&N, First Sponsor, GK Goh, Great Eastern, GuocoLand, Hafary, Hiap Hoe, HL Global, Hong Fok, Hongkong Land, Hotel Grand Central, Hotung, Intraco, Keppel Corp, Khong Guan, Koh Brothers, Metro, Ossia, Overseas Education, Pan Hong, shopper360, Sing Holdings, Sing Investment & Finance, SingTel, Singapura Finance, Straits Trading, UOL, Venture, Yanlord and Yeo Hiap Seng. I have also reduced my stake in CFM, Courage Investment and Pavillon.
We are now going into the last two months of the year. With markets recovering some ground this month and going towards the end of the year, I do not expect any major movements. As such, I will continue to position my portfolio defensively, with focus on value stocks. For blue chip stocks, most of them have recovered from their lows and therefore I will be very selective in adding more position into them. I will also continue to avoid most high yield plays, in anticipation of higher interest rate environment as US Fed starts its tapering programme.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 October 2021)
Top 30 Holdings (Sing$ Denominated shares)1. iFAST
15. Haw Par
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 7:53 PM
15 Comments:
Hi GHchua,
I notice you have not bought ComfortDelgro in October. As C52 is one of the major players in the transport market. With the shift towards EV, it is evident that C52 is getting prepared as stated in its AR. EV seems to be a major shift for the transport sector but I'm not sure how confident is C52 to tackle challenges ahead for its car leasing market, ride-hailing market. Since the EPS has drop to 2.8, it does seems like a good entry point.
Not sure if you attended the AGM but I would like to hear your views on ComfortDelgro in the long run please.
Hi David,
Yes. I have not bought ComfortDelgro in October as I wanted to position my portfolio defensively. As ComfortDelgro is a STI index stock, I do not wish to introduce more volatility in my portfolio as my view is that STI had recovered quite a bit in October. Having said that, I still have a decent position in the stock, since I bought it in July, August and September this year and also at various points last year due to Covid related lockdowns and movement restrictions.
I didn't attend virtual AGMs but I did attended one of their previous physical AGMs. I guess EV is a future growth area they are preparing for quite sometime, but yes, the taxi business is very competitive. But they have diversified overseas with some success, and therefore I think overall, they should do ok.
In the long run, I think the company will still face competition is various markets. Hopefully, they will be able to recover well from this crisis and come out stronger. I think they have a fair chance of doing well due to the diversified nature of their business. But don't expect high growth from regulated public transport businesses.
Mr chua
Would love ur views on fnn. F99 reported net profit down 21%. As interest rates are expected to creep up, do you think it will have much impact to material cost and thus the bottom line? It declared 3.5 cents dividend despite net profitt down. Do you think this dividend is sustainable?
Hi 1,
I think you are looking only at their 6 months result. For the full year, F&N net profit is down only 5.9%.
Yes. Material cost and currency will have impact on their business due to higher costs. But they can mitigate it by driving productivity and increase prices. Do remember that F&N has a strong portfolio of brands. Branding power will not deter consumers from paying a bit higher price for their products.
As for dividend, at 5cts per shares, they are paying out $70+m. Dividend from their investment in Vinamilk at around $90+m every year should be more than enough to sustain this level of dividend payout.
Hi Mr Chua
What's your view of Credit bureau Asia? Is it still a good investment? I am vested in it. It's share price has been dropping by quite a lot. Thanks.
Hi Unknown,
My view on CBA doesn't change just because the share price had dropped. I still believe that they are in a unique position to scale their credit data business. Volatility in the share price is expected as CBA has a low free float. Therefore, sustained selling by any of the bigger shareholders in the market might cause a big drop in share price in the short term.
CBA is Singapore's main credit bureau. Its margin is healthy and generate decent cash flow to continue to dish out dividends in years to come.
Hi Ghim Hock,
what are your thoughts on Alibaba ($BABA)? I noticed you don't seem to have any US-listed ones. Do you or have you ever thought of buying some shares on the US market?
Hi Jem,
I don't have any views on foreign listed shares. I am focused on only SGX listed companies.
My exposure to foreign markets is via unit trusts and index funds. I don't invest directly in any of those overseas markets. I don't think I want to get involved in US markets directly and so no, I will not be buying shares on the US market.
Hi Mr Chua
Hope you had a nice week.
Between Hong Leong finance and Sing investment & finance, which would you recommend? I am only thinking of buying one.
Thank you for your valuable advice as always.
Hi Unknown,
You have asked me a difficult question as I like both finance companies. Valuation wise, both are trading at similar levels at around 0.6x book value, but Sing investment & finance do have hidden value in the form of their Sing Investment and Finance building which is booked at cost in their balance sheet. But Hong Leong Finance has a bigger loan book than Sing investment & finance, so I thought they should at least deserve a higher valuation than Sing investment & finance. But the market seems to disagree with me as it prices both at similar valuations.
If you really want me to choose (which I am very reluctant to do so), then I would say Hong Leong Finance at current valuation. They offer more services (not only loans), has more branches, bigger loan book and pays interim and final dividends. Sing investment & finance only pays a final dividend. Its a very difficult decision as I do like the Lee family as they have managed to run Sing investment & finance prudently and its very well managed despite competition.
Thank you for taking the time to type your advice. Have a nice weekend.
https://simplywall.st/stocks/sg/diversified-financials/sgx-s41/hong-leong-finance-shares/news/dividend-investors-dont-be-too-quick-to-buy-hong-leong-finan/amp
Oops just saw this article..
I will continue to read more into both companies. Thanks once again
Hi Unknown,
I don't think you should be buying Hong Leong Finance just because of dividend as mentioned in the link you posted. One of the most important criteria when buying stocks for me is whether there is value in the stock. Hong Leong Finance is trading way below book value, while the banks are all trading above book.
Buying value will protect your portfolio during market downturn, as can be seen from today's market. I have built my portfolio mainly to cater for downside risk, in addition to any upside. To me, protection of value is important rather than hunting for capital gains and dividend.
Of course, you can buy banks which exhibits higher earnings growth potential. But you are also taking the risk by buying at higher valuation.
Hi mr chua
Would like to ask how well would u say value investing has fared for u thru out your years as an investor? Hav u had to write off any investments? Have u made more money than u lost? I see value investing as quite risky as undervalued companies can get hit by black swan events like covid and may nvr even get to recover bcos of the change in the way ppl do bussiness.
Hi 1,
My core value portfolio is ok. I did not encountered any write off in them. Some write offs are mainly on small cap value stocks, as they are riskier. Throughout the years, I have also written off many s chips which seems cheap based on valuation, but unfortunately, their cash and assets turned out to be fake.
I guess for my core value portfolio, I have been able to maintain a steady performance throughout the years. Yes, its performance might not be as good as compared to some of my high flying growth stocks, but protection of capital is essential in those value investments. I am not seeking capital growth in them.
It depends on what assets you are buying in those value stocks. Yes, people might change their way of doing business, but if you are buying hard core assets like land, buildings etc, those will still hold their value. Remember that many value stocks had already been trading at a decent discount from their reported book value in the first place, which means the market is not confident on their business prospects before Covid. Covid or not, it doesn't matter to me as most of my core value stocks I am buying for their assets, not their business.
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