My Investment Portfolio (January 2022)
STI ended the first month of 2022 up around 4% at 3249 points. News of inflationary pressures and raising interest rate continued to drag on markets. In addition, markets are also concerned with impending war in Ukraine. Volatility increased greatly and tech stocks were sold down badly. However, local market outperformed as investors switched from growth stocks to value ones.
For my top 30 holdings this month, iFAST was in the news after announcing the purchase of a 85% stake in a UK digital bank. Frencken was among the bigger losers together with iFAST, in line with global tech stocks selloff. The two REITs in the list also did poorly, as investors sold off interest rate sensitive stocks. Returning Amara replaced Straits Trading after market sold off the stock due to placement shares announcement.
I have bought the following companies from the market this month - Amara, Asia Enterprises, Bonvests, Bund Center, Chuan Hup, ComfortDelgro, Cosmosteel, Credit Bureau Asia, Delfi, EnGro, First Sponsor, Frasers Property, Goodland, Hiap Hoe, HL Global, Hong Fok, Hotel Grand Central, Indofood Agri, IPC, Karin, Keppel Corp, Kingsmen, KSH, Lion AsiaPac, Metro, New Toyo, Singapura Finance, Singtel, TC Auto, TIH, Wing Tai and Yeo Hiap Seng. I have also reduced my stake in Luminor Financial.
I have accepted the following voluntary delisting/cash offer this month - Roxy Pacific. I have also accepted Best World's equal access offer.
My stake in NGSC had been cancelled via selective capital reduction.
I have also participated in the following scrip dividend scheme - Second Chance Properties.
Next month, many companies with financial year ending 31 December 2021 will be reporting their full year results. As usual, I will be going through some of those results.
Wishing all of you readers out there many more happy returns in the Year of the Tiger! Gong Xi Fa Cai.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2022)
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 2:02 PM
18 Comments:
Hi Mr Chua,
I was wondering your purchase of Singapura Finance over Sing Invest, & HL Finance. Appreciate your sharing with us yr thoughts. Thank you.
Hi Jamesbond007,
I guess any of the 3 listed finance companies is ok. Singapura Finance happens to be cheaper at that point in time when I made my purchase.
Hi Mr Chua,
Would you be subscribing for the rights shares of Stamford Land?
Thank you.
Hi CS LIM,
Oh definitely. I think the numbers speak for itself. It is cheap when considering both NAV and RNAV.
Hi Mr Chua,
I was wondering if you could share your thoughts on Brook Compton and Goodland? Both seems to be pretty cheap at the moment.
Thanks!
Hi Lyonnais,
Yeah. Both are pretty cheap stocks. Trading below book value.
I think for Brook Compton, the question is always on the cash level of the company. Though their distribution business is quite ok, investors are quite puzzled on their cash level in their balance sheet, with not much capex.
For Goodland, I guess their business is quite lumpy as they are into landed properties development. However, it seems that their margin looks low to me, which might explain why they are trading way below book value.
Hi Mr Chua,
Thanks for the reply. Where would you see the value in these two businesses? What would be the reason for your investments in them?
Thanks
Hi Lyonnais,
Both are cheap when compared with their respective NAV. Goodland is cheaper but Brook Compton has more cash in its balance sheet.
Hi GH, I noticed u bought some Sin Heng back in Nov 21'. What are ur thoughts on them?
Hi Janeo,
Yes. Sin Heng is still a stock that I like. It is still trading at a decent discount from book value. With construction activity picking up, I think they will continue to do ok.
Hi GH, whats your view on Haw Par now? I think it is a good proxy play to the uob now that it has run up alot and the value discount is getting bigger. May i also seek your view on Riverstone given that it is now discounting a lot of price cuts in glove prices? Tks.
Hi bamboo,
I do like Haw Par as a proxy to both UOB and UOL. However, its discount to book value had narrowed in recent years. It is no longer as attractive as say, a few years ago. I would not consider adding more into my position unless the discount gets bigger.
I think Riverstone is not only about medical gloves. I also supplies gloves to cleanroom for manufacturing companies. Generally, cleanroom gloves are more resistant to price cuts due to more stringent requirements. Yes, it looks attractive at current levels and I have added some in December last year.
Dear Mr Chua,
I would like to hear our thoughts on investing in undervalues stocks with high insider ownership, like Bonvest. Will minority shareholders be able to unlock its NAV is the owner decides to take it private? Is there benefit in investing in such counters? Thanks
Hi Gary,
For privatisation of companies with high insider ownership, normally the controlling shareholder won't offer to buy you out at NAV as its most likely at a discount to NAV. However, we could unlock part of its RNAV. And since RNAV is normally higher than NAV, we should be able to get a decent premium from its 12 month average trading price.
Benefits of investing in such counters? Well, firstly they are trading at a discount from NAV right? So, the downside is limited even if they reported losses as its share price is supported by its NAV. I guess asset rich companies will always have a floor as the market priced the stock based on its NAV and not so much on its earning power.
Hi Mr Chua,
Thanks for your insights.
This comment has been removed by the author.
Hi GH, congrats on AYN! Any thoughts on their latest results?
Hi Janeo,
Oh, thanks. Their result was actually expected by me, since semiconductor chip shortage had lead to chip and testing price increase. Going forward, they are expanding more capacity to grow their order book. I expect more depreciation going forward and therefore, might have some pressure on their bottomline numbers.
There is no withholding tax on the dividend being declared as the company is incorporated in Singapore and dividend declared is in Sing dollars.
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