My Investment Portfolio (February 2025)
STI ended Februrary at 3895 points, up around 1% for the month. STI managed to hit a new all-time high level this month even as markets were worried about tariffs and hawkish US Fed comments. In Singapore, Budget 2025, company earnings reports and MAS Equities Market Review Group proposed measures were closely watched. Due to many concerns, volatility had also increased this month.
I have attended the following physical AGMs/EGMs/briefing this month - Delfi and Wee Hur.
For my top 30 holdings this month, investors were mostly reacting to company earnings reports. Main contributors include iFAST, Sembcorp Industries, Multi-Chem, SGX, Haw Par and F&N. Top detractors include LHT, Jardine C&C and Wing Tai. Hiap Hoe dropped out of the list while UOL returned.
I have bought the following companies from the market this month - AF Global, Alliance HC, Baker Tech, Bonvests, Brook Crompton, Bukit Sembawang Estates, Bund Center, Captii, Delfi, Digilife Tech, F&N, Far East Orchard, Frasers Property, Global Testing, GuocoLand, Hiap Hoe, HL Global, Ho Bee Land, Hock Lian Seng, Hotel Properties, Hotel Royal, Hotung, IFS Capital, Indofood Agri, Innotek, Jardine Matheson, Kingsmen, Lion Asiapac, Low Keng Huat, Mandarin Oriental, Metro, OUE, OUE Healthcare, Plato Capital, Raffles Medical, SBS Transit, Shangri-La Asia, Sing Holdings, Singapore Land Group, Stamford Land, Straco, Sunright, Tat Seng, Tye Soon, UOL, Venture and Wing Tai. I have also reduced my stake in Aspen Group and closed my position in Matex International.
Next month will be another quiet one with not much corporate activities as investors digest those full-year results from companies with financial year ending 31 December 2024. I will continue to go through some of those result announcements that I have missed out in February. With volatility increasing this month, I will continue to be more defensive in my portfolio positioning going forward.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2025)
Top 30 Holdings (Sing$ Denominated shares)2. Hongkong Land
3. Jardine Matheson
5. DFI Retail Group
Top Holdings (HK$ Denominated shares)
1. AV Jennings
1. Streettracks STI ETF
3. CapitaLand Integrated Commercial Trust
5. PM Data
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. FerroChina - Under Liquidation
9. FirstLink Investments
10. NEL Group
11. Jets Technics
12. Hongwei Technologies Limited (In Provisional Liquidation)
13. FDS Networks Group
14. China Oilfield Technology
15. China Milk Products Group - Under Liquidation
16. Pacific Healthcare
17. Fung Choi Media - In Liquidation
18. Europtronic Group - In liquidation - Compulsory winding up (Insolvency)
19. Attilan Group
20. Transcorp - In liquidation - Compulsory winding up (Insolvency)
Labels: Portfolio
posted by ghchua at 8:01 PM
16 Comments:
why share price of jardine C&C so weak nowadays? Do you think the fundamental of the company is the main problem?
Hi Unknown,
I don't see a fundamental problem with JCC, but their reported FY numbers are not growing. This can be attributed to various factors like consumer sentiments, currency movements and also weaker commodity prices like coal. Coupled with their debt, investors are also worried about a potential rights issue.
But I think they have been actively trying to manage these challenges. Like disposing underperforming business and reducing debt levels. I believe that when consumer sentiments recover, they will do better.
I understand that JCC is also a difficult company to analyze, as they have various moving parts and businesses. Ultimately, you have to trust the management to run and manage those portfolio of businesses, and take necessary actions to replace them with new ones if those underperfomed. You have to take a long term view when investing in it.
Do you think Delfi is at the cusp of a turnaround? I see cocoa prices retreating. Have been averaging downwards for awhile, just not sure if its on visible path back up.
Hi MSA,
Cocoa prices currently are still much higher than historical levels. Don't read too much into short term price volatility, as it might be traders speculating.
As for Delfi being a turnaround play, I think currently it is still not clear as there are many factors involved including currency, raw material prices like cocoa, competition from other players etc.
What is important though is that Delfi is the market leader in Indonesia and has a strong balance sheet and decent operating cash flow. That should enable them to tide through these tough times and emerge stronger when recovery eventually came.
Hi, not sure if you have Noel Gifts in your portfolio. What's your opinion of this counter?
Hi Unknown,
Yes. I do hold Noel Gifts in my portfolio. But my investment thesis back then was on their investment properties. Since then, they have sold them and now has a decent amount of cash in their balance sheet plus their existing gift business and some other small investments here on there on financial assets.
I am not too positive on their gift business, though they recently secured a contract for supplying and distributing SG60 gift packs. The gift business itself is not a very high margin one, and costs are high. Having said that, I do note that they are exploring getting back into property again and I shall await their next move.
Hi Mr. Chua,
Between UOL & Singapore Land Group which would be your preference and why? I do own both counters in my portfolio, and have plan to add on to them. Thank you.
Hi Jamesbond007,
It is a difficult question to answer as each has its own merits. If you are investing for value, I think that Singapore Land Group has a higher potential but do take note that it is not a very liquid stock and dividend yield is lower than UOL. UOL, being a STI Index stock, has a higher liquidity and also higher dividend yield track record. So, it really depends on what you want. Having said that, both are ok as I believe that they are both undervalued.
Thank Mr. Chua,
Does UOL currently own any stake in UOB. If I am not mistaken, UOL had previously exchanged its UOB shares with Haw Par for the properties they co-owned. Thank you.
Hi Jamesbond007,
The answer is yes, UOL do own shares in UOB currently. More than $1 billion worth of UOB shares. You can refer to their annual report for more details. Just look into the balance sheet notes on financial assets.
Hi Mr. Chua,
Thank you for the information. Much appreciated.
Hi Mr Chua
I hold both Mandarin Oriental and Hotel Grand Central, and the performance of these two companies are different like night and day.
While HGC is suffering from lower revenue and profits, Mandarin Oriental is seeing increasing profits with their plan to increase number of hotels. Valuation wise, HGC is around 0.42 of book value while MO is trading at slight above 0.5, if we take their RNAV based on fair value of the hotels. The free cashflow yield of both companies are low at around 2.4% for HGC and 2.8% for MO based on my rough calculation.
MO has a clear path to growth with plans to double number of hotels under management by 2033, while HGC merely warned of another challenging year in their latest report.
I have thoughts of selling all my HGC and moving the money to MO. I notice that you also hold both companies. May I know your thoughts about HGC? Do you find the greater discount to book value enough reason to overlook the poorer prospects, or are you keeping it for diversification purposes?
Hi Goh,
You are comparing two businesses that are run differently. One is MOIL which is run professionally while the other which is HGC which is largely a family run business.
Since your question is on HGC, I will focus more on the company. The company suffered lately to a certain extent due to currency issues, in particular the weakness of AUD/NZD vs SGD, though their hotels didn't do too well operationally too. But look at its balance sheet. How many hotel companies can claim to have this kind of net cash position, and even allowing them to place $255m into Fixed Deposit and earn $11.3m in interest income in FY24?
I must say that HGC is too conservatively managed with a strong balance sheet. In fact, too inefficient. As for my investment thesis in HGC, it is not only for diversification purpose. Every stock that I bought in has a story in it, and diversification is only part of the story. I hope that HGC can return excess capital to shareholders one day and the stock will definitely re-rate. Also, they recently had tried (but failed) to take their Malaysia associate private. I guess we have to be patient with the company and see how things unfold.
Hi Mr Chua, thank you for sharing your thoughts.
Mr chua
Your current thought on yeo hiap seng
Is.it badly managed? Or is it their reluctance to unlock value or simply refusing to increasing dividend that their share price keeps sliding like no tmr. They have decent cash balances though. Thx
Hi mitchell,
I don't think a badly managed company would have a debt free balance sheet and robust cash reserves. Plus, YHS has historical land and assets (mostly in Malaysia) which could be unlocked in the future.
I think we all know that F&B is a tough business to be in with thin margins and competitive brands. The fact is that they are keeping cash for investment opportunities, and they have recently found one in a form of Vitasoy International Hodings (i.e. Vitasoy) shares listed on HKSE. Whether they will invest more into Vitasoy still remains to be seen.
I don't think share price is an indication whether a company is bad or not. Sometimes, a company might be undervalued simply because market is unhappy with various issues, including profits. I do think that YHS F&B business performance had been below par, and the cash in the balance sheet had been dragging down its ROE. Plus, their scrip dividend scheme in place increases the number of shares every year, which further dilute EPS.
Hopefully, they can put those cash in use very soon to increase returns or return some back to shareholders. Also, they might wish to relook into those historical assets mentioned by me above and have some plans for them. These might be share price re-rating catalysts.
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