Wednesday, June 30, 2021

My Investment Portfolio (June 2021)

We are now at the half way mark of 2021. STI ended this month at around 3130 points, down slightly as compared to last month. Fear of US Fed faster than expected pace of rate hike had dominated market movements. Also, market had been focused on the pace of reopening in Singapore with increasing vaccination rate. Having said that, STI was well supported at around 3080 points level.

For my top 30 holdings, CFM is a new entry to the list after announcing proposed acquisition of a distribution business involved in test kits. Stamford Land also did well after appointing real estate agents to look into divesting its portfolio of hotels. PM Data also advanced after proposing to dispose its interest in its freehold properties to shareholders via distribution in specie. Isetan was also in the news after announcing its appointment of a marketing agent to look into possible interests for its stake in Wisma Atria. Other stocks that did well in the list include The Hour Glass, Frencken and SGX. One of my long time top 30 holdings stock Jardine C&C though, dropped out of the list due to relative underperformance.

I have bought the following companies from the market this month - ABR, Amara, AP Oil, AV Jennings, Bonvests, Bund Center, CapitaLand, Captii, Chuan Hup, City Developments, F&N, Far East Orchard, Frasers Property, GK Goh, Global Investments, Global Testing, Great Eastern, GuocoLand, Heeton, Hiap Hoe, Hong Fok, Hong Leong Finance, Hongkong Land, Hotel Grand Central, Hotel Properties, Intraco, IPC, Isetan, Karin, Keong Hong, Khong Guan, Kingsmen, KSH, LHT, Lian Beng, Mandarin Oriental, Metro, Nam Lee, Noel Gifts, NSL, Overseas Education, PEC, Sing Holdings, SingTel, Singapura Finance, TIH, TTJ, UOL, Yanlord and Yeo Hiap Seng. No sale trade was done. 

I have participated in the following preferential offer - Mapletree Industrial Trust. I have also participated in the following scrip dividend scheme - Hotel Grand Central. 

I have accepted the following voluntary delisting/cash offers this month - Cheung Woh, Singapore Reinsurance and Sin Ghee Huat.

I have stepped up my pace of purchases again this month with proceeds from delisting offers as markets reacted to heightened alert Covid-19 restrictions here in Singapore. Going into the second half of the year, it is still difficult to navigate the markets as there are still various concerns out there which might increase volatility. Also, markets are no longer as cheap as they were at start of the year. However, the search for value continues for me as I shortlisted a few more candidates without taking any position. With a lack of new ideas, my strategy would still be adding onto my existing holdings when value presents itself, while keeping a lookout for new ones out there.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 June 2021)

Top 30 Holdings (Sing$ Denominated shares)
1. iFAST
2. Stamford Land
3. PM Data
4. GK Goh
5. The Hour Glass
6. Hong Fok
7. Hong Leong Finance
8. CFM
9. Haw Par
10. Frencken
11. Metro Holdings
12. Sing Investment & Finance
13. EnGro
14. Bukit Sembawang Estates
15. Hotel Properties
16. Bonvests
17. Isetan
18. Hotel Grand Central
19. A-REIT
20. Far East Orchard
21. Yeo Hiap Seng
22. Tat Seng
23. SGX
24. Hotel Royal
25. Singapura Finance
26. Singapore Land Group
27. Hiap Hoe
28. CapitaLand Integrated Commercial Trust
29. Amara
30. LHT

Top 5 Holdings (US$ Denominated shares)
1. Mandarin Oriental
2. Hongkong Land
3. Jardine Matheson
4. Dairy Farm
5. Tianjin Zhongxin Pharmaceutical

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. Winas - In Liquidation
28. Transcorp



Blogger Jem said...

Hi Ghim Hock, congrats on the June performance. My I know what's your opinion of Dasin Retail Trust? It's trading at a huge discount and the recent proposed sale of 50% to ARA indicates there is value. However, the price has been falling since before even COVID happened. Thoughts?

2:06 AM  
Blogger ghchua said...

Hi Jem,

Dasin Retail Trust is a business trust not a REIT. I think they got into bank loan problem, which they could not restructure part of their liabilities. I am not sure what is the reason, and there could be some problems.

I normally don't like business trusts, unless they are managed by a strong sponsor. I am sure you remembered Eagle Hospitality Trust whereby the trust suddenly goes under. Therefore, although Dasin Retail Trust looks cheap to me, I would rather avoid investing in it.

4:16 AM  
Blogger Jem said...

Hi Ghim Hock, just as we discussed Dasin, they announced today that they have cancelled the stake sell to ARA. An interesting turn of events. Thanks for the input!

5:57 PM  
Blogger ghchua said...

Hi Jem,

This is indeed another negative development for Dasin. Did they say why they cancelled the stake sale to ARA? Or is it ARA who pulled out of the deal?

I expect the unit price of Dasin to continue to move down, unless there are some positive developments with respect to their bank loan re-financing.

6:24 PM  
Blogger retnuoc said...

Hi GH,

May I know what's your view on SMM and it's upcoming right issue? Thank you.

6:50 PM  
Blogger Jem said...

Hi Ghim Hock,

Apologies for the late reply. I believe it was Dasin who chose to pull out and choose another China company for the funding.

Anyway, may I ask for your opinion on Ho Bee Land? It's trading at a huge discount to NAV and EPS has been steadily rising (excluding 2020 due to COVID). Quite surprised that you didn't buy it ;)

7:32 PM  
Blogger ghchua said...

Hi retnuoc,

I guess existing shareholders of SMM will have to take up the rights issue. If not, they will suffer another round of massive dilution. There is not much of a choice. Hopefully, things will be better going forward.

Hi Jem,

Ho Bee Land is in my portfolio. Just that I have not added into my position for quite sometime because there are more attractive options out there. Ho Bee Land do not have big development projects, as compared to their investment properties portfolio. Therefore, most of the value is in their investment properties, generating steady rental income.

Investment properties are marked to market every year, so there is not a lot of "hidden" assets. Yes, I like to buy stocks with assets trading at a huge discount to NAV. But I also like "hidden" value in those assets that is not known to the market whereby they are booked at cost less depreciation on their balance sheet.

If you think Ho Bee Land is trading at a huge discount to NAV, maybe you should look at the likes of Hong Fok, OUE etc and see whether they are cheaper or more expensive than it.

9:53 PM  
Blogger retnuoc said...

Hi GH,

It seems SMM current share price is lower than their theoretical ex-right price $0.124. After the right issue, maybe share price will dive lower than $0.12. I'm not sure is it a good idea to subscribe it. Or will it better to sell some share right now and try oversubscribe the right issues?

1:48 AM  
Blogger ghchua said...

Hi retnouc,

Theoretical ex-right price is based on the share price that SMM was trading at before they announce this rights issue. Its irrelevant now because prices changes every day and you cannot just use yesterday's prices for today's decision.

Which means, you have to re-compute your own theoretical ex-right price based on SMM current trading price. Obviously, it will still be above the rights issue price of 8cts per share and therefore there is still some value in those rights shares. Even if SMM dive to 11cts, the recomputed theoretical ex-rights price will still be above 8cts.

As to how one play this rights issue, there are various ways to do it. Yes, you can try to sell some shares now and then apply for excess rights shares. You can also wait for the SMM to go ex-rights, and sell part of your nil paid rights entitlements and "extract" some cash to apply for excess rights shares.

I think there are many ways to take advantage of this rights, but my view is that if you are confident of SMM prospects as a shareholder going forward, you should subscribe for some (or even all) of your rights entitlements. Otherwise, why even bother holding onto SMM shares?

2:16 AM  
Blogger Unknown said...

Hi Mr Chua, may i have your view on the ireit global right issue? Thanks.

6:10 PM  
Blogger ghchua said...

Hi Unknown,

Sorry, I don't hold Ireit Global so I am not familiar with it to give you any views. But in general, I do not like Reits that always do rights issue, unless they have valid reasons to do so.

10:04 PM  
Blogger Unknown said...

Hi Mr Chua, thanks for your input.

5:33 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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