Thursday, December 30, 2021

My Investment Portfolio (December 2021)

STI ended the year at 3123 points, up almost 10% from the start of the year. Despite news of inflation, global supply chain issues and outbreak of various Covid-19 virus variants, it had been a reasonable year of return for investors. 

For my top 30 holdings this month, major weakness include Stamford Land and Isetan. Stamford Land was sold down mainly because investors reacted negatively to their announced rights issue. Isetan also underperformed as they announced that they still could not find a buyer for their Wisma Atria asset. LHT though, was one of the better performers as insiders continued to increase their stake in the company.

I have bought the following companies from the market this month - ABR, AV Jennings, Baker Tech, Bonvests, Bund Center, City Developments, Credit Bureau Asia, Dairy Farm, Delfi, EnGro, F&N, First Sponsor, Frasers Property, Global Testing, GuocoLand, Heeton, Hiap Hoe, Hong Fok, Hong Leong Asia, Hotel Grand Central, Hotel Properties, IHH, Indofood Agri, Intraco, IPC, Jardine Matheson, Karin, Kingsmen, LHT, Lian Beng, Lum Chang, Metro, Ossia, OTS Holdings, OUE, Pan United, Riverstone, SBS Transit, Sing Investment & Finance, Singtel, TC Auto, TTJ, UOL, Wing Tai, Yanlord and Yeo Hiap Seng. No sale trade was done.

I have participated in the following preferential offer/rights issue - Mapletree Logistics Trust.

December 2021 had been an volatile month for the Singapore market. Volatility increased due to Covid-19 Omicron variant and also latest property cooling measures. I have taken the opportunity to aggressively buy into the market this month, which resulted in lower cash holdings due to lower dividend income received this month. Having said that, with zero borrowings on the portfolio and no buying on margin, I remain comfortable in holding onto most of my existing stocks in the portfolio, while maintaining flexibility in disposing some disappointing ones.

Year 2021 had been an eventful one. Hopefully, 2022 will be a better one. 

I take this opportunity to wish all my readers out there a Happy 2022 and many more returns in the coming new year!

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 December 2021)

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

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. Transcorp



Blogger Unknown said...

Hi Mr Chua,

May I know your thoughts on Riverstone, Jardine C&C and Baker Tech? Do they offer good value now?

11:43 PM  
Blogger ghchua said...

Hi Unknown,

I guess they all offer value on different screens.

For Riverstone, their value is their decent cash flow, consistent dividend payouts and friendly controlling shareholder. Recent sell-down offers some value on the stock, though its not cheap on NAV level.

Jardine C&C is a play on Indonesia economy. Its sum of parts is definitely higher than its current share price, while some of its parts like Astra is also undervalued. So, its like buying a structure at a discount over a discounted group of underlying companies. I do see value at current levels, but be prepared for a volatile ride on this stock.

Baker Tech is an undervalued O&M play, trading at around 50% discount from book. It is one of the few small cap O&G companies with net cash balance sheet and capabilities to build liftboats/rigs. This allows them to ride through the oil price crash and also Covid-19, unlike some of the more leveraged companies. I think this is also a privatisation play.

5:15 PM  
Blogger JTK said...

Hi GHChua,

I found that you bought Singtel several times. Is it a turnaround story? Why not StarHub?

What is your view on EnGro? It looks cheap even after the price run-up.
I think IHH seems expensive. Can you share your rationale behind your purchase?

Thank you in advance.

10:28 PM  
Blogger ghchua said...


I have a much bigger position in Singtel than Starhub and it makes sense to just add small bits onto that position on share price weakness. Also, Singtel is more diversified as they have various associates outside Singapore and therefore, much greater potential.

As for EnGro, there is no change in my view. I still like it very much and it had been in my top 30 holdings for quite sometime. It offers a cheap exposure to their VC investments, which had seen many high profile exits like Doordash and Coinbase. Their specialty cement operations in China had been doing well last FY despite a Covid disrupted year. Their specialty polymer business has turned around and is making inroads into EV segment. Their investment segment is doing very well. Phase 2 of Tangshan project had been fully sold, with handover completed by 1H 2021. So, there is still some revenue yet to be recognized for FY2021. Phase 3 construction is underway.

I do see value in IHH, especially when they have scale in various emerging markets. It is growth play rather than value, but there is value in those hospitals that they own and they may unlock by selling them. Also, IHH share price on SGX offers opportunity because sometimes there might be mispricing due to illiquidity of the shares.

1:03 AM  
Blogger 1 said...

Hi mr chua
If u have mct in ur portfolio, would need ur views on mct mnac merger. Do you think this merger is done on the expense of mct unit holders? Thx

2:30 PM  
Blogger ghchua said...

Hi 1,

Yes, I do hold a stake in MCT in my portfolio. I think this merger had increased the risk profile of MCT. From a pure Singapore play, now MCT has exposure to various parts of Asia. Though MCT is issuing units at above NAV to merge with MNAC, MNAC had been trading below book and therefore, the market actually factored in the risk of MNAC.

Overall, I am neutral but not too happy with MCT executing this merger. Yes, it will increase their AUM and scale in one transaction, but sometimes, bigger does not mean better.

5:02 PM  
Blogger 1 said...

Sorry for this question. Cause its my first time a merger happen for one of my holdings. Does this mean we mct unit holders have to fork out money for this new entity(ie buying mnac) am i right?

10:23 AM  
Blogger ghchua said...

Hi 1,

The answer is no. MCT will be issuing new units and using existing cash to fund the merger.

6:28 PM  
Blogger Unknown said...

Stamford land at current price, still worth to subscribe the right?

6:43 PM  
Blogger ghchua said...

Hi Unknown,

I guess one should make their own decision whether to subscribe for the right and how much, based on their own unique financial situation.

For me personally, I don't only look at the current share price. I also look at NAV, RNAV, controlling shareholders' intention and various other factors.

Therefore, you should decide based on all the above.

8:21 PM  
Blogger David said...

Hi GhChua,

I have never seen Genting in your top 30. It seems fairly stable and could get better while economy improves. Any views on it?

11:43 PM  
Blogger ghchua said...

Hi David,

I do hold a small stake in Genting Singapore, but I do not quite like their business model. Although things could get better when Covid-19 pandemic is over, their capex is quite huge as they are always looking for new projects, which will drain their cash and profits. Resorts World Singapore 2.0 will be a big one and they will be spending a lot of money building it. Also, they are looking for overseas integrated resorts projects as well, which will drain their cash further. Do remember that for these projects, they will initially be loss making and execution will be the key.

Personally, I think the risk vs reward is not in my favour and therefore I choose to hold onto what I have currently without adding onto my stake.

4:47 AM  
Blogger Unknown said...

Did you increase your stake in Intraco before or after the announcement of MHC acquisition? If after, may I ask what's your view in relation to the deal?

Intraco's valuation is rather attractive, but it has not been paying dividends over the years, and has instead decided to use its cash + fund raising to finance this deal. Not sure how I should feel about this move.

1:05 AM  
Blogger ghchua said...

Hi Unknown,

If you followed my blog posts every month, I have been buying Intraco for quite sometime. So, the answer to your question is before the announcement.

Intraco could not pay dividends mainly because they have accumulated losses in their balance sheet and also loss making or making very little profit in recent years. But its balance sheet strength is strong, holding significant amount of cash and even more after disposing their stake in Dynamic Colours.

I see this move as injecting a new business and also inviting new investors. Investors might have attracted to Intraco due to its cash holdings. Since they could not pay a significant amount of dividend due to their accumulated losses, I guess this deal is a way to unlock those cash and put them into use, since they have no intention on returning those excess cash back to shareholders via capital reduction.

1:17 AM  

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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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