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Monday, July 31, 2017

My Investment Portfolio (July 2017)

STI closed the month at around 3329 points, with banks and property counters continuing their good run. However, the rally somewhat tapered off near the end of the month, indicating that markets might be needing a break.

For this month, I have attended the following AGMs/EGMs/briefings - Ascendas Hospitality Trust, Azeus,  Ascendas India Trust, Metro, MapleTree Logistics Trust, SIA Engineering, SingPost, SATS, PM Data, Bukit Sembawang, AA Reit, GLP and GP Industries.

For my top 30 holdings, PM Data returned to the list after a decent performance as investors are more upbeat about its prospects and margin of their products. Other stocks in the list that did well include Metro, Bukit Sembawang Estates, Tat Seng, GK Goh, Spindex, Isetan and Hiap Hoe. Keppel T&T did not do well due to its poor 2Q results and also the decision to end its strategic review of their stake in M1. Sarine Technologies also underperformed after the company announced that they had filed lawsuit against infringers of its technology. Jardine C&C was another laggard in the list.

I have bought the following companies from the market this month - AF Global, Bund Center, ComfortDelgro, Delfi, EnGro, Hotel Grand Central, IHH, Karin, Koh Brothers, M1, Raffles Medical and Stamford Land. No sell trade was done.

I have participated in the following rights issues this month - Pan Utd and CDL H Trust. I have also accepted the following voluntary delisting/cash offers this month - China Flexible Packaging (shares and warrants) and Nobel Design.
 
Next month will be another quiet month in terms of AGMs but there will be companies announcing their half-year results. Companies with financial year ending 30 June 2017 will also be announcing their full-year results. I will be keeping track on some of these result announcements. Also, I will be seeking to re-invest those dividends received prudently back into the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 July 2017)

Top 30 Holdings (Sing$ Denominated shares)
1. United Engineers
2. Metro Holdings
3. Haw Par
4. Bukit Sembawang Estates  
5. Jardine C&C
6. UOL 
7. Bonvests
8. Tat Seng 
9. Hong Fok
10. Singapura Finance
11. Hong Leong Finance
12. Sing Investment & Finance
13. Hotel Grand Central
14. Best World
15. Far East Orchard
16. GK Goh
17. Hotel Royal
18. A-REIT
19. Old Chang Kee
20. Keppel T&T
21. Spindex
22. Isetan
23. Hiap Hoe
24. Stamford Land
25. Sarine Technologies
26. SGX
27. CapitaLand
28. PNE Industries
29. Hotel Properties
30. PM Data

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Mandarin Oriental 
3. Hong Kong Land
4. Dairy Farm
5. Jardine Matheson

Top Holdings (HK$ Denominated shares)
1. Shangri-La Asia 
2. Fortune REIT
3. Tan Chong International

Top Holdings (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. Challenger Technologies

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Dongshan Group Ltd (formerly known as Greatronic Limited)
4. General Magnetics
5. Fastech Synergy
6. Beauty China- Under Liquidation
7. Memory Devices
8. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
9. FM Holdings
10. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
11. FerroChina - Under Liquidation
12. FirstLink Investments
13. NEL Group
14. Jets Technics
15. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
16. Hongwei Technologies Limited (In Provisional Liquidation)
17. FDS Networks Group
18. Aussino Group - In Liquidation - Creditors' voluntary winding up
19. China Oilfield Technology
20. China Milk Products Group - Under Liquidation
21. Pacific Healthcare
22. Eratat Lifestyle - In Liquidation
23. Fung Choi Media - In Liquidation

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199
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15 comments:

  1. Unknown6:04 AM

    Hi,

    Mind if I ask what is your strategy and how you can keep track of so many stocks?

    Thanks.

    ReplyDelete
  2. ghchua10:59 PM

    Hi quek keng joo,

    I would maybe invite you to read the strategy section of my blog:
    http://ghchua.blogspot.sg/search/label/Strategy

    My strategy is basically pretty simple. Invest in a portfolio of stocks to minimize individual stock specific risks. Overweight better ideas and build up my stock "database" and knowledge as I go along.

    ReplyDelete
  3. WTK8:02 AM

    Hi ghchua,

    I think that your strategy is good. Adopt simple strategy in accordance to the existing circumstances. It may not be foolproof and however, I believe that such strategy will reap rewards in time to go. I believe that you may have learnt some insights from such strategy.

    Ben

    ReplyDelete
  4. ghchua8:47 PM

    Hi Ben,

    This strategy, though simple, is not very simple to implement. One reason being, most stock investors don't like to invest in a portfolio of a big number of stocks. They prefer to limit themselves to a certain number and do not wish to go beyond that.

    As for overweighting better ideas, it is also not easy to do so, unless one had been investing for a number of years and had built up a "database" of stock ideas. Most investors will prefer to switch stocks rather than overweighting better ideas since they always want all their "best" ideas in their portfolio and get rid of underperformers completely.

    So as you can see, it sounds simple but not really simple to implement.

    ReplyDelete
    Replies
    1. WTK10:32 PM

      Hi Ghchua,

      I agree with your views. I will keep the counters and don't sell them no matter how poorly the counters fare.

      Previously, I would sell whenever there's significant profits to cash in. For the counters who registered paper losses, I still keep these counters to remind myself of such losses.

      In totality, I believe that I will eventually succeed in my pursuit of financial freedom via dividend stock investment.

      Ben

      Delete
  5. ghchua1:08 AM

    Hi Ben,

    Actually, for those more problematic counters, I have two categories. One is those trading below NTA while the other is those trading above book. I guess I will look at them on a case-by-case basis. I do think that those trading below NTA are still worth keeping, though short term there might not be any catalyst for re-rating since earnings are poor.

    For those problematic counters trading above NTA, then I might look at disposing them provided the brokerages costs makes sense. I would still keep them if their market value is less than the brokerage I have to pay for disposing them. After all, I don't wish to pay my broker for selling my shares.

    ReplyDelete
  6. ghchua1:13 AM

    Hi Ben,

    For those counters that are performing well, I will keep them unless their market value had moved up so much that it makes me uncomfortable as they are trading way above book value and also climbed into my top holdings list. I did that for Best World as I was uncomfortable with its allocation in my portfolio and I proceed to reduce my exposure to it. Otherwise, I think I will still adopt a hands-off approach as in keeping the stock in my portfolio.

    ReplyDelete
  7. ozxinvest7:35 AM

    Hi ghchua,

    I notice you have been buying up koh bros for the past few months.They will be recognizing profits from Lumos and Westwood, do you have an estimated eps figure in your mind? I think it might hit 10 cents per share for both projects.Do you think it is possible?

    Thanks and Best Regards,
    ozxinvest

    ReplyDelete
  8. ghchua1:54 AM

    Hi ozxinvest,

    I don't have the numbers in hand but both JVs have almost sold all their units and upon TOP, they will start to book in the numbers. I think 2nd half result we should have a better sense of the margin they are getting from those projects.

    Anyway, even without the contribution from these two projects, Koh Brothers is trading way below its reported NAV of more than 60cts. Therefore, my thesis in buying the stock is pretty simple based on NAV discount.

    Any earnings contribution should be considered as a bonus for me, though based on track record, their property development JVs have done pretty well.

    ReplyDelete
  9. Sunny3:22 AM

    Chua Shifu

    Wilmar is trading below its NAV, it might be a time to be in. Would be happier if you could share us its prospect first. tks a lot

    ReplyDelete
  10. Sunny3:46 AM

    Shifu Chua
    Confort is talking to Uber n hope joint can be set up soon, but then its Taxi performance may not be changed straight away even a joint established, right? Looking at Uber itself, keeps losing money...

    ReplyDelete
  11. ghchua5:02 AM

    Hi Sunny,

    I will take your two questions together in one post. On Wilmar, I did not follow the company closely and therefore could not comment much on it. I don't normally like commodities based companies because prices are fluctuate widely. Though Wilmar has upstream and downstream business, it is also sensitive to commodities prices. I would demand a higher margin of discount from NAV in order to take a look at it further.

    For ComfortDelgro, I couldn't comment much on the tie-up with Uber at this moment because there is not much details out there yet. Basically, if ComfortDelgro is just providing cabs and drivers, then there might not be much value-add because margins will still be squeezed and it is still an asset heavy business. However, if ComfortDelgro is able to own part of Uber's app, then it is a different game altogether as they can then tap onto their asset light app platform to do other stuff.

    Having said the above, I continue to like ComfortDelgro and had been accumulating the stock slowly. Their taxi business only comprises 1/3 of their revenue and the market might have oversold the stock due to competition in their taxi business. It is still a cash generating business and with the bus contracting model in place, there will be more cash generated from their public transport business to support their taxi operations. Its dividend yield is still decent and this recent selldown had provided opportunity for me to increase my stake in the stock towards a top 30 position soon again.

    ReplyDelete
  12. Sunny3:23 AM

    Shifu Chua

    Tks a lot for reply

    Noted GuocoLand has been doing well recently. I guess you could own this company as well. Since the bigger ones have been up a lot already, this one is catching up... But need your help like NAV, about at what price, it is no more cheap or reasonable value? At what price, we can let go our shares if there is privatization?

    ReplyDelete
  13. Sunny3:51 AM

    Shifu Chua

    2nd Chance Property boss wants be president contender, the company is also deeply undervalued, reading somewhere says possible moneytization, what do you think?

    I become very happy whenever reading your post.

    Many thanks, SIR!

    ReplyDelete
  14. ghchua10:08 PM

    Hi Sunny,

    I think I have discussed about Guocoland in one of the comment posts in my blog before. I guess you can just do a search for it. As for RNAV of Guocoland, you can refer to some of brokerage reports out there. My guess is that it should be around $3.50 or more. Key merits of the stock include the completion of Tanjong Pagar Centre which will give them more recurring earnings, better prospects in their residential projects in Singapore, their Malaysia projects and China land banks.

    For 2nd Chance, I think their investment properties are valued consistently so you can roughly gauge the value of their assets. Which is unknown though, is when they would sell those assets. Their intention to sell their assets had already been make known quite sometime ago (there had been a failed attempt to sell in bulk) but they have been slow in disposing their commercial properties. Yes, there had been rumour of enbloc sale in City Plaza which the company owns some commercial properties there. I don't think the stock is deeply undervalued though, as rentals had came down quite a lot as they own mostly strata-titled units, not the whole building like some of the property stocks out there.

    ReplyDelete