Monday, May 10, 2021

Quite pleased with Kimly 1H FY2021 result

Popping a short note to say I am quite happy with Kimly's 1H FY2021 result. Net profit more than doubles to S$21.7 million, up 106.2%.

Dividend declared 0.56 Singapore cents per share, up from 0.28 Singapore cents previously.

Friday, April 30, 2021

Portfolio Summary for April 2021

As of 30 April 2021

CDP

Security# sharesPrice S$%
DBS70029.917.87
OCBC Bank1,50012.206.88
SGX1,20010.454.71
SATS3,9004.065.95
ST Engineering4,1003.865.95
CapitaLand5,4003.727.55
Singtel6,1002.505.73
Powermatic Data5,0002.675.02
Micro-Mechanics1,3003.331.63
ComfortDelGro7,9001.725.11
Sheng Siong6,4001.553.73
Genting Singapore11,7000.8653.80
TheHourGlass15,4000.9455.47
HRnetGroup21,9000.655.35
China Sunsine31,0000.5656.58
HC Surgical35,5000.4756.34
Nam Lee Metal28,2000.333.50
Silverlake Axis60,8000.2455.60
Kimly27,0000.323.25
Portfolio Value = $266,090

Trade Actions
- None

SRS

Security# sharesPrice S$%
OCBC Bank90012.2016.19
SGX1,30010.4520.03
SATS2,2004.0613.17
ST Engineering1,7003.869.68
Singtel2,0002.507.37
Sheng Siong8,7001.5519.89
HC Surgical19,5000.47513.66
Portfolio Value = $67,807

Trade Actions
- None

Commentary:
The stock market swayed sideways for most of April. As none of the stocks hit my desired entry level, I did not do a single trade throughout the month. DBS reported stellar 1Q2021 results today. In fact, a fair number of stocks on my watchlist reported better YoY results. The stock market rose correspondingly to the rosier outlook.

But just when the hope of normality is increasing with the ongoing vaccination regime, there came the grim news of a COVID-19 cluster appearing in Tan Tock Seng Hospital, with many folks now under quarantine. We are certainly far from out of the woods yet. It is anybody's guess how the entire saga will end. While humanity will likely persevere and overcome this pandemic, the consequences will be significant.

The adage of "sell in May and go away" may prove to be prescient this year.

Wednesday, March 31, 2021

Portfolio Summary for March 2021

As of 31 March 2021

CDP

Security# sharesPrice S$%
DBS70028.797.69
OCBC Bank1,50011.756.72
SGX1,2009.974.56
SATS3,9004.356.47
ST Engineering4,1003.896.08
CapitaLand5,4003.767.74
Singtel6,1002.445.68
Powermatic Data5,0002.574.90
Micro-Mechanics1,3003.191.58
ComfortDelGro7,9001.715.15
Sheng Siong6,4001.543.76
Genting Singapore11,7000.924.11
TheHourGlass15,4000.9455.55
HRnetGroup21,9000.675.60
China Sunsine31,0000.5256.21
HC Surgical35,5000.4355.89
Nam Lee Metal28,2000.3253.50
Silverlake Axis60,8000.2455.68
Kimly27,0000.3053.14
Portfolio Value = $262,210

Trade Actions
- Bought 20,800 shares of Silverlake Axis.

SRS

Security# sharesPrice S$%
OCBC Bank90011.7515.91
SGX1,3009.9719.50
SATS2,2004.3514.40
ST Engineering1,7003.899.95
Singtel2,0002.447.34
Sheng Siong8,7001.5420.15
HC Surgical19,5000.43512.76
Portfolio Value = $66,480

Trade Actions
- None

Commentary:
This will be a short entry, because I did not do much trading. I only bought additional shares of Silverlake Axis for my CDP portfolio as the price floated down. Most of the time, I am just monitoring the stocks while sitting pat on my idle cash. The market seemed to have priced in a rosier future six months down the road. No doubt the multi-ministry COVID-19 Task Force's decision to ease workplace restrictions and the ongoing vaccination regime around the developed world is giving hope to investors that the worst is behind us. However, I choose to remain cautious and disciplined - only pull the trigger when the stock price is within my target range.

Saturday, February 27, 2021

Portfolio Summary for February 2021

As of 27 February 2021

CDP

Security# sharesPrice S$%
DBS70026.647.64
OCBC Bank1,50010.996.75
SGX1,2009.994.91
SATS3,9004.407.03
ST Engineering4,1003.766.32
CapitaLand5,4003.187.04
Singtel6,1002.355.87
Powermatic Data5,0002.705.53
Micro-Mechanics1,3003.071.64
ComfortDelGro7,9001.615.21
Sheng Siong6,4001.564.09
Genting Singapore11,7000.8554.10
TheHourGlass15,4000.885.55
HRnetGroup21,9000.565.03
China Sunsine31,0000.4856.16
HC Surgical35,5000.4256.18
Nam Lee Metal28,2000.3153.64
Silverlake Axis40,0000.243.93
Kimly27,0000.3053.37
Portfolio Value = $244,058

Trade Actions
- Bought 3,200 shares of Sheng Siong Group.

SRS

Security# sharesPrice S$%
OCBC Bank90010.9915.10
SGX1,3009.9919.82
SATS2,2004.4014.78
ST Engineering1,7003.769.76
Singtel2,0002.357.17
Sheng Siong8,7001.5620.72
HC Surgical19,5000.42512.65
Portfolio Value = $65,510

Trade Actions
- None

Commentary:
The Lunar New Year came and went just as fast. I usually think the year (i.e. hard slog) begins when the CNY festivities are over. Nonetheless, February is a good month as that is when my performance bonus comes in, and it was much better than expected this time. I am thankful my boss appreciates my contribution over the past year. However, for the new workyear, I am given a challenging client account to service. I can only see hardship down the road. (Sigh.)

Investments wise, I only added one position in February. Sheng Siong Group reported stellar FY2020 performance as the supermarket operator clocked higher sales, partly due to COVID-19 lockdown and Work From Home while maintaining healthy gross margins. I'm happy that the Board decided to distribute a higher DPS (3 cents). Together with the previous DPS (3.5 cents), this translates to a trailing-12-months dividend yield of 4.2 per cent based on current price. This is a satisfactory level to me, and I decided to add to my position.

Looking forward, I doubt there is any more impetus for the market to rally higher, so we will likely see the market hover around these price levels. Current Street talk is about the ongoing COVID-19 vaccination in Singapore, but I have my reservations that this event will make any difference in the near term. Many countries are still reeling from 2nd, 3rd and Nth wave of infections, so it may take a few more years before normality resumes. Perhaps the old normal is no longer coming back. Companies that are cash strapped, debt laden, with outdated business models and unable to adapt will face tough times ahead.

Saturday, January 30, 2021

Portfolio Summary for January 2021

As of 30 January 2021

CDP

Security# sharesPrice S$%
DBS70025.187.49
OCBC Bank1,50010.326.58
SGX1,2009.905.05
SATS3,9003.856.38
ST Engineering4,1003.716.47
CapitaLand5,4003.217.37
Singtel6,1002.366.12
Powermatic Data5,0002.635.59
Micro-Mechanics1,3003.642.01
ComfortDelGro7,9001.585.31
Sheng Siong3,2001.622.20
Genting Singapore11,7000.8554.25
TheHourGlass15,4000.795.17
HRnetGroup21,9000.555.12
China Sunsine31,0000.4556.00
HC Surgical35,5000.436.49
Nam Lee Metal28,2000.3454.14
Silverlake Axis40,0000.2654.51
Kimly27,0000.3253.73
Portfolio Value = $235,179

Trade Actions
- None

SRS

Security# sharesPrice S$%
OCBC Bank90010.3214.48
SGX1,3009.9020.07
SATS2,2003.8513.21
ST Engineering1,7003.719.83
Singtel2,0002.367.36
Sheng Siong8,7001.6221.98
HC Surgical19,5000.4313.07
Portfolio Value = $64,134

Trade Actions
- Sold 3,600 shares of CapitaLand IntCom Trust.

Commentary:
Similar to December, market prices stayed higher than I would have liked, so I did not make any purchase. I did sell my last REIT position though. The price of CapitaLand Integrated Commercial Trust shot above $2.30, which was when I decided to let go. My investment focus has changed, and I am no longer keen to hold REITs in my portfolio (even when they generate high dividend yields).

News that caught my attention include Sheng Siong management deciding to award up to 16 months' bonus to its staff [news]. (I would love if my boss could even give me half of that!) Another news is about Keppel Corp. The conglomerate had suffered heavily from the lacklustre performance in the O&M sector. As a result, the management had decided to exit the industry entirely [news]. The move to focus on higher margin revenue generators is a good one, although it remains to be seen how fast and furious will Keppel be able to transform itself. Chances are it will take more than a decade. But if it does manage to boost up its ROE, I would be keen to take another look at this behemoth.

Have a wonderful and prosperous Lunar New Year, my friends!

Thursday, December 31, 2020

Portfolio Summary for December 2020

As of 31 December 2020

CDP

Security# sharesPrice S$%
DBS70025.047.55
OCBC Bank1,50010.066.50
SGX1,2009.284.80
SATS3,9003.986.68
ST Engineering4,1003.826.74
CapitaLand5,4003.287.63
Singtel6,1002.316.07
Powermatic Data5,0002.455.27
Micro-Mechanics1,3002.701.51
ComfortDelGro7,9001.675.68
Sheng Siong3,2001.552.14
Genting Singapore11,7000.854.28
TheHourGlass15,4000.805.31
HRnetGroup21,9000.5455.14
China Sunsine31,0000.4956.61
HC Surgical35,5000.375.66
Nam Lee Metal28,2000.344.13
Silverlake Axis40,0000.274.65
Kimly27,0000.3153.66
Portfolio Value = $232,228

Trade Actions
- None

SRS

Security# sharesPrice S$%
OCBC Bank90010.0613.03
SGX1,3009.2817.37
SATS2,2003.9812.61
ST Engineering1,7003.829.35
Singtel2,0002.316.65
CapLand IntCom Trust3,6002.1611.19
Sheng Siong8,7001.5519.41
HC Surgical19,5000.3710.39
Portfolio Value = $69,464

Trade Actions
- None

Commentary:
At last, we have come to the end of an eventful year. The Straits Times Index closed the year down 11.76 per cent. In contrast, the S&P 500 Index will probably cap the year with a gain of more than 15 per cent, despite the grave COVID-19 situation in the United States. I did not trade in December, as the prices hovered above my target range. Nonetheless, I am happy that I managed to put my capital to work when the stock market plunged in the first half of 2020. There probably won't be a repeat of the same deep downturn anytime soon.

Cash-wise, I had a huge outflow this month, as I paid the fourth instalment of my kiddo's endowment plan. Additionally, I did a voluntary contribution via the CPF Retirement Sum Topping-Up Scheme. With fixed deposits paying a paltry interest rate now, what not better to save than via CPF? Granted, some people fear that their saved CPF monies will never see the light of day. My take is, even if I ever *touch wood* pass away early, my CPF monies will be passed on to my wife. She is more than capable to handle the money wisely.

Here's wishing to you my friend, a fruitful and fulfilling new Year 2021!

Monday, November 30, 2020

Portfolio Summary for November 2020

As of 30 November 2020

CDP

Security# sharesPrice S$%
DBS70025.207.66
OCBC Bank1,50010.086.57
SGX1,2008.894.64
SATS3,9004.147.02
ST Engineering4,1003.866.88
CapitaLand5,4003.137.34
Singtel6,1002.396.33
Powermatic Data5,0002.415.24
Micro-Mechanics1,3002.681.51
ComfortDelGro7,9001.655.66
Sheng Siong3,2001.562.17
Genting Singapore11,7000.834.22
TheHourGlass15,4000.7655.12
HRnetGroup21,9000.4954.71
China Sunsine31,0000.5056.80
HC Surgical35,5000.396.02
Nam Lee Metal28,2000.334.04
Silverlake Axis40,0000.2654.61
Kimly27,0000.2953.46
Portfolio Value = $230,146

Trade Actions
- Bought 2,200 shares of Powermatic Data Systems.
- Bought 3,100 shares of Sheng Siong Group.

SRS

Security# sharesPrice S$%
OCBC Bank90010.0813.10
SGX1,3008.8916.69
SATS2,2004.1413.15
ST Engineering1,7003.869.48
Singtel2,0002.396.90
CapLand IntCom Trust3,6001.9410.09
Sheng Siong8,7001.5619.60
HC Surgical19,5000.3910.98
Portfolio Value = $69,240

Trade Actions
- None

Commentary:
The stock market has regained its mojo and is heading higher than ever. The DJIA broke the historic 30,000 barrier, though it failed to hold the ground. Opportunities to buy stocks at cheap prices are getting rarer. On the other hand, the bears who tried to fade the rally must be having panic attacks and nursing their wounds now - A Bloomberg article remarked sellers suffered a sizeable US$163 billion loss from shorting the S&P 500 Index for the month of November [link].

While hard to believe, tourism-dependent Genting Singapore caught many by surprise as it reported a much better than anticipated Q3 result after a catastrophic Q2. Its stock price soared on the news. The buoyant mood is simultaneously bolstered by recurring news of positive vaccine trial outcomes. SATS saw its price rose after it revealed it was capable to handle the extremely cold storage required by the vaccine [link].

I was lucky to acquire an additional position in Powermatic Data Systems at the start of the month, before its Return of Capital event. I had betted on the corporate action price gap to narrow after the Ex Date, which it did. Hence on a net basis, I am sitting on a small paper gain.

I also initiated an inaugural position in Sheng Siong Group for my CDP portfolio when the price retreated. The supermarket operator had benefited significantly from the Circuit Breaker, but some investors expect the superb performance not to last. As Singapore enters Phase 3, less people may choose to cook and eat at home. In my opinion, Sheng Siong's management has demonstrated discipline in watching the bottom line while cautiously expanding its turf. So I'm happy to hold this stock for the long term. (I shop at Sheng Siong regularly, so it is satisfying to know a small part of my grocery expense is compensated in the form of dividends.)

We have finally entered the last month of the year. Christmas is approaching, though I doubt the festive spirit will be strong under the shadow of the virus. The world is still reeling from the effect of COVID-19, and most of us should be spending our annual leave stuck on this island. The SingapoRediscovers vouchers are a nice touch by the government to encourage domestic tourism. I am eager to utilize the vouchers to visit some attractions.

December is truly the 'season of giving' for me, as my kiddos' endowment policy premiums come due. This is the second last payment out of a five-year premium plan. It is always a heart ache to see a five-figure sum whisked away from my bank account in an instant. But my wife and I had wanted assurance that we have sufficient funds to cover our two kids' university education. So the money vested now is for a good cause in the future. Moreover, the ROI of the endowment policies is reasonably attractive in today's environment of ultra-low interest rates. So I have no regret.

Lastly, I will be topping up my CPF Retirement Sum to take advantage of the higher CPF interest rate, as well as the available income tax rebate. It is an annual ritual for me. Are you planning to do the same?