Tuesday, February 28, 2023

Portfolio Summary for February 2023

As of 28 February 2023


Security# sharesPrice S$%
OCBC Bank70012.672.34
ST Engineering6,9003.576.51
CapitaLand Investment7,4003.727.27
Powermatic Data8,5002.555.73
Sheng Siong13,0001.635.60
Credit Bureau Asia14,3000.9853.72
Genting Singapore11,7001.023.15
HC Surgical35,5000.413.85
China Sunsine41,8000.4555.03
TalkMed Group14,5000.421.61
Silverlake Axis15,0000.3351.33
Portfolio Market Value = $378,431

- Bought 2,700 shares of Micro-Mechanics.


Security# sharesPrice S$%
OCBC Bank90012.678.14
ST Engineering3,0003.577.64
CapitaLand Investment2,6003.726.90
Powermatic Data3,4002.556.19
Sheng Siong8,7001.6310.12
Credit Bureau Asia5,7000.9854.01
HC Surgical19,5000.415.71
China Sunsine10,8000.4553.51
TalkMed Group5,8000.421.74
Silverlake Axis6,0000.3551.43
Portfolio Market Value = $140,124

- None

Singapore Savings Bonds

SecurityAmount ($)
Portfolio Market Value = $41,500

February came and went in a jiffy. I only executed one trade. As the market sentiment soured on semiconductor-related stocks, I built on my position in Micro-Mechanics Holdings (MMH). I believe the drop in demand for chips is cyclical in nature and does not herald any permanent change to the company's fundamentals.

DBS reported a beautiful set of results. FY2022 total income was a record S$16.5B, up 16% YoY. Net profit was S$8.19B, up 20% YoY. Q4 dividend was increased to 42 cents, and an one-time special dividend of 50 cents was declared. Going forward, dividend from the bank will be an indicative S$1.68 per year, or 42 cents per quarter. The stock price has run up a fair bit, though it has stabilised recently. I will wait for retracement before adding my position.

The other two local banks reported respectable results too. UOB FY2022 total income was S$11.575B, up 18% YoY. Net profit was S$4.819B, up 18% YoY. A final dividend of 75 cents was declared, making it S$1.35 for the whole FY. OCBC FY2022 total income was S$11.675B, up 10% YoY. Net profit was S$5.748B, up 18% YoY. A final dividend of 40 cents was declared, making it 68 cents for the whole FY.

Across the three banks, the common trend was a drop in wealth management fees. But some analysts are hopeful the trend will reverse in 2023.

Genting Singapore finally escaped its ill fortune. FY2022 revenue was S$1.725B, up 62% YoY. Net profit was S$340.1M, up 86% YoY. A final dividend of 2 cents was declared, making it 3 cents for the whole FY.

On the other hand, things were not so rosy for CapitaLand Investment (CLI). FY2022 revenue was S$2.876B, up 25% YoY. But total PATMI declined 36% YoY to S$861M. The drop is attributed to lower revaluation of China assets and absence of one-off portfolio gain. A dividend of 12 cents was declared, coupled with a dividend-in-specie distribution of 0.057 units of CapitaLand Ascott Trust (CLAS) per share.

Honestly, I'd rather CLI offload the CLAS units to institutional investors and distribute the proceeds instead. Selling off odd lots is a hassle.

Next month's issuance of Singapore Savings Bond has an average return of 2.9%. This is below my preferred level, so I will not subscribe for the issue.

I had just completed my annual performance evaluation with my manager. We discussed about the accomplishments and challenges during the previous year. The most important topic in the conversation was the salary adjustment for the new workyear. As my company does not provide 13th month bonus, the salary adjustment is a crucial motivational factor. Percentage-wise, the increment is on par with inflation. In dollars and cents, my salary sits above the median in the industry, so I have no complaint. However, one of my team mates was unsatisfied with her increment. I suggested to her to speak to our TL, rather than keep brooding about it.

I know my manager and TL are satisfied with my work last year. However, I am feeling burnt out handling the demanding clients assigned to me. I told my TL during our 1:1 meeting that I want to change to a different role. Somehow, the management is not keen for me to do so. Nonetheless, I have been honest to my TL that should the situation worsen and I lose my morale at work, I will request for a transfer. It may sound like a threat, but it isn't. I just don't want any unpleasant surprise down the road.

During mid-month, I suffered a bout of flu which impacted my fitness. I had to pause my regular exercise regime. Thankfully, it was a light week and I didn't have critical matters to attend to. I was able to rest at home, and I took the chance to reflect on my own financial journey.

My investment capital is not growing as fast as I would like because I'm keeping part of my salary aside to pay down my mortgage next year. Once the $330,000+ housing loan is cleared, I will be able to invest more into my stock portfolios. Looking at my snail pace of wealth accumulation however, I doubt I will be able to quit my job until I'm past 55 years old. So much for F.I.R.E. (Sigh.)

I started on this financial freedom journey with the sole purpose of building a retirement nest egg. Sometimes I wonder if I am being harsh on myself and my family. I see my friends drive big cars, stay in private housing and enjoy extended holidays in exotic destinations, while I scrimp and save my hard-earned money. Once, I joked to my wife that I'm trying to survive each month on the equivalent of a security guard's pay. If we are contented with simple pleasures on a shoestring budget, then we need not fear being retrenched anytime. With adequate savings, life can carry on as normal, and we can take our time to find the next preferred job, if it is still required.

Thanks for reading.

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Wednesday, February 22, 2023

SATS' Right Issue

Airport services operator SATS has finally revealed the long-awaited Right Offering [here].

Subscription Price is S$2.20 per Right (20% discount to last traded price of S$2.75). Allotment Ratio is 323 Rights for every 1,000 existing Shares held.

SATS also gained the European Union's regulatory approval to proceed with the acquisition deal for WFS.

I guess there is no turning back from here. I will likely subscribe for my portion, given it is an opportunity to acquire the shares cheaply. But I expect short-term pain for SATS (read:higher costs) over the next few years as it assimilate WFS into its existing corporate structure. I don't expect SATS to return to profitability and dole out sizeable dividends anytime soon.

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