Showing posts with label NETLINK. Show all posts
Showing posts with label NETLINK. Show all posts

Saturday, August 31, 2024

Portfolio Summary for August 2024

As of 31 August 2024

CDP

Security # shares Price S$ %
DBS 440 36.36 3.88
UOB 400 31.39 3.04
OCBC Bank 700 14.55 2.47
SGX 3,200 10.83 8.40
ST Engineering 6,900 4.45 7.45
Powermatic Data 8,500 3.55 7.32
TheHourGlass 19,600 1.53 7.27
Sheng Siong 19,100 1.51 6.99
Micro-Mechanics 18,400 1.54 6.87
VICOM Ltd 21,500 1.32 6.88
UMS 31,200 1.02 7.72
Credit Bureau Asia 30,100 0.89 6.50
Nanofilm 36,100 0.745 6.52
HRnetGroup 21,900 0.695 3.69
TalkMed Group 34,500 0.395 3.30
China Sunsine 41,800 0.395 4.00
Kimly 27,000 0.31 2.03
Silverlake Axis 37,100 0.375 3.37
HC Surgical 35,500 0.265 2.28
Portfolio Value = S$412,377
YTD Dividends Received = S$12,530
YTD SBL Fees Received = S$158

Trades
- Bought 31,200 shares of UMS Holdings.

SRS

Security # shares Price S$ %
TheHourGlass 5,000 1.53 4.73
Sheng Siong 8,700 1.51 8.12
Micro-Mechanics 5,400 1.54 5.14
VICOM Ltd 5,500 1.32 4.49
Credit Bureau Asia 5,700 0.89 3.14
Nanofilm 12,500 0.745 5.76
HRnetGroup 7,500 0.695 3.22
China Sunsine 10,800 0.395 2.64
Kimly 5,800 0.31 1.11
HC Surgical 19,500 0.265 3.20
NetLink NBN Trust 108,000 0.875 58.44
Portfolio Value = S$161,693

Trades
- Sold 1,300 shares of SGX.
- Sold 6,000 shares of Silverlake Axis.
- Bought 12,000 units of NetLink NBN Trust.

Singapore Savings Bonds

Security Amount Coupon Now
GX22120S S$14,000 3.26%
GX23010Z S$15,000 2.95%
GX23110V S$20,000 3.21%
GX23120Z S$20,000 3.30%
GX24060A S$20,000 3.26%
GX24070S S$20,000 3.26%
GX24080W S$20,000 3.19%
Portfolio Value = S$129,000

Speculative Play

Security # shares Price US$
Kep Pacific Oak REIT 70,000 0.26
Portfolio Value = US$18,200

Trades
None


Commentary:
August is always a favourite month, because we celebrate three birthdays in the family - my wife's, my older boy's and mine.  (Four if you include our nation's birthday.)  Contrary to the usual birthday cake, we decided to celebrate by indulging in crab dishes from Melben Seafood restaurant.  It was a messy affair, but oh so finger-licking good!

In the equity market, Citigroup issued SELL analyst recommendations on all three local banks DBS, UOB and OCBC.  This caused their prices to fall more than 5 percent on 5 Aug.  As the interest rate cut materializes, the bank stocks are likely to take a hit.  That is my cue to load up.  *Rub hands in anticipation*

I initiated a new position in UMS Holdings ("UMS").  This is the second semiconductor industry counter in my portfolio.  The semiconductor industry is highly cyclical in nature, hence dramatic swings in earnings are to be expected.  So far, UMS fundamentals looks all right.  I will monitor for a while before considering whether to add on.

I continued to adjust my SRS portfolio by closing off my position in SGX as the stock hit new 52-week high.  Interestingly, after the announcement of Silverlake Axis ("SLA") voluntary unconditional offer (see my last blog post [here]), SLA share price shot up past the cash offer of 36 cents per share.  I took the opportunity to sell the shares in my SRS portfolio, pocketing a tiny extra premium.

I also added more units of NetLink NBN Trust ("NetLink").  I am not too concerned by the recent y/y drop in 1Q2025 revenue and EBITDA.  Over the long run, NetLink still has the opportunity to grow as more new HDB housing estates get developed.  Net gearing is maintained at a comfortable 26.5 percent.

As mentioned in my previous post [here], August marked a new financial milestone in my family.  My wife and I paid off the remaining balance on our DBS home mortgage loan.  We are officially debt free!  It is a fantastic feeling.  I can also kiss my Manulife insurance policy goodbye, which DBS had made us buy for the mortgage.  This is a good S$650 saved every year.

The average yield for October issuance of Singapore Savings Bond ("SSB") has plunged to an estimated 2.77%.  With the expected U.S. Fed interest rate cut, I doubt the SSB yield will get any higher soon.  It is time to switch investment focus back to equities.  I will be paying close attention to the local bank stocks.

The Direct School Admission for Secondary Schools ("DSA-Sec") exercise is over.  My DS (forum jargon for Dear Son) completed the group interview with a third school.  He was able to secure interviews with all three schools in his application.  I am grateful for the good fortune and the opportunity, as I have heard how his peer was rejected outright without any chance for an interview.  As one parent commented, DSA-Sec is starting to become like PSLE - equally stressful for both parent and child.

In the end, my DS was given Confirmed Offer ("CO") for one school, and placed on Wait List ("WL") for the other two schools.  Despite the CO, my DS still wants to apply for one of the WL schools first, as it has been his dream to study there (white uniform, somewhere in Bishan).  Nonetheless, I am happy his calibre was recognized by all three prominent boys' schools.

Signing off for now.  Take care!




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Monday, July 1, 2024

Portfolio Summary for June 2024

As of 30 June 2024

CDP

Security # shares Price S$ %
DBS 440 35.79 4.40
UOB 400 31.33 3.50
OCBC Bank 700 14.43 2.82
SGX 3,200 9.48 8.48
ST Engineering 6,900 4.33 8.35
Powermatic Data 8,500 3.35 7.96
Micro-Mechanics 18,400 1.57 8.08
TheHourGlass 19,600 1.56 8.55
Sheng Siong 19,100 1.49 7.96
VICOM Ltd 21,500 1.32 7.94
Credit Bureau Asia 14,300 0.89 3.56
Nanofilm 36,100 0.745 7.52
HRnetGroup 21,900 0.70 4.29
China Sunsine 41,800 0.395 4.62
TalkMed Group 34,500 0.395 3.81
Kimly 27,000 0.32 2.42
HC Surgical 35,500 0.285 2.83
Silverlake Axis 37,100 0.28 2.90
Portfolio Value = S$357,607
YTD Dividends Received = S$6,728
YTD SBL Fees Received = S$101

Trades
None

SRS

Security # shares Price S$ %
SGX 1,300 9.48 7.63
Micro-Mechanics 5,400 1.57 5.25
TheHourGlass 5,000 1.56 4.83
Sheng Siong 8,700 1.49 8.03
VICOM Ltd 5,500 1.32 4.50
Credit Bureau Asia 5,700 0.89 3.14
Nanofilm 12,500 0.745 5.77
HRnetGroup 7,500 0.70 3.25
China Sunsine 10,800 0.395 2.64
Kimly 5,800 0.32 1.15
HC Surgical 19,500 0.285 3.44
Silverlake Axis 6,000 0.28 1.04
NetLink NBN Trust 96,000 0.83 49.34
Portfolio Value = S$161,500

Trades
- Bought 36,000 units of NetLink NBN Trust.

Singapore Savings Bonds

Security Amount Coupon Now
GX22120S S$14,000 3.26%
GX23010Z S$15,000 2.95%
GX23110V S$20,000 3.21%
GX23120Z S$20,000 3.30%
GX24060A S$20,000 3.26%
GX24070S S$20,000 3.26%
Portfolio Value = S$109,000

Speculative Play

Security # shares Price US$
Kep Pacific Oak REIT 70,000 0.134
Portfolio Value = US$9,380

Trades
None


Commentary:
Time flew by in a hurry.  We have come to the end of another month.  It was the June school holiday.  Several of my friends and colleagues headed overseas to enjoy new adventures with their kids.  As my elder son is preparing for his PSLE this year, my family stayed put in Singapore.

If you have been following the news, the world seems to be in a bad state right now.  The Israel-Hamas war shows no sign of stopping, despite effort by political leaders to mediate a truce.  The EU just imposed tariffs on China's car exports, while China is reviewing its pork imports from Europe in a tit-for-tat move.  The US continues to try and block China's access to high-end technology for chip manufacturing.  After visiting China in May, Russia's Putin paid a visit to North Korean leader Kim Jong Un, with a few agreements signed between the two countries.  Putin also stopped over at Vietnam.

It seems to me the world is becoming polarised, with a us-versus-them mindset brewing.  This is sad.

In finance, the US Fed is now forecasting only one rate cut in 2024, compared to three at the start of the year.  The US stock market continued to hit record high, as retail investors poured money into AI darling, Nvidia.  However, the same momentum did not carry over to our shores.  The Straits Times Index lost 0.11 percent in June, dragged down by the 21.6 percent decline in Seatrium stock price.

As the stocks on my watchlist were little changed, I did not execute any trade for my CDP portfolio.  I continued to build my position in NetLink NBN Trust for my SRS portfolio, acquiring another 36,000 units.

I subscribed for $20,000 of the July's Singapore Savings Bond (SSB).  The average yield on August's SSB has dropped to an estimated 3.22%.  Nonetheless, this is still above my requirement, so I will subscribe for $20,000 of this tranche.

At home, my wife and I completed the registration for our son in MOE's Direct School Admission Scheme (DSA-Sec).  My son also attended a DSA interview skills workshop conducted by an external trainer.  Near the end of June, my son submitted his personal statement online, as requested by a school.  Another school has extended an interview invitation on July 5.  Fingers crossed for a promising outcome.

Signing off.  Take care!



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Saturday, June 1, 2024

Portfolio Summary for May 2024

As of 31 May 2024

CDP

Security # shares Price S$ %
DBS 440 35.99 4.42
UOB 400 30.79 3.44
OCBC Bank 700 14.51 2.84
SGX 3,200 9.56 8.55
ST Engineering 6,900 4.18 8.06
Powermatic Data 8,500 2.96 7.03
Micro-Mechanics 18,400 1.62 8.33
TheHourGlass 19,600 1.60 8.76
Sheng Siong 19,100 1.49 7.95
VICOM Ltd 21,500 1.35 8.11
Credit Bureau Asia 14,300 0.945 3.78
Nanofilm 36,100 0.77 7.77
HRnetGroup 21,900 0.70 4.28
China Sunsine 41,800 0.40 4.67
TalkMed Group 34,500 0.395 3.81
Kimly 27,000 0.315 2.38
Silverlake Axis 37,100 0.295 3.06
HC Surgical 35,500 0.28 2.78
Portfolio Value = S$357,932
YTD Dividends Received = S$6,452
YTD SBL Fees Received = S$75

Trades
None

SRS

Security # shares Price S$ %
SGX 1,300 9.56 9.32
Micro-Mechanics 5,400 1.62 6.56
TheHourGlass 5,000 1.60 6.00
Sheng Siong 8,700 1.49 9.72
VICOM Ltd 5,500 1.35 5.57
Credit Bureau Asia 5,700 0.945 4.04
Nanofilm 12,500 0.77 7.22
HRnetGroup 7,500 0.70 3.94
China Sunsine 10,800 0.40 3.24
Kimly 5,800 0.315 1.37
Silverlake Axis 6,000 0.295 1.33
HC Surgical 19,500 0.28 4.10
NetLink NBN Trust 60,000 0.835 37.58
Portfolio Value = S$133,303

Trades
- Bought 36,000 units of NetLink NBN Trust.

Singapore Savings Bonds

Security Amount Coupon Now
GX22120S S$14,000 3.26%
GX23010Z S$15,000 2.95%
GX23110V S$20,000 3.21%
GX23120Z S$20,000 3.30%
GX24060A S$20,000 3.26%
Portfolio Value = S$89,000

Speculative Play

Security # shares Price US$
Kep Pacific Oak REIT 70,000 0.14
Portfolio Value = US$9,800

Trades
None


Commentary:
I often joke to my foreign friends that Singapore has two seasons - sunny and rainy.  Our little tropical island can be scorching hot one day, and inudated by heavy thunderstorms the next.  Such diverse weather was common in the month of May.

Singapore also witnessed the swearing-in of a new government, with Lawrence Wong taking over as Prime Minister (PM) from Lee Hsien Loong.  While most ministers retained their original portfolios, the time for General Election is near, as the PM will likely seek a new mandate from the people.

Inflation in the US continues to persist higher than expected, which means the Fed is happy to sit on their hands and do nothing to the Fed Fund Rate.  Any form of relief rally is likely to be short-lived.  Some market professionals [here] and [here] are even predicting no rate cut this year.

The three local banks reported another quarter of healthy profit.  That said, as their deposit base widens while loan growth stagnates, it is going to be harder to repeat the same kind of stellar performance seen last year.  The redeeming grace will be the rising income from wealth management fees.

Market sentiment is relatively bullish, and many stocks had risen in price.  I only executed one trade for my SRS account in May.  FOMO is never a good reason to invest.  I will patiently build up my dry powder in favour of better opportunities.

I vested $20,000 for the June's Singapore Savings Bond (SSB).  The average yield for July's issuance of SSB is an estimated 3.30%.  This meets my minimum requirement, so I will also apply for $20,000 of the July's SSB.

I am building a SSB tranche ladder alongside my stock portfolio.  Equity dividends are lumpy in nature and are sensitive to the performance of the economy.  This makes the payout rather unpredictable.  In an adverse scenario, even REITs have to cut or reduce their distributions, so they are not stable instruments either.  The fixed coupons from SSB will help to smoothen the cash inflow.

On the home front, my wife and I brought our older boy to different secondary schools' Open House over three consecutive Saturdays.  It was an eye-opener as we gained a good understanding on the unique student experience available, as well as toured the school compound.  We have applied for the Direct School Admission (DSA-Sec) to three different secondary schools, leveraging on my son's leadership track record.  I hope my boy will be able to score at least an interview in July.

That's all for now.  Take care!




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Friday, March 1, 2024

Portfolio Summary for February 2024

As of 29 February 2024

CDP

Security # shares Price S$ %
DBS 400 33.33 3.91
UOB 400 27.95 3.28
OCBC Bank 700 12.98 2.66
SGX 3,200 9.45 8.86
ST Engineering 6,900 3.98 8.04
Powermatic Data 8,500 2.95 7.35
Micro-Mechanics 18,400 1.68 9.06
Sheng Siong 19,100 1.55 8.67
TheHourGlass 19,600 1.55 8.90
VICOM Ltd 21,500 1.43 9.01
Credit Bureau Asia 14,300 0.915 3.83
HRnetGroup 21,900 0.725 4.65
Nanofilm 36,100 0.705 7.46
China Sunsine 41,800 0.39 4.78
TalkMed Group 14,500 0.375 1.59
Kimly 27,000 0.31 2.45
HC Surgical 35,500 0.29 3.02
Silverlake Axis 37,100 0.23 2.50
Portfolio Value = S$341,367
YTD Dividends Received = S$1,000
YTD SBL Fees Received = S$20

Trades
- Bought 500 shares of SGX.
- Bought 4,200 shares of Micro-Mechanics.
- Bought 22,100 shares of Silverlake Axis Limited.

SRS

Security # shares Price S$ %
DBS 100 33.33 2.64
UOB 200 27.95 4.43
SGX 1,300 9.45 9.74
ST Engineering 3,000 3.98 9.46
Micro-Mechanics 5,400 1.68 7.19
Sheng Siong 8,700 1.55 10.69
TheHourGlass 5,000 1.55 6.14
VICOM Ltd 5,500 1.43 6.23
Credit Bureau Asia 5,700 0.915 4.13
HRnetGroup 7,500 0.725 4.31
Nanofilm 12,500 0.705 6.98
China Sunsine 10,800 0.39 3.34
TalkMed Group 5,800 0.375 1.72
Kimly 5,800 0.31 1.43
HC Surgical 19,500 0.29 4.48
Silverlake Axis 6,000 0.23 1.09
NetLink NBN Trust 24,000 0.84 15.98
Portfolio Value = S$126,166

Trades
- Sold 900 shares of OCBC Bank.
- Bought 24,000 units of NetLink NBN Trust.

Singapore Savings Bonds

Security Amount (S$) Avg Yld %
GX22120S 14,000 3.47
GX23010Z 15,000 3.26
GX23110V 20,000 3.32
GX23120Z 20,000 3.40
Portfolio Value = S$69,000

Speculative Play

Security # shares Price US$
Kep Pacific Oak REIT 70,000 0.125
Portfolio Value = US$8,750

Trades
- Bought 70,000 units of Keppel Pacific Oak REIT.

Commentary:
The Lunar New Year came and went in a flash.  My family did not do many visits, as my older son fell sick on the second day.  It pains my heart to see him coughing away through the night and had to miss school for one whole week.  While staying home, I had spare time to spring clean (yes, on CNY Day 1-3) and do some reading.

The Singapore bank stocks found a second wind at the start of the month.  DBS, UOB and OCBC soared in price before retreating in mid-February.  All three banks announced record earnings and a higher final dividend.  DBS also announced a 1-for-10 bonus stock issue, Ex Date: 22 Apr 2024.  I did not manage to buy any bank share at my intended price.  Will continue to monitor for suitable opportunities.

Meanwhile, I accumulated shares in SGX, Micro-Mechanics Holdings ("MMH") and Silverlake Axis Limited ("SAL").  SGX fell out of favour with institutional investors, which caused its price to decline significantly.  MMH and SAL had reported less than stellar results, which saw their prices retrace accordingly.  Nonetheless, these companies remain profitable and I believe they will be able to grow their business over the long run.

I also executed an unscheduled trade in February.


Keppel Pacific Oak REIT ("KORE") suffered a massive 40% price plunge when the Manager announced that it will suspend distribution to unitholders till 2H2025 (see company filiing [here]).  The aim is to retain the income for recapitalization of KORE's balance sheet.  As of 31 Dec 2023, KORE has aggregate leverage of 43.2%, primarily due to lower portfolio valuation.  This is a whisker away from the 45% limit, which may make lenders unwilling to provide further financing.  The Manager has evaluated various options, including equity fund raising, divestment of properties and reduced distribution to unitholders.  All were found to be unfeasible.  Continued capex is also required to keep the properties attractive to current and prospective tenants.

I have reviewed KORE's FY2023 earning result.  Gross revenue was US$150.8M (FY22: US$148.0M), +1.9% y/y.  NPI was US$86.1M (FY22: US$84.3M), +2.2% y/y.  As of 31 Dec 2023, net assets was US$723.2M (31 Dec 2022: US$846.1M), -14.5% y/y.  NAV was US$0.69 (31 Dec 2022: US$0.81), -14.8% y/y.  KORE's current liabilities exceeded its current assets by US$67.0M, compared to US$24.3M a year before.  KORE has an uncommitted unutilised facility of US$50.0M and a committed unutilised facility of US$18.1M.  KORE should have no problem rolling over the debt with its retained income and unused facilities.

I believe the pendulum has swung too far to the downside.  KORE is still in a healthy operating mode, albeit it needs liquidity to tide over the present challenging situation facing U.S. commercial real estate.  S-Reits are not my forte, but KORE's dramatic fall in price caught my eye.

Securities Investors Association Singapore (SIAS) organized a Zoom session with KORE management.  (You can access the Powerpoint deck [here].)  The deck showed KORE has US$25M debt due 4Q2024 and US$50M due 2025.

If KORE survives through these two years and its refinancing goes through successfully, its price should recover to close the 80% gap to its NAV.  This is a rare mispricing event.  Thus, I bought 70,000 units of KORE for my account.

My analysis may well be wrong.  Just how bad is the U.S. commercial real estate situation?  The short answer is: real bad.  Bloomberg did a short video documentary about it.  You can watch it [here].  In the worst-case scenario, KORE finds itself unable to refinance its debt, and declares bankruptcy.  Should this happen, I will lose my entire investment.  However, this is only a small sum relative to my net worth.  The loss will not have any material impact to my wellbeing.  I am comfortable taking this speculative bet, in which the potential reward outweighs the risk.  (Please DYODD.)


As mentioned in my previous month's summary [here], I am revamping my SRS portfolio.  I have started selling down my existing holdings.  At the same time, I have started to accumulate NetLink NBN Trust ("NetLink").  For someone who previously avoided S-Reits, why the sudden interest now in NetLink?  Well, I find NetLink has many attractive points: a stable unitholder base; recurring earnings visibility; consistent and healthy margins; as well as a low gearing ratio of 24.3%.  With the development of new HDB residential towns like Tengah, and the government's plan to upgrade the National Broadband Network (NBN) infrastructure so as to provide faster connection speeds for families, the revenue outlook is bright for NetLink, as it is the sole entity providing the connection service and maintenance of the NBN.  It is like owning a utility company, albeit one with a 6% yield.  The vision for my SRS portfolio is to be a money stash that compounds at a moderate clip.  Investing in NetLink can help in this aspect.

April issuance of Singapore Savings Bond (SSB) is estimated to have an average yield of 3.04%.  The coupon rate is trending up again, but this is still below my requirement, hence I will not subscribe for the SSB.

At the workplace, I have just completed my annual performance evaluation with my team leader and manager.  My coworkers had told me their 2024 increment ranged between 1 and 3+ percent.  Hence, I wasn't expecting any better.  So I was pleasantly surprised when I was given a 5 percent increment in total compensation.  My actual bonus was also 15 percent higher than the target amount.  I'm glad that my contribution was given due recognition by my boss, and I'm grateful for the above average adjustment.  But it also means they have higher expectations for me this year.  I hope not to disappoint them.

My kids have just completed their Term One weighted assessments.  We can finally take a breather from the intensive revision (imagine: the parents are more worried than the kids!)  My older boy is taking his PSLE this year, hence we are concerned about his progress.  That said, as I grow older, I have realized the importance of taking care of our own mental health.  Being under constant stress can be harmful.  I try not to pack my kids' schedule, though I want my kids to take personal responsibility for their own success in life.  On various occasions, I have emphasized to my kids that I am not asking for perfect scores in their exams.  All I want them to do is to learn from their mistakes, pick themselves up when they fall, keep moving forward and "be better than yesterday".  Tenacity coupled with a growth mindset and incremental improvement can go a long way.

Until next time.  Cheers!




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