Friday, May 29, 2020

Summary of my portfolio - May 2020

Mr CDxD portfolio

No.CountersNo. of Shares
1First REIT48,000
2HongKongLand USD19,500
4ST Engineering20,000

  • $892.80 of First REIT dividend declared on 11 May (1.86cents/share), payout on 18 Jun
  • USD2480 of HongKongLand dividend payout on 13 May (16cents/share)
  • $1078.80 of Keppel Infra Trust dividend payout on 15 May (0.93cents/share)
  • Added 20,000 shares of ST Engineering on 19 May at $3.31 (Link)
  • $2000 of ST Engineering dividend (10cents/share), payout on 29 May
  • Sold 116,000 shares of Keppel Infra Trust on 19 May at $0.51. Total profit of $5401.79 (10%) in 1 month (Link)
  • $77.40 of Perennial dividend declared on 22 May (0.2cents/share), payout on 21 Jul
  • Added 4,000 shares of HongKongLand USD on 27 May at USD3.50 (Link)

Mrs CDxD portfolio

No.CountersNo. of Shares
1STI ETF via POSB invest Saver375

Apr 2020: 185 shares at $2.67                Cost: $498.37 (with $4.42 sales charge)
May 2020: 190 shares at $2.604             Cost: $498.87 (with $4.11 sales charge)

Thursday, May 28, 2020

Added: HongKong Land USD (May 2020)

Bought another 4,000 shares of HongKong Land on 27 May at USD3.50
This is in additional of 10,000 shares bought on 1st Aug 2019 at USD6.10 (Link), 2,000 shares on 29 Aug 2019 at USD5.44 (Link), 2,000 shares on 21 Feb at USD5.36 (Link) & 1,500 shares on 10 Mar at USD4.65 (Link).
This bring my total holding to 19,500 shares. 

Reasons for buying:

1) SUPER OVERSOLD!!!!!!!!! Only PB 0.21

Imagine you could buy an iPhone 11 Max Pro 512GB at SGD 493.29 (RRP $2349) or Samsung S20 Ultra 512GB at SGD 398.58 (RRP $1898), instead of asking 'Would you buy?', I will be asking 'How many sets you would buy?!?!'

Why would you rush to buy a liability that you know will depreciate in value over the next few years BUT not buying an asset that you know will appreicate in value over the next few years?

2) Not too bad result (during COVID) from Interim Statement (28 Apr 2020)

Source: Interim Management Statement (28 Apr 2020)

Comparing apple to apple (HK Land Retail vs Retail industry / HK Land Commerical vs Commerical industry / HK Land Residential vs Residential industry), Hong Kong Land result look not too bad.

3) "New normal" post COVID

COVID had changed the way we work, we live, we social and etc.
Nobody will expect Work From Home (WFH) is possible pre COVID.
More company will shrink their office space, have higher % of hot desking and WFH staff over the next few years.

This is definitely bad news for Commerical building owner.

But, if we look into HongKong Land Commerical portfolio on their customer industry type, 41% are Bank & Financial + 31% are Legal industry in their Hong Kong Portfolio. These are essential industries and due to the senitivity data they access / process, only a small % of their staff will be able to continue to WFH.

As for their Singapore Commerical portfolio, 67% are Bank & Financial industry. 

I foreseeing that industry like IT Services & Consultancy, Natural Resources and Property will reduce their office space % the highest while Bank & Financial industry will reduce their office space % the minimum. 

As for their Retail portfolio, expecting further reduction in % for Fashion & Accessories and increase in % for F&B moving forward.

4) Mr Market will bring HK Land share price back to equilibrium

With enough patience, Mr Market will bring HK Land share price back to its worth.
If share price remain this low (PB 0.21), we might see new substantial shareholder (Higher chance) or privatization offer (low chance).

Related post:
1) Added: HongKong Land USD

Thursday, May 21, 2020

First REIT AGM 2020

Attended First REIT AGM on 20 May via webcast.
This is also my first AGM via webcast.

1) Not much additional information was been shared
The AGM lasted only around 37 mins.
Majority of the information shared can be found in one of their previous presentation slide.

The good thing is shareholders' questions are been consolidated into PDF and sent out on 19 May (1 day before the AGM).

2) "We are doing GOOD"
The key message I got from Mr Victor Tan (CEO) during the AGM session is 'We are doing Good'.

To me, Good = Result is better than last year or at least maintain the same.

Else, for their case, I feel he should say "We need some improvement".
The only GOOD is their DPU, which maintain at 8.6cents.

I shall let the below AGM slides to do some justification.

3) Top key concern of shareholder 

One of the top key concern of shareholders is the renewal of 5 properties that is going to expire late 2021.
This 5 properties represent 22% of the lease profile.

There are a few rumors like the renewal based rental will be peg to IDR instead of SGD and etc.

Hoping to get more clarity in the AGM but unfortunately, the reply from CEO is they are still engaging the discussion with stakeholders and the discussion is currently on hold due to COVID.

There is definitely risk involved for First REIT shareholders.
But giving today price at $0.82, most of the risk have been priced in.
Shareholders will need to ensure they have sufficient cash on hand if First REIT were to have rights to onboard more properties from both their parents company.

Related post:
1) MM2 AGM 2019  
2) Perennial AGM 2019
3) Added: FIRST REIT (Jan 2020) again
4) Added: FIRST REIT (Jan 2020)
5) SOLD: First REIT (Jan 2019) 
6) Added: First REIT (Jan 2019)
7) Added: FIRST REIT (Dec 2018)
8) Added: FIRST REIT (Aug 2018)

Wednesday, May 20, 2020

SOLD: Keppel Infrastructure Trust & Added: ST Engineering

Sold my 116,000 shares of Keppel Infra Trust on 19 May at $0.51.
Total profit of $5401.79 (10%) in 1 month.

Reason for selling:
Limited upside in this Volatile stage

I love Keppel Infra Trust for its stability in term of high dividend payout as this stock is still Business as Usual in this COVID era.

Thus, the share price swing back up quickly (Nice V shape recovery).

The 52w high is $0.56 (10% more to reach 52w high).

Given this volatile stage, alot of stocks have not reach back pre-COVID price still, especially in Retail, Hospitality and Airline related industry.
So would like to use this chance to go for Capital Gain instead of focusing on dividend.

Bought 20,000 shares of ST Engineering on 19 May at $3.31.

Reasons for buying ST Engineering:

1) Essential company in this COVID era
The Management foresee that FY2020 revenue to be between 5~15% lower vs FY2019

This is consider awesome as compare to company mentioning revenue expected to be lower by 50~90% in the hositality and airline industry.

Comparing a 5~15% drop in revenue vs the share price drop from $4.42 to my buy price of $3.31 (CD of $0.10), it is a 25% drop.
It is a 27% drop if you remove away the 10 cents dividend which XD on 20 May.

2) If you fail to PLAN, you are planning to FAIL
In Q1 2020 Market update on 15 May. the management included slides on their Mitigating factors.
It is good to see company try to predict what is the possible scenario ahead and what should the company do to minimise the impact to the minimal.

3) Strong book order


"Since mid-February 2020, engineering firm Singapore Technologies (ST) Engineering has begun domestic production of medical-grade surgical masks and the masks are now being tried and fitted at Singapore's hospitals that are in the frontline fight against Covid-19. 

In an online interview with the media on Wednesday (May 6), Trade and Industry Minister Chan Chun Sing said that Singapore had to restart its domestic production capabilities when one of its foreign suppliers could not fulfil its contractual obligations recently to produce surgical masks. 

For now, ST Engineering’s production facility in Singapore will solely focus on supplying medical-grade surgical masks for the frontline healthcare workers at hospitals here tackling the Covid-19 pandemic. It has been making N95 masks in Singapore since 2015.

Mr Tang said that it was very challenging to set up ST Engineering’s production facility because they had to do it in “record time” from the beginning of the outbreak in Singapore from end-January to mid-February." 

5) Smart City x Technology

6) Super low interest rate for 5 yrs notes

Related post:
1) Added: Keppel Infrastructure Trust (Apr 2020)
2) Added: Keppel Infrastructure Trust
3) Sold: Keppel Infrastructure Trust
4) ST Engineering Q1 2020 Market update
5) ST Engineering AGM 2020

Sunday, May 3, 2020

Summary of my portfolio - Apr 2020

Mr CDxD portfolio

No.CountersNo. of Shares
1First REIT48,000
2HongKongLand USD15,500
4Keppel Infra Trust116,000

April had been a very busy month for me with quite alot of transaction made.
April is also a HAPPY month for me as my portfolio hit the $200,000 new milestone (Link).

  • Added 30,000 shares of Sasseur on 1 Apr at $0.58 (Link
  • Sold 30,000 shares of AIMS APAC REIT on 14 Apr at $1.17. Total profit of $3672.25 (11.2%) in 1 month (Link)
  • Sold 30,000 shares of Sasseur on 14 Apr at $0.66. Total profit of $2271.87 (13%) in 14 days (Link)
  • Added 116,000 shares of Keppel Infrastructure Trust on 17 Apr at $0.47 (Link
  • $1078.80 of Keppel Infrastructure Trust dividend declared on 20 Apr (0.93cents/share), payout on 15 May
  • Sold 14,800 shares of Perennial on 22 Apr at $0.43. Total loss of $6081.71 (-48%) in 2 years (Link)
  • Transferred $17,000 from CPF OA to SA (Link)

Mrs CDxD portfolio

No.CountersNo. of Shares
1STI ETF via POSB invest Saver185
Given the fall in stock market, I had asked Mrs CDxD to re-join the investment market.
Her first and only stock bought so far is Singtel in Oct 2017 (Link) and was sold in July 2019 (Link), earning her some coffee money.

Although not much money earned, but at least her first stock did not ended in loss.
Since late 2019, I have been telling (preparing) her about POSB Invest Saver as she is the kind of super safe kind which like Fixed Deposit (FD) only.
Thus, if i did not prepare her but suddenly just ask her to put in $500 monthly into POSB Invest Saver, the chance of it happening will be very low. 

As she is not comfortable with putting one lump sum into the market, thus doing dollar cost averaging (DCA) is the next best option in order to board the boat for the next bull run.

She will be putting in $500 every month from Apr 2020 onward.

Apr 2020: 185 shares at $2.67     Cost: $498.37 (with $4.42 sales charge)