My Investment Portfolio (December 2015)

STI ended the year at around 2882 points, above last month but down 14% for the year. STI had the "honour" of being the worst performing South East Asia market index for the year. For the month of December, there is not much activity as most investors were on holiday.

For this month, I have attended the following AGMs/EGMs/briefings - SPH, LippoMalls Trust, Ezra, Kencana, Fortune REIT, First REIT and Second Chance Properties.

For my top 30 holdings, Sarine Technologies was again a big mover but this time gaining ground. CapitaLand returned to the list after a decent share price performance as their China developments is expected to do well when they report their full-year results. A-REIT was a poor performer after they announced a fund raising exercise to acquire new assets.

I have bought the following companies from the market this month - AIMS Property, Chuan Hup, First Sponsor, GLP, Hong Kong Land, Hotel Royal, Hotung, IPC Corp, Isetan, Kencana, Keppel T&T, Lion AsiaPac, LTC Corp, Nam Lee, S'pore Shipping, ST Engineering, Stamford Land and UIC. I have closed my positions in Eastern Holdings and Technics Oil & Gas.

I have subscribed to the following rights issues - ARA and CSC. I have also participated in the following scrip dividend scheme - AusNet Services.

Next month will be the start of the new year and market activity is expected to pick up slowly. Companies with financial year ending 30 September 2015 will also be holding their AGM and I will be attending some of these to get some updates. I will also reserve some cash to subscribe for the upcoming A-REIT preferential offer.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 December 2015)

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

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

Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. 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. 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. Japan Land - In liquidation - Members' voluntary winding up
11. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
12. FerroChina - Under Liquidation
13. FirstLink Investments
14. NEL Group
15. Jets Technics
16. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
17. Hongwei Technologies Limited (In Provisional Liquidation)
18. FDS Networks Group
19. Aussino Group - In liquidation - Creditors' voluntary winding up
20. China Oilfield Technology

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

IPS Securex Holdings - RHB Invest 2015-12-02: Ready To Blast Off In FY16

IPS SECUREX HOLDINGS LIMITED 41E.SI 

IPS Securex Holdings (IPSS SP) - Ready To Blast Off In FY16 

• As political instability grows around the region, ongoing disputes in certain countries and increasing national security concerns have led to higher government defence budgets around the region. This puts IPS at an advantage to benefit from this situation. 
• With such a bright outlook ahead due to additional potential incoming contracts, coupled with a potential special dividend in FY16F, we maintain BUY, with a SGD0.38 TP (23% upside) based on 7.2x FY16 P/E. 

Continue Reading »

Ho Bee Land - RHB Invest 2015-12-02: Fortune Favours The Brave

HO BEE LAND LIMITED H13.SI 

Ho Bee Land (HOBEE SP) - Fortune Favours The Brave 

• We like Ho Bee for the steady execution of its strategy to grow recurring income. 
• BUY with a SGD2.57 TP (29% upside). 
• The group has now built up a steady rental income of c.SGD130m, and would benefit from a recovery in the high-end residential market via its remaining inventory in Sentosa. 
• Management remains on the lookout to landbank opportunistically in Singapore, and has a strong balance sheet to expand with net gearing at 0.5x. 

Continue Reading »

Global Invacom Group - RHB Invest 2015-12-02: Gearing Up For a Turnaround In FY16

GLOBAL INVACOM GROUP LIMITED QS9.SI 

Global Invacom Group (RAD SP) - Gearing Up For a Turnaround In FY16 

• We believe share price and EPS have hit rock-bottom and expect a strong FY16 turnaround on a demand surge from new satellite launches, cross-selling of products and new generation items, and Skyware’s turnaround. 
• Maintain BUY with a SGD0.40 TP (167% upside, 10x FY16F P/E) on insider purchases and orders resumptions from major clients. 
• Currently valued at 1.9x ex-cash FY16F P/E, the stock has also been way oversold. 

Continue Reading »

Frasers Centrepoint Trust - RHB Invest 2015-12-02: Twinkle Twinkle Northern Star

FRASERS CENTREPOINT TRUST J69U.SI 

Frasers Centrepoint Trust (FCT SP) - Twinkle Twinkle Northern Star 

• We handpicked FCT as our Top BUY within the SREITs sector, as we admire its suburban resilience and strong growth potential in both the short and long term. 
• Maintain BUY and DDM-derived SGD2.22 TP (20% upside). 
• Given its strong retail dominance within Northern Singapore, we expect the REIT to register positive rental reversion for both CWP and NP, which constitute more than half of the total renewals in FY16. 

Continue Reading »

First Resources - RHB Invest 2015-12-02: Top Pick For The Plantation Sector

FIRST RESOURCES LIMITED EB5.SI 

First Resources (FR SP) - Top Pick For The Plantation Sector 

• We believe El Nino’s impact on edible oil supply is likely to be one of the largest ever, given its current strength, and, as such, are raising our CPO price estimate to MYR2,700/tonne for 2016 (from MYR2,500). 
• There is no change to our BUY recommendation on this counter, as it remains our overall plantation Top Pick. 
• Our TP is at SGD2.69 (35% upside), based on 19x 2016F earnings. 

Continue Reading »

Ezion Holdings - RHB Invest 2015-12-02: Toughing Through These Trying Trough Times

EZION HOLDINGS LIMITED 5ME.SI 

Ezion Holdings (EZI SP) - Toughing Through These Trying Trough Times 

• Ezion’s FY15 earnings are likely to be weaker YoY on some operating drag from eight vessels in dry-dock out of a fleet of 26 (as at Sep 2015). 
• The company should see net increases in fleet utilisation as these dry-docked units progressively return to work by 1H16. 
• Nine new units are to join the fleet to begin their long-term charters through FY16. 
• The stock trades at a 40% discount to BV, even though it would deliver a decent 11% ROE in this trough year 

Continue Reading »

DBS - RHB Invest 2015-12-02: Anchored On Sound Fundamentals

DBS GROUP HOLDINGS LTD D05.SI 

DBS (DBS SP) - Anchored On Sound Fundamentals 

• Reiterate BUY on DBS, with a SGD21.10 TP (28% upside). 
• Its SGD34bn exposure to the broad commodities sector and SGD43bn China loan book remain in good shape, pointing to a manageable credit cost of 0 26bps for 2016F (2015F: 23bps). 
• Underlying operations are steady with operating income forecasted to improve 7% YoY on decent 5% YoY loan growth, stable NIM and a 9% YoY rise in non-interest income. 
• Its fully- loaded Common Equity Tier-1 ratio is at a comfortable 11.9%. 

Continue Reading »

Dairy Farm - RHB Invest 2015-12-02: Banking On a Steady Growth Track Record

DAIRY FARM D01.SI 

Dairy Farm (DFI SP) - Banking On a Steady Growth Track Record 

• We are cognisant of ongoing challenges in Dairy Farm’s operating environment, heading into FY16. However, the company has a track record of steady growth, with net profit never declining for two years in a row since 2000. 
• In the meantime, current dividends are sustainable and would provide a cushion to its share price. Its investment into Yonghui could bring about a more meaningful entry into China. 

Continue Reading »

ComfortDelGro (CD SP) - RHB Invest 2015-12-02: 2016 Should Be a Year Of Strong Growth

COMFORTDELGRO CORPORATION LTD C52.SI 

ComfortDelGro (CD SP) - 2016 Should Be a Year Of Strong Growth

• With benefits of positive core bus operations’ margins, capital freed up by the bus GCM implementation, rail business’ strong growth from the start of DTL2 and reduced competition from private car hire apps, we expect ComfortDelGro to register a 33% EPS growth in 2016. 
• Our DCF- based TP of SGD3.60 implies 0.6x 2016F PEG and, with limited potential for M&As, the company could potentially pay out higher dividends. 

Continue Reading »

China Everbright Water - RHB Invest 2015-12-02: Waters Run Deep

CHINA EVERBRIGHT WATER LIMITED U9E.SI 

China Everbright Water (CEWL SP) - Still Waters Run Deep 

• We expect CEWL to ramp-up its operational capacity and pursue new capacity acquisitions in 2016, as HanKore and CEI have been inactive in the water space for some time. 
• Maintain BUY with a SGD0.81 TP (from SGD1.19, 19% upside) as we believe the reverse takeover of HanKore and the spinning off of CEI’s waste water arm allows the new enlarged firm to focus more on growing capacity going into next year. 

Continue Reading »

SGX Top Gainers, Top Losers, Top Volume, Top Value & FTSE ST Indices 2015-12-02

FTSE ST Indices 02-December-2015, Wednesday

FTSE STI Index

+13.38
(+0.47%)

2883.64

All-Share Index

+2.98
(+0.43%)

697.86

Mid Cap Index

+1.23
(+0.18%)

678.67

Small Cap Index

+2.06 (+0.51%)

407.20

Fledgling Index

-0.41 (-0.05%)

823.47

Catalist Index

-0.22 (-0.04%)

507.49

Basic

-0.27
(-0.24%)

112.30

China Index

+1.44
(+0.69%)

208.75

China Top Index

+0.69
(+0.40%)

172.47

Consumer Goods Index

-0.35
(-0.08%)

429.28

Consumer Services Index

+9.15
(+1.21%)

763.96

Financials Index

+5.18
(+0.68%)

769.05

Health Care Index

-6.36
(-0.43%)

1457.34

Industrials Index

+1.92
(+0.29%)

675.16

Maritime Index

+0.85
(+0.38%)

221.70

Oil & Gas Index

-7.21
(-1.81%)

390.85

Real Estate Holding

+8.38
(+1.20%)

705.87

Real Estate Index

+4.85
(+0.70%)

699.68

Real Estate Investment

+1.78
(+0.25%)

705.89

Technology Index

+0.68
(+0.21%)

326.56

Telecommunications Inde

+1.77
(+0.18%)

992.10

Utilities Index

-3.78
(-0.88%)

426.10

Continue Reading »

Singapore Shipping Corp - RHB Invest 2015-12-02: Call Of Conviction

SINGAPORE SHIPPING CORP LTD S19.SI 

Singapore Shipping Corp (SSCL SP) - Call Of Conviction 

• SSC is the only listed pure play PCTC company in the world that offers both safety and growth. 
• It is a conviction BUY with a DCF-derived SGD0.67 TP (116% upside), implying 13.5x FY16F P/E. 
• Operating in a highly oligopolistic sector, it has carved a profitable niche. 
• It secures decades-long profit visibility through long term charters to blue chip clients and enjoys quality growth through its fleet expansion plans. 

Continue Reading »

Wing Tai - RHB Invest 2015-12-02: Prime Beneficiary Of a High-End Recovery

WING TAI HLDGS LTD W05.SI 

Wing Tai (WINGT SP) - Prime Beneficiary Of a High-End Recovery 

• We like Wing Tai for its diversified earnings base and solid asset backing. 
• While a slump in high-end residential sales has saddled it with some unsold inventory, exposure is limited and we see the group as a beneficiary of any potential lifting of cooling measures. Its strong balance sheet enables it to deploy capital opportunistically to landbank and begin a new earnings cycle. 
• Maintain BUY with a SGD2.50 TP (46% upside), based on a 40% discount to its NAV. 

Continue Reading »

CDL Hospitality Trusts - RHB Invest 2015-12-02: More Chinese Tourists Does Not Mean More Money

CDL HOSPITALITY TRUSTS CDLHT J85.SI 

CDL Hospitality Trusts (CDREIT SP) - More Chinese Tourists Does Not Mean More Money 

• Most believe that the recent Chinese tourist surge in Singapore could potentially be a catalyst to hoteliers. 
• Maintain SELL and DDM-derived SGD1.14 (14% downside), as we note that the influx of Chinese arrivals does not translate into higher RevPAR. 
• In addition, we expect CDLHT’s Maldives exposure to remain challenging as Chinese luxury spending continues to slow down in the midst of a weaker China economy. 

Continue Reading »

Keppel REIT - RHB Research 2015-12-02: Aggressively-Leveraged Office REIT

KEPPEL REITK71U.SI 

Keppel REIT (KREIT SP) - Aggressively-Leveraged Office REIT 

• Maintain SELL, with a lower DDM-derived TP of SGD0.83 (11% downside). 
• We maintain our pessimistic outlook on the office rental market as we have concerns over the c.4.3m sq ft office supply glut next year. 
• As Keppel REIT could have among the biggest number of office leases expiring in 2016, we believe it would most likely be the most impacted compared to its peers. 
• In addition, it is the most aggressively-leveraged player within the SREIT space. 

Continue Reading »

Super Group - RHB Invest 2015-12-02: Weak Blend Of Profit

SUPER GROUP LTD S10.SI 

Super Group (SUPER SP) - Weak Blend Of Profit 

• We believe competitive pressure remains intense in its key branded consumer markets. 
• Without a breakthrough in major new products or markets, substantial profit growth is unlikely to materialize at this stage. 
• In the near-term, investment costs to promote its new Essenso MicroGround Coffee may put pressure on margins. 
• We maintain SELL, with a TP of SGD0.67 (maintained). 

Continue Reading »

KEONG HONG - UOB Kay Hian 2015-12-02: A Fruitful Year And Yet Another In FY16

KEONG HONG HOLDINGS LIMITED 5TT.SI 

KEONG HONG (KHHL SP) - A Fruitful Year And Yet Another In FY16 

VALUATION

• Maintain BUY with a slightly lower SOTP target price of S$0.635 as we factor in the S$0.04/share dividend that has been declared in FY15. 

RESULTS 

• 4QFY15 net profit surged 411% to S$22.5m mainly due to the recognition of property development profit from its sold out 20% owned executive condominium project, Twin Waterfalls. 
• Strong cash flow generation boost net cash position. Keong Hong generated free cash flow of S$37.5m during FY15 as net cash swelled to S$33.6m (S$0.149/share) as at 30 Sep 15. 

Continue Reading »

Sembcorp Marine - CIMB Research 2015-12-02: When it rains, it pours

SEMBCORP MARINE LTD S51.SI 

Sembcorp Marine When it rains, it pours 

• SMM has issued a profit warning that it will record a net loss in 4Q15 with a significant decline in net profit for FY15. 
• It blames a challenging operating environment and customers deferring or seeking to defer their rig orders as the key culprits. 

Continue Reading »

Riverstone Holdings - UOB Kay Hian 2015-12-02: Everything Has A Price; Downgrade To HOLD

RIVERSTONE HOLDINGS LIMITED AP4.SI 

Riverstone Holdings (RSTON SP) - Everything Has A Price; Downgrade To HOLD 

• We downgrade the stock to HOLD from BUY after its stellar outperformance. 
• The group remains on track to see its healthcare glove production capacity grow to 8.2b pieces/year by 2018 and an earnings CAGR of 30% over the next 3 years, but these positives appear to be priced in. 
• We have a target price of S$2.34, based on the sector’s FY16F PE of 19.4x. 
• Entry price: S$2.10. 

Continue Reading »

Sembcorp Marine - Maybank Kim Eng 2015-12-02: Expect losses in 4Q15

SEMBCORP MARINE LTD S51.SI 

Sembcorp Marine (SMM SP) - Expect losses in 4Q15  

Warns of net loss in 4Q15 

• SMM warned that it will have a net loss in 4Q15 and FY15 net profit will be significantly lower YoY when it reports on 15 Feb 2016. It attributes the expected 4Q loss to a challenging operating environment and customers deferring or seeking to defer their rig orders. 
• We cut FY15E/16E EPS by 33%/6% as we factor in more deferrals and importantly, an assumed provision of SGD70m in 4Q15. 
• Reiterate SELL and TP of SGD1.75 as we continue to expect weak order wins, cancellation risks and unresolved payment issues from Sete Brasil to weigh on the stock. 

Continue Reading »

Sembcorp Marine - OCBC Investment 2015-12-02: To post net loss in 4Q15

SEMBCORP MARINE LTD S51.SI 

Sembcorp Marine: To post net loss in 4Q15 

• Sembcorp Marine (SMM) issued a profit warning last evening, saying it expects to report a net loss for 4Q15 and a significant decline in net profit for FY15. In the statement, SMM attributed this to the challenging operating environment and customers deferring or seeking to defer their rig orders. 
• We believe this could be partly due to a profit reversal from the jack-up rig in dispute with Marco Polo Marine; there has also been talk that Seadrill may be reevaluating its US$568m semi-submersible rig (West Rigel) which it ordered in Apr 2012. 

Continue Reading »

Frasers Centrepoint Trust - OCBC Investment 2015-12-02: Accumulate on weakness

FRASERS CENTREPOINT TRUST J69U.SI 

Frasers Centrepoint Trust: Accumulate on weakness 

 Proven defensive attributes 

 Concerns overdone for possible overseas expansion 

 Valuations attractive 

Expected to stay resilient during uncertain times 

• We believe Frasers Centrepoint Trust’s (FCT) recent share price weakness represents a good opportunity for investors to accumulate a quality stock with solid defensive attributes. 

Continue Reading »

Sembcorp Marine - DBS Research 2015-12-02: Slipping into the red

SEMBCORP MARINE LTD S51.SI 

Sembcorp Marine - Slipping into the red 

• Guiding for a net loss in 4Q15 
• Prudent provisions for potential deferments / cancellations 
• To get worse before it gets better; downside risk to DPS 
• Downgrade to FULLY VALUED; TP cut to S$1.85 

Continue Reading »

SGX Top Gainers, Top Losers, Top Volume, Top Value & FTSE ST Indices 2015-12-01

FTSE ST Indices 01-December-2015, Tuesday

FTSE STI Index

+14.32
(+0.50%)

2870.26

All-Share Index

+3.71
(+0.54%)

694.88

Mid Cap Index

+4.56
(+0.68%)

677.44

Small Cap Index

+1.62 (+0.40%)

405.14

Fledgling Index

+1.95 (+0.24%)

823.88

Catalist Index

-0.52 (-0.10%)

507.71

Basic

-1.47
(-1.29%)

112.57

China Index

+2.02
(+0.98%)

207.31

China Top Index

+1.37
(+0.80%)

171.78

Consumer Goods Index

+0.70
(+0.16%)

429.63

Consumer Services Index

+3.46
(+0.46%)

754.81

Financials Index

+5.82
(+0.77%)

763.87

Health Care Index

-5.87
(-0.40%)

1463.70

Industrials Index

+2.85
(+0.43%)

673.24

Maritime Index

+2.01
(+0.92%)

220.85

Oil & Gas Index

+2.30
(+0.58%)

398.06

Real Estate Holding

+8.86
(+1.29%)

697.49

Real Estate Index

+9.54
(+1.39%)

694.83

Real Estate Investment

+10.31
(+1.49%)

704.11

Technology Index

-0.31
(-0.10%)

325.88

Telecommunications Inde

-1.04
(-0.10%)

990.33

Utilities Index

+3.83
(+0.90%)

429.88

Continue Reading »