Sunday, 4 November 2007

October update

After selling Aberdeen China Opportunities Fund and Schroder European Alpha Equity Fund in September, I have decided to sell Aberdeen GEM and Lion Capital Korea Fund in October.  Primary reason is the volatility of the current market and personally do not think this exuberant mood can sustain.  So I have decided to take profit and no longer hold any unit trusts.
Celestial announced on 30th Oct to begin production on High Protein Nutrient Noodles and High Protein Nutrient Pastries.  The production is expected to begin in last quarter 2008.  The construction will be funded internally (funds raised from convertible bonds).
Kingsmen Creative announced as of 30th Sept, they have confirmed contracts of approximately $118.1 millions (2006 $86 million).  The confirmed contracts are of a value that is higher than the total revenue of $108.95 mil in 2006.  Hence, it is expected that the group is going to grow its top and bottom line by at least 20% for FY2007.
Food Junction, a F&B group which I used to hold finally opened its food court in Beijing.  They have also brought in Japanese omelet rice Rakeru in Bugis Junction with plan of opening another 2 stores in Singapore.  All these are positive movement by the group and I will probably purchase a small stake of the group next week.
Apex-Pal which operates Sakae Sushi opened its first Sakae in New York.  I like the enthusiasm of Douglas Foo and his bold vision to transform Sakae to a global brand.  The risk comes from the execution and highly competitive market.  Can he do it?  With expected lower bottom line for FY 2007, I will wait for a lower entry price.
OSIM has cut its loss in 3rd Quarter.  Its core earning is back on track though for months, the company is still suffering a loss.  While it is expected that Brookstone is going to be profitable in Q4, FY2007 will still result in the company still making a loss.  It is time to go back to the group to anticipate a turnaround for FY2008?  This will not be my top priority as I am uncertain of its performance in the near future.

Saturday, 3 November 2007

Company Review: First REIT (CPF)

First REIT is the first healthcare REIT that is listed on SGX focusing on Asian healthcare industry.  When listed in Dec 2006, its property portfolio primarily consists of Indonesian healthcare and healthcare-related assets.  They intend to grow its portfolio in Indonesia, Singapore, China, Malaysia, Thailand and Hong Kong.  The sponsor of First REIT is Lippo Karawaci, the largest listed broad based property company in Indonesia.
In 2007, the group has grown its portfolio to include 3 properties in Singapore.  Currently its portfolio consists of Siloam Gleneagles, Siloam Hospital West Jakarta, Siloam Hospital Surabaya, the Imperial Aryaduta Hotel & Country Club, Lengkok Nursing Home, Senja Nursing Home and Adam Rd Hospital.
Merrill Lynch initiated coverage on the group in February this year and based on the group’s valuation of asset comes out with a NAV of $0.89.  Estimated DPU for the company is $0.066 this year which translates to a dividend yield of 8.48% at my purchase price of $0.775 (10 lots).  For 2008, group will distribute a minimum 90% of its income.  Even if the DPU does not increase from further acquisition in 2008 and assuming 90% of income is distributed, dividend for 2008 will be $0.055 which is a yield of approximately 7.7%.  Though the risk is higher due to properties based in Indonesia, the high yield is enticing enough for me to have a share of this counter.