Saturday, 1 July 2017
Having achieved a good first half results, the question is how to improve or sustain it? Best World, Food Empire and Valuetronics were the key drivers of my first half performance. Will they continue to do well in the next few years? Will other counters take over the driver seat?
I decided to make a prediction on the above questions base on my current, limited knowledge of their business and gut feel. Of course, this is speculative in nature but it provides a rough idea how my portfolio might continue to grow in the next few years.
I must say I am quite satisfied after the exercise as there seem to be sufficient stories to keep my portfolio going. What about the other counters that did not even appear once in this post? I will write about them in the next post.
Food Empire - Turnaround should continue with positive results.
Valuetronics - Both CE and ICE segments will continue their growth momentum.
Best World - China story is in tact and should continue to power its growth.
SingTel - Launch of Netlink IPO should have a positive impact.
Micromechanics - Continue to benefit from its strategic decision to focus on semiconductor.
ISEC? Improvement in results, partly contributed by the acquisition of JLM clinics in 2016?
Food Empire - Growth rate should be lower as compared to 2017. Expect growth from other markets, especially from the ingredient segment.
Valuetronics - At least for first half of the year with their automotive segment continues to gain traction.
Best World - This year should see more conversion of China export model to direct sales. Margin should improve.
Frasers Centrepoint Trust - DPU boosted by Northpoint AEI in 2017.
Starhill Global REIT - DPU boosted by completion of Plaza Arcade redevelopment by 20181Q.
Straco? Will it increase its dividend?
Kingsmen Creatives? Will this be the turnaround year?
Raffles Medical Group? Unlikely, but will the new extension start to make a difference?
Duty Free International? Expansion or increase dividend from their cash hoard?
Straco - Either acquisition or increase dividend if it did not do so in 2018.
Capital Mall Trust - DPU boosted from re-opening of Funan in 2018.
Raffles Medical Group? Contribution from Extension and Raffles Chongqing but may face start-up cost pressure from Raffles Shanghai.
Best World? Will it continue to grow?
Frasers Centrepoint Trust? Acquisition of Waterway Point? or in 2020 or 2021?
Starhill Global REIT? Orchard office turnaround?
Kingsmen Creatives? Continue its turnaround?
Frasers Logistic and Industries Trust? More acquisition?
Raffles Medical Group - Reaping the fruit of its expansion.
Straco - Further increase in dividend.