Portfolio December 2016

The purchases made this month are mainly due to their reduced price.

1. CMT - Purchased at an average price of $1.88 for a yield of 5.8%.
2. AReit - Purchased at an average price of $2.28 for a yield of 6.7%

Other trades in December.

3. Added to Best World

4. Added to Fraser Centrepoint Trust

5. Added to 800 Super
6. Added to Thai Beverage 

7. Added to SingTel
8. Divested Dairy Farm to raise cash
9. Divested QAF to raise cash
10. Divested ST Engineering to raise cash
11. Divested LHN due to lack of understanding of business.

Current dividend yield (based on purchase price) is 4.0%.

For Income (52.8%)

REIT (31.7%)

Parkway Life REIT

Fraser Centrepoint Trust
Starhill Global REIT

Capital Mall Trust
Ascendas REIT
CDL Hospitality REIT

Dividend Stocks (21.1%)

Straco
SingTel

Valuetronics

Micromechanics

For Growth, Turnaround and Punting (40.3%)

Growth Stocks (28.6%)

Best World

Raffles Medical
ISO Team

Turnaround (4.5%)

Food Empire

Punt (7.1%)

800 Super
Thai Beverage

ISEC

Why I buy Singapore Technologies Engineering?

I bought and sold ST Engineering shares numerous time over the past 12 years. I decided to dig into my record and check the details and these are the details.

2003 - Purchased a lot at $1.81 and sold at $1.96 within the year.
2009 - Purchased 5 lots at $2.38 and sold at $3.10 in 2010. 
2011 - Purchased 10 lots at $2.81 and sold at $3.35 in 2012.
2015 - Purchased 5 lots at $2.985 and sold ???

My purchase in 2003 was of course during a time when I was still clueless about investing. Yes, I made a gain of $100 but that was without any homework done. If I know the financial of the company better, I would have definitely held on to my lot and even buy more at a price below $2.

The subsequent purchases weren't really much better. By 2009, I roughly know what the company does but its business is very much more complex for my simple mind. As you can see from the purchase price each time, it has been creeping up, though the last 2 purchases were below the previous price that I sold. 

So unlike my purchase of Best World, Parkwaylife Reit, Raffles Medical, Straco and Starhill Global Reit, I don't seem to be buying ST Engineering for long term.

Why buy?
Based on its track record, ST Engineering delivered a pretty stable performance. From 2011 to 2015, revenue and net profit is around $6 bil and $5.3 mil respectively. EPS is around 17 to 18 cents and DPS is around 15 cents. 

My assumption is that the company will continue to pay out dividend annually and there won't be much change in the amount of dividend in the coming few years. Hence, I have a sense of comfort buying it whenever the price dropped below $3, as at 15 cents, that give me a good yield of 5%.

What I expect?

I expect that in near term, the revenue and net profit should continue to be stable. There might be a dip as economy seems to be drifting at this moment. The dividend payout should remain pretty stable at 15 cents too.

When will I sell?

I will sell when Mr Market decides to value it higher and provides me a return of at least 3 years of dividend, without any change in its fundamental.

Recent results
20161H revenue grew by 5% and net profit grew by 2%. Management guides that revenue would continue to grow in 20162H but profit before tax will be lower. 5 cents of interim dividend declared which is the same as last year.

Will hold on to my 5 lots and continue to monitor.

2016 1H Performance

Performance
After 2 years of lacklustre performance, I am happy to announce that my portfolio returned 23.7% (including dividend) for the first half of this year. This is definitely better than STI ETF, which reported an annualised 0.51% return over the past 6 months.

The good return is largely attributed to the amazing performance of Best World International Limited (BWL). If I have excluded the gain from BWL, the gain would be approximately 6%. Not fantastic but I think it is better than STI ETF.

As of 30 June 2016, top 5 holdings of my portfolio in terms of capital outlay are
Parkway Life Reit
Starhill Global Reit
Straco Corportation Limited
Best World International Limited
Singapore Technologies Engineering Limited

I decided to start tracking on average how long I held on to the stock since I first purchased it.
And on average, it's only 0.9 years! Well, this is so as I did a major review last year. The two counters that I held for a longer time are Starhill Global (since Jan 2012) and Food Empire (since Mar 2014). I am confident that with the review last year, the holding period of the companies will be longer.

Outlook
BWL requested a trading halt yesterday, pending an announcement. Cautiously optimistic that it will be a positive announcement and if so, that should further boost its share performance.  I will write more about BWL in my next post. Besides BWL, the rest of the companies should produce stable performance for the rest of the year. Looking forward to dividends from PLReit, SGReit, BWL, STEngr, VICOM, CRCT, CDLHT, Valuetronics, FCT and SGX in the second half of the year.

Portfolio June 2016

With all the actions over the past half a year, this is my current portfolio. Hopefully, there will be less actions in the second half of the year.

The current dividend yield of my portfolio is 4.8%.

For Income (57.1%)

REIT (39.8%)

Parkway Life REIT

Starhill Global REIT

Capital Retail China Trust

CDL Hospitality Trust
Fraser Centrepoint Trust

Dividend Stocks (17.3%)

SGX

ST Engineering

Vicom

For Growth and Punting (39.3%)

Growth Stocks (31.2%)

Straco

Best World

Raffles Medical
Food Empire

Punt (8.1%)

Valuetronics
Sunningdale Tech
Cityneon

Based on the above, I was reminded that I am drawn to businesses that are linked to health, retail and service sectors. Exceptions are the dividend stocks in which my perception of the companies' ability to sustain its dividend seems to be more important. Of course, I have two stocks Valuetronics and Sunningdale tech in the manufacturing sector. Classified under punt as I have yet to spend too much time to understand their business even though both have positive reports and pay regular dividend.

Portfolio September 2015

In August, I sold out on King Wan, Pan United and Soilbuild. Since then I have added increase my stakes in Kingsmen Creatives and Hour Glass. I have also added Capital Retail China Trust, ST Engineering and Parkway Life REIT. The following is my current holding:

For Income (52%)

REIT (31%)

Starhill Global REIT

Croesus Retail Trust

Capital Retail China Trust
Parkway Life REIT

Dividend Stocks (21%)

M1

ST Engineering

Design Studio

For Growth and Punting (36%)

Growth Stocks (29%)

Kingsmen Creatives

The Hour Glass

Punt (7%)

CDW

Food Empire