Stock changes 23 Jan

Latest stock holdings :-

IREIT Global
Reduced 2 lots of it at break even ($1 net realized profit); remaining stock holding in it now at 1 lot.  Largest shareholding of IREIT at 57.36% is Tong Jinquan and he is the Non-Exec Director of IREIT.   And as seen from Tong Jinquan stock holdings in various listed Biz Trusts and Reits companies, the holding period in them range from around six month to less than two years so, in some ways this shorter term stock holdings could be have a destabilizing effect to the stock price. Let's see in time to come whether this deduction is baseless.  Since listing date in Aug'14 there is no updated news on its latest financials standing nor any new property additions.   And also, no periodic announcements yet on the utilisation of the net proceeds from the IPO.


Lum Chang Holdings
Added 2 lots of it under Cash stock holdings so total stock holdings in it now at 7 lots.   On its Qtr 1 results, revenue -49%, profit -89% due to lower revenue recognised for 3 major construction projects. Current Price/Book value at 0.695.


Starhub
Reduced 1 lot of it at break even ($1 net realized loss); remaining stock holding in it now at 13 lots (Cash 1 lot, SRS 12 lots).  It will announce full year results on 25 Feb.  For its Qtr 3 results, revenue +2.3%, profit +2.6%.  Higher revenue mainly driven by higher sales of equipment.  Higher profits contributed by higher revenue and other income, offset by higher operating expenses.  It will maintain annual cash dividend payout of 20 cents per ordinary share for 2014 so $0.05 will be declared when it announce full year results on 25 Feb..


Zagro Asia
Invested into it for 3 lots under Cash stock holdings.  For its half year results, revenue -4%, profit -40%.  Lower revenue due to volatile weather conditions and stronger competitive pricing in certain markets especially in the crop care businesses.  The increase in total expenses by 10% was mainly due to exchange loss, the addition of a new subsidiary and $476k reversal of inventories write-down in the previous year.  NAV on 30 June'14 at 32.57 cents; friday 23 Jan'15 closing price at 28 cents.  Price/Book Value at 0.89.  It recently increased investment in its subsidiary companies in Australia and Vietnam.


HPH Trust
Divested away 1 lot of it under Cash stock holdings for $5 net realized profit.  In its 3Q2014 results, revenue +1.7% and profit -8.6% versus last year.   Slightly higher revenue due to higher container throughput at HIT and YICT, offset by the absence of ACT contributions as it become an associated company after the stake sale.  Lower profit primarily due to higher cost of services rendered from higher external contractor costs and inflationary pressures; lower contributions from ACT; higher tax due to higher tax in YICT after the tax credit was fully used up in the last quarter of 2013 and the increase of YICT Phase III’s profits tax rate from 12.5% to 25% after the tax exemption period expired.


Keppel Infrastructure
Divested away 2 lots under Cash stock holdings for $29 net realized profit; remaining stock holdings in it now at 10 lots (all under SRS stock holdings).  For full year 2014, revenue -2.5% mainly due to lower production of NEWater and lower power tariff arising from changes in fuel price, partially offset by higher output from the waste-to-energy plants and higher O&M tariffs due to changes in consumer price index (CPI).  Profit -10.4% due to higher O&M costs  (+$1.0 mil); higher Trust expenses resulted from higher project evaluation and due diligence expenses for the proposed merger between CitySpring and Keppel Infrastructure.


Croesus Retail Trust
Added 3 lots of it under SRS stock holdings so total stock holdings in it now at 31 lots (Cash 18 lots, SRS 13 lots).  It will announce Qtr 2 results on 11 Feb.  For its Qtr 1 results higher NPI +37.3% driven by the addition of Luz Omori and NIS Wave I; and also other income at Mallage Shobu.  To minimize the exposure to fluctuations in exchange rates, it has hedged at least 80% of the distribution for the next 12 months up to December 2015.  Approx 82% of FY2015 and approx 74% of FY2016 rentals have been locked in; lease expiry profile :- 17.9% in FY2015 and 8.1% in FY2016.  65.3% of gross rental income is derived from leases structured as Fixed Term Leases, giving it greater flexibility to adjust rentals and tenant composition.  Nearest debt maturity is in FY2017, which is 21% of total long term debt.  Major lease expiring beyond year 2018 at 59%.  Even though there was a slight disruption in sales patterns due to the consumption tax hike in April 2014 but this has been mitigated due to a high component of fixed and guaranteed minimum rent at its properties.  Mallage Saga and Forecast Kyoto Kawaramachi are retail malls in the pipeline.


Hai Leck Holdings
Invested 6 lots into it under Cash stock holdings.  For its Qtr 1 results, revenue -9.8%, profit +10.2%.  Lower revenue due to several projects and maintenance services were in the preliminary stages.  Higher opex due to the increase in technical and administrative staff as it geared up the EPC business.  Higher profit driven mainly by lower cost of sales which is in line with early stages of prjects and maintenance services; and also lower effective tax from the Productivity
and Innovation Credits (PIC) claimed during the quarter.


SPH
Re-invested into it for 0.500 lot under Cash stock holdings.  For its Qtr 1, revenue -6.5%, profit -20.0%.  Lower revenue due to lower advertisement and circulation revenue  Lower profit mainly due to its share of net loss of associates and jointly-controlled entities from its investment in the regional online classified business.  Staff costs grew by S$1.5 million (1.7%) due to acquisition of new businesses and incentives to drive growth and retain staff in a tight labour market; headcount lowered to 4310 from 4322 previously.  The Seletar Mall was officially opened on November 28, 2014 and is expected to contribute to its property business from 2Q 2015.  It will maintain a conservative stance on its investment portfolio allocation with focus on capital preservation. Returns are expected to be commensurate with a low risk-return profile to mitigate against volatility.


HupSteel
Re-invested 19 lots into it under Cash stock holdings.  On its Qtr 1 results, revenue -33%, profit +4%.  Lower revenue due to weak demand for steel plates mainly from its shipyard customers.  Higher profit mainly from the better gross profit margin achieved and lower expenses.  Lower free cash flow due to capex spending of $2.7 mil.  Price/Book Value at 0.609.


2nd Chance Properties
Added 2 lots of it under Cash stock holdings so total holdings in it now at 4 lots.  For its Qtr 1 results, revenue -4.00%, profit -55.77%.  Contributions from its apparel and properties segments fell due to the closure of some outlets and gold stabilized.  Lower apparel due to closure of six outlets in Singapore and Malaysia; continuing from the previous quarter.  The flagship store for First Lady apparel business soften the loss of rental income from the sale of three investment properties.  Decrease in Profit mainly due to the unrealized loss recorded on financial assets at fair value in securities segment; and also due to closure of six apparel outlets.  Tax was higher due to net tax write back in the previous year.  Higher finance costs due to short term borrowing for the First Lady flagship store and also purchase of fixed income and equity securities.  But overall long term borrowings and short term borrowing amount reduced from the previous quarter.


Bund Center Investment
Reduced 13 lots in it under Cash stock holdings for $105 net realized profit; remaining stock holding in it now at 2 lots.  For its Qtr 3 results, revenue +4.2%, profit +0.1%.  Better revenue due to higher leasing income from the Bund Center office tower and improved average occupancy rate in hotel segment. Higher leasing income driven by improvement in average leasing rate in office tower segment, as well as higher average rent rate.  Better hotel revenue due to higher average occupancy and average room rate which is higher than the average occupancy rate and average room rate achieved by five-star hotels in Shanghai.  Flat profit due to net foreign exchange loss in current quarter comparing to net foreign exchange gain in previous year.


SATS Ltd
Divested the remaining 1 lot of it in Cash stock holdings for $75 net realized profit.  Qtr 3 results will be released on 4th Feb.  But judging from its Qtr 3 operating data for its Singapore operations, revenue will be further and much depressed :- Unit Services Handled -6.7% (-1.6%), Flights Handled -10.6% (-2.9%), Passengers Handled -7.3% (-2.5%), Cargo/Mail Processed +6.1% (+5.6%), Unit Meals Produced +0.6% (+1.3%), Gross Meals Produced +1.0% (+1.8%).  Figures in bracket are from Qtr 2.  Revenue from Singapore geographical location is at approx. 82%.

-end-

Dividends collected 3 Oct

Updating latest dividends amount collected since various previous updates on 12 Sep.

Cash - Closing Status 1 August

Invested into Amtek Engineering 1 lot in this week as part of  usual and active Cash stock holdings re-balancing.  For its 3Q14 financial results, revenue -1%, profit -61%.  Lower revenue due to weaker end market demand for certain home appliance products and Mass Storage products.  Lower profit due to lower gross profit margins from significantly higher tooling sales which were strategically sold at cost; higher “Non-recurring items” due to termination compensations incurred in South China - to relocate people and resources from one city to another.  Working capital days remained consistent at 24 days.  

Invested into HPH Trust 1 lot in this week as part of usual and active stock holdings re-balancing.  In its 2Q2014 revenue +1.0% and profit -14.9% versus last year.   Slightly higher revenue due to higher container throughput at HIT and YICT, offset by the absence of ACT contributions as it become an associated company after the stake sale.  Lower profit primarily due to higher cost of services rendered from higher external contractor costs and inflationary pressures; and lower contributions from ACT.

Divested away Saizen Reit 3 lots in this week as part of usual Cash stock holdings re-balancing for $16 nett gain.  In its 3Q14 results, NPI +2.5%, profit +JPY 314 mil.  Quarter-on-quarter gross revenue remained stable while net property income decreased by 4.1% as compared to 2Q FY2014. Property operating expenses increased by 9.4%, due mainly to seasonal expenses.  Higher profit due mainly to (i) the increase in net income from property operations, and (ii) the non-recurrence of refinancing-related costs incurred in 3Q FY2013, namely swap breakage costs (JPY 135.5 million) and loan commission written-off (JPY 148.0 million). Average occupancy rate at 91.1%.  As Saizen REIT’s distributable income from operations is generated in JPY, its S$-denominated distributions have been hedged.  Interest rates for 90% of loans outstanding are fixed.  Nearest loan maturity is in February 2018.  Gearing at 38%.   Deloitte & Touche has in early June'14 completed the strategic review of options for enhancing its unitholder’s value.  The review concluded that as a matter of priority, focus will be placed on its capital structure, in particular, its cash management and levels of leverage. As funds are made available as the capital structure is optimised, it will continue to seek opportunities to expand its property portfolio in line with its principal investment strategies.  It may also consider a buy-back of its shares at times of Unit price weakness, as a useful signaling mechanism and provided that is deemed as an effective use of capital at that time.  Following capital structure optimisation, more ambitious growth strategies will be explored, subject to availability, compatibility, returns and execution considerations.

Cash stock holdings walk since previous posting :-

+$11,377 Total Returns as of 25 July

+$16 Nett gain on sales of Saizen Reit

-$594 Unrealised positions worsened

+$10,798 Total Returns as of 1 August

Previous posting :- Cash - Closing Status 25 July

Remarks :- Profits locked in to-date $17,314 / year 2014 $5,821

Cash - Closing Status 30 May

Received the following dividends in this week for my Cash stock holdings :-

$23.20 Ascendas India Trust
$42.80 Cache Logistics
$39.40 Keppel Reit
$4.96 Suntec Reit

Reduced Keppel Reit 1 lot in this week for $24 nett gain as part of usual and active stock holdings re-balancing; remaining stock holding at 1 lot.  In its recent 1Q2014 financial results and versus last year;  DPU stayed the same at 1.97 cents;  Property expenses  now stabilized at +4.3%;  NPI higher by 14.7% resulted from improved performance from Ocean Financial Centre and Prudential Tower, as well as the additional income from 8 Exhibition Street in Melbourne;  Profit +20.1% due to higher NPI, higher interest income, higher share of results of associates and jv, lower trust expenses and lower amortization expenses; but offset by lower rental support, higher borrowing costs and management fees as a results of the larger portfolio of assets under management.  As of end Qtr 1, its NAV was valued at $1.39 but Mr Market believes that it is worth $1.305 as of its Friday closing price.  Recently, it sold away 92.8% of its stake in Prudential Tower and the sale proceeds will be used to repay existing debt in order to achieve greater financial flexibility, with the remaining amount to be used for general corporate and working capital purposes and/or for pursuing acquisition opportunities.  Post divestment, its aggregate leverage will decline from 42.1% to 38.8%.

Reduced GRP Ltd 40 lots in this week for $79 nett gain but re-invested into it again for 30 lots as part of usual and active stock holdings re-balancing; total holding in it now at 41 lots.  For its HY2014 financial results, revenue +5.7% with growth in all the three business divisions.  Strong demand in Hose & Marine and ramp up in orders from a middle east customer for its uPVC.   Administrative expenses -6.7%.  Profit 24.4%.  Free cash flow status at the moment.  Cannot understand reason(s) for not declaring any dividends with this set of good results.  It recently announced termination of its projects and development works in Myanmar.

Divested away Ascendas India Trust 1 lot at breakeven as part of usual and active stock holdings re-balancing.  For its 4Q2014 results, NPI +14% due to total property expenses declined by 10%; and hence a higher income available for distribution and higher DPU.   Occupancy rate at 97%.  Gearing at 22%.  NAV at $0.62 versus friday's closing $0.79.  

Divested away HPH Trust 2 lots in this week at breakeven as part of usual and active stock holdings re-balancing.  In its 1Q2014 revenue +2.7% and profit +18.6% versus last year.   The average revenue per TEU for Hong Kong was higher than last year due to favourable throughput mix of containers from liners, whereas that for China was higher than last year, primarily due to fewer concessions granted to some liners and a lower empty/laden container ratio.  Cost of services rendered +11.0% and Staff costs +3.0% due to higher container throughput, increase in external contractors’ costs and inflationary pressure.  Its end of Mar'14 NAV at HKD 7.32 (approx. SGD 1.18); last done share price on this Friday at $0.94.  Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust.  Consensus outlook for both is favourable in 2014.  On 13 March 2014, HPH Trust entered into a strategic partnership with COSCO Pacific and CSTD through their investments of 40% and 20%, respectively, of effective equity and loan interests in ACT for an aggregate consideration of HK$2,472 million. The partnership will enhance its capabilities in servicing multiple mega-vessels simultaneously. It will further bolster all aspects of its port operations including its flexibility, efficiency, synergy and profitability.  

Divested away PCI Limited 3 lots in this week as part of usual stock holdings re-balancing for $38 nett gain.   For its 3Q2014 results, revenue -5.1%, profit +508.9%.   EMS (Electronics Manufacturing Services) revenue -5.9% due to weaker orders from key customers.  As a result of continuing efforts to manage cost, EMS operating profit margin was 3.1%.   No borrowings. 

Divested away Croesus Retail Trust 2 lots in this week for $20 nett gain as part of usual and active stock holdings re-balancing.  For its 3Q2014 results, NPI +12.3% and Income available for distribution per unit (SGD cents) +8.0% versus Forecast.  Higher NPI mainly due to better than expected tenant sales at Mallage Shobu.  Gearing 53.5%.  Majority lease expiry by gross rental income in FY2015 (21.5%) and FY2018 and beyond (67.5%).  NAV as of end Mar'14 at JPY 70.95 (SGD 0.87); friday close at $0.945.

Cash stock holdings walk since previous posting :-

+$7,386 Total Returns as of 23 May

+$110 Dividends from Keppel Reit, Ascendas India, Cache Logistics, Suntec Reit

+$162 Nett gain on sales of Keppel Reit, Ascendas India Trust, GRP, Croesus Retail, HPH Trust, PCI

+$818 Unrealised positions improved

+$8,477 Total Returns as of 30 May

Previous posting :- Cash - Closing Status 23 May

Remarks :- Profits locked in to-date $15,861 / year 2014 $4,369

 

Cash - Closing Status 16 May

Donated $45 to Sunlove Abode For Intellectually Infirmed Ltd

Reduced GRP Ltd 40 lots in this week as part of usual and active stock holdings re-balancing for $44 nett gain; remaining total holding now at 11 lots.  For its HY2014 financial results, revenue +5.7% with growth in all the three business divisions.  Strong demand in Hose & Marine and ramp up in orders from a middle east customer for its uPVC.   Administrative expenses -6.7%.  Profit 24.4%.  Free cash flow status at the moment.  Cannot understand reason(s) for not declaring any dividends with this set of good results.  The ex-President of REDAS, Mr Teo Tong How will be part of GRP's independent non-executive director and chairman of the board of directors.  Mr. Teo will add tremendous value to GRP due to his vast knowledge, experience and network in property development, and property investments.

Divested away CEI Contract Manufacturing  21 lots in this week as part of usual and active stock holdings re-balancing for $39 nett gain.  NAV as of 31 Dec'13 at 0.0953 versus closing price $0.104 on 9 May'14.  GP Margin increased from 20.9% in FY 2012 to 22.0% in FY 2013 mainly from USA (increase to 26% from 21%) which offset poorer GP margin in Singapore (dropping to 26% from 28%).  Profit +2.1%.  Free Cash Flow $4088k (FY2012 $3796k).  Temasek Holdings has 18.09% and CEI Executive Chairman, Mr Tien Sing Cheong has 10.0% stakes in CEI respectively.  

Divested away Duty Free 3 lots in this week as part of usual and active stock holdings re-balancing for $26 nett gain.  For its 4Q2014 financial results, revenue +4.7%, profit -10.2%.  Higher revenue driven by increase in demand for certain products as a result of competitive pricing.   Lower profit due to higher taxes and lower profit from discontinued operations.  Total borrowings decreased by RM26.8 million, following a repayment of term loans amounting to RM12.8 million and a decrease in trade facilities borrowings of RM19.0 million. The decrease was partly offset by the increase in bank overdrafts of RM5.1 million.

Increased Tee International 15 lots as part of usual and active stock holdings re-balancing; total holding in it now at 34 lots.  It reported soft financial results for 3Q2014; revenue -29.5% due to lower recognition of revenue and profit -13% due to higher admin costs from the acquisition of Interlift Sales Pte Ltd.  It  proposed an issue of 2 warrants for every 5 shares issue (exercise price of S$0.25 per warrant)  to strengthen its capital base and support its expanding business activities.  Its Group Chief Executive, Mr Phua Chian Kin did five open market purchases - 110 lots (16 May), 100 lots (14 May), 100 lots (12 May), 210 lots (9 May), 65 lots (8 May) in current May month.

Reduced HPH Trust 2 lots in this week as part of usual and active stock holdings re-balancing for $16 nett gain; total holding in it now at 2 lots.  In its 1Q2014 revenue +2.7% and profit +18.6% versus last year.   The average revenue per TEU for Hong Kong was higher than last year due to favourable throughput mix of containers from liners, whereas that for China was higher than last year, primarily due to fewer concessions granted to some liners and a lower empty/laden container ratio.  Cost of services rendered +11.0% and Staff costs +3.0% due to higher container throughput, increase in external contractors’ costs and inflationary pressure.  Its end of Mar'14 NAV at HKD 7.32 (approx. SGD 1.18); last done share price on this Friday at $0.895.  Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust.  Consensus outlook for both is favourable in 2014.  On 13 March 2014, HPH Trust entered into a strategic partnership with COSCO Pacific and CSTD through their investments of 40% and 20%, respectively, of effective equity and loan interests in ACT for an aggregate consideration of HK$2,472 million. The partnership will enhance its capabilities in servicing multiple mega-vessels simultaneously. It will further bolster all aspects of its port operations including its flexibility, efficiency, synergy and profitability.  

Divested away PEC Ltd 2 lots in this week as part of usual and active stock holdings re-balancing for $14 nett gain.  For its 3Q2014 results, revenue -22%, profit -22%.  Lower revenue due to decrease in revenue from project works.  Its gross profit margin increased from 16% to 22%; mainly due to claims for past variation works for project work which were finalized and recognised in Qtr 3.  Lower profit due to gross profit offset by higher operating expenses (+$2.7 mil which caused by $2.2 mil bad debts w/o), increase in administrative (+$0.6 mil); other operating income (+$1.3 mil).  NAV on 31 Dec was at $0.825.  It will continue to focus its business development efforts in Asia and the Middle East, where there are more project opportunities.

Cash stock holdings walk since previous posting :-

+$7,790 Total Returns as of 9 May

-$45 Donation to Sunlove Abode For Intellectually Infirmed Ltd

+$139 Nett gain on sales of GRP, Duty Free, PEC, CEI, HPH Trust

+$43 Unrealised positions improved

+$7,928 Total Returns as of 16 May

Previous posting :- Cash - Closing Status 9 May

Remarks :- Profits locked in to-date $15,281 / year 2014 $3,788
 

Cash - Closing Status 4 April

Received the following dividends in this week for my Cash portfolio :-

$145.09 HPH Trust S$D
$113.60 Far East HTrust
$949.90 Asian Pay TV Trust
$135.00 Tee International
$52.40 Croesus Retail Trust

Divested away CDL Hospitality Trusts 2 lots at break-even in this week, as part of usual portoflio re-balancing.  For its 4Q13 results, net property income +2.5%; income available for distribution per unit +0.6%.  Income from acquisition growth in 2013 has mitigated the impact of the softer trading conditions experienced in Singapore.  Its healthy gearing puts it in good stead to capitalise on expansion opportunities as it continues to actively seek yield-accretive acquisition opportunities in the hospitality sector.  Orchard Hotel Shopping Arcade, currently under AEI will be rebranded as "Claymore Link"; incremental rental income to be more than S$2.0 million on an annualized basis.

Reduced GRP Ltd 75 lots in this week for $349 nett gain as part of usual portfolio re-balancing; remaining 11 lots.  For its HY2014 financial results, revenue +5.7% with growth in all the three business divisions.  Strong demand in Hose & Marine and ramp up in orders from a middle east customer for its uPVC.   Administrative expenses -6.7%.  Profit 24.4%.  Free cash flow status at the moment.  Cannot understand reason(s) for not declaring any dividends with this set of good results.  The ex-President of REDAS, Mr Teo Tong How will be part of GRP's independent non-executive director and chairman of the board of directors.  Mr. Teo will add tremendous value to GRP due to his vast knowledge, experience and network in property development, and property investments.

Invested into OUE Hospitality Trust 1 lot in this week but have decided to divest it away in the same week after achieving the profit target set of $21 or 2.5%.    In its recent 4Q13 results, NPI +0.6% mainly driven by higher food & beverage revenue from banquet sales and corporate meetings which more than compensated for slightly lower room revenue compared to forecast.  Income available for distribution +2.3% higher due to higher NPI coupled with lower trust expenses incurred.  As at end 2013, it has completed the conversion of 26 guest rooms, increasing the number of guest rooms to 1,077. In addition, 32 guest rooms have been refurbished and these rooms have achieved room rates which are about 15% higher than the non-refurbished rooms.  The asset enhancement programme to renovate 430 guest rooms at Mandarin Orchard is funded by the Sponsor, and is expected to be completed in phases in 2014 and 2015. The refurbishment schedule will be tailored to minimize disruption to the normal service of the hotel so that the occupancy of the hotel will continue to be optimised.

Reduced Far East Hospitality Trust 1 lot at break-even in this week, as part of usual portoflio re-balancing; remaining balance at 7 lots.  In its 4Q13 results, NPI -2.4%, Income available for distribution -2.2% as industry challenges remained. Rental from serviced residences and excluded commercial premises exceeded Forecast and helped to mitigate the shortfall in master lease rental derived from hotels.  Following the acquisition of the Rendezvous Hotel Singapore on 1 August 2013, it has embarked on soft refurbishments of the reception area, lobby bar and club rooms to reposition it as an art-inspired hotel, in synchronisation with the character of the precinct. The refurbishments were completed and the hotel was re-launched in January 2014.  It will continue to optimise the value of its existing assets and try to improve their competitiveness by implementing asset enhancement initiatives in a holistic and progressive manner. For 2014, it has planned for renovations at The Elizabeth Hotel, Village Hotel Albert Court, Village Hotel Changi and Regency House.  As at 31 December 2013, 62% of its debt portfolio or all of its debt maturing beyond 2016, is locked in at fixed interest rates, providing for stability in a rising interest rate environment.

Invested into Saizen Reit 2 lots in this week as part of usual portfolio re-balancing.  In its 2Q14 results, NPI +3.3%, profit +15.6%.  Quarter-on-quarter, NPI remained stable.  Average occupancy rate at 90.6%.  With the onset of the major leasing season in the months of February to April, occupancy demand is expected to increase.  Distribution per unit dropped to 3.25 cents from 3.30 cents due to effect of unit consolidation completed on 8 Nov'13. Deloitte had been appointed in Dec’13 as an independent financial adviser to undertake a strategic review of options for enhancing unitholder’s value and it remains on-going.  Nearest loan maturity is in Feb 2018.

Portfolio walk since previous posting :-

+$3,276 Total Returns as of 28 March

+$1,396 Dividends from Croesus, HPH Trust, Far East HTrust, Asian Pay TV, Tee Intl

+$373 Nett gain on sales of GRP, Far East HTrust, OUE HTrust, CDL HTrust

+$332 Unrealised positions improved

+$5,377 Total Returns as of 4 April

Previous posting :- Cash - Closing Status 28 Mar

Remarks :- Profits locked in to-date $14,763 / year 2014 $3,271

Cash - Closing Status 28 March

Divested away SingPost 5 lots in this week from my Cash portfolio for a nett gain of $65 as part of regular portfolio re-balancing.  In its 3Q2014 results, revenue +30.2%, Profit +0.7%.  Higher revenue because of contributions from acquisitions and growth in e-Commerce related activities across the business segments.  Total expenses +36.6% mainly attributable to the change in business model to a diversified group and growth in lower margin businesses.   It has been taking proactive measures to manage costs including the implementation of shared services and productivity improvements to achieve considerable savings and be more efficient, although rising manpower costs continue to be a challenge.  Finance expenses -43.0%  as it had repaid the $300 mil bond in Apr'13.  Its focus is on building end-to-end e-Commerce logistics solutions in the region - freight, warehousing & fulfillment, last mile delivery & returns and front-end web solutions.  Several other major customers have come on board to leverage its e-Commerce solutions including Canon, Philips and Toshiba.  It expects good growth potential in this space and is ready to tap the opportunities.  In a recent Standard & Poor's announcement, SingPost rating got lowered to 'A' from 'A+' on continuing business risks; and outlook Stable.  The stable (previously, negative) outlook reflects S&P's expectation that ongoing business transformation will prevent a material decline in SingPost's profitability over the next 12-24 months.

Divested away AIMS AMP Industrial Reit 1 lot in this week for $28 nett gain as part of usual portoflio re-balancing.  In its 3Q2014 financial results, NPI +26.6%; available distributable income +29.6%.  DPU +7.4%.  Its NAV as of end Dec'13 was at $1.5183 and its last done share price on this Friday is already at a discount at $1.36 (partly due to recent Rights Issue effect).  Portfolio occupancy rate at 98.2% as of end Dec'13.  Only 2.6% of NLA expiring in 2014.  Redevelopment of its Defu Lane 10 property on schedule and within budget and TOP is expected in May'14; expect income contribution in Sept 2014 quarter.   For the development of phase 2e and 3 of its Gul Way property which upon completion will likely resulting 8.17% NPI yield on cost. 

Reduced HPH Trust 2 lots in this week as part of usual portfolio re-balancing for $52 nett gain; total holding in it now at 4 lots.  Attractive valuation after recent share price correction.  In its 4Q2013 revenue -0.8% and profit -34.2% versus last year.   The average revenue per TEU for Hong Kong came in lower due to one-off concession granted to liners after industrial action in HIT port;  also came in lower for China due to adverse throughput mix of containers from liners.  Cost of services rendered +10.3% and Staff costs +12.5% due to RMB appreciation, inflationary pressure, higher container throughput and ACT's staff costs after the acquisition.  Its end of Dec'13 NAV at HKD 7.26 (approx. SGD 1.19); last done share price on this Friday at $0.835.  Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust.  Consensus outlook for both is favourable in 2014.  Recently it has established a joint venture and strategic alliance with COSCO Ports (ACT) Limited (a subsidiary of COSCO Pacific Limited) and China Shipping Terminal Development (Hong Kong) Company Limited (a subsidiary of China Shipping  (Group) Company) respectively through their investments of 40% and 20% in HPH Trust’s wholly-owned subsidiary, Asia Container Terminals Holdings Limited, and their acquisition of corresponding proportions of existing loans owing to a subsidiary of HPH Trust by the ACT Holdings group for an aggregate consideration of HK$2,472,000,000 (equivalent to approximately S$403 million).  The JV Alliance, has resulted in a reduction of HPH Trust’s effective interests in ACT Holdings from 100% to 40.0%.  The establishment of the JV Alliance is an important and significant milestone achievement for both HPH Trust and the Hong Kong container port industry as a whole in that (i) not only does it yield a disposal gain of approximately HK$125 million (equivalent to approximately S$20 million) for HPH Trust, (ii) by securing this collaborative and strategically beneficial relationship with both COSCO Pacific and China Shipping, it allows all four berths located at the COSCO-HIT Terminals and the Asia Container Terminals to be operated as one contiguous 1,380 metre long berth, thereby enhancing Hong Kong’s position as a long term transshipment hub within the Pearl River Delta region compensating for the stagnant growth in South China’s transshipment and export volumes in 2013, (iii) servicing multiple mega vessels at this contiguous berth simultaneously is now possible, and (iv) the operational flexibility, efficiencies, synergies, competitiveness, and ultimately profitability of all relevant Hong Kong port operators are expected to be substantively bolstered. 

Portfolio walk since previous posting :-

+$2,360 Total Returns as of 21 March

+$145 Nett gain on sales of HPH Trust, AIMS AMP Ind Reit, SingPost

+$771 Unrealised positions improved

+$3,276 Total Returns as of 28 March

Previous posting :- Cash - Closing Status 21 Mar

Remarks :- Profits locked in to-date $12,954 / year 2014 $1,462

Cash - Closing Status 28 February

Received the following dividends in this week for my Cash portfolio :-
$36.98 Ascott Reit 
$46.90 K-Green Trust
$102.48 Suntec Reit
$42.74 Cache Logistics Trust

Divested away Singapore Shipping Corp (SSC) 1 lot in this week for $19 nett gain as part of usual portfolio re-balancing.   For its 3Q2014 financial results, revenue +69.9%, profit +28.4%.  The newly acquired agency and logistics business helped to reduce revenue shortfall in ship owning and management.  Ship-owning reported a lower Q3 net profit owing to the offhire of a vessel for drydocking.  The lower depreciation rate for two vessels (in drydocking) and contributions from the newly acquired agency and logistics businesses more than made up for the shortfall in profits.  Lower net cash from operating activities because of lower income from ship-owning; but this was partially offset by contributions from agency and logistics businesses.  Ship-owning’s operating results are expected to be better in 4Q2014 and the next financial year as no downtime for drydocking is expected. The delivery of a 6,500-unit pure car and truck carrier for long-term charter to a blue chip operator is on schedule.  The sale of its car carrier "MV Singa Ace" was completed on 14 Feb'14 and the gain on disposal of approximately USD 0.9 million is highly likely to be accounted for in 4Q2014.  MV Singa Ace is 30 years old and its class survey and statutory certificates will expire on 20 February 2014.

Re-invested into Soilbuild Reit 1 lot in this week as part of usual portfolio re-balancing.  Its 4Q2013 financial results has exceeded the forecast set out in its IPO prospectus, with most of the key drivers to the result performing better than expectation.  Revenue, property expenses and finance costs all recorded positive variances and contributed to an overall outperformance on the distributable income line.  Its share price as of this Friday was at $0.76 and is currently below its NAV as of end Dec'13 of $0.80.  Earliest debt maturity is in year 2015, are equally spread out over three years (2015-2017).  It received a BBB- investment grade credit rating from Standard & Poor’s on Jan 22, and the management plans to raise its long term gearing target to between 35% and 40% from its current gearing of 29.3%, giving it an additional $75 million to $80 million in debt headroom for acquisitions. It plans to acquire industrial properties in Woodlands within FY2014.  Occupancy rate 99.9%.   17% of its net lettable area is due for renewal in 2014 and about 47% of that has been pre-committed, with the rest under negotiations.

Divested away K-Green Trust 2 lots in this week at break-even as part of usual portfolio re-balancing.  For its 4Q2013 financial results revenue -5.7% versus last year; profit -1.4%.  It is quite a defensive stock as all three assets in its portfolio have long-term concession agreements with NEA and PUB.   Senoko Trust and Tuas DBOO Trust derive most of their income from capacity payments, which offer a stable source of income with little correlation to economic or demographic fluctuations.  Ulu Pandan Tust's income is derived in equal parts from availability payments and from NEWater output payments.   Its current businesses have been locally based so far and probably likely to stay the same in the next financial year.  Let's see.

Increased HPH Trust 1 lot in this week as part of usual portfolio re-balancing; total holding in it now at 6 lots.  Attractive valuation after recent share price correction.  In its 4Q2013 revenue -0.8% and profit -34.2% versus last year.   The average revenue per TEU for Hong Kong came in lower due to one-off concession granted to liners after industrial action in HIT port;  also came in lower for China due to adverse throughput mix of containers from liners.  Cost of services rendered +10.3% and Staff costs +12.5% due to RMB appreciation, inflationary pressure, higher container throughput and ACT's staff costs after the acquisition.  Its share price dropped to a 52 weeks low at $0.755 on 11 Dec'13; its end of Dec'13 NAV at HKD 7.26 (approx. SGD 1.19); last done share price on this Friday at $0.795.  Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust.  Consensus outlook for both is favourable in 2014.

Reduced GRP Ltd 20 lots in this week for $99 nett gain as part of usual portfolio re-balancing; total holding in it now at 11 lots.  For its HY2014 financial results, revenue +5.7% with growth in all the three business divisions.  Strong demand in Hose & Marine and ramp up in orders from a middle east customer for its uPVC.   Administrative expenses -6.7%.  Profit 24.4%.  Free cash flow status at the moment.  Cannot understand reason(s) for not declaring any dividends with this set of good results.

Divested Croesus Retail Trust 1 lot in this week for a small $5 nett gain but have decided to re-invest into it 1 lot within the same week; as part of usual portfolio re-balancing purpose.  It has 100% occupancy across all its four retail business properties in Japan.  Around 0.4% of leases are subjected for renewals in year 2014; and 25.7% of leases are for renewals in year 2015.  Each of the properties is strategically locate within its submarket, being directly connected via major transportation nodes.  63.4% of its gross rental income is derived from leases structured as fixed term leases, giving it greater flexibility to adjust rentals and tenant composition, or variable rent, allowing it to share any income upside with its tenants.  It has very high gearing of around 41.8% but at very cheap interest costs. It recently announced intention to acquire  two income-producing retail properties in Japan, namely Luz Omori and NIS Wave which upon completion will increase DPU approximately from 7.01 Singapore cents to 7.41 Singapore cents.

Portfolio walk since previous posting :-

+$2,940 Total Returns as of 21 February

+$229 Dividends from Ascott Reit, Cache Logistics, K-Green Trust, Suntec Reit

+$123 Nett gain on sales of Sp Ship, Croesus, GRP

+$456 Unrealised positions improved

+$3,748 Total Returns as of 28 February

Previous posting :- Cash - Closing Status 21 Feb

Remarks :- Profits locked in to-date $12,567 / year 2014 $1,075

Cash - Closing Status 21 February

Divested Technics Oil & Gas 1 lot in this week as part of usual portfolio re-balancing, for a small $7 nett gain.  It recently announced a plan to acquire a 74% Vigahs Marine.  Its share price was at its 52 weeks low at $0.61 on 4th Feb but l will hands off Technics for now.  Its restructuring started back in Jan 2012 is still probably not fully completed yet as it is currently busy restructuring its remaining existing non-profitable businesses.  It is acquiring more companies with viable business model and a good management team for a stable stream of income and profit.


Reduced Mapletree Greater China Commercial Trust 3 lots in this week as part of usual portfolio re-balancing for $32 nett gain; total holding of it now at 4 lots.  In its 3Q2014 (1 Oct'13 to 31 Dec'13) financial results, comparisons were made against forecast made during IPO launch.   Achieved higher NPI +13.2%.  Available distributable income +16.6%.  Its NAV as of end Dec'13 was at $0.943 and its last done share price on this Friday was at a discount to NAV at $0.82.  Earliest debt expiry is in year 2015 and is well staggered into year 2018 at average 33% each year.  Borrowings interest rate for 71% of total debt fixed till year 2015.  Portfolio occupancy rate at 97.9% as of end Dec'13.  89% of expiring leases in current financial year have been renewed or re-let.  To ensure stability of S$ distributable income, it has hedged 100% of HK$ distributable income for Year 1 and 90% for Year 2.  In addition, it has progressively converted CNY distributable income to SGD.  

Increased HPH Trust 1 lot in this week as part of usual portfolio re-balancing; total holding in it now at 5 lots.  Attractive valuation after recent share price correction.  In its 4Q2013 revenue -0.8% and profit -34.2% versus last year.   The average revenue per TEU for Hong Kong came in lower due to one-off concession granted to liners after industrial action in HIT port;  also came in lower for China due to adverse throughput mix of containers from liners.  Cost of services rendered +10.3% and Staff costs +12.5% due to RMB appreciation, inflationary pressure, higher container throughput and ACT's staff costs after the acquisition.  Its share price dropped to a 52 weeks low at $0.755 on 11 Dec'13; its end of Dec'13 NAV at HKD 7.26 (approx. SGD 1.19); last done share price on this Friday at $0.80.  Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust.  Consensus outlook for both is favourable in 2014.

Portfolio walk since previous posting :-

+$2,193 Total Returns as of 14 February

+$39 Nett gain on sales of  Technics and Mapletree Greater China

+$707 Unrealised positions improved

+$2,940 Total Returns as of 21 February

Previous posting :- Cash - Closing Status 14 Feb

Remarks :- Profits locked in to-date $12,215 / year 2014 $722

Cash - Closing Status 27 December

Donated $100 to Bone Marrow Donor Programme last Sunday evening.

Reduced Cache Logistics Trust 1 lots in this week under Cash portfolio as part of usual portfolio re-balancing for $24 nett gain; total holding in it now at 2 lots.  In its recent 3Q2013 financial results;  DPU slightly lowered by 0.8% due to higher number of issued units.  NPI higher by 8.5% for 3Q2013.  Property expenses gone up 27.7% from Qtr 2 to Qtr 3 due to one off reversal of expense accrual in Qtr 2.   As of end Qtr 3, its NAV was valued at $0.97 but Mr Market believes that it is worth more with its Friday closing price at $1.115.  No debt re-financing requirement till 2015.  70% debts hedged by way of fixed interest rate swaps.  Its $375 mil secured term loan (includes $62 mil undrawn) are well spread out across 19 international banks.   Continued to maintain a portfolio occupancy at 100% in 3Q2013.  No lease expiry renewal risk for the remaining months of 2013.  And only 3% of total GFA lease to be renewed in year 2014.  Over 85% of GFA taken up by MNCs and government entities.

Reduced GRP Ltd 20 lots in this week as part of usual portfolio re-balancing for $90 nett gain; total holding in it now at 19 lots.  For its 2013 financial results, revenue -2.3% mainly due to lower non recurring projects completed in last year for its Measuring Instrument segment which also impacted profit.  Profit -30.3%.  Lower other income due to one time gain for the disposal of its China subsidiary in 2012.   It recently did a rights cum warrants issue for the required funding to develop and manage properties in Myanmar.  The rights cum warrants issue was 157.8% subscribed.

Re-invested into Duty Free 3 lots in this week under Cash portfolio.  For its 2Q2014 financial results, revenue -1.3%, profit -65.5%.  Profit lowered mainly due to decrease in revenue, higher net foreign exchange loss and rental of premises of RM5.9 mil and RM 3.0 mil respectively.  To improve operational efficiency, it recently completed an internal reorganization exercise and disposal of its shareholding in its so called Border Town and airport businesses and Down Town businesses.  

Added Tee International 10 lots in this week under Cash portfolio.  Total holding in it now at 45 lots.  Tee Intl delivered mix financial results for 1Q2014; revenue +ve 24% driven by ongoing and completed engineering projects and profit -ve 62% due to higher administrative expenses and higher opex.  Higher administrative expenses was due to one off bonus payment to employees and higher staff costs and headcount in line with its business and operations expansion.  Giving extra bonuses is a good thing to do as it motivates employees which is in recognition of their hard works.  Higher opex due to unrealized forex losses that resulted from the depreciation of the MYR against the SGD.  It is in net cash used at the moment mainly due to cash received from receivables net off payment to trade payables, interest and income tax expenses and decrease in development properties.  Its chief executive & managing director, Mr Phua has 51% shareholding in Tee Intl as shown in the 2013 annual report so one can be well assured that he will run this company with very much more care and growing it at the same time.  Recently, it has signed an MOU with Loxley Public Company, a public company listed on the Stock Exchange of Thailand to explore opportunities in renewable energy business and related activities in the Indochina region - Myanmar, Laos DPR, Vietnam, Thailand and Cambodia. 

Reduced HPH Trust 2 lots in this week as part of usual portfolio re-balancing for $57 nett gain; total holding in it now at 4 lots.  Attractive valuation after recent share price correction.  Its 3Q2013 financial results did not go well with investors but l do not think it is justified.  Its 3Q2013 revenue and profit was +1% and -2% respectively versus last year <--- flat results.  A flat financial results is quite admirable when the world economy is still in turmoil and in spite of the depressed shipping industry which continue to stall freight rate recovery at the moment.   It is in Net Current Liabilities status as of end Sept'13 but overall still at Net Assets status; due to timing of US$3.6 billion term loan facility agreement for the refinancing of the existing facilities which was signed in late Sept'13.  It is still in free cash flow status.  Higher profit from new acquired Yantian container terminals was partially offset by lower profit in Hongkong international terminals.  Its share price dropped to a 52 weeks low recently at $0.755 (11 Dec) which is really absurb.  Its end of Sept'13 NAV at HKD 7.41 (approx. SGD 1.20).

Divested away Sabana Reit 1 lot in this week for $25 nett gain.  Per its recent 3Q2013 financial results,  NPI +4.6%, income available for distribution +3.7%, DPU +1.7%.  Its Friday closing price at $1.075 is par to its end Qtr 3 NAV of $1.08.  Its new purchase high-tech industrial building in Chai Chee Lane will increase its income stream even though it has 50% vacancy.  Of the 5 master leases expired on 25 Nov, it renewed 1 master lease and took over direct management of 4 other properties.   Lease expiring in 2014 is at 8.7% of (3Q2013) gross revenue.   As of end Qtr 3,  its gearing was quite high at 37.5%;  about 97% of its total debt was at fixed rates and this reduces the impact of fluctuations in profit rates on the distributable income.  In mid-Nov'13 it secured a new 3-year revolving loan called Commodity Murabaha Facility of up to S$48.0 mil.

Portfolio walk since previous posting :-

+$863 Total Returns as of 20 December

+$195 Nett Gain on sales of HPH Trust, Sabana Reit, GRP, Cache Logistics

-$100 Donations to Bone Marrow Donor Programme

+$1,002 Unrealised positions improved

+$1,961 Total Returns as of 27 December

Previous posting :- Cash - Closing Status 20 Dec

Remarks :- Profits locked in to-date $11,450 / year 2013 $8,581