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 10 January

Donated $35 to Yellow Ribbon Fund in this week.

Reduced Asian Pay TV(APTT) 1 lot in this week under Cash portfolio for $11 nett gain which is part of usual portfolio re-balancing; total holding in it now at 23 lots.  Subscriber households have grown, average revenue per subscriber is constant, penetration rates have increased, all leading to growth in recently acquired Taiwan Broadband Communications (TBC) earnings.  Taiwan regulator already approved TBC expansion to greater Taichung which opens up opportunity to increase  household network coverage by up to 400,000.  NAV as of end Sep'13 at $0.91 and last done share price at discount of $0.785.  Interest rate swaps have been entered into, which fix a significant portion of the interest rate exposure from TBC's borrowings.  For growth in penetration rates, premium digital cable tv and broadband to increase as a result of up-selling and bundling strategies, increased set-top box penetration, greater availability of digital content, need for reliable internet access.  Network expansion through re-zoning is an opportunity for APTT.  Positive ongoing discussions with Taiwan tax authorities to resolve tax dispute.

Re-invested into Duty Free 11 lots in this week under Cash portfolio as part of usual portfolio re-balancing.  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. 

Taking up a small stake in Technics Oil & Gas 1 lot in this week.  It is not that l have run out of stock company to invest in but l reckon it still worth investing. Its financials are in quite a mess situation as of full year 2013.  Also it did not pay any dividends in 2013.  Its share price on Friday of $0.66 is quite close to its 52 weeks low price at $0.635.  Its restructuring started back in Jan 2012 so should be more less completed by now.  It now needs to win more projects and gets its financial back in shape again quickly.

Reduced Tee International 8 lots in this week as part of usual portfolio re-balancing for $108 nett profit.  Total holding in it now at 19 lots.  Tee Intl delivered mix financial results for 2Q2014; revenue +ve 14% driven by ongoing and completed engineering projects and profit -ve 14% due to higher administrative expenses.  Higher administrative expenses was due to acquisition of Interlift Sales which also resulted in higher headcount for the group.  But really strange why the effect is only felt in Qtr 2 and no mention of this matter in Qtr 1 results.  Higher AR and other receivables due to the amount owing from subcontractors for an engineering project.  l am unsure if this really an industry norm?  It really needs to monitor its AR collections closely and be wary of domino effect which usually could have a severe financial impact. 

Portfolio walk since previous posting :-

+$2,675 Total Returns as of 3 January

+$119 Nett Gain on sales of Tee Intl, Asian Pay TV

-$35 Donation to Yellow Ribbon Project

+$1,018 Unrealised positions improved

+$3,777 Total Returns as of 10 January

Previous posting :- Cash - Closing Status 3 Jan

Remarks :- Profits locked in to-date $11,849 / year 2014 $356

SRS - Closing Status 23 Nov

For my SRS portfolio this week I have queued to invest into Technics Oil & Gas and to my dismay only 1 lot was successful.  This is indeed terrible as as this would mean l am not able to spread out brokerage fees.  So within the same week l have sold it off at break even (small gain of $4).  I have invested into Technics as l am confident it will report a good set of results this week as also its share price level was attractive then.  After l have invested into it at 1 lot then it did report a good set of results but it did not declare any dividends which is same as reporting period last year.  I will be watching  its gross profit margin closely as 4Q12 (30.5%) seems deteriorated versus 3Q12 (47.6%) which it had blamed on mix.  Profit in 4Q12 was higher primarily because of gain on dilution in interest of  Norr Offshore Group and gain from disposal of vessels.  It attributed lower AR due to prompt payments by customers but l do hope the $1.15 million charge on the additional provision made on for its troubled associate company is a one-time off thing and there are no other bad AR.  Which is why it provided a caution in its 12 month outlook on the extent of the global credit crunch which has impacted the world's major economies (and hence customers?).  On its secured borrowings which is repayable within one year, it has gone up to $25 million in 4Q12 versus $10 million in 3Q12.  Anyways, l do not think it is cracking up soon so l will re-invest into it when its share price is at lower levels again.

I have sold off Cache Logistics 3 lots after only having it for just one week.  Its expected dividend rate is $0.02102 for XD around end Jan'13 and for 3 lots l would be getting $63 dividends.  But l prefer to get 50% as advance dividends now at a gain of $32 from its disposal this week.

I have queued for telecommunication stocks this week.  Got into Starhub 2 lots and SingTel 2 lots but both seems to be under selling pressure the whole of last week.  In coming weeks l do hope their share prices would improve.

Also under SRS portfolio this week l have re-invested into GRP 15 lots after having sold it all away under Cash portfolio in the 9 Nov week.

Portfolio walk since previous posting :-

+$542 Total Returns as of 16 Nov

+$36 Gains on sales of Technics Oil&Gas and Cache Logistics

+$1,261 Unrealised positions improved

+$1,839 Total Returns as of 23 Nov

previous posting :- SRS - Closing status 16 Nov