Tuesday, 4 May 2021

My Investment Portfolio - SG (End Apr 2021)

  

Transactions made in the month:

- Bought 2,000 units of Keppel DC Reit at $2.69
- Bought 5,000 units of Raffles Medical at $1.15

In the financial world, the term "Sell in May and go away" and reinvest in November is well know as historical data suggested that the best performing months are from November to April. Obviously, for an investor like me who do not time the market, I ignore it and HODL. I added on to Raffles Medical and Keppel DC Reit during the month of April. 

With Raffles Medical recent results, I added on in anticipation of its China hospitals doing better financially in the next three years. The Chongqing hospital has seen improvements in patient load and the management expects it to achieve Ebitda break-even in 2022. The Beijing hospital has completed its upgrading to offer more services. The Shanghai Hospital is near completion and will start receiving patients in the 2nd quarter of the year. Each time, a new hospital is set up, there will be a gestation period. I am taking a long term view of it, hence I am adding on to it now. I will probably add more along the way if the price drops. The dividend yield for this stock is expected to be low at around 2%.  The management has decided to stop offering scrip dividends this year while is a pity. I would have preferred scrip dividends. 

If you are going for dividends you are better off entering Reits. On a side note, currently Raffles Medical is operating 15 vaccination centres out of the 38 centres. They seems to be one of the biggest private operator player in this market. With Singapore on the verge of 2nd wave, MOH is working with private hospital operators again for emergency and inpatient care required. 

For Keppel DC Reit, I added more units as it announced a solid set of results for Q1 21. DPU for Q1 is $2.462 which is up an increase of 18%. NAV has dropped by 1 cents to $1.18 which means it it trading at 2.2 P/NAV. Not the highest P/NAV as it has traded at 2.42 ratio before. They have completed the Asset Enhancement works at Keppel DC Dublin 2 and DC1.

I did not receive any dividends in the month of April. Will be expecting at least $1,500 worth of dividends in month of May. The actual amount may be lower since I will likely go for scrip dividends for DBS. 

Dividends received* during the month: $0

Total dividends received in 2021: $1,353.19

Average dividends per month: $112.77

Total Portfolio Market Value: $297,569

*Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds, Foreign Stocks, Crypto and Stashaway

Friday, 30 April 2021

DBS posted record Q1 21 profit. BUT high PB ratio 1.47 and low dividend yield 2.4%

I was certainly not expecting this. DBS reported record quarterly profit of $2 billion in the 1st quarter of 2021. DBS CEO Piyush Gupta said, “This has been an extraordinary quarter for our business as we fired on all cylinders." 


Click image to enlarge

A brief summary:

- Net Interest Margin stabilised at 1.49% (same ratio as last quarter - 2020 Q4).
- Net interest Income is the only one that dropped (15%) compared to 2020 Q1.
- Net fee and commission income, and Other non-interest income exceeded pre-covid levels (compared to 2019 Q1).  This includes wealth management, transaction service fees and card fees.
Net Book Value is $20.46.
- Dividends declared is $0.18. disappointing that MAS did not lift the dividends cap. 

The important ratios to take note of


Click image to enlarge

The ratios such as Return on Assets, Return on Equity, Non-performing loan rate, Common Equity Tier-1 ratio has shown improved.  

Based on its currently trading price of $30.10, the Price to Book ratio is 1.47 and Dividend Yield is 2.4% (if MAS does not lift the dividend cap in FY21). 


Click image to enlarge

If you look at the last 5 years of data, DBS is trading at high valuations. It is trading at a high PB ratio, reaching 2018 highs. In terms of yield, it is very low at 2.4%. If MAS lift the cap next quarter and DBS pay a dividend amount of $0.33 cents per quarter, the yield will be more decent at 3.9%. 

If we look back at past data, DBS  traded at PB ratio of 2.6 and yield of 2.1% in 2000. Is it going to trade a such valuations moving forward?








Thursday, 8 April 2021

Foreign Portfolio Mar 21 Update - Bought TSM, QCOM & sold IBM

Transactions made in the month:

- Bought 100 units of Alibaba (HK) at HKD 232.80 (as shared in my earlier post on 3 Mar)
- Bought 19 units of Taiwan Semiconductor Manufacturing at USD113.70
- Sold 15 units of International Business Machine at USD131.00
- Bought 15 units of QUALCOMM Incorporated at USD135.50 (this was bought in Apr)

It was an eventful month for me, I have not made so many transactions since I started trying out the foreign markets. I doubt I will make so many frequent trades in a month moving forward.

For Alibaba, government regulatory factor is still something to look out for. I will likely add on to the share if it drops further as fundamentally the stock is still a growth stock unless Chinese government does something drastic. You never know. This is a risk I am aware of and willing to risk on.

For Taiwan Semiconductor Manufacturing, I saw an opportunity to buy it when it got sold down. It is the biggest semiconductor foundry player in the world. With the supply issue in the industry, need I say more? 

For QUALCOMM Incorporated, it is in the semiconductor, IOT and 5G industry. I felt that it got oversold and hence went into it. 

As for IBM, I sold it when it reached my target price of USD131. I had set the selling price a few weeks before it hit this level. It gave me a return of +10.1% after taking into of dividends and exchange rate. The stock went further up after I sold it, that is life. It is hard to time to sell at the highest.

These foreign stocks are mainly short term trades unlike my SG portfolio, since I am still learning them. Learning to how things such as withholding tax and exchange rate affects my overall returns.

Thursday, 1 April 2021

My Investment Portfolio - SG (End Mar 2021)


Transactions made in the month:

- Bought 4,000 units of Mapletree Ind Tr at $2.61
- Sold 800 units of DBS at $28.93

- Got 7,500 units of Astrea VI3%B310318 at IPO (received more than that, other units were alloted to other portfolios

What a ride it has been for STI, it is now at 3,178 levels. I made several transactions including selling some of my DBS shares earlier in the month. I added on Mapletree Industrial Trust and was still queuing for more at $2.50, but the order did not get fulfilled. I had several buy orders for shares such as Raffles Medical, CityDev, CDG that were also not fulfilled. In the end, they all went up. I am not sure whether will I chase them or just be patient. It really depends on the context as the market sentiment is changing rapidly on a daily basis.  

As for Astrea VI3%, I was alloted 15,000 units. I decided to alloted half of it to other portolios (my spouse and children). Many retail investors state that the yield is too low. While I agree to a certain extend, I felt that this will help me diversify my portfolio further. Moreover, in the past when I suggested using Singapore Savings Bond (SSB) as a emergency fund, many felt that the interest rate of slightly above 2% was too little. They wanted to time and enter at a higher interest rate. Look at the current interest rate for SSB, its even lower than 1.5% now. 3% yield for Astrea VI is still good, just do not put all your cash into the same holding. 

I still have some funds to be deployed out to the market. I have been monitoring the foreign market and considering whether to shift these funds to foreign or local market. I had made transactions this month in the foreign market too. Will update them sometime next week.

Dividends received* during the month: $938.26 (Mapletree Logistics Trust, Lendlease Reit, Ireit, Mapletree Industrial Trust, Ascendas Reit, Keppel DC Reit)

Total dividends received in 2021: $1,353.19

Average dividends per month: $112.77

Total Portfolio Market Value: $285,664

*Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds and Foreign Stocks

Wednesday, 3 March 2021

Foreign Portfolio Update - Bought Alibaba(HK)

 

         Image from stockcafe 

After much procrastination, I bought 100 units of Alibaba (HK) at HKD 232.80. It became my biggest holding for my foreign stock portfolio. I hope Jack Ma shows himself more often now and talk less. Just his appearance will suffice =) 

Coca Cola price continues to go down lower, I may purchase more of the shares if it reaches a price that it lower than my purchase price.

Tuesday, 2 March 2021

My Investment Portfolio - SG (End Feb 2021)

 

Transactions made in the month:
- Bought 3,000 units of Mapletree Log Tr at $1.93

As news of more new vaccines and their effectives get published, it caused a rotation of stocks being bought and sold. In the global market, social media and tech firms are sold while aviation stocks are bought in anticipation of recovery. 

In our local STI market, Business Trusts and Reits such as Keppel DC Reit, Mapletree Logistic Trust, Mapletree Industrial Trust, Frasers Logistics & Commercial Trust and Ascendas Reit have been seen a net funds outflow. On the other hand aviation stocks such SIA and SAT has seen a net funds inflow resulting in the prices increasing. 

I am watching the Business Trusts and Reits that are being sold down. If they drop further, I will accumulate them and add on to my holdings. 

As for the aviation stocks, I doubt I will chase them as they are overvalued with the current financial and fundamental context

Dividends received* during the month: $236.43 (Ascott, Suntec Reit, STI ETF)

Total dividends received in 2021: $414.93

Average dividends per month: $34.58

Total Portfolio Market Value: $279,360.66

*Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds and Foreign Stocks

Monday, 22 February 2021

Foreign Portfolio Update - Sold my Intel

 I sold my 23 units of Intel shares on 16 Feb 21 at USD 62.55 after holding it for 206 days. I had bought it then at a price of USD 51.75. Long term wise, Intel is likely to trade sideways with potential to go further down as their7-nanometer (7nm) production has faced delay. AMD is in a league of its own for manufacturing of nanometer chips for now and its stock price has rose more than since last year 100%.

I may purchase Intel again when it price reaches 50+ again.  


In the meantime, I am still holding on to my 2 other units, Coca Cola and IBM. on hindsight, I should have sold off Coca Cola when it was around USD 53. Will need to continue to wait.


Monday, 15 February 2021

$190.72 cash in less than 6 months from GooglePay App

In Nov, when I shared that about how I got $71.74 cash in 3 months from GooglePay App, I did not expect the amount to double to over $140 in 1.5 months. 


Now within less than 6 months of using the app, I have received $190.72. A $118.26 increase from my Nov post. 


This is around an average of $32 monthly just by sending money to each other and using the app to make payments, instead of using physical credit card. It is that easy - as easy as ABC.

There are some changes to the terms and condition to get scratch cards now, and they seems to change it every now and then, so be sure to check out the offer page:

1) Referral $3 each for Referrer and Referee 

2) Scratch cards: Pay your friends (min amount of $10, limited to 2 scratch cards per week). Your friends must be on GooglePay too. Then just pay them $10 each and get them to pay you back the same amount. 

3) Scratch cards: (i) Tap and Pay or (ii) Scan QR Code and pay (min payment amount of $10), limited to 2 scratch cards per week). Similar to how you do payWave payments over POS. Instead of using your credit card, you use your phone with GooglePay app and NFC on and tap it on the POS to make payment. For Scan QR Code, scan the payment QR code using GooglePay and make payment. It works even on M1 payment bill with QR code, Grab wallet top-up and IRAS bill payment.

Free money just take. Good things do not last forever. 

So hurry and sign up. If you need referral code, you can use this GooglePay App and get $3. 

If you are interested in other referral links or codes, you can visit this page on My Investment Machine.






Monday, 1 February 2021

My Investment Portfolio - SG (End Jan 2021)

 

No transactions were made in Jan 2021. 

Ironically, when I wrote about STI breaking 3,000 in December, I did not expect STI would cross 3,000 in Jan. Currently, STI went back below 3,000. It will likely continue to trade sideways. 

The last few days have been exciting with the release of financial results for companies such as Mapletree Logistics Trust, Mapletree Commercial Trust and Keppel DC Reit. More companies will be releasing their result in Feb. I am watching out for the results by DBS and OCBC on 10 Feb and 24 Feb  respectively. Their results will be announced before trading opens. 

For my dividends, I am changing the way dividends is calculated below by adding them only when they are paid out. 

Dividends received* during the month: $178.5 (Singtel)

Total dividends received in 2021: $178.5 

Average dividends per month: $14.88

Total Portfolio Market Value: $272,566.69

*Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds and Foreign Stocks

Thursday, 28 January 2021

Keppel DC Reit FY2020 results

Keppel DC Reit (Keppel DC) has announced their 4th Quarter FY 2020 financial results. Judging from its result, this stock is not affected by the pandemic in terms of business revenue.

OVERVIEW

Keppel DC performance has been impressive, from $0.93 at IPO, it has gone up to around $2.9 in 5 years, with 1 rights issue (2016) and 1 preferential offering (2019) to fund its acquisitions (data centres).

Some maybe worried when there are rights issue or preferential offerings. But if the management knows what it is doing and it increases the Assets Under Management (AUM) and is Dividend Per Unit (DPU) accreditive, why not. Keppel DC shows the way (see image below).

From 8 properties and AUM of $1 billion at IPO, Keppel DC now has 19 properties with AUM of $3 billion. Net leasable area has increased from 597,000 sqft at IPO to 2,089,000 sqft. This excludes a property of 88,000 sq ft that is still under development and will be ready in the 1st half of 2021.

REVENUE AND NET PROPERTY INCOME


Although the net leasable area has increased by more than 3 times, the gross revenue has not increased by at the same rate. The gross revenue has grown by around 2.5 times. One point to note is that the margin has increased to 91.9% compared to 84.8%.

DISTRIBUTION PER UNIT (DPU)

Year-on-year, Keppel DC dividend per unit (DPU) has increased by 20.5%, from 7.61 cents to 9.17 cents. It is impressive considering that since IPO, 5 years ago till now, the DPU has increased by only 34% from 6.84 cents to 9.17 cents. Those who bought Keppel DC at IPO are getting a yield of around 9.8% if they have not participated in any rights issue or preferential offerings. For those who participated in both, the yield is around the range of 5.7%. The current yield of the stock at $2.9 is 3.1% as data centre stocks are highly sought after in the global markets.

OCCUPANCY LEVEL AND WEIGHTED AVERAGE LEASE EXPIRY (WALE)

Keppel DC occupancy level has increased to 97.8% from 94.9% in FY2019.

Due to their acquisitions, WALE has dropped from 8.6 to 6.8 years, with 7% of the lease up for renewal next year. 


CAPITAL MANAGEMENT AND GEARING


Keppel DC debt is now at $1.2 billion. What is interesting is that the average cost of debt has decreased over the years from 2.5% at IPO to 1.6%. Their borrowings on fixed rate have also decreased to 63%.


Around 12% of the debt will be due in 2021. With its valuation and track record, refinancing it is not going to be an issue.

Keppel DC’s gearing is at 36.2%. There is still room for them to take on debt or make acquisition if required.

NET ASSET VALUE (NAV)

NAV is at $1.19 compared to IPO’s NAV of $0.92. Which means during IPO, the P/NAV was around 1. Compared to today, the P/NAV is 2.4. Again, this shows how much data centre stocks are valued by investors.


Keppel DC’s management track record speaks for itself. Hopefully, they are able to find attractive acquisitions overseas. It is not going to be easy since data centres are so highly valued and sought after. Their grown in Singapore is limited due to government regulations on renewable energy for data centres. Should there be any corrections driving the share price to below $2.6, I will be happy to add on to it. Else, I will probably just sit and hold on to this share till the fundamentals change.  

Monday, 4 January 2021

My Investment Portfolio - SG (End Dec 2020)

 


Transactions made in Dec 2020: 

Add 24 units of DBS at $23.93 via scrip dividends 
- Bought 2,000 units of Ascendas at $2.96 via preferential offering 

Quite a boring month as STI move sideways. Likely going to be this way for sometime. I will probably use this time to build up my war chest while watching the likes of Singtel and CDG for opportunities to average down my prices. 

Dividends received* during the month: $135.81 (Old Chang Kee, Astrea V3.85%)

Total dividends received in 2020: $6,803.58 (adjusted the figure compared to End Nov post to account for scrip div). 

Average dividends per month: $566.97

Total Portfolio Market Value: $271,385.96

Notes:

*Dividends are recognised after ex-dividend (xd) date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds and Foreign Stocks