April 2018 – Portfolio Updates

I haven’t been blogging as much as I should. Giving myself and my readers a reason not to blog because I don’t have time is just meh. I can’t help having priorities. Work has piled up again and the politics at my workplace are getting more conspicuous. Not something very much within my control but I try to avoid conflict as much as I can.

My boss gave me a decent grading this year. I’ve received my bonus in April! It always comes as a surprise to me because my income is suddenly boosted and the income/expense chart becomes out of proportion – but in a good way. And this just reminded me, I should have blogged about my expenses!

Okay okay, next post.

Until the last week of April, there wasn’t any movement in my portfolio.

Last Friday, some opportunity was presented to me. I bought Valuetronics when it was stripped down by Mr Market. With a PE of 11 and a dividend yield based on last year’s payout at ~5%, my order was filled at 12,000 units at 69 cents within less than a minute.

It was a rather quick decision on my part though. As compared to my buy with Indofood Agri, it literally took me 15 minutes to do some calculations and make the decision. As of time of writing, I have an unrealized gain of 13.57%. The price went up on Monday.

I’ll probably do a more in depth post about it in the next post.

But anyway, back to the other side of my portfolio.

See more stats here.

Time-weighted return: 1.56% against 7% of ES3

XIRR: 6.15%

April wasn’t as volatile as March. Most of the results for Q1 were also announced already, and dividend collection that will be happening in May will be pretty satisfying. Earnings, unfortunately, fall on the other end of the spectrum for some of my holdings.

1) AIMSAMP Cap

Revenue and gross profit reduced, and thus DPU has also reduced. Even so, average yield is still above 7%. To be honest, I am a little disappointed with DPU dropping after private placement, nevertheless comforting that yield hovers above the average. With gearing at ~33.5% and an increase of debt maturity to 3.3 years, it has made their balance sheet slightly stronger.

2) Starhill Global

For Q3, DPU was lower by 7.6% (!) year-on-year with an annualized return of 6%. Tsk tsk tsk. -shakes head-

Starhill Global was one of the REITs that I have owned since last year. Warriortan did an analysis of this stock with a target price of 71.5 cents last September. I think the valuation might be different now and I will do my own DD again for a new valuation.

3) Indofood Agri

Revenue and earnings both dropped by 27% and 39% due to lesser production and the drop in prices. When I bought this stock, I remember some readers and other investors telling me that I should not use the usual financial metrics to value this stock as it is susceptible to external factors such as weather and commodity prices. Also, it is asset heavy, meaning that to operate this business, you need huge PP&E to sustain sales.

Indofood Agri has also recently expanded its sugar business and SOP of a chocolate factory in 2019. The efforts of the management to diversify the business out of CPO are prominent. Still, I need to study further if ROA/Cap Ex has been prudently employed.

Dividends collected (based on Ex-Date):

First REIT – 1.63% ($83.85)

Tat Seng Packaging – 3.07% ($160)

Upcoming dividends in May:

AIMSAMP Cap REIT – 1.89% ($97.31)

Indofood Agri – 1.89% ($189)

Starhill Global REIT – 1.43% ($71.94)

ComfortDelgro – 2.59% ($133.10)

YTD Dividends collected: $767.32