Sorry for not updating the blog since July 2021.
Reason being that I've been really busy for the past few months, for work and my whisky hobby (if you're interested, follow me on Instagram @ whisky.hedonist). My company is currently tendering one of the biggest government project for our industry, and everyone within the company is working day and night for it, including myself. Time flies while you're working hard and without me knowing, September is coming to an end.
Let's see how's my portfolio doing up for 9M2021.
No big changes to my Portfolio, except that I sold all my GCB-WB and bought more 0198 GDB, and for the 1st time in many months, I got cash in my Portfolio.
Summary of 1H2021:
Portfolio value at 1-Jan-2021 : RM 149,384.30
Net Buy / (Sell) as of 30-Sep-2021 : RM 25.855.76
Current Gain / (loss) : RM 4,257.44
Current Dividend : RM 2,665.50
Current Return : RM 6,992.94
Current Return (%) : +4.64
Stock value at 30-Sep-2021 : RM 165,127.50
Cash : RM 17,035.50
Portfolio value at 1-Jul-2021 : RM 182,163.00
Overall Portfolio Performance since inception:
Review of performance:
For the Q32021, I made 3 transactions in total (2 buy 2 sell), in which I disposed off all my 5102 GCB-WB with an average price of RM 1.195, making some small profit (I could have made more than 80% at one time!!!). In the end, I settled for +21% profit over 2 years. For the buy transactions, I continued to buy more 0198 GDB as I feel the market is over pessimistic since its Bonus Issue, and I reckon the strong billing cycle for the 8 Conlay project has yet to come.
BUY:
1H2021:
a. 7034 TGUAN @ RM 2.09; +27.75% unrealized gain
b. 0198 GDB @ RM 0.533 (adjusted); -10.88% unrealized loss
b1. 0198WA GDB-WA @ RM 0.00 (bonus issue); +9.23% unrealized gain (based on purchase price of b)
c. 7100 UTHICTEC @ RM 3.07, +1.95% unrealized gain
Q32021:
a. 0198 GDB @ RM 0.455; +4.40% unrealized gain
b. 0198 GDB @ RM 0.41; +15.85% unrealized gain
SELL:
Q32021:
a. 5102-WB GCB-WB @ RM 1.17; -4.11% (based on closing price at 1-Jan-2021)
b. 5102-WB GCB-WB @ RM 1.20; +0% (based on closing price at 1-Jan-2021)
QR Review:
1. 5102 GCB: No surprise, as revenue and net profit still feeling the impact from the pandemic and LID. The elevated freight cost does not help either. One good thing is the Ivory Coast Plant is scheduled to be up and running by 1Q2021. No dividend declared. One news that emerged recently is that the world 3rd largest cocoa grinder, Olam Interested is said to be interested to acquire a stake in GCB, reported by The Edge.
Coverage:
AmInvestment Bank; BUY - TP RM 3.48; 15x FY2022F EPS:
2. 0198 GDB: Surprise here as GDB actually did ok and posted a +25% YoY results even though COVID and escalating steel price has been eating into their profit margin. Next Q will not be good as we are under FMCO since June 2021. Full operations only resumed by mid-Aug 2021. 0.7c dividend.
Coverage:
Hong Leong Investment Bank; BUY - TP RM 0.63; 11x P/E multiple ex-cash
3. 7034 TGUAN: TGUAN did really well, as their new production lines are contributing positively to the top and bottom line, as they posted a record high revenue and profit for Q2 2021, and they set to break RM 1 billion revenue this year. 1c dividend. Supported by robust demand and rising ASP for their products, I expect TGUAN's growth to continue for the next 2-3 years. Also TGUAN is one of the 11 Malaysian companies that were shortlisted under Forbes Asia’s 2021 Best Under A Billion list.
Coverage:
Kenanga; OP - TP RM 3.70; 14x FY2022F EPS
4. 0166 INARI: Inari posted another superb QR which concluded their FY2021 in style - all time high revenue RM 1.428 bil and net profit RM 330 mil, +112% YoY. Another 2.5c dividend declared, bringing the total DPS for FY2021 to 11c (2.98%). With the launched of Iphone 13, I expect Inari to record double digit growth for FY2021 and I'm looking forward to their M&A plan as well.
Coverage:
Public Investment Bank; OP - TP RM 4.75; 45x FY2022F EPS
5. 7100 UCHITEC: Within expectations as UCHITEC recorded modest growth, and looks good to achieve their high single digit growth for FY2021 as guided by the management. Net profit margin remains at high level (>50%). Expecting higher dividend for FY2021 in tandem with the expected higher net profit for FY2021.
Coverage:
Hong Leong Investment Bank; BUY - TP RM 3.83; 19x FY2022F EPS
6. 5160 HOMERIZ: HOMERIZ actually posted a pretty good results, but their coming Q3 will be a very bad one as their factories stop production for almost the entire Q3. I'm still optimistic with their expansion and it's already bearing fruits as can be seen by their latest QR amid the escalating raw material prices and COVID situation. Profit margin rose back to 17.8%, and their 1H2021 net profit almost equal the total net profit of FY2020. Orders from US has been strong and I expect FY2022 to be a very good year for HOMERIZ.
Coverage:
Public Investment Bank; OP - TP RM 0.82; 12x FY2022F EPS
Moving Forward:
My objective remains the same: to accumulate high dividend yield stocks. My top pick will be UCHITEC at the moment, and may consider HOMERIZ as well, with both their share prices being beaten down recently. I'll be adding GDB as well shall the price come down again.
LIIHEN will be temporarily out of my watchlist as I think HOMERIZ is more attractive at the moment and their expansion has been really promising. I passed on HARTA when the price drop to RM5.50 level which is below pre-COVID level as I just couldn't make any sound analysis on their future earnings as they are far too many uncertainties for the glove section (oversupply, ASPs, post-COVID demand, etc.).
I'm looking to dispose off ECONBHD shall the opportunity arises, Miss the chance when it went above 50c (I'm just not good at selling stocks!!!).
To conclude, as usual, hopefully Q4 will be better and I'm still optimistic that I can achieve my 12% annual return for FY2021 (currently sits at 4.64%). Gambateh October, November and December!
Disclaimer: This is a personal opinion recorded for my personal record. Nothing on this Blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. The author shall not be held accountable for any investment decision made by the reader. Invest at your own risk.
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