FY2022 hasn't been too good to the Malaysian market so far, as the KLCI dropped 1.56% after the 1st week of trading in FY2022. No surprise here as the local economy recovery was hit by the year end flood and the Omicron variant. Many people experienced negative returns for FY2021, and luckily for me, I managed to scrape through FY2021 with a marginal positive return. Hopefully FY2022 will be kind of our local market, and I'm looking forward to the Q4 results as I am expecting good results from 7034 TGUAN, 0166 INARI, 7100 UCHITEC and 0198 GDB.
Alright, here's my portfolio performance for FY2021.
Not much changes to my Portfolio in FY2021 compared to FY2020, with only one in (7100 UCHITEC) and one out (5102WB GCB-WB). I've loaded quite a fair bit of 0198 GDB in FY2021 as I feel it's highly undervalued at its current price.
Summary of 1H2021:
Portfolio value at 1-Jan-2021 : RM 149,384.30
Net Buy / (Sell) as of 31-Dec-2021 : RM 25.855.76
Current Gain / (loss) : RM 2,988.34
Current Dividend : RM 4,011.50
Current Return : RM 6,880.87
Current Return (%) : +4.61
Stock value at 31-Dec-2021 : RM 181,145.00
Cash : RM 975.93
Portfolio value at 31-Dec-2021 : RM 182,120.93
Overall Portfolio Performance since inception:
Review of performance:
In Q42021, I made 2 buy transactions: added more 7100 UCHITEC and 5160 HOMERIZ. UCHITEC has been performing as per my expectation, and looks good to achieve it's management guided high single digit growth (I estimated a 9% growth in bottom line), and I think we will see a 11c final dividend (my estimation only) being announced in February 2022. HOMERIZ's FY2021 performance is above my expectation considering their factories were shut down for 3.5 months due to various MCO or lockdowns (2.5 months in FY2020) and I feel that FY2022 will be a breakthrough year for HOMERIZ.
BUY:
3Q2021:
a. 7034 TGUAN @ RM 2.09; +33.97% unrealized gain
b. 0198 GDB @ RM 0.533 (adjusted); -17.45% unrealized loss
b1. 0198WA GDB-WA @ RM 0.00 (bonus issue); +7.62% unrealized gain (based on purchase price of b)
c. 7100 UTHICTEC @ RM 3.07, +2.28% unrealized gain
d. 0198 GDB @ RM 0.455; -3.29% unrealized loss
e. 0198 GDB @ RM 0.41; +7.32% unrealized gain
4Q2021:
a. 7100 UCHITEC @ RM 3.09; +1.62% unrealized gain
b. 5160 HOMERIZ @ RM 0.545; +5.50% unrealized gain
QR Review:
1. 5102 GCB: No surprise again, profit margin continues to shrink. Hopefully FY2022 will be a recovery year and I'm excited to see fiscal contribution from the long awaited Ivory Coast factory. 1c dividend declared for Q3 as usual.
Coverage:
AmInvestment Bank; BUY - TP RM 3.12; 15x FY2022F EPS:
2. 0198 GDB: Surprise again as GDB posted a +30% QoQ results even though full operations only resumed by mid-Aug 2021. 3Q net profit up 17.4% YoY. I'm expecting a very good Q4 results as construction sector is allowed to operate at maximum capacity and The Star reported that 8 Conlay will be completed ahead of schedule. (link: https://www.thestar.com.my/business/business-news/2021/11/18/ksk-land-to-push-forward-for-handover-of-8-conlay-yoo8-projects-by-end-2022) I expect the main bulk of the outstanding orderbook (RM 1.67bil as of end Sep-2021) will be realized in FY2022. Furthermore, there is a RM 15.8 million stage performance incentive in GDB's contract.
Coverage:
Hong Leong Investment Bank; BUY - TP RM 0.63; 10x P/E multiple ex-cash
3. 7034 TGUAN: TGUAN did really well again, and look certain to achieve RM 1bil revenue and double digit growth for FY2021. 3Q revenue at RM 886.3mil +23.45% YoY, net profit at RM69.7mil +19.64% YoY. Although the RM 22.4mil Q3 net profit is lower than Q2, it's actually the 2nd highest quarterly net profit recorded ever! 1.25c dividend declared.
Coverage:
Kenanga; OP - TP RM 3.68; 14x FY2022F EPS
4. 0166 INARI: Another wow quarter, this time completely exceed my expectation. Record high RM431.1mil revenue and RM106.9mil +21.01% QoQ +52.60% YoY net profit (1st >RM100mil quarterly profit). Furthermore, Inari announced a JV with China Fortune-Tech Capital Co (CFTC) to provide OSAT services for the China market. (link: https://cdn1.i3investor.com/my/files/st88k/0166_INARI/pt/PUBLIC%20BANK/0166_INARI_PUBLIC%20BANK_2021-10-20_BUY_4.75_InariAmertronBerhadStrengtheningPresenceinChina_-1096587073.pdf) 2.8c dividend declared. Overall a great FY2021 for Inari, with the inclusion in the KLCI (1st tech stock in the index!) making things even better!
Coverage:
Public Investment Bank; OP - TP RM 5.31; 45x FY2023F EPS
5. 7100 UCHITEC: Within expectations as UCHITEC looked certain to achieve their high single digit growth for FY2021 as guided by the management. Net profit margin remains elevated at (>50%). 9c interim dividend declared (7.5c for FY2020), and I'm expecting a 11c final dividend to be declared (expecting 20c dividend for FY2021, >6% yield with my average price)
Coverage:
Hong Leong Investment Bank; BUY - TP RM 3.83; 19x FY2022F EPS
Moving Forward:
My objective remains the same for FY2022: to accumulate high dividend yield stocks. UCHITEC remains my top pick for FY2022, and I'm currently looking at 5347 TENAGA and 1818 BURSA as well.
On top of that, I'm looking to venture into the US market. It's been in my head for a very long time and I think FY2022 it's the right time for me to step out of my comfort zone and explore something new. I'm looking to use MIDF Invest (http://www.midfinvest.com/) as it looks really cheap and easy to use.
I wish everyone a good FY2022 ahead! Cheers and happy investing!
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.