Friday, 29 November 2019

November 2019 Updates

Nov 2019

Portfolio Value after market close: S$122,420.76

Wifey's Portfolio Value after market close: S$62,847.45

Purchase: 5,000 units of Ascendas Reit @ $2.89

Sold: None

Dividends: ESR Reit @ $93.39, Netlink Trust @ $201.60, MNACT @ $77.48 and Suntec Reit @ $94.60.

Ascendas Reit

I have been waiting to enter Ascendas Reit for a long time.

The recent rights issue presented a good chance for me to invest in this well-run company. When the price of the Reit dipped to $2.89 - $2.91 from the previous $3+, I proceeded to buy 10 lots (5 lots for wifey).

Though the price is still a premium to book, it is a price I am comfortable with especially since this is for my long term income portfolio.

Also, I feel the premium is worth paying for a Reit of this quality.

Furthermore if the price dip significantly further, I am prepared to buy another batch.

If not I will hold my bullets for the other counters on my watchlist.

Japfa

Share price of Japfa has ran up nicely over the past two weeks and I was tempted to sell my holdings. However I eventually decided to hold on as the uptrend still seems intact.

Will monitor and see.

ISOTeam

Saw from the news last night that ISOTeam has finally concluded the deal to buy over Mobikes bicycles.

The new assets increased their number of bikes exponentially and I expect this to contribute positively to SG Bike which has already broken even operationally before this.

I have previously written about this in my ISOTeam AGM post here.

This positive news came after the announcment of a slew of contract wins for ISOTeam, including that of projects at Istana and the Botanical Gardens.

Order book remains high and is still increasing. And with the general election coming soon (I guess), I won't be surprised at all if ISOTeam announce more public contract wins.

I am excited by the coming quarters ahead. 

Thursday, 31 October 2019

October 2019 Updates

Oct 2019

Portfolio Value after market close: S$103,979.92

Wifey's Portfolio Value after market close: S$47,951.60

Purchase: None

Sold: None

Dividends: Japfa $50

Took up ESR REIT preferential offering allocation and applied excess. Allocated all the excess. This brought my holdings to 10,000 units.

Continue to monitor market for opportunities to enter.

Registered for the trading tournament in InvestingNote but haven't done any trade yet. 

Wednesday, 30 October 2019

ISOTeam AGM 2019


This year's AGM is held at Sheraton Towers again in a ball room with about 120 seats at ~80% full.

The AGM started at 10.02 am with a video clip on an overview of ISOTeam business and introduction of board members. 

After that is the Q&A session. 

Q: Big fluctuations on earnings between 2018 and 2019. What are the key factors that contributed to this?

A: ISOTeam has a fixed cost to maintain in terms of overhead expenditures. Managed to reduce that in 2019. 

Q: Any loss-making projects? 

A: No. 

Q: A&A segment went up alot and that segment contributes a big chunk of the revenue. Is this the focus of ISOTeam going forward?

A: A&A is a big margin segment. Moving forward ISOTeam will continue to focus on this segment. 

Current overall orderbook for ISOTeam is about S$140 million. 

Q: Can throw some colours on Pure group? How will they boost ISOTeam? 

A: Pure group is a project management company. ISOTeam is not project manager. We are just a contractor. The S$40 million MBS project is from Pure group and ISOTeam is their contractor and this is not the first time ISOTeam is working with them. 

80% of Pure group business is in Singapore and rest of the 20% is in Thailand, Malaysia and China. 

Q: Regarding SG bike. Is it easier for ISOTeam to just buy the busted bike company (Mobike) instead of buying SG bike?

A: ISOTeam is buying the bikes from Mobike only, not the business of Mobike.

ISOTeam paid about S$350 per bike when setting up SG bike. 

However ISOTeam paid about S$20 for each Mobike bicycle after nett of licensing fee and refundable deposit to LTA.

Following is my opinion: (I think back then when ISOTeam set up SG bike, Mobike has not gone bust yet so this question of buying over Mobike is not really relevant.) 

Q: Government is pushing for BMW (bike, MRT, walk) initiative. Bike might not be as popular a choice. What do ISOTeam think? 

A: ISOTeam is very positive on the bike business. ISOTeam is the only full licensed bike operator now. 

Currently on weekends, all SG bikes are fully taken up.

When the bike count is increased after buying over Mobike bicycles, it should get even better because more bikes can be deployed to other housing estates. 

Q: Operating cash flow every year is negative. 

A: Mainly related to timing difference. Payment timing from customers. But since the government is the major customer, there is little risk of default. And government's payment term is 3 months whereas ISOTeam need to pay their sub contractors first. 

Another reason is also due to working capital for larger contract values now. 

Q: Proposed a lower fixed amount for the 3 founders' salary and a higher variable bonus component as a motivation for management to perform better. 

A: 3 of them don't get the same salary. They have different functions so they received different fixed pay. Variable bonus is devised in such a way that they get the same amount.

Q: Gross profit margin can be further improved from the current 15 - 16%?

A: Is sustainable and can be further improved. 

Q: Has all the savings been realised from the consolidation of operations and company office? 

A: ISOTeam has reduced from 6, 7 different places to one place now. 

The company is also applying for a higher quota to house more workers together. It is pending government's approval. Each worker approved can save the company about 200 bucks per month. 

Q: Any comment on the recurring income streams of ISOTeam? 

A: That is currently quite minimal. Solar Nova 1 is ending soon and ISOTeam is discussing with Sunseap on the maintenance of their solar systems and with Pure group in place, they are discussing with Sunseap on project management next time. 

Q: Is SG bike already profitable? 

A: Operationally broken even. With more bikes coming in things will improve further. 

Q: Is the geopolitical situation affecting ISOTeam? 

A: 99% of ISOTeam business is in Singapore so not affected negatively. 

Q: R&R margin used to be very good in 2015 and 2016. Can ISOTeam improve to that margin again? 

A: 2015 and 2016 are election years. After that the government tenders became smaller in contract value. 

Previously R&R contributed about S$20 million. But this year it already has S$60 million order. 

Q: Any upcoming big HIP project? 

A: Just completed one. Another one about 20% completed.

Q: What is the fair value gain of other investment? 

A: Investment in Sunseap. Fair value stated in accordance to FRS. 

Q: Is ISOTeam trying to expand outside Singapore by buying Pure group and going into project management? 

A: Most of ISOTeam business comes from the government. Stable income comes from them. 
ISOTeam is also moving towards becoming a one-stop soution provider as a turnkey player.

Q: Why are Goodwill and Intangible Assets treated differently? How are they classified? 

A: Both are related to previous acquisition of a company (not Pure group). Items are classified according to FRS. 

After the Q&A session is the customary voting of resolutions.

All resolutions passed with vast majority. 

The AGM ended at 11.15 am. 

As per previous years, the chairman and CEO stayed behind to mingle and answer further questions. 

This is the hallmark of a sincere and responsible management team. 

I had the chance to discuss with Anthony, the CEO on several issues and found him to be candid in his replies as per previous discussions. 

I personally like him as a CEO as I feel he has a very clear vision of the company and how to move it forward. Also feels that he is an 'on the ground' person who can resonate with the lower levels instead of someone who is sitting in an ivory tower. 

There are of course, couple of stuff that have been discussed which I don't think should be revealed in a public blog. 

But those, along with what I heard in the above Q&A, make me decided to continue holding on to the shares and actually make me looking forward to the near future of ISOTeam. 

Lastly I apologise if there is any incoherence or grammatical / spelling error in the above post. 

I have been having diarrhoea since this afternoon (4 times and feeling coming again..) and is rushing out this post using mobile phone.

Happy reading and hope it helps. 


Monday, 30 September 2019

September 2019 Update

Sept 2019

Portfolio Value after market close: S$100,099.77

Wifey's Portfolio Value after market close: S$46,091.39

Purchase: Japfa, 10,000 shares @ $0.45

Sold: None

Dividends: Mapletree Logistics Trust $152.21

Bought another batch of Japfa as it hit oversold territory and after the company bought back shares at $0.455.


Total holdings for Japfa stands at 30,000 shares.

Received another round of dividends from MLT for this month.

Also applied for 10,000 units of Lendlease IPO. Let's see what's the allocation.

Friday, 30 August 2019

August 2019 Update

Aug 2019

Portfolio Value after market close: S$95,554.49

Wifey's Portfolio Value after market close: S$45,896.71

Purchases: None

Sold: None

Dividends:

SingTel: $535
Suntec Reit: $62.60
CCT: $200.80
MNACT: $78
*ESR Reit: $4.82

Another dividend season is here. Only difference is that I have been so busy recently that I have not even thought about it. Only realised it when I saw the various dividends in my bank account last night.

With the above divvys in, total amount received YTD has broken the $10k mark. A small milestone for me but unlikely to repeat next year.

These few days have been looking more closely at 2 of the local banks.

Wanted to nibble DBS when it dipped below $24 but ultimately didn't pull the trigger as I decided it didn't fit in to my strategy.

The price was good for a short term trade but valuation is still too high for a buy and hold long term person like me. Will make a move at around $22.20 unless emotions get the better of me.

Another one was OCBC. Price has been settling within my TP range at about 1 x BV. But I decided to wait till 1st September to see the effect of the new tariffs have on the market.

Last but not least, Japfa has hit my TP too and seems to be consolidating there. Again will see the price movement next week before entering another batch.

* Added ESR Reit dividend.

Wednesday, 31 July 2019

July 2019 Update

July 2019

Portfolio Value after market close: S$98,360.94

Wifey's Portfolio Value after market close: S$47,399.02

Purchases: None

Sold: None

Dividends:

ESR Reit: $77.09

Portfolio value dropped this month compared to last month.

REITs continue to be overpriced at this moment. Might add abit more of Mapletree Logistics Trust (MLT) based on today's closing price.

Looking at a couple of non-reit counters but price is still north of TP.

Meanwhile continue to place my cash in bank to earn the 2% interest. Better than nothing.

Baby M is getting cuter and cuter by the day. Just last week, she actually carried up the walker that she was seated in to cross over the kerb to the kitchen.

At only 13 months young, that showed she has analytical skills at this age already.

On the work front, things are getting busier but not necessarily in a good way. Customer is placing new requirements every other day so much so that I have to put a stop to it.

I look forward to the day that this project is completed. 

Friday, 28 June 2019

June 2019 Update

June 2019

Portfolio Value after market close: S$100,533.67

Wifey's Portfolio Value after market close: S$48, 506.66

Purchases: None

Sold: None

Dividends:

ESR Reit: Scrip
MLT: Scrip
OCBC: $5.29

Our portfolios reached a new high despite taking profit on some counters previously. This is due to the run up of the Reits in our portfolio.

It has been awhile since my portfolio value touched $100k.

Still on the lookout for suitable counters to add. But for now most seem overpriced.

Overall was a busy and stressful month for me in terms of work. I can foresee it will be equally if not more hectic at least for the next two months.

This year also marked the first year that my company has to pay corporate tax.

It came as a little surprise as I thought new startups enjoy a 3 years tax exemption. However upon checking I realised the regulation has changed.

It is bittersweet for me. Looking on the bright side having to pay tax means at least my business is making money.

I also overspent by quite a bit this month as baby M turned one!

Had a simple dinner celebration with family members in a restaurant that costs a grand+ and ordered a baby-friendly cake that costs $130.

Also celebrated our wedding anniversary at a mexican restaurant with just wifey and I.

Though overspent, I considered these well-spent. Memories made are priceless.