Tuesday 30 November 2021

Nov 2021 Updates

Nov 2021
Local Portfolio Value after market close (excluding USD and HKD)





Suntec Reit @ $89.28
CLCT @ $326.70
DBS @ $ 198
Total: $613.98 

Short-Term Transactions
Sold 2 x DIDI Call 211126 at $10 strike with $0.29 premium. Expired.
Sold 4 x GREE Put 211119 at $17.5 strike with $0.34 premium. Expired.
Sold 1 x GREE Put 211217 at $17.5 strike with $1 premium. 
Sold 2 x APPS Put 211210 at $55 strike with $0.90 premium.
Sold 1 x APPS Put 211203 at $55 strike with $0.71 premium.

Futu moomoo has released another welcome bundle promotion for November. You can read more about it here.

Would be thankful if you use my referral code to sign up too.

SGD portfolio:
Portfolio value dropped by around $7.5k due to the market downturn. DBS had a great fall over the past week.
Didn't make any transactions this month though I'm mulling over selling one counter in my portfolio as a rebalancing.
Currently making some comparisons between two potential candidates to see which one makes more sense to sell.

SingTel has reported a good set of results earlier this month. I have wrote my thoughts about it here.

Syfe Core Growth portfolio:
TWR continue to increase, reaching 7.93% this month. I'm pretty satisfied with the returns so far.
Have DCAed into this portfolio yesterday and plan to continue this every month.

USD / HKD portfolio: 
Didn't do any trades for this month though I'm monitoring several counters closely including PayPal and 9988. 
Also wasn't very active in the options market this month. 6 contracts expired which netted me US$185.05 (~S$253.54).
Left 4 other open contracts expiring next month.
Moving forward I will continue to use options to supplement my investable income.

Wednesday 17 November 2021

My Biggest ROI to Date at 400% from an Unintended Investment

I was daydreaming just now and my thoughts drifted to the various investments and returns I had so far. Nothing spectacular.
However I got a sudden realisation that I actually had a 400% return from a trade I did several years back. It's like an epiphany!

It's not a stock or cryptocurrency (probably doesn't even exist back then) or anything remotely related to investment per se.

The item was a golf club which I bought from the 2nd hand market. Back then I was looking for an Iron 7 and I happened to see this piece.

I picked it up, took a few mini swings, felt good and paid for it.

Went to the driving range for a few rounds with it and subsequently left it in the boot of my car when I stopped going to the range.

After that I decided to list it online for 5 times the price and surprisingly someone actually contacted me to buy it.

And he paid straightaway without negotiation.

Hopefully the club found itself a better owner.

Thinking deeper, I found that the above is actually a reflection of my view towards investment.

Even though I did not buy the club for the purpose of investment, it actually turned out to be a good trade for me.

Same for other assets. As long as they can fetch a decent ROI, they are good investments. Doesn't matter whether they fall within the 'traditional' group of assets or newer class.
Same for cryptocurrencies. The reason I have not made any investment into cryptos is not because they are a sham or they are not back by fundamentals, blah, blah, blah.
Rather, it is because I have not read enough to understand them sufficiently.
In fact the way I see it, blockchain-based coins such as Bitcoin, Ether and Solana can have real everyday functions such as retail transactions.

The periodic burning of these coins can in theory, increase the valuations as well.

In short, it pays to keep an open mind towards all assets / investments even if they do not appear to have obvious potential initially.

Thursday 11 November 2021

Review of SingTel H1FY2022 Results

SingTel released their FY2022 1st half results today before market opens.
I have been looking forward to this due to the many positivities surrounding SingTel recently and indeed, the results are impressive though with certain weaknesses if we delve deeper.

Comparing to the corresponding period (H1FY21) last year,

Increased by 3% driven mainly by the Australian business, NCS and Amobee.

Largely stable. Contribution from Australia consumer is offset by the decrease in Singapore consumer and NCS.

Associates Contributions

Regional associates which have frequently been a cash cow for SingTel, deliver 21% increase in pre-tax profits due to a strong turnaround by Airtel which saw operation improvement in their India and Africa markets.
Underlying Net Profit
Increased by 17%. For dividend lovers myself included, this is the figure to pay attention to since SingTel will be paying dividends based on 60% - 80% of its underlying net profit.

Net Profit

More than double the net profit (105% increase). What more can I say?
Free cash flow which I've always pay close attention to, improved 4% to S$1.771 B driven by Australia and the associates. Contribution from Singapore market actually fell around 10%.

Debt and Gearing

Net debt decreased by S$1.4 B and consequently, gearing has been reduced to 29% (compared to 32.1% last September).

This is good considering the anticipated CAPEX for the digital bank and continual business restructuring.

Since SingTel has not announced any special dividend for the net proceeds from divestment of Optus (~A$1.9 B) and Telkomsel (S$200 M) towers, I think they will be conserving this cash for the said capital expenses.


Interest coverage also increased to 14.8 times as compared to 13.3 times in last Sept.


SingTel has guided that the capital expenses for FY2022 will be around S$2.4 B. This should be well covered by the capital recycling which they have undertaken as mentioned above as well as the debt facilities on which they should have sufficient headroom with their A1 rating from Moody's.

(S&P gave an 'A' rating as well but with negative outlook although I believe this is last year's figure. Fitch gave an 'A' with stable outlook.)
Interim dividend of 4.5 cents per share is a reduction of 11.8% from last year's 5.1 cents per share.
Looks like the new CEO, Mr Yeun Kuan Moon is a conservative man.
Assuming the full year dividend is reduced by the same margin, that will translate to 6.61 cents per share for total dividend. Is SingTel transiting from a dividend counter to a growth one?
Anyway this is only an assumption and the final dividend is very much dependent on the 2nd half results as well.
Personally I don't think it will go to that.
It has also been mentioned that barring any unforeseen circumstances, the Group expects to pay dividends at the upper half of its dividend policy range of between 60% - 80% of underlying net profit for FY22.

Let's see how it goes.
Since this round of dividend is a 76% payout, it translates into S$747.08 M which is about 42% of the free cash flow generated during this half.

This is well covered and sustainable.
Special Mention
Since I have always been an environmental person both professionally and personally (I run an environmental engineering company), I like to pay attention to companies' ESG efforts too.

I like that SingTel has pledged to cut their greenhouse gases emissions by 42% by 2030.


The Singapore consumer market remains a challenging one for SingTel with their revenue contribution falling slightly and EBITDA falling by 5% in this half.
NCS saw its revenue increased by 5% but their EBITDA actually fell 21% although this is partly due to lower JSS distribution from the government.
Free cash flow contribution from Singapore market fell around 10%.
Possibility of deterioration of Covid-19 situation across the various markets.
Future Catalysts
Moving forward there are several catalysts that we can look forward to (pun intended : ))
Contributions from data centres. SingTel is projecting a ~170 MW data centre capacity in 3 to 5 years time, up from the current ~70 MW.

Earnings boost from Singapore digital banking operations from 2022 onwards.
Possible digital banking license win in Malaysia.
Continued rejuvenation of their business especially their pivoting into ICT and digital services.
Capital recycling (hopefully with special dividend) by offloading non-core assets. SingTel has guided a figure of S$2 B excluding the Optus divestment. So it is almost certain that we will see more divestments coming.
Continued improved performance from associates especially Airtel.

Monday 8 November 2021

moomoo Welcome Bundle Update (November 2021)

Moomoo November Welcome Bundle

Period: 8th November 2021, 10:00 hours - 30th November 2021, 09:59 hours
Eligibility: New users who registered for a moomoo ID after 8th November 2021, 10:00 hours
TLDR Version: One free Apple share + One moomoo figurine merchandise + S$40 stock cash coupon
Appreciate if you use my referral link to sign up for your account if you are interested.
Without further ado, here are the various latest rewards for signing up for a moomoo ID. 
1: Register for a moomoo ID

Reward: 180 days unlimited commission-free trading for the US, HK and SG stock market

2: Account Opening (moomoo is the trading App by FUTU)

Reward: Free access to level 2 US stock market data and level 1 SG & China A-shares market data
Additional Reward: 1 limited edition "moomoo Oppa" figurine merchandise

3: First Deposit (S$2,700 or US$2,000 or HK$16,000 and above)

Reward: 1 Apple (AAPL) share
Additional Reward: S$40 stock cash coupon bundle
* A stock cash coupon is just like cash which you can use to purchase stocks up to the cash coupon amount. I have personally verified that so no worries.

4: Share Transfer-in (US and HK stock only)

Reward for transfer value [S$50,000 - S$99,999]: 1 AAPL share (Apple share) worth ~S$195

Reward for transfer value [S$100,000 - S$199,999]: 2 AAPL shares worth ~S$390

Reward for transfer value [>=S$200,000]: 1 set of 256 GB iPhone 13 (limited to 50 sets only, first come first serve!) or 3 AAPL shares
If you find this sharing useful, please feel free to use my referral link here to sign up for your account and claim the freebies. Thanks in advance.