Author: InvestingNook

China Residential Market

From the latest results from the National Bureau of Statistics of China, we can observe that in terms of supply of real estate, the Central Government’s policy is working. China’s real estate sector slowed in May where investments in real estate rose 14.7% during the first five months of 2014, slowing from the overall rate of 16.4% recorded during the period from January to April 2014. Furthermore, we see new construction starts decreasing 18.6% during the period of January to May compared to that of last year. However, if one were to look deeper, the government’s policy may not...

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Memtech International

Memtech International is a leading component solutions provider for the mobile phone, consumer digital and automotive industries. Over the recent years, we see the company transforming itself to better suit the changing environment of the technological sector. As of late, the company has two business divisions – keypads and plastics divisions, with major clients from both the mobile communications and automotive industry (e.g. Lenovo, Huawei, Alcatel, GM, VW and Tesla). The company has shut down its loss making touch screen division after the fire incident in 2012. In this analysis, all figures are in USD and data from FY2004...

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Circle of Competence

I’m no genius. I’m smart in spots – but I stay around these spots. Tom Watson Snr, Founder of IBM Followers of Warren Buffett, myself included, would be familiar with the concept of “Circle of Competence”. They key to his philosophy is to encourage investors to stick to what they know best, evident from his Shareholder’s Letter. What an investor needs is the ability to correctly evaluate selected businesses. Note the word “selected”: You don’t have to be an expert at every company, or even many. You only have to be able to evaluate companies within your circle of...

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Sinarmas Land – Lessons on Consolidation

I’ve been having the hardest of times piecing together an analysis on Sinarmas Land. Unfortunately, I am unable to overcome my various apprehensions and doubts about the company to produce a complete analysis. This is solely due to my (lack of) depth of knowledge; it certainly does not reflect anything negative about the company but through the course of my attempted analysis, I did learn a few vital lessons which I would like to share. I’ll start by what analysis I have of the company and draw out the lessons from there. Sinarmas Land Description: Sinarmas Land Limited is...

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Sinwa Limited

Sinwa Limited, with a history dating back to the 1960s, they are Asia Pacific’s leading marine, offshore supply and logistics company servicing the marine and offshore industry in Singapore, China and Australia. With a network spanning 12 major locations and delivering premium service to more than 100 key ports, they operate on a motto of ‘Right On Time, At Any Time’. It is this solid reputation for reliability that 90% of their revenue is repeat business. Fundamental Analysis: (I)              Earnings: While gross profit margins have remained roughly constant over the years – within a band of 25% to 30%,...

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China – A Second Bubble?

Believe many readers have noticed that my previous 2 blog posts aren’t posted by me. My best friend I mentioned whom I started my investing journey with, is currently an author of this blog too. Anyway, been researching into the China property market, with a main focus in the residential market. Sorry for the lengthy post (heh!) I tried my best to be concise. Recently, Yu Liang, CEO of China Vanke – the largest residential real estate developer in the People’s Republic of China predicts that majority of the China’s property developers will cease to exist within the next 15...

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Convictions Paying Off

Posted on behalf of SG Value Investor Currently interning in Shanghai in a real estate PE firm, hence, my posts have been pretty lagged, for that I apologise. However, it is due to my workload and China blocking most social sites. I find my work quite satisfying – surveying potential sites, researching on its potential, preparing investment pitches, doing research reports on the Shanghai property market etc. Only ‘miserable’ part being in Shanghai would probably be the unstable wifi connection I am having in my apartment, inability to constantly access the usual social sites (stuff we have pretty much...

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Convictions

(Posted on behalf of sgvalueinvestor) Sorry for the long hiatus. Previously, I was busy with exams and after exams my schedule had been pretty tight – rushing back to Singapore, packing for my internship in Shanghai and all. That said, over the past month or so, I have been meaning to blog about convictions. Believe many of us have bought a stock and had our convictions tested when faced with some adverse news. Even I, despite all the research I have done in a stock, my convictions would be tested from time to time. Looking at King Wan Corporation,...

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Cash: Can one have too much?

Whilst cash is something everyone would love to have, however, what if we have too much of it? Generally in life, I believe that having too much of something is bad. We should always strive to strike a balance, say work and leisure even cash and debt. Don’t get me wrong, while I am saying that a company having a healthy balance of cash and debt is good, ideally, I would prefer that the company is debt free, given the dangers of debt. However, a company like Lion AsiaPac debt free and cash rich to the extent that net cash per...

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SG Value Fund NAV Update April 2014

Initial Net Asset Value (per unit): $10,000 Net Asset Value as of April 2014 (per unit): $12,386 For the first quarter of 2014, the fund has returned 3.91%, translating to an outperformance of the STI by 4.84%. Going forward, I would not be including the holdings here but rather create a separate page for my current holdings. Within the first quarter, I have sold my stake in Silverlake Axis at $0.92 and ComfortDelgro Corporation at $2.01. Having identified new undervalued stocks, I have deployed the cash into buying HupSteel at $0.21 and New Toyo at $0.305. I believe 2014 would definitely be...

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Company Updates

UMS Holdings Recently, UMS Holdings has declared a bonus issue of 1 share for every 4 held. Given the company’s progress and how the economy has been improving, I would be holding onto UMS and receiving the bonus shares. Hopefully, the company will be able to continue distributing dividends of 5c per share, which translates to SGD 21.5 million. This is possible given its net cash generated from operating activities over the past few years. However, we have to take note that in recent years, the CAPEX has been pretty low, given how much the company has spent on...

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ADT Corporation

Have been pretty busy recently to actually post part 2 of New Toyo. However, will post the full analysis done on ADT Corporation first. ADT Corporation is a provider of electronic security, interactive home and business automation and monitoring services for residences and small businesses in the US and Canada. The company provides home, business and home health solutions and services. It was a spinoff from its parent company Tyco in September 2012, and is the largest home/small business in USA and Canada. Fundamental Analysis: (I) Earnings: While growth of gross profits and net profits have been fluctuating year...

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New Toyo (Part 1)

New Toyo International Holdings is a leading regional provider of specialty packaging materials with over 30 years of experience. The Group has two core divisions – Specialty Papers Division focusing on production of laminated foil paper, and coated paper and metalised paper, while the Printed Carton and Labels division offers mainly gravure and lithography or offset printing of packaging materials for cigarettes and fast-moving products. The company has a strong manufacturing base with multiple facilities located strategically across the region, in Singapore, Malaysia, Vietnam, Australia, China and Thailand, to ensure effective support to its customers in Asia Pacific and...

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Economic Moats

Economic moats a term coined by Warren Buffett just simply means structural business attributes that allows companies to generate high returns on capital. The businesses I love are ones that have strong economic moats, allowing companies to protect their profits from new entrants. One classic case in Singapore of a business that lacks a strong economic moat is the bubble tea business. Due to the lack of barriers to entry, new entrants flooded the market resulting into the erosion of profit margins. Hence, we should always be asking ourselves what is the competition advantage the company has over its...

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