Cory Diary : Sheng Siong 2Q'2017

Is another profitable period for Sheng Siong. Last time when I blogged about this Supermarket ( link ) on 23rd Feb'17, price was $ 0.955. It moved up to $1.005 before recent Amazon news pull down the stock before recovering at $0.96. There was a div in May'17 of $0.0185. So theoretically speaking, without this news it would have hit more that $1.005 after report.

If Amazon market segment target is Sheng Siong ones, I think it will be a mistake. So I am not so worried about it.  The impact will probably be more on the branding against existing online retailers and certain extend on Super Market like Cold Storage. So i dip for a little more on low.

Dividends

"Declared interim dividend of 1.55 cent per share". Last August it was 1.9 cent. Therefore a reduction. I did note this statement. "After paying the final dividend for FY 2016 in 2Q2017, cash and cash equivalents increased by $6.2m to $69.6m as at 30 June 2017."


Growth

My take is the next few quarters will be more retail space for growth so we will see stronger rev. There maybe a dip due to woodland after closure but if there is, will likely be temporary. From Sheng Siong results presentation, Woodlands closure is now by Oct which means next report 3Q'17 may not have large impact from it.


Risk 
The next level of risk is the China investment. US$6 Million investment. 


DYODD.
Cory
20170729

Cory Diary : Recent Trade Actions 20170726

STI has been almighty this year. And i start reviewing my portfolio for more stringent safety.
The changes are on my personal trades and those that I can remember offhand. Please DYODD.



HYFLUX 6% PCS

With the run-up this year on this Pref shares and the profit guidance just announced, I decided to clear my little holding I have for 10% returns this year. Net for this counter is slightly negative. The catalyst possibly the sale of Singapore Plant but I decided not to wait.


NetLink NBN Tr

I have expanded my holding in this counter. My take is that annualized yield is reasonable and good cash flow (FCF) should be good for coming quarters. The ducts have long service life and cables probably good for long term. Therefore the depreciation of asset is more for accounting and no impact to FCF. The risk of technology is there but I think is low. Monopoly in retail market is a good plus and the recurring income is nice. Returns of more than 5.x% is good enough.

Cory
20170726

Cory Diary : CAPITALAND MALL TRUST 2Q17 ( CMT )

Here's the headline today

"CMT 2Q 2017 net property income up 1.2% year-on-year Achieves higher distribution per unit despite closure of Funan for redevelopment"

DPU within expectation. The threat of online shopping on CMT has been mute which has many strategic asset locations to benefit from. Before the result announced, share price has climbed up to $2.00. And Investor will have another quarterly distribution. At current price, is about 5.5% stable yield which is way better than fixed deposits and ofcourse with different risk level. But frankly, if we cannot accept (except) CMT risk, there is not many stocks we can invest in.

The MOS and Catalyst will be Funan. And again management statement on continuing to focus on sustaining DPU is the right one that I agree with because there is good chance it can go lower in 2018/2019 considering the macro environment on malls and the larger leases renewal before Funan is ready. The question is if it does, how much ? Do we buy more in stages (cheaper ?), do we take profit/cut loss or do nothing ? To me ability to sustain is already a good achievement. I also note that shopper traffics are still there and this is good for CMT malls.

Ex-Div in 27th July'17. Collect Dividend first lah. Think later.


Cheers

Cory
2017-0721