Valuetronics Holding - One of my favourite counter

Valuetronics Holding

This is one of my favourite stock, in fact the major reason that I love this counter so much is I generated my first five digit profit from it last year! My broker introduced this counter to me in 2014 together with 800Super (and they are the only two counters introduced by him). Valuetronics is my biggest regret too. I first traded this company in 2014 and earned around 2k, and I put 100% of my available cash into this counter at 37 cents and 40 cents last year and sold them away at around 44.5 cents. If we use the numbers from its 2016 annual report, the diluted earning per share was 31.7 HK cents, which is equivalent to 5.5 SGD cents (using the fx rate on 8 July 2016 from XE.com), I bought it at around PE 7 and sold it at around PE 8.... and the dividend yield at the price I sold is around 7.8%.. ouch. I always want to buy back but now it is trading near historical high.. Is it still worth to buy? This time I will study its annual reports carefully.

Recently OCBC came up with an unrated report for Valuetronics, the link is stated as below:

http://research.sginvestors.io/2017/06/valuetronics-holdings-ltd-ocbc-investment-2017-06-27.html

Business Review

Valuetronics was established in 1992 and HQ in Hong Kong, it is an integrated EMS provider with two core business segments: Consumer Electronics (CE) and Industrial and Commerce Electronics. Valuetronics offers a broad combination of design, engineering, manufacturing, and supply chain support services to meet the needs of their clients. The company used to have licensing business which was acquired in 2010, however it was terminated on 7 August 2012 after a rigorous review. I found that the company is still transforming itself since then. As stated in 2015 annual report, the board found that the customers in CE segment will continue their aggressive pricing strategies for mass market products, which will drag down the overall financial performance, the board decided to reduce their reliance on LED lighting products and pursue new product lines in the CE segment. Following the exit of traditional mass market LED light bulbs in FY2016, the group has refined the CE segment's product portfolio to include smart lighting products with IOT features. For the ICE segment, the company also acquired its first automobile customer in FY2016, and started supplying in-car connectivity modules to one of their automaker customer. In FY2017 result media release, the board is confident that Valuetronics will ride on the opportunities presented by the confluence of technology under the emergent IOT trend in order to expand its product portfolio.  Lets take a look at the revenue generated from each segment:

CE used to be its major source of revenue, however as all the other mass product markets, the customers will demand to buy more and pay less (it used to have a higher profit margin). So the board turned their focus into their ICE segment which will provide higher profit margin. As a result the revenue from CE segment created a 'mushroom top' and bounce back in 2017 when the company includes smart lighting products into the product line, and revenue from ICE segment enjoyed a four consecutive double digital growth from 2014 to 2017. The change of product mix increased the gross profit margin over years as shown in the graph below:

Balance Sheet and Performance Review

I like debt free companies with stable dividends. Valuetronics is debt free company with huge cash holding. As stated in annual report 2016, the company approached an investment banked to ask for advice on cash management. The company plans to keep the cash for any merger or acquisition opportunity that may arise. I plot a chart of its cash reserves from 2010 to 2017:

From the chart we can see that the company has cash inflow almost every year since 2011 even though they are paying very attractive dividend every year. As their performance is good, the strategy of keeping the cash and wait for any merger or acquisition opportunity should be fine. However, if the company's performance is not impressive anymore due to any reason, I hope that the board will utilize this large cash reserve wisely. 

The company is generating its revenue from many different countries. The diversity will prevent the company's performance drag down significantly by any major economic changes or forex changes in any country. However during FY2016 more than 50% of the total revenue was generated from three major customers, hope the company can win more orders from other customers too. The geographical information is shown as below:

However, as the company is presenting its financial performance and position in HKD, I will look at the FX rate to convert HKD back to SGD, so later we are able to calculate the EPS and NAV in SGD to compare them with the share price. 

Take note that the HKD is devaluing since late 2016, which will make the company and its dividend a bit less attractive when we convert them into SGD. We also know that HKD is linked to USD, so we have to monitor USD/SGD exchange rate, as more than 50% of the company's revenue is received in US dollars too. 

Current valuation

After the 1 for 10 bonus issued recently, the stock is currently trading at around 80 cents. Is it still a value buy? Let us take a look, the calculations are based on total number of shares (422,155,117) and the HKD/SGD FX rate is 5.65357:

	HKD	SGD
Cash and cash equivalents per share	178.36	31.55
Net current asset per share	173.86	30.75
NTA per share	222.32	39.32
EPS	36.5	6.46

So the share is currently trading at PE 12.38 and PB 2.034, and current dividend yield is around 4.42%. This is not so attractive to me. Perhaps I shall wait for a better entry price? 

Conclusion

I can see that the management team is quite active and trying to transform the business in order to ride on the latest tech trend. However, I believe that it wont be easy. There are many other companies in this industry are trying to catch this trend too. What I like about the management team is they are able to give up their mass LED market which used to be its major revenue source, and retrain the employees for more sophisticated products with higher margin and brighter future. In 2014 the management announced a new dividend payout policy which set to distribute around 30-50% of the total profit to the shareholders. However the current share price is not cheap, and it went up together with the other tech stocks. There is a risk for the share price to come down in the near future due to the stock market cycle. I am not going to buy the stock at the current price level as I think I have to hold it for a very long period to generate satisfied return. At current price the dividend yield is not so attractive too. So my plan is to monitor the business development and quarterly reports to get more information about the company, and buy it at a lower valuation (PE>10, PB>1.5). DYODD! 

OKP HLD LTD

OKP Holding Limited

I saw this company on Newspaper when I went back to Singapore for CNY, and at that time the share was trading at around 33 cents.. I decided to wait for few months to see company's performance before I park my cash into this counter. Well, seems like I missed a steady 30% gain as at the time of writing the share closed at 42.5 cents. So now I will look closer to this share to see whether I should continue store it in my WL and wait for next opportunity first, or the share is still undervalue at the current price.

As shown on the chart above, OKP was on a super long term downtrend since 2012! The share price gradually decline from neat 60 cents to 18 cents in less than 4 years. After that, the share price u turned and form a very good V-shape on the chart. Is the current outlook strong enough to support the uptrend of the share price?

Company Summary

The company was listed on SGX since 2002. OKPH is the holdinng company of Or Kim Peow Contractors Pte Ltd which was founded in 1966, Eng Lam contractors Pte Ltd which was founded in 1983, and OKP Technical Management Pte Ltd which was founded in 2002. I like company with long history as I believe reputation of the company takes very long time to build up. As mentioned in their 2016 annual report, OKP’s reputation has grown due to its many key advantages, which have reinforced its leadership position in the construction industry, these advantages include our strong track record, capable management team, experienced and skilled staff in civil engineering projects, and vast expertise. Currently most of the board directors were appointed since 2002, which was the year OKPH incorporated, which most of the directors are related to the chairman Mr Or Kim Peow, so its more like a family business? 

The company has two core business segments: construction and maintenance. The company is also broadening their presence in the oil and gas sector and also property developments and other investments, however the company only holds 10% of stake in CS Amber Development Pte Ltd and Lakelife Pte Ltd, which are the two condo building companies. 

As a 'family business', Mr Or Kim Peow and his family owns more than 46% of the total shares of the company. There is another substantial shareholder - CS International (S) Pte. Ltd with 13.98% of the total shares. I found something quite interesting with the top 20 largest shareholders statistics while i am reading the report: 

The total percentage of top 20 largest shareholders from 2011 to 2016 actually formed a V shape, which demonstrates a similar pattern with the share price chart. The above chart formed a bottom at 2013, and the share price formed a V-shape bottom at 2015. So is the share price going to follow this pattern and continue its uptrend? 

Result Review

The primary business activity of OKP is construction and maintenance. From the track record, the company is able to generate certain about of profit with its contracts. I understand that there are some companies won many contracts but at the end of the day they are unable to generate any profit so end up those companies still have bad results even their order books are huge. In recent years the company's gross profit margin is improving. However, like what Mr Or Toh Wat said in 2015 annual report, OKP is operating in a very competitive business environment. Maintaining good profit margin is extremely challenging as OKP will always face industry wide challenges such as rising of manpower costs, labour constraints and competitive pricing. I am not really sure how does bidding system work in Singapore, but I guess the proposed cost is one of the important factor when government gives projects to companies. I am not expecting that the company can maintain or even increase its gross profit margin. However, the company still can increase their gross profit by winning more orders. A chart of recent years gross profit and net profit is attached:

Interesting thing is, after the total percentage of top 20 shareholders formed a bottom in 2013, gross profit and net profit follows the similar pattern and formed a bottomed in 2014, then share price formed its bottomed at 2015.. So if the top 20 shareholders continue to buy more shares and gross profit and net profit continue goes up, we should expect the share price to go up further more? 

As stated in 2016 annual report, the company received three safety awards: One is from Changi Airport Group in recognition of our commitment to achieve Zero Safety Infringement for works at Seletar Airport; and two from the Land Transport Authority (LTA). One is for “Category 2 (Civil contracts not exceeding $120 million) for companies that have achieved above 400,000 accident-free man-hours worked” for Contract ER458, and the other is for the “Major Category (Civil contracts between $20 million and $50 million)” for Contract ER458. I strongly believe that "safety" is one of the key element for a construction company to grow steadily. 

However, p/e valuation method is not working very well for OKP. I have calculated the p/e from 2011 to 2016 and created a table as below, take note that the total number of shares increased in 2011 and 2012 and I didn't adjust the EPS as the difference is not significant, and also the EPS used in the table are based on the total number of ordinary shares (diluted EPS):

	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016
EPS (cents)	8.90	4.0	1.60	0.80	2.30	4.70
SharePrice at year end (cents)	53.00	51.00	34.50	25.50	22.00	29.00
P/E	5.96	12.75	21.56	31.88	9.57	6.17

When the share price was 53 cents, the p/e was only 5.96! Which sounds like a great deal. However the EPS dropped more than 50% in 2012, and EPS in 2013 was only 18% of EPS in 2011. In fact the revenue recorded in 2011 and 2013 is about the same, but gross profit margin was only 10.4% in 2013 and it was 39.3% in 2011. I am not an expert in construction field, and I have no idea how to predict the gross profit margin for the projects won by OKP. So we must monitor the gross profit margin for every quarter very carefully. 

OKP released the first quarter result of FY2017 in May. The result is quite impressive. Gross profit margin increased from 12.1% for 1Q16 to 20% for 1Q17, which is also slightly higher than FY2016 average gross profit. The company also receive a higher share of profit of joint ventures as the company recognised a 1.6 million profit from LakeLife Pte. Ltd.. I am also looking forward to the profit recognition of Amber Skye, although the company only owns 10% of CS Amber Development Pte. Ltd.. According to the 1Q17 report, Amber Skye obtained TOP on 27 April 2017, and efforts in marketing the remaining units will continue. I tried to Google this condo, and Zaobao.com stated that Amber Skye only only 5 units last year, but it sold about 20 units in May (this article is posted on zaobao.com on 3 June 2017). So we should be able to see another good profit recognition of joint ventures in 2Q17. 

Financial Position Review

As stated in 1Q17 report, the cash and cash equivalent stood at 88 millions, which is equivalent to 28.5 cents of cash per share. Mr Or Toh Wat said in 2015 Annual Report: "Because of such investments, our management has decided that it would be wise to conserve our cash in order that we will have the funds and flexibility to consider new investments if attractive and suitable opportunities arise for us to venture into. In fact, the stable cash actually supports OKP in bidding for more and larger projects. This is a more prudent approach, which will help OKP to manage and grow a sustainable business in the long run." As the cash position is increasing over the years since 2014, I hope the management is able to use these cash to invest and secure more contracts to improve its financial performance. The company's cash is even more than the sum of company's current liability and non-current liability! The balance sheet is very healthy and the company didn't have bank borrowings. 

Conclusion

I just vested OKP @43 cents for 16 lots. The share is current trading at 1.13 times of net tangible assets per share. The balance sheet and contract order book is very healthy, and the company also demonstrate the ability of securing contracts and they even won two contracts from JTC in June! I am looking forward for company to secure major contracts and boost its revenue and net profits! Take note that the share price has increased about 50% since 1 Jan 2017 to the time of writing, so the margin of safety is not very significant anymore. DYODD!

Some Thoughts on Ley Choon

Ley Choon

I found some people are talking about this counter in my favorite FB group - SGX Technical Analysis and Fundamental Analysis. The share price gained 100% in just 4 months, so I did a quick research on this company. What if it is the next AEM?

I have attached the 3 years chart below:

Wow, the share price might found a strong bottom at around 2 cents, and we can see that the volume started to came in, so is it going to form an uptrend now? No one knows. So I did decided to take a look at the recent financial report. Is there any strong FA to support the price or even push the price back to where it was 3 years ago?

The recent 3Q17 report shows that the company turned the net loss from 3Q16 and 9 months 16 into net profit in FY17. The company earned 9 million in 3Q17 compared with last year net loss of 2.8 million. That sounds fantastic! The 3 months earning per share is 1.47 cents and 9 months earning per share is 2.37 cents. With current price, 9 months earning per share indicates that the share is currently trading at around 1, if 4Q result is similar with 3Q result. So is the share super undervalued?

However, we must know where did that impressive profit came from. The company recorded a super high other income in 3Q result and 9 months result. The report explained that the company actually earned such high other income by selling their disposal of No. 4 Sungei Kadut Street 2 and at 55 Kranji Crescent. Uh huh, so the impressive results were contributed by selling non current assets of the company. If we take a closer look at the report, even though the gross profit increased significantly compared with last year results, the gross profit is not that high to cover their administrative expenses! Income tax for Q3FY17 amounted to a credit of $0.3 million as compared to $0.3 million tax expense, mainly due to the reversal of tax provision in current period. The company is still in loss zone in 3Q17 even with income tax credit without the huge other incomes!

I believed that the company has not yet fully turn back into profit zone yet, but good news is the company's loan decreased from 109.8 million to 78 million, which will decrease their finance cost. The order book currently stands at approximately 157 million, which is still quite healthy. However, the debt to equity ratio still remains high and majority of the impressive total comprehensive profits came from selling the properties. I don't think current FA will support the current share price or even push it to uptrend. The company still needs to work on getting a better quality of balance sheet.

Conclusion, with current FA (quick study, not a comprehensive one), I won't chase the shares. However, if the company can produce a better balance sheet with sustainable profit, I will look back into this company again. But for now, I will choose to watch show only (:

DYODD huh.

My Investment Journal - Part 1

My Investment Journal - Part 1

Do you still remember how did you get into stock market? I always believe that the way you get into the market and your first few successful transactions especially using real fund will affect your investment style and attitude towards the stock market for very very long time. I am writing this just to share some of my mistakes I made in my early years. 

I came to know about the stock market since I was grade 8-9. I was studying in Shanghai that time as my parents worked in Shanghai since I was young. When I was in grade 8-9, almost all of my friends were using Kaixin Wang (China's Facebook), and there was a demo stock trading app. Some of my friends started to use the app so I join them, and I doubled my demo portfolio's value in about a year. 

The demo stock trading app got very basic functions only. You can't see any chart or financial data of the stock, you can't see day high or low or market depth of the stock. You can only see the price of the stock, volume of the day, buy / sell the stock, record down your transactions and create a list of your portfolio. However, the demo app is a very important door to the investment field for me, that was my first time to learn about other ways to earn income beside basic salary. 

Since I don't have access to the charts and financial data of the stocks, how do I doubled my demo portfolio's value in about a year? Basically what I do was 'trading', or you can call it speculation or gamble. I don't know anything about TA or FA during that time, I don't even know such term exists. Normally I will use about 5-10% of my portfolio per counter to buy some famous counters such as Vanke A, Bank of China, China Eastern Airline, Shanghai Airport, etc. I will sell the share if the price raises 3-5%, or average down if the price drops 3-5%. Do take note that the demo app will not charge any commission. Usually I won't hold on to any counter more than 1 week. I quickly doubled my portfolio's value by frequent trading, and I was so proud of that. I thought I found an 'ATM' and I won't have to worry about my future and my career anymore. I even did some calculation: if I can doubled my funds in a year, what I have to do is just put some money into the market and I will get rich quick, I can earned about 1 million in approximately 6 years if I put 30k into the market in the first year. That sounds fantastic, and very attractive for a secondary school kid. 

In fact I was too lucky that time. I couldn't have such performance if I have to pay commission, and during that period SSE index increased from 1.7k to 3k. So my performance should be considered as quite normal during that period. However during that year those successful 'trades' affected my attitude towards the stock market and my investment style for at least 3 years after I putted my funds into it, and I wasted so much money and time before I realised that I couldn't repeat that performance on my real account. 

Due to that 'wrong' attitude, after I opened my account with Philips few days after I turned 18, I quickly bought my first stock without any prior research. Guess which counter I bought that time... Noble Group (N21)!! I bought it for the following reasons: 1. It is always in top 30 vol list, 2. I tried to google Noble group and found that it was one of the biggest commodity trader listed on SGX. In fact I don't even know that it was part of the STI index, too be honest even I knew about it I don't understand the meaning behind it too. I remember that I bought it around 1.1 dollars (take note that this price is not adjusted for recent 10 into 1 share consolidation). After a few days the share price raised around 10%, so I sit on 4 digit profits (around 4k i think)! Wow that was fast and easy money. I don't have to do much just sit in an air-con room and earn easy big fast money. After years when I look back I realised I was actually very unfortunately to earn such profit during that time. Yes I earned such impressive profit (at least to a 18 years old guy who just graduated from high school and waiting for NS), but my trade was based on luck only, PURE LUCKY ONLY. I was lucky to earn that profit, and such luck pushed my attitude further away from the right track. I didn't know anything about TA or FA and I don't know anything about the stock market. The reason behind the price movement,  the news or announcement from the company or industry, ect. I don't know anything about these, and I don't care. Why should I care about those if I can earn fast and easy money?  If I lose 10% on that 'trade', I might be able to save more money and time as I can realised that my attitude was wrong earlier. 

After that 'trade', I was so confident that I am a genius in stock market. In the next few months I continued my 'trading' activity before I finally get caught into Noble. I bought Noble again at 1.07 dollars and I strongly believed that I could earn more than 10% from it. Why? Because there is a 10% gap between my purchase price and the price I sold before (1.2+ I think). I strongly believe that the share price will eventually recovered that level and I am able to repeat my first 'successful trade' again. Well, things don't work in that way. The share price was in a downtrend, and slowly dropped to 80 cents. OUCH! When I saw a 5 digits paper loss from my statement I stunned. Why the price will drop so much? Isn't it supposed to recover to the level I sold before? How am I able to cover such huge loss? Guess what did I do after that? I closed my webpage and didn't look back into it for about a year! I didn't cut my loss or do further research about the company and I chose to ignore current price and pray for it to go up.  

Well after a year the price slowly back to 1 dollar again, and I finally able to sell them away with small loss (in fact the price slowly went up to 1.4+ after I sold). And finally I realised that I should study more relevant theories and skills, which is another long journey.. 

Conclusion:

I don't against for using demo account before putting your money into your account. Demo account is one of the very useful way to open the door of the stock market. Alternatively putting very small amount of fund into the account and give it a try is another way to open the door too. However, I found that if there is a senpai who is willing to share his experience and guide you is also very important. What I am saying here is not trying to suggest juniors to find tips from other experienced traders or investors, but learn from their mistakes will save you alot of time and money. Why need to pay tuition fee to Mr. Market when you can learn from others for free? For me, if there was any senior who can point out my wrong attitude, I won't waste so much time and money during my early days. We should learn from others, get the right attitude and found our own style, and always respect the market, just like a sailor should always respect the sea. 

TTJ 3Q2017 Result Review

TTJ (K1Q)

I bought this company at few months ago and sold it away at 0.45 before they announced their 3Q result, as I believe that the result won't be so impressive and should align with previous quarter results. Although the share price gap up after they announced that they managed to secure more contracts, I don't think the order book will boost the revenue. 3Q result is not very good, somehow disappointed, but within my expectation. Surprisingly market didn't have big reaction after the result announced (actually I thought the price will straight away gap down). 

Let us take a look at the 3Q result. After tenure for the Terusan Lodge I expired, the company's performance is not so good. Revenue drops 69% and COGS drops only 66% so gross profit drops 75%, which indicates that the gross profit margin drops as well. Net profit drops 81% but other gains up 175%. In Note 8 the report explained that Other gains increased by 133% from $0.9 million in 3QFY2016 to $2.1 million in 3QFY2017. The increase was mainly due to the credit balance written back amounting to $1.1 million recorded by a newly acquired subsidiary. 9 months earning per share is now only 2.74 cents compared 6.56 cents from previous year. If last quarter result is similar with 3Q result, 2017 eps will be around 2.8 cents (assuming that the company won't report another 2.1 million other gains in last quarter). So the share is currently trading at PE 14.8 (today share price closed at 0.415), which didn't provide enough margin of safety to invest in the stock. 

When I read the balance sheets few questions came up into my mind. The report shows that the company got 153k of intangible assets in balance sheet. Where is it from? The company is also having more liabilities too. The finance cost increased 850% from last year. The company paid 38k interest in 3Q so I assumed that the liabilities' interest rate is around 5.2% (interest paid 38,000 divided by total secure borrowings 2,924,000 then multiply by 4). The company is also having operating cash outflow and net cash outflow in 3Q, which is not a good sign to me. Net asset value is 37.13 cents per share so the share is trading at PB 1.118. However, cash and cash equivalent stood at 79 million, which is around 22.7 cents per share! This should provide strong support for the share price (well its still far away from current price, it should be a good deal to load some shares if the price drops below 22.7, but it is very unlikely to happened). 

I like cash rich company, but if the performance is falling yet the company is still sitting on its cash, it might shows that the company can't fully utilize its assets to create value for its shareholders. I really hope that the company can do something with its cash, if not net cash outflow will slowly burn its cash away.

https://www.facebook.com/TUBInvesting/posts/934059953403434?comment_id=934146323394797&reply_comment_id=935975699878526&ref=notif&notif_t=share_reply&notif_id=1497111690193879

The above link is a post on facebook by superior investor TUB.

Currently I am not vested in this company, and I don't think I will invest in it again unless the price drops below 35 cents which will provide more margin of safety for me. DYODD huh.

May 2017 Transaction

May 2017 Transaction

Its abit late for me to upload this article.. recently very busy so don't have much time to write it..

This is the first monthly transaction record for my blog. At the moment it is still very hard to tell my performance as I don't have any long term track record before, and I just moved into value investment recently.

No.	Stock	No. of Shares	Ave.Price	CurrentPrice	MarketValue	%Portfolio
1	COMFORTDELGRO	3,800	2.53	2.4	9,120.00	8.83%
2	SIA	800	10.7	10.01	8,008.00	7.75%
3	DESIGN STUDIO	12,000	0.575	0.58	6,960.00	6.74%
4	LHT	8,000	0.755	0.7	5,600.00	5.42%
5	OCBC	400	10.4	10.49	4,196.00	4.06%
6	PEC	9,500	0.655	0.615	5,842.50	5.66%
7	PNE INDUSTRIES	5,900	1.06	1.115	6,578.50	6.37%
8	TAI SIN ELECTRIC	20,000	0.44	0.44	8,800.00	8.52%
9	TAT SENG PKG	11,000	0.575	0.59	6,490.00	6.28%
10	KEONG HONG	31,000	0.462	0.485	15,035.00	14.55%
11	CASH	-	-	-	26,674.88	25.82%
	Total	-	-	-	103,304.88	100.00%

I bought Tai Sin electric again at 0.44 for 20 lots. If you read my first post you shall know that I bought it previously at 0.395 and sold at 0.46 for 18 lots. My plan was wait for it to drop then I will purchase my shares back again as I believe that the company has a strong fundamental and cheap valuation. I missed the opportunity to buy at 0.425 in April as I was having a short vacation in Japan with my girlfriend and her family. So when I came back to Rome and saw that I missed the opportunity I quickly open my new position as I thought the share is back to up trend again. I have attached the chart below:

But the share price didn't move like what I was expecting. The company also announced the 3Q result in May. The revenue drops around 11.6% but COGS drops 14.5%, so the gross profit up. Most expenses are about the same as last year result but the company recorded a better other operating income and a higher FX loss. Net profit up abit compare with last year result. I found the result not bad but also not very good, but increase of profit margin is a good sign to me too. So I will hold the share first and wait for next few results and annual report!

I also bought Keong Hong at 0.49 for 15 lots. Previously I bought Keong Hong at 0.435 for 16. What is the reason for me to increase my stakes at higher price? I have attached Keong Hong chart below:

After Keong Hong reach its peak at 0.535 at the end of April it had a correction and the share price drops to 0.49, which is around 8% drop. Keong Hong also announced that it will acquire 60% of Hansin Timber Specialist and Trading Pte. Ltd. The total value of shares acquired by Keong Hong is 4.5 million. Keong Hong paid 3 million in cash and pay 1.5 million in new shares at an issue price of 0.585 per share! This acquisition is a good news to me, so I increased my stake at 0.49 during the correction. Unfortunately I always failed to catch bottom, and it is really hard to anticipate the share price movement. After I purchased the shares Keong Hong's correction haven't come to the end. Recent low is at 0.46.. Well as I said it is difficult to catch bottom, anyway my average price is 0.462 and I am sitting on profit now. The recent report is not so impressive, but I shall wait for next few report as the hotels and airport in Maldives is going to generate revenue for the group from June. 

I bought PEC at 0.655 for 9.5 lots. Before I purchased the shares, I didn't do a full study of the counter. I only read the previous annual report, which made me found that it is a value stock. However, I didn't read the latest quarter reports! But the good thing is after I study about this counter (which is after I bought the shares, a very noob mistake which I have no excuse and shouldn't make after 5 years experience..), I found that at least I didn't overpaid for the shares. Even though the share drops to 0.6, the 3Q PE ratio is around 19.26 at my purchase price, and full year PE should be around 13-15, which is lower than average STI PE of 16.9 from 1973 to 2010. The share also met my debt/equity ratio criteria. My main concern of the counter is the this year dividend, and future profitability. I will wait for the annual report for more details about the company operation circumstances and decide whether I still want to hold the shares or not. anyway it is less than 7% of my total portfolio. From TA point of view 0.6 is just above the 200MA. Current RSI is only 8% which is in oversold region. Hope that 200MA can be a good support. The share price is still in mid-long term uptrend. I have attached the chart below with one support line on it.. 

I bought Tat Sent Pkg at 0.575 for 11 lots. Below is the chart of the counter:

The share price up more than 70% in less than 2 years! However I don't think that the share price fully reflect the company value. I will write a more detail review on this company. However the future profit margin might be lower as the market's competition is strong. I prefer to buy this company instead of its parent company HanWell as the dividend yield is more attractive to me. Anyway the 1Q2017 result should be out soon.

I bought LHT at 0.74 for 2 lots and 0.76 for 6 lots. This is another counter with very low trading volume. I managed to get in with near 8% premium. You can see from the chart how illiquid it is. Current average 14 days trading volume is only around 4k.. which is... 4 lots... which is less than 3k SGD per day. 

However, I found that the company's business is quite stable with experienced management team. As usual the company has a low debt/ equity ratio, low PE, low PB, with good dividend yield. I planned to hold this for long time too. Very sad that I didn't found this counter earlier or I might be able to buy at 0.55+. Anyway I will be able to receive dividend and wait for Mr Market realise the value of this gem! 

I bought PNE at 1.055 for 3.1 lots and 1.065 for 2.8 lots. I wrote a review on this company few days ago. The company just went XD on 29 May (actually I thought the XD date will be on 1 June lol). I am still sitting on small profit after XD! Anyway just gonna post the chart again, if interested can go read my previous review. It is a company with healthy balance sheet and good dividend yield. 

I sold TTJ at 0.45 for 18.5 lots. The company's latest result is not very good, and the order book was drying. When I read people's comments on investingnote, I can feel that many people are pessimistic with this company. The share price was ranging between 0.39 to 0.36 since I bought it. However, on 22 May the company announced that the company lifts the order book to 166 million with new contracts! Next day the share price gap up to 0.41 and slowly climb to 0.45 in next few days. I quickly took profit as I found that people might be too optimistic to previous new contracts news. When I look at previous half year result which was delivered in March, half year revenue was 46,501,000 SGD compared with last year 54,159,000 SGD. The previous new contracts for me is a sign that the company should be able to maintain the revenue level, and I don't expect any significant improvement with the revenue. At 0.45, the PE level is around 11 if i divide the share price with 2 times previous half year earnings. I found that current share price somehow fully reflect the current company's value. So even though the share price might goes up with current strong momentum, I still decided to take profit. I might buy back again at lower price again next time. 

There are few XD in my portfolio but haven't receive the funds yet. 

That's the end of my first transaction record. Seems like sell in May doesn't work this year! Wish yall huat!