Tuesday, May 30, 2017

A Review Of The Recent Results Of A Comeback Kid, A Landbank Monster and A Samurai Chef

With another wave of results being released, I will be doing my 2nd review of some of the counters in my portfolio.

Read the 1st review here.

The Comeback Kid - Singhaiyi Group Ltd - Full Year 2017 Results
[No Review via Super Scorecard]

Read here for the past write up of this counter.

The reason this counter was name as  'Comeback Kid" because I bought, sold and bought this counter again over the space of 5 months.

In January, I purchase this counter in at 97 and sold some of it at 113 within 2 days due to the sudden rise. By mid-Feb, I sold all of the remaining shares of this counter at 135.

In April, I decided to repurchase this counter over 3 tranches at 120, 116 and 117. This was because based on my previous write up, I believe there are still many catalysts yet to be realised Thus, I was hoping that during the release of results, the company will be providing some catalyst to push the share price up.

However, this did not materialize and the share price went to to a maximum of only 125.

For now, my decision is to hold and average down, if necessary, as one of the main catalyst has not yet been realized in any of their past financial reports - that is the revenue and profits in "The Vales" and "City Suites" has yet to be included in any of the past reports.

The Landbank Monster - Bukit Sembawang Estates Limited Full Year 2017 Results
[Super Scorecard Result - 7 points/Just Pass]

Read here for the past write up of this counter.

This is one of my favourite counter because:
- Unlike its competitors, it has a huge landbank that are freehold and these land are stated at cost.
- Cash pile can continued to pay numerous years of dividend of 33 cents.
- Super strong balance sheet with very low liabilities.
- High free cash flow.

With the above positive pointers, despite revenue falling almost 50% and net profit falls 21%, I will continue to hold this counter.

Nevertheless, we still need to be cautious about this counters' developments. As stated in their full year financials, it is stated that "Other operating expenses increased by 81.4% as compared to FY2016 mainly due to additional allowance for foreseeable losses on development properties of $5.8million for Paterson Collection".

The Samurai Chef - Japan Food Holdings LtdFull Year 2017 Results
[Super Scorecard Result - 6 points/Fail]

Read here for the past write up of this counter.

For those that followed my blog will know that I bought this counter only on Early-April.

At that time, I was predicting better results and hopefully higher dividends. However, the company did produced better results but the dividend remains, Therefore, the share price did not really rise.

Nevertheless, it is important to note the main positive point - "...the board (“Board”) of directors of the Company (“Directors”) intends to recommend dividends of at least 50% of the Group’s audited consolidated net profits attributable to shareholders per financial year, an increase of 10% from the current target dividend payout ratio of 40%.." - of this full year results.

Therefore, I will continue to hold this counter despite the Super Scorecard Results change from pass (previously was 7 points) to fail.

In Short

As stated above, I will most probably continue to hold these 3 counters for a longer period of time or at least till 2018.

But as per stated previously in the last review, I am currently re-balancing my portfolio. Thus, I may still change my decision on a later date as I am already sitting on paper gains for the counters above.

For those who is interested in Super Scorecard, do read up on the Launch of T.U.B Circle. If you are interested to sign up, feel free to contact me.

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Pssst... I will be coming up with "The Ultimate Workshop" most probably in the last week of june. Stay tuned.

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