Some stocks retraced from their highs while some companies reported bad results. This has resulted in a negative return in August.
Will be going over the results of companies in the portfolio briefly before stating the changes.
Engro - Results good but feels like too much pre pumping in July lead to the dump in August. Otherwise, i see nothing wrong with the results which point to the cement business being undervalued compared to peers. The question will be what the mystery equities securities contains which doubled in 1H 2026. Not accounting that, cement business in 1H 2026 earning more than FY 2025 is laudable.
Grade: A-
Serial System: Perhaps the jump in revenue and earnings is not what i expected when i see Serial System vs some of the HK Counterparts that i thought are close competitors.
Grade: F
Hong Leong Asia: Ability to pass cost over and maintain segment margins in building materials as well as engines performing as expected.
Grade: B-
Hor Kew: Delivered above expectations in terms of revenue and other income. Increase in revenue is more than expected as i was expecting 40-50m in 1H. It remains to be seen in 2H would see the momentum carry on because it is around 4 PE if it does. Margins wise, came in at the low end of around 30% which was what i was told 30%-40% so its acceptable. Was expecting more impact to the bottomline but the higher topline covered for it.
Illquid trading quantity remains an issue so probably current trading price is not a price most can divest at.
Grade B+
Haw Par: Nothing much to comment about since there is no dividend cut amidst absence of special dividend. Deep value remains.
Grade: NA
Wee Hur: Overall Construction turned around, but seems like moving forwards margin of construction might shrink as all eyes remain focused on the dorm extension and Australia Land Development. Nothing to shout about but nothing to worry about because the dorm extension concern is not a new issue.
Grade: C+
Intl Cement: Results is good actually, maintaining 2H 25 revenue in a lull period of 1H 26. Of course appreciation of the tengy against usd as well as inflation and building demand being stronger helped.
Comments about potential entrants in 2028 and driving of price down might result in some fears. But being a penny, i think people were frying the results which resulted in a huge swing intermonth. Looking from end of July to end of August, it seemed as though nothing happened.
Grade: C+
Uni-Asia Group: As expected, return to earnings in dry bulk sector with 2H 26 looking to be much better than 1H 26.
Grade: C+
With that being said, will make some changes to the portfolio.
Remove: Serial System
Cut: XMH
Add: Engro , Nam Lee Metal
New Initiation: Lum Chang , Soon Lian
Serial System is not the same type of companies i expected from its HK Peers so it is removed
Nam Lee Metal is part of frontloading,
Engro is because it has produced good financials and it has fallen since results release.
XMH is a cut after attending the AGM where i did not feel it would outperform.
Soon Lian looks cheap on a precision engineering play on semiconductor.
Lum Chang results did well so will initiate a small position and monitor the agm as well as upcoming updates before deciding if a larger position is needed.
No comments:
Post a Comment