Since the returns continue to trend upwards, i will upload an idol photo first.
1Q = 5.02%
2Q = 32.50%
3Q = 36.24%
Earnings Season is actually mixed and i think some of my longer term holdings did contribute to the positive returns.
At some point in the quarter i was around 45% but it has retraced so i will be trying to do some frontloading of earnings to try to push the returns upwards before deciding on which core positions to add on to after more data is released
Hor Kew Results proved to be slightly better than expected, it remains to be seen if full year revenue they will be able to break 100m which will be a delight.
Engro Results also proved to be good although i believe China Cement will continue to be loss making in 2H and the investment portion is still a big unknown as it has performed well again but its hard to understand how well it would do without knowing what the unlisted equities comprises of. I think in 2H 2026 revenue might be equal or lower than 1H due to demand being on the higher end of BCA estimates as well as price is elevated due to oil price.
Having said that , the 1H results is already better than 2025 which is good enough. Hopefully management does reward shareholders with dividends and also does more outreach of the company/
Chuan Lim Results proved to be a positive surprise, i would probably say a really high outperformance given the landscape. To record a 2026 half year earnings higher than full year in 2025, when diesel prices have increased .....i believe it might not be sustainable and 2H might be lower in earnings compared to 1H. Having said that, they have not received the co-sharing subsidy yet for the diesel and it has been extended to end of 2026.
As seen from peer reclaims global who says it is possible to pass on some cost, i believe Chuan did and might be able to do moving forwards as well.
Overall Contract Value has fallen by 39.5 million but considering the revenue increase is 81.5 million, i think it is very acceptable.
The thing that would improve valuations would be the payment of a dividend. Record profit with lowered finance cost and borrowings would make it a better case for a maiden dividend payout i hope.
I would monitor to see if they can secure any bigger projects in the rest of 2026 as well as diesel prices.
Positions that i would frontload
1) Nam Lee Metal (SGX: G0I.SI)
-HDB Completion should be higher than last year
-Home Improvement Programme, number of Flats in the upgrading process is highest since 2022
-Container Segment Client cited outperformance of its own guidance this year and continued market share gain
-Management has mentioned about looking at the announcements for indicative actions before. Does the recent increase of share capital of a subsidiary for future expansion of business operations indicate good demand?
2) AV Concept (Hkex: 595)
-Price increase for Memory Products continue.
-Relative Peers has indicated higher use of Samsung Chips by China Mobile Peers in recent times compared to 6-18 months ago.
-Cost of Borrowing is still lower than 1 year ago.
-Cons would be share buyback has stopped in recent times.
-Dividends is poor and can be better
3) Karrie Intl (Hkex: 1050)
We will know if there is a profit alert some time in october but given that 1Q is 35% increase in revenue and an increase in AI related servers revenue should give higher gross profit margins
I believe this end will still increase in Q2. The only concern would be the much higher capex of 400+m compared to 200m in previous years.
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