3 Volatile Semiconductor Distributor Stocks listed in HKEX

Today is a down day so its a good time to talk about 3 volatile semiconductor distributor stocks listed in HKEX Today.

They are AV Concept (Hkex: 595) , S.A.S Dragon (Hkex: 1184) and Smart-Core Holdings (Hkex: 2166)

The reason i have labelled them as volatile is because of their recent price fluctuations in the past month.

However, it is worth looking at them as this is after all the year of the semiconductor.

1. AV Concept (Hkex: 595)

Lowest Price in the past month : 0.55

Highest Price in the past month : 2.00

Current Price: 1.19 (Up 116% from lowest and Down 40.5% from highest)

What makes AV Concept attractive?

1) It is a distributor for Samsung Semiconductor. Mainly with 2 lines of business.

Singapore Distribution: Involved in Memory Components. With its past result ending in 30 Sept 2025, it has not reflect the recent increase in memory prices from Oct 2025 to March 2026.

Meaning, the earnings potential from this multi year loss making segment is hard to estimate and it could be really good.

China Mobile Market Distribution:

A multi-year cash cow, in 1H 2025, it has performed better despite a huge decrease in revenue and drop in gross profit of 68 million, it has increased profit by 10.3 million thru better cost control and lower finance cost.

As this portion is worth $1.74 per share on the books.

This means that the company is still trading at below book value. Any potential value can come in increased dividend distribution from the joint venture or improved gross profit through pricing. 

Reading Q4 25 and Q1 26 Mobile Sales in China, it is definitely down but the company has proven to perform better in a lower revenue environment which is encouraging.

Adding to the potential turnaround in its Singapore Semiconductor Distributor Segment, it makes the profit this time around a high likely chance to be good.

The recent volatility is because folks find its association to memory segment by being a distributor of Samsung Memory.

Predicting its earnings. I think its China Mobile Market Distribution segment will perform similar so i would estimate 98m. 

For its semiconductor distribution, i anticipate around 2x of revenue and margins of 4%.

I think 12 cents of EPS is being conservative. The tough thing to estimate is its semiconductor distribution segment as this scenario is a 'first time happening' and it is difficult to use other companies to gauge as other companies have been profitable all the time.

If the distribution part booms even higher revenue and margins, any amount is possible. For example gross margin of 6% + 4x revenue will lead to EPS of 16 cents.

Why i would want to consider this company

- 'One in a life time' opportunity

- First of the 3 companies to report results 

- Has not reflect the upside of Memory Price Increase from Oct 25 to Dec 25

Why i would not want to consider this company

- Still 100% higher from lows.

- Singapore Distribution Arm Turnaround hard to estimate

- Book Value might not get its value realised and folks might trade it down if memory earnings turns out to be lower than market expected.

2. S.A.S Dragon (Hkex: 1184)

Lowest Price in the past month : 4.81

Highest Price in the past month : 6.85

Current Price: 6.05 (Up 25.7% from lowest and Down 11.6% from highest)

A top 11 Semiconductor Distributor Company, largest in HK.

Its main clients include Sharp , Foxconn , SK Hynix and Toshiba. It is also sole distributor of Sharp Products in Hong Kong.

What makes S.A.S Dragon attractive.

1. Relatively Stable EPS and Dividends.

Compared to most of its peers, EPS in the past 5 years have ranged from 64 cents to 114 cents.

Dividends have been paid in the past 5 years too. A positive increase in net asset value year on year shows its ability to stay relevant amidst semiconductor down turns in 2022,2023.

2. Large Enough to Benefit from Market Trends

Fellow Taiwan Semiconductor Distributors have recorded double digit increase in revenue in 1Q 2026.

WPG Holdings (1Q 26 Revenue up 27%)

WT Microelectronics (1Q 26 Revenue up 99%)

EDOM Technology (1Q 26 Revenue up 17%)

3. Indicated a positive trend from Q4.

It has SK Hynix as its supplier as well.

4. Hon Hai as a shareholder

While revenue contribution from Hon Hai is not huge, it is also worth noting that Hon Hai has guided for a stronger Q2 2026 compared to Q1 2026.

Q1 2026 Revenue has outperformed Q1 2025 by 29%.

Why I don't like this company

1. Revenue does not provide a breakdown to how much is memory / semiconductor / electrical components

2. Business includes Sharp and Kyocera Office Products like Printers.

Not exactly super attractive to semiconductor trends or erm the AI Trend.

3. Gross Profit Margin Falling

From its peak in 1H 2023 (7.55%) , its gross profit margin in 2H 2025 is 4.19%. It shows that the distributorship business despite keeping up with the product line, has eroding margins. To be fair, its not a blue ocean business.

Food for thought. 

2H 2025 Revenue is 42% higher than 1H 2025 and 27% higher than 2H 2024.

It also is the second highest half year revenue since 2021 2H. The fun fact is its taiwan listed distributors erm all have higher revenue in 2025 2H when compared to 2021 2H so while it has maintained its top 12 position, it has slided in rankings since 2021.

3. Smart-Core Holdings (Hkex: 2166)

Lowest Price in the past month : 2.75

Highest Price in the past month : 5.12

Current Price: 4.26 (Up 54% from lowest and Down 20% from highest)

A company that does distribution for Mediatek , Nanya , Kioxia, Yangtze Memory.

What i like about this company

1. Memory Revenue increase seen in 2H 2025 

Revenue increase from 0.553m in 1H 2025 to 1.35m in 2H 2025.

2. Guidance Given from Suppliers.

Mediatek guided for double digit revenue increase in its smart device platform

Nanya recording huge increase in revenue in 1st 4 months of 2026. Higher than Q4 2025.

Kioxia giving good 1Q 2026 guidance as well.

3. Associate (Quiksol) that does memory distribution as well. Did well in 2025.

It is a company based in Singapore that does memory distribution.

What i don't like about the company

1. Margins decline in 2H 2025

2. Shift in Dividend Policy

It was changed from 15% to 50% in 2025 and it was quickly changed back again in 2026.

Fun fact

In this interview with the Quiksol Global CEO in 2025 December, he mentioned Q4 profits is super high and distributors are all happy. Smart Core was trading at 2.03 then.

If i had to rank in terms of results potential, it would be smart core > sas dragon > av concept.

In terms of book value, i would think it is definitely av concept.

In terms of safer investment and dividend track record, i would think it is sas dragon.

In terms of earnings potential, i would think it is smart core.

If i had to make a guess for Smart-Core 1H 2026 earnings, based on current data, i believe it would be at least 40 cents which is at least 50% higher than 2H 2025 and close to 4x of 1H 2025.

(April 2026 Results) How i would invest in the singapore stock market if i had 100k of spare money

 

April 2026 Returns: 7.68%

Year to Date Returns: 9.82%

Since Inception (9 Sept 2020) Returns: 418.33%

Most stocks rebound in AGM Season. I have written about my thoughts on some of the AGMs in the previous post.

The 2 that i went today (30 April) is Hor Kew and Uni-Asia Group. Overall Hor Kew is fine so i will not be making changes to the position. But 1H 2026 might underperform 1H 2025.

There will be changes to the portfolio for sure. Changes are as follows.

Engro - I like the cement business and its main growth segments. Although the investment side , equity is likely to be volatile due to the huge gains seen in 2025. Venture Capital remains a very underappreciated side of the business. Overall valuation of investments is a 25% fair value discount by accounting methods also provide even more under value. 

Intl Cement - Cement Demand in Central Asia might surprise with a strong housing trend there and Kazakhstan being an oil producer.

Trek 2000 Intl - The associate produced good results in 2H 25 and is part of the china chip storage sector. Reversal of Inventory and better gross profit is also seen. These might bode well for 2026.

Wee Hur - A higher exposure to workers dormitory compared to Centurion. Construction turnaround will be very very key in its 1H 26 Results.

Attended AGM. Thoughts Round Up (Sutl , Wee Hur , Engro, Info-Tech, PSC, Tat Seng)

I figured that it would be too long to write it in the monthly imaginary portfolio post so i will just write my thoughts here.

SUTL Enterprise (SGX: BHU) - Much of the question is on the acquisition

Management mentioned that the 1.2m net profit for the acquisition is an approximate figure due to approximation of depreciation and the 4m ebitda is a more accurate figure of the performance for past 3 years. The lease which ends in 11-12 years for the shore and berth in the acquisition has to be renegotiated with SLA closer to the date.

Valuation of the acquisition is actually not done. Some examples of the improved benefits of acquisition will be the reduction in number of management staff for both marinas.

Dialogue with CCS over acquisition is on going and as such not ideal to reveal too much.

As for its sentosa membership, it expires with the lease in 2034. Of course they would want to extend and are also going to discuss with Sentosa closer to the date.

In terms of overseas expansion, it is a general view to encourage more owners to go for boating activities.

Phuket Partial Opening expected in Q1 2027. It has around 100 berth.

My view on this company still remains pretty stable. 

Near term will be how much boating activities they can attract as well as how well Sentosa attracts tourist such that short term tourist might want to stay at their hotel.

Mid term, i don't feel the acquisition would be a problem. 10x Ebitda is probably fair value. 

Longer Term - The renewal of Sentosa Lease if done will probably be a new catalyst as membership will be renewed and folks will have to pay a new round of it. Though even if it does, you will have to wait till 2035 to see the first meaningful contribution to the balance sheet. This is not just longer term but long long longer term.

Number of Shareholders Present: Probably around 30-50

TMI (Too Much Info): Interacted with an investingnote user and also happened to know that an analyst from a single family office was also present at the agm.

Tat Seng (SGX: T12) 

Overcapacity still remains in China. According to management, land value in China and SG owned by Tat Seng is not meaningfully higher than its value on the balance sheet. They also have no huge capital requirements which is why the special dividend is declared

My view is that i think there is a good chance the company will either be sold or it will just become a cash cow where the payout is good. However, the packaging industry still remains tough.

Number of Shareholders Present: Probably around 6-8.

TMI: Retail Shareholders were happy as they did not sell during the GO last year as the share price went up.

PSC Corporation (SGX: DMO)

Much of the attention is towards the Cash declared by Tat Seng and how it will be used. The general vibe given by the board is that after the cash is paid out, it will be assessed again but to give a special dividend of 1 cent should not be a problem.

My view: I think privatisation is one of the options but if not , to pay out slightly more dividend is not a problem and highly plausible. If you ask me in the next 3 years, will the share price + dividends obtained be higher than the current trading price of 47 cents, it is possible. 

But if it is able to deliver 100% returns, i would highly doubt so. 

On the contrary, i doubt returns will fall by over 30% (downside limited).

TMI: I saw one of the investors who most people have told me is very astute and relatively young yet rich. But he did not ask any questions.

Number of Shareholders Present: Quite a lot due to the goodie bag. At least 30.

Wee Hur (SGX: E3B)

1 Hour Presentation by the CIO. Followed by buffet which is delicious. 

The presentation revolved around their Australia Strategy and Singapore Strategy. 

The main highlight is their interest in Australia Land where they purchase and seek to get development approval which will open up options and improve valuations. In Singapore, their construction orderbook is at record high but they are keen to pick up 2-3 more projects. As for dormitory , they are still on the lookout to add more dormitories and will look to participate in tenders.

Q&A revolves around Construction Projects and Dormitory Price and Renewal

Construction Projects. Won last year have been largely sub tendered out.

Dorm Price. Pioneer - 500 to 550 and 75% occupancy . Tuas - 500 and 90% occupancy . Usually 3 months before will have an idea if the tenure can be extended.

My view. This year should be the megazoid year as the 2 dormitories start to run and construction finally pick up. Is that enough to make up the core earnings some brokerages have estimated? Can they deliver satisfactory construction margins amidst the increase in cost of Oil? Will alternative investments which has increased in scale surprise? These are some thoughts that needs to be think about which would really decide if this is a 50 cents or $1 stock when results come out in August. 

TMI: The uncles around my table seems to be happy with this company.

Shareholder Turnout: I would say 30-50 

Info-Tech (SGX: ITS)

Much of the Q&A revolved around the traction of its Saas and Academy.

For the Saas segment in Singapore, high single digit growth should be possible if current momentum seen in 1Q 2026 continue. 

For the Saas segment in Malaysia, double digit is the figure seen in past years and a possible indicator if momentum continues.

Following the expansion of academy last year, there has been no plans to expand it further. Management did not reveal what their target is for 2026. 1Q 2026 is higher than 1Q 2025 signups but management emphasised that Q4 2025 was very strong due to individual signups.

'There is still 9 months more to catch up'

My view: Kept 100 and Sold out my remaining shares before the AGM ended.

TMI: Had a chat with another shareholder who is a SME Boss that uses their products and also asked some questions during the AGM. He thinks their product is sticky and his concern would be the general outlook of economy e.g F&B companies shutting down and not using their services. 

My views are on whether the earnings driven by academy is sustainable and whether as a whole, it is worth this PE which is 17?

We both agreed that the CEO is well versed and knows his stuff.

Shareholder Turnout: I would say 15-30 

Engro (SGX: S44)

Among the stocks mentioned here, i hold the most in this. Naturally, this one would be the most important for myself.

At age of 79, the chairman carried himself well. To the surprise of many retail shareholders including myself.

The AGM Questions are mainly on its liquidity, dividend, share buyback, invester coverage and business prospects.

Share is too illquid and dividend is relatively low given the good earnings in 2025. Urged management to engage more with investors to increase coverage of the company. Also to engage in bonus issue or share buyback.

The reply is that they are still expanding and would need the cash pile. Buybacks are not worth it due to the lack of liquidity.

Most of the replies are done by the company's management (Group Financial Controller, Chief Operating Officer and General Manager)

General Manager explained the polymer segment well. They have raw materials enough for Q2 but if higher oil price persist, its not beneficial for them. Contrary to popular beliefs that oil price is good for polymer, the dynamics has changed a lot in the past years post covid.

Higher Price but the volume is usually low. Volume high but price is low. At the end of day, higher volume is still important . As such at such high prices, demand and production might be low and actually is negative for the company.

Group Financial Controller confirmed that their investments segment is valued at 25% discount rate due to restrictions in exiting equities and venture capital. Also highlighted the importance of choosing a fund manager and the chairman added that the company have been into these venture capital investments for around 30 years.

Lastly, the chief operating officer did share about some of their developments and is optimistic that capacity is higher this year than last year as some came into operation last year and are not fully operational yet. Also cited an example of how important upstream and downstream cement operation is. For example, to make RMC, there is a requirement to have silos so that downstream can make use of them. If unable to secure silo space to store cement, this will affect delivery capcity. Still looking to expand is the key takeaway i remembered.

Chairman added that they are involved in T5, are a leading geo technique supplier, active in Johor and 2nd in rmc in Johor. 'Prospect is Bright'

My View: Overall, i am satisfactory with the agm replies and the interactions and replies of management. Having said that, i am still awaiting for them to post the announcement to reply to the questions that were sent to them before the agm. I have mentioned in my previous post that the company is undervalued and i still maintain the same view.

TMI: Exchanged Contact with a fellow shareholder who is sophiscated and asked really good questions during the AGM. Turns out we have a fellow friend in the form of Investment Moat. Largely appreciative that the fellow shareholder reads my blog too. 

Time for some Jokes.

Me When i take photo of K-Pop Idols (tries even harder than my investing)

Me When i take photos of management at AGM (??? what am i taking)

Q1 2026 Portfolio Returns - 5.02%

 

(I love to talk about my returns when they are bad because it is when its fun and reality is not every year is good)

Positives

-5.02% is higher than HSI Returns

-Some short term flipping positions are positive and worked well (Metasurface, XMH, IGG, AV Concept)

- Current Cash position of at least 15% represents opportunity to fire.

Negatives

-Returns lack behind STI (Better off buying STI)

-Sg Stocks Returns Negative 

-Top 3 Positions in SGX performance unsatisfactory thus far (Nam Lee 5% YTD. Hor Kew down 10+%. Infinity Dev Flat.

-Certain Positions remain Illiquid

-Front Loaded Hor Kew ahead of results backfired.

Thoughts on 1Q 26

-Flipping Short Term Holdings saved the portfolio. It makes me wonder if i should allocate a larger portion to this.

Positions Review (From largest holding to smallest holding)

1) Infinity Development - Export of Footwear remain positive in Indonesia and Vietnam. Albeit dropping from double digits to single digit. Largest Customer (Yue Yuen) has signaled some shipment woes but Infinity's top customer share has fallen to 19.7% in recent FY compared to 24% in FY 2022. On the more global end, running shoes remain their double digit growth. Seen in Adidas performance and Nike Running

As a whole, i think -10% to +10% revenue growth is likely the case for the upcoming results. Any larger increase / decrease will be how they are able to capture market share.

Margins as a whole should be fine as the oil price increase came in only in March. It might be worth to take a look at their inventory to see if there is any significant increase.

Ending off, the company surprised with a share buyback of 2% issued shares that is at a price of 2.43 to 2.53 HKD. From a corporate finance point of view, this makes 0 sense. The dual listing price is 2.32 HKD. The SG shares are traded cheaper than the buyback price.

They could have bought it cheaper in the sgx but yea.

The total amount used in share buyback is like 2.62 million SGD. If used in sgx, they could buy 6.6 million shares.

This should create a short term floor for the stock. It seems like whenever the drop in HK fell to 2.4x level, the invisible buyback hand strikes. Still, all eyes on the result in May

2) Hor Kew - Will await the AGM (likely April) before deciding if any reduction in stake is required.

3) Chuan Holdings - Illiquid + Lack of Dividends. 3.3 PE. Better 2H Profits (12.8M) vs 1H (6.1M) , 24% Earthworks Segment Margin (highest revenue source) an improvement from 2H 24 (18.28%) and 1H 25 (20.81%) Order book of around 2-3 years. Reduced Gearing. I think its cool to see if they can build on the better earthwork margins in 2H 25. Although orderbook of 415m is a reduction from 1H 25 of 453m and 427m in 2H 24, they have won a 36m project in Jan 2026. This improves the orderbook back up. Staff increase from 654 in 1H 25 to 724 in 2H 25 is also a possible show of increase of demand.

4) Nam Lee Metal - I am actually keen to add more on this stock given the retracement to levels seen at the start of the year. I believe 1H 2025 will be strong as seen in Vicplas Pipe Segment. I did not see any news that might affect them (which is why i am puzzled with the decrease to a 6x PE). 

5) Engro - Just deep undervalued play compared to Pan United in terms of earnings. VC Funds related to AI has surprised in 2025 and remains to be seen if it will surprise again in 2026. Negatives will be its bleeding China Operations that mask the profitability of the company. Will review again after AGM in April (Likely).

6) Solis Holding - Illiquid + Lack of Dividends. 

Apart from that, the company is turning around in its financials. 

Other Income mainly came from their Joint Venture Management Fee. It is a JV Project for a 139.75 million which will end in Sept 2026.

Revenue in 2026 is expected to be 4 times of 2025. They won 2 LTA Projects in April 2025 which led to the maintenance revenue increasing. They followed up with some wins as overall revenue in 1 year improved to 78m at 2H 25 vs 1H 25.

Coupled with the JV Project wrapping up, it is likely that their best profitability will come in 1H 2026 / 2H 2026

Current Market Cap is 228.9M HKD.

NAV is 438.3M HKD.

Coupled with possibly record profitability in 2026 and 2027/2028 order books looking healthy, it looks too undervalued to me.

In Ever Glory's recent corporate seminar , they also acknowledged Solis as a competitor in some M&E Segments such as LTA Projects (this reduces their possibility of being a fake company)

A Check on Gebiz also reaffirms as they are one of the bidders in recent projects.

In terms of balance sheet, currently the financial assets + cash is close to the total liabilities and covered the current liabilities.

Add to the recent announcement of a possible disposal of property (slated to be completed in 2027) at $21m SGD. This will make the company more cash rich.

Review of top 5 stocks that i think will do well vs not do well.

Do Well (Post can be found here)

Nagacorp - Q4 is really bad actually. The revenue came down much to a negative surprise. I believe the dip in share price is a result of this. As tourism numbers are quarterly, we will only know 1Q 2026 in 1-2 months.

San Mig Brew- 2H 25 is operationally profitable. Turned around from 2H 24 losses. Cash Rich, conservative 30% payout. Nothing to be unhappy about the results.

Perennial Intl - 2H 25 was weaker than 1H 25 as expected due to frontloading. Way below book value and has good cash vs liabilities.

Chuan Holdings - I have wrote about it above so not writing again.

Mainland Headwear- Positive Earnings Announcement as expected. Orders Guided to be 30% higher in 2026 so we will have to see if it really happens. 

Not Do Well (Post can be found here)

Not going to talk too much about this cause its not like there is shorting to be done.

At least by avoiding this list, the hit rate is 75%