May 2021 Returns: 9.59% (Returns driven by Tuan Sing, Ifast and Propnex)
Year to Date Returns: 49.58%
% Change since 9 September 2020 (Inception): 65.10%
Year to Date the STI ETF returned about 11.97%
Thoughts on Current Portfolio
Results Release of KSH and Powermatic Data
-Satisfactory Results. Good Growth on Revenue. Dividend declared however remains on the low side.
-Worth noting that the company has an unprecedented level of inventory that is highest among the past few years. While if that signals an uptick in demand in the upcoming months it remains to be seen. In previous results this trend seems to have held.
-Macro trend of weakening of USD affects the company
-Setting up a subsidiary for its property rental segment. Signaling a disposal?
-Fair Value for Property Increased, a good sign for book value.
-'In recent days, a major European Union member country have applied our latest 11x (Wi-Fi 6) products to a public project This project is ongoing since FY2021 and into FY2022. It has made material contributions to both financial period's revenue and profitability. These developments will contribute to both revenue and profitability' This could signal a good FY 2022 and following which more projects using powermatic products?
Conclusion: Would still remain in the portfolio, adding more to the position would not be a bad option for consideration. Especially its one of the times whereby the prospects look rosy in its commentary.
-Took a 12.8 million fair value loss. Resulting in a loss.
-However, it has not taken in any potential qualifying claims from cost-sharing relief under COVID-19 (Temporary Measures) Act 2020 for existing construction projects. Future claims would be offset against cost which would mean a better margin hopefully
-Considering the backdrop of a circuit breaker, the company has been resilient
-Gaobeidian in early days. 500+ units sold across a targeted amount of around 50 000 units in the whole project
-Order book increased from $472 million in 2020 to $620 million in 2021
Conclusion: Would still remain in the portfolio, but would want to see more sg property projects associates and joint ventures moving forward. The long term thesis of Gaobeidian still exist.