Wednesday 30 June 2021

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


Position Changes

Reduced 900 Ifast Shares at 8.15

Added 30 000 OTS Holdings Shares at 0.34

Portfolio Commentary

As expected, June has been a rather quiet month as a whole for the portfolio. 

On one hand, companies like Hanwell and Ifast recorded slight negatives while value counters such as Powermatic Data and Tuan Sing has found some growth.

My view is that both of which are still undervalued at current prices. Although any further price appreciation could be some time away.

OTS Holdings is added as i feel that at current price, the potential growth is not well priced in and if the growth occurs then there could be further appreciation in price.

No other changes were made to the portfolio although there were 3 areas that i was looking at

1) Financials - Could have re-rating due to the chance of dividend limits being removed

2) Shipping - SGX Shipping Company are still laggards compared to regional peers

3) Electronics Manufacturing - Singapore as a relatively low covid case country would be able to respond to orders and bounce back quicker than regional peers.

Overall, i am happy with the results in 1H 2021 and I do expect returns to taper in 2H 2021.

Thursday 10 June 2021

(Short Post) OTS Holdings Limited IPO Thoughts


Will be a short post as there is only 1 million public shares available for application. 

As such the allocation could be a disaster (similar to Econ Healthcare)


1) Good Revenue Growth that is driven by gain in profits

Being a food manufactuer company, improving margins is important. As such, the company has done well improving its margins from 2019 to 2020. This has further improved in 1H 2021. As such, if the company does sustain its growth, it does not look expensive at all given a forward IPO PE of around 7.5 not accounting IPO Expenses.

2) Malaysia Growth Segment and Incentive to Manager is via profits.

Looking at the revenue segment by country, one can identify quickly that the expansion in Malaysia is the reason for the growth in profits.
From 1.4m in 2018 to 2.3m in 2019 to 7.4m in 2020, this growth trajectory itself is pretty impressive. However in 1H 2021, it has grown to 7.5m which has overtaken the whole of 2020. As such, while it is hard to assess the extent of growth it can have, it seems like they have done very well for a company entering a newer market.

On a closer look, Mr Teh the general manager of its Malaysia segment will be paid 10% of profit before tax as a performance incentive based on the Malaysia operations. This incentive does not count for 1 off fair value gains in investments and properties. As such, he is incentivized to deliver higher profits and as such enjoy higher bonuses. From the early signs, I would say he is paid well and he deserves to be paid well as he has done really well in Malaysia since the entry into the market in Mid 2017.


1) The company made 2.9m profits in 1H 2021 and 2H 2021 should be a better half as usually 2H would be better than 1H. As such it makes little sense to be listing and raising a net amount of around 6 million.

2) As the company is involved in the productions of canned foods, the company does face price wars from its competitors and as such it does not have the ability to pass on price increases as well if its competitors does not. This meant that any improvements in margins have to be via production improvements and improving revenue.


Its hard to find reasons listing such a good company. On paper it looks like a decently priced company that could be a multi bagger should it show good growth. Given by how Malaysia has been a success, one wonders if Indonesia and Philippines be half as successful, the growth would be tremendous. 

To add on to that, Malaysia has a larger population and such canned food would be a choice during Covid times. As such, while it is hard to estimate the revenue growth, its safe to say that the demand for canned food will remain to be strong.

Given by how low the public share offering is, probably buying from the opening market would be ideal if the price offers a reasonable PE. Its one of the IPO shares that I would not mind holding post IPO.