Changes Made (Please see below)
Hong Leong Finance - Too slow moving and not reactive to rate hikes
OTS Holdings - Results and FA Research did not seem to fit.
Yanlord Land - Precautionary rotation to prevent any further impact from China Property Saga that is likely to unravel in January and onwards as bond expires.
Q&M Dental - Covid Play, Trace, Test, Vaccinate Policy in Singapore. Q&M Dental with its recent approval via Acumen now can offer pcr testing up to 100 sites in Singapore hence testing will likely play a bigger part in top and bottom-line. My view is that covid is unlikely to go away as well in 2022.
TC Auto - Inflation play and a play on demand will increase when chip shortage is slowly alleviated. Valuation cheaper than Hkex listed peers.
Straco - As i picked a Covid Play, i decided to pick Straco as it is a domestic re-opening play and it has traded at a price below the lows of 2020 March. With 3Q 21 results coming in at 4 million profit. Assuming a 16 million profit, 74 million of net cash, market cap of 383 million currently, this implies a PE of 20. Not cheap, but i believe it is hard to base off the profits at this level as with covid it is hard to estimate a consistent PE.
However, i believe that conditions should improve subsequently. In the event it does not, at least it would mean that Q&M would likely do well due to more testing.
Overall target for the portfolio to return 20% in 2022.