Recent Portfolio Actions (HK Stocks Related)

In a surprise of a surprise, it took me till after CNY to actually have some changes to the portfolio albeit all of it came from the HK Side.

Divested Medialink Group Limited

Medialink Group Limited did very well in 2023, up by almost 30% as compared to the index which is up 9.4% (As of 3 Feb). This came after news that The First Slam Dunk has done very well in Hong Kong and Taiwan, 2 areas which it distributes the movie.

In English it means that Slam Dunk 's movie gross revenue is places 2nd for All-Time Japanese Anime Movies Box Office in Hong Kong. It has also broke 30 million HKD in Hong Kong. While it is estimated that it has broke 300 million twd in Taiwan or 79 million in HKD.

I find the success of the movie not a surprise at all, given that it was heavily promoted in Hong Kong and Taiwan as well as Slam Dunk being an anime that even a person that does not watch much anime like myself also know as i have seen it on channel 8 when i was young.

In fact, the management's ability to secure the distribution rights to Taiwan and Hong Kong has to be muchly accredited. Taiwan is a country which likes 2 sports the most, namely baseball and basketball.

As you can see here, the basketball stream  views for one of their leagues is at least 250k. 

This shows the general keen interest in basketball.

(The detail is the amount of crowd behind)

(The detail is the amount of crowd behind)

I have affirmed this by going down to a few games myself to experience the crowd as well in January. The crowd and all is good and it has affirmed my thoughts that The Great Slam Dunk will likely do well in Taiwan.

Why did i sell out of the company?

Well i feel that it has run up by quite a lot and it did not deserve a rapid share price increase as market cap has went up by 30 million HKD. Even though the movie gross revenue is around 110 million HKD or maybe slightly higher, the company has to also pay to acquire the rights and give a cut to the cinemas as well as incur promotional cost (e.g promoting the movie at 桃园跨年 as well as inviting some basketballers to go watch the show)

All in all, the company if it retraces back to my buying level, will tempt me back into buying it because of the solid management and their track record.

Companies Added

Justin Allen Holdings (Hkex: 1425) - Mentioned before in 1 of my previous blog post, 

Town Ray Holdings (Hkex: 1692) - Coffee Machine ODM/OEM Business is something interesting and just a purchase to see if they can continue to do well in this segment.

Miramar Hotel and Investment Co Ltd (Hkex: 71) - Had some spare cash left over as i did not fill my town ray holdings fully and as such just bought a small amount due to some idle cash left in the brokerage account.

All in all i have not decided on how long i will hold any of them.

If i had to rate my purchases based on 0 to 10 where 0 is no go based on my valuations to 10 is a must buy. Then the ratings are as such

Justin Allen 6/10

Town Ray Holdings 5.5/10

Miramar Hotel 8/10 if you do not intend to beat and index or any bloggers or any pro investors in terms of returns for 2023. 1/10 if you intend to multibag or beat the index or any competition. It falls in almost the same category as Haw Par in SGX. Though if anyone wants to see or hear a more detailed breakdown of this company, can always leave a comment below or let me know.

Conclusion:

Overall returns from Medialink Group is 45% as average price is 0.137 while my average sale price is 0.194. This is inclusive of a dividend of 0.007. Considering HSI returned around 9% since my first purchase, i guess this should be somewhat acceptable.