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)
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