Saturday, February 27, 2016

TTJ Holdings Ltd - Another Long Overdue Update

Another reader was requesting an update on TTJ Holdings Ltd. So here is the overdue post on TTJ Holdings Ltd...

Please read the previous post for more information first on 28 Sep 2015.

Based on the Triple S Scorecard:


Although I suffered paper losses, but...

1. Cash is King - The company is still loaded with cash. As usual, having cash is important especially during period of downturn.

2. Order Book - For a construction firm, order book is important. Currently the company has an order book of $126 million with completion up till FY'18. 

3. Able to Maintain Net Profit Margin - If you look closer at the profit margin breakdown above, the company is able to maintain it at 10% for the last 5 years. This is spectacular for a construction company, especially during these down times.

4. Future Projects - With so many infrastructure projects coming up, the company may have the possibility of getting more projects in future. Thus, increasing their order book in future.

5. Pass Triple S Scorecard - Based on the current lower price, the company still passes the Triple S Scorecard with flying colours.

What are the question marks? 

Unable to Keep up the Dividend - The company most probably will not be able to keep up the 8 cents dividend. It should dropped back to "normal" for FY'16. In addition, Cash will be greatly reduced after the 8 cents dividend was paid up. How much will be left? 

"Cash Cow" Dormitory Gone! - The dormitory leasehold will be up in Jan 2017. Revenue may dropped after that. Is the order book able to hold up the profit margin and revenue? 

In Short

Dividend to drop or Revenue to drop or Profit to drop - any single result may cause the share price to drop between 2016 to 2017.

As usual, my view on this company is that - if you intend to invest now, it is a good time. But go slow and add slow.

I may consider to add more if the price remains at 0.255 or dropped further. A point to note is that after the 8 cents dividend, the NCAV price should be $0.235.

Current Price: 0.255 as of 27 Feb 2016

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company.

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

As for the online course, its on! Contact me if you are interested. Furthermore, we are thinking of changing it into a full fledge course (still in the mist of preparing).

Do like our facebook page too...

Thursday, February 25, 2016

Chuan Hup Holding Ltd - An Overdue Update

It has been a long long time since I did any update on Chuan Hup Holding Ltd.

The last post was dated 13 September 2015.

I will not be long winded and talk about Chuan Hup Holding Ltd (Please read through the previous post).

Based on the Triple S Scorecard:



Although I suffered paper losses, but...

1. Still very rich - The Group still has $93.442 Million in cash. Note that although most of the cash is still with PCI Ltd, but Chuan Hup Holding Ltd can request for high dividend from PCI Ltd. The Group also has investment securities, which can be easily converted to cash. During this downturn, the Group can also utilized the cash and purchase many undervalue assets.

2. Pass Triple S Scorecard - The Group still pass the Triple S Scorecard with flying colours. Based on the current lower price, it fares even better.

3. Dividend of 1 cent - We should still expect a fixed dividend of at least 1 cents from the Group. Although this is just 3.7% of dividend yield, but its still a good yield in this downturn. Hopefully the company will announce at least another 1 cent of special dividend!

4. No borrowings - The Group totally has no borrowings! 

What are the question marks?

1. Australia Property - Having 18% of direct equity stake in Finbar Group Limited, the Group is heavily involved in Australia Property Industry (esp Perth). Australia Property Industry seems to be on a downhill from a VERY HIGH PEAK. If this happens, there maybe some losses from Finbar Group Limited that the Group need to be accounted for and FY16 income statement may present losses.

2. Investment Securities - What are the Investment Securities that the company is vested in? That is always the question in my head. Without knowing, I will not be able to know how much of the balance sheet maybe affected by the world news.

In Short

Please expect the Group to suffer losses in FY'16 due to possible fair value loss from the investment securities and possible provision on the Development Properties on the balance sheet. 

Nevertheless, I believe the current price is still a steal. Somehow I have a feel that this Group could be a very slow pace "Berkshire Hathaway" within the SGX - the best investment firm in the exchange. BUT PLEASE GO SLOW and ADD SLOWLY. 

Expect the share price to continue to go downhill. Once the bull returns, the stock should rises significantly. If it doesn't, you still have the dividend

I will not be adding any of the shares at this point as I believe I am vest enough in this Group. However if it falls below its NCAV price of 0.236, I may consider.

Current Price: 0.270 as of 25 Feb 2016

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company.

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

As for the online course, its on! Contact me if you are interested. Furthermore, we are thinking of changing it into a full fledge course (still in the mist of preparing).

Do like our facebook page too...

Wednesday, February 24, 2016

BBR Holdings (S) Ltd - Full Year Results Out

This will just be an extremely short post.

In addition to the previous post, BBR Holdings (S) Ltd just announced their full year results.

- Revenue dropped considerably.

- Net Profit dropped significantly.

- Dividend dropped half.

 - And also hearsay "the company sold their leasehold property at a low price and buy back at high price"...

However I am vested in this company due to its discount to net asset value.

Current Price: 0.161 as of 21 Feb 2016

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at 0.165.

Sunday, February 21, 2016

TalkMed Group Ltd - An Amazing Net Profit Generator

After writing about BBR Holding (S) Ltd, I got a request from a friend to review on TalkMed Group Ltd.

He said it was my "kinda" of company.

Thus, I look at its latest financial report and it got me interested.

Profile In Short

TalkMed Group Limited is mainly involved in providing cancer related medical services and operates a network of 8 clinics in Singapore.

Recently it has collaboration with overseas companies (Hong Kong) to expand their services and also went into Stem Cell and Stem Cord services.

(At this point, I am already at "WOW"!)

Based on Triple S Scorecard:

It failed - despite showing that it had a strong balance sheet and good earnings ability. This is most probably due to the price being too high.




Why So Good?

Medical Services - The company mainly provides medical services and research mainly related to cancer. This business is very lucrative and you should understand why.

High Net Profit Margin and Strong Balance Sheet - The company shows its earning ability (net profit is consistently higher than 50%) and balance sheet strength (very low liabilities) as per Triple S Scorecard.

Expansion into Stem Cell and Stem Cord - If you understand cancer as an illness, it is mainly due to bad cells in the body (I think). By creating new cells to replace the bad cells, a patient may get better (I am not a doctor and these are just my assumptions....correct me if I am wrong.)

Why So Bad?

Rise since IPO Price - The company has rise over 400% in 1 day since IPO price of 20 cents. On what basis did those people have at that time? At 0.870, the price is still significantly higher than the IPO price of 0.20. Another question arises - Why did the placement price during IPO at 20 cents only? Is there something we don't know?

Lock Up Period Over - The end of the lock up period for 110,400,000 shares of TalkMed Group Limited is at 30 Jan 2016. This is about 16% of the outstanding number of shares the company has. After the lock up period, the shares started coming down. Is there any insider selling?



Cost Deeply Related To Remuneration Of Doctors - One of the major cost of the company is the Remuneration of the Doctors. If one day, one of the main doctors request for an extensive pay rise, the company will not be able to reject them. 

Company Deeply Related With Reputation Of Doctors - What happens if the reputation of the main doctor is in question? As per reported in SGX Announcement, there was an inquiry on Dr. Ang Peng Tiam in May 2015. 

Expansion "Too Fast Too Furious" - In 2015, the company has expanded overseas, collaterated with other cancer centres and went into stem cell and stem cord. Will the company be able to handle these businesses and if the company have enough man-power to handle them as well? In addition, how will these additional cost impact their Income Statement? Will the cost escalated faster than the Revenue?

In Short   

I am really interested in this business and company. The business environment has been right as well. However, if you read into my analysis, other than failing the Triple S Scorecard, there are too many questions that remained unanswered. The company has only been listed for 1 year plus and does not have much historical records to really justify the current "still" very high price.

Look at the SGX, how many listed medical provider (Other than Raffles Medical) actually went on and become a good company that rewards shareholders eventually?


Current Price: 0.87 as of 21 Feb 2016

Please do your own due diligence before you invest in this stock.

Do note the author is NOT vested in this stock/company.

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

As for the online course, its on! Contact me if you are interested. Furthermore, we are thinking of changing it into a full fledge course (still in the mist of preparing).


Do like our facebook page too...

BBR Holding (S) Ltd - Significant Discount To Asset Value

Due to the extreme downtrend, I started looking at companies with asset value that are 50% more than their share price.

While searching, BBR Holdings (S) Ltd appeared in my list. 

Profile In Short

The BBR Holding (S) Ltd engages in the general construction, specialized engineering, and property development businesses. The company’s General Construction segment offers design and build, general building construction, and civil and structural engineering construction services. 

Its Specialized Engineering segment is involved in the construction engineering activities, including piling and foundation systems, post-tensioning, stay cable systems, heavy lifting, bridge design and construction, and maintenance repair and retrofitting, as well as prefabricated pre-finished volumetric modular construction activities. 

The company’s Property Development segment engages in the development of residential and mixed commercial properties. Its Green Technology segment is involved in the system integration and distribution of renewable energy; and supply, installation, and lease of solar panels and grid connected systems. 

The company primarily operates in Singapore, Malaysia, and the Philippines. BBR Holdings (S) Ltd was formerly known as BBR Construction Systems Pte Ltd. The company was founded in 1993 and is headquartered in Singapore.

Based on the Triple S Scorecard:

As expected - It failed. But the "Amended" Net Asset Value is about 39% higher than the current price. 


Why So Good?

Share Price is MUCH lower than Net Asset Value - If we look at the actual Net Asset Value of $0.4293, the share price is actually much lower than it by 60%! 

Prefabricated Pre-finished Volumetric Construction (PPVC) Ability - Singapore government is trying to promote efficiency and promote using pre-cast and pre-fab blocks to build building and HDB. The company is one of the five suppliers for PPVC in Singapore. Read here and here. Moderna Homes is a subsidiary of BBR Holdings (S) Ltd.

High Order Book - S$515 million in respect of construction projects, predominantly in Singapore and Malaysia! Just look at the pictures below.



Why So Bad?

Dropped in Revenue - This is linked to the recognisation of the projects. Despite having a high order book, the projects may have already been recognised significantly. Can I trust the order book being the full remainder sum?

Possibility of Increased Cost - We have no idea if the recent involvement of PPVC will increase its Cost of Goods in future.

Minimum Share Price on Mainboard Listing - There is a possibility of consolidation of the company if the share price continues to go down. If this happens, the liquidity of this stock will be affected. 

In Short

After a detailed analysis (despite failing Triple S Scorecard), I decided to buy the company mainly due to its discount to Net Asset Value. Once the economy recovers, retail investors will be able to recognise this undervalued gem. Furthermore the order book will still be able to sustain the revenue and net profit for a while.

As per summarize by GFG on Valuebuddies:


Current Price: 0.161 as of 21 Feb 2016

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at 0.165.

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

As for the online course, its on! Contact me if you are interested. Furthermore, we are thinking of changing it into a full fledge course (still in the mist of preparing).

Do like our facebook page too...

Sunday, February 14, 2016

The Value Portfolio - Recent Actions and Views - Post 6

Before I provide any update on my portfolio, I just want to apologized to my readers.

I really felt that my last post about the "entry prices" or even the last few posts about "my strategy" is a bit  "rubbish" as I seem to rush though it. I seem to be caught in volatility of the recent stock market turmoil and didn't think too clearly about what I should be writing about.

As stated before, I want to write my view on each company and allow readers to understand how the usage of Triple S Scorecard will help you as an individual retail investor.

Thus, I will try to stay "focus" for my future posts.

So now back to the main topic - my portfolio is still down an average of about 10%. Hopefully you are performing better than me.

The following stocks are in my portfolio:

1) ISDN Holding Limited
2) Sin Ghee Huat Corporation Limited
3) PNE Industries Limited
4) Chuan Hup Holding Limited
5) LHT Holdings Limited
6) TTJ Holdings Limited
7) Accordia Golf Trust
8) Singapore Telecommunications Limited
9) Sapphire Corporation Limited
10) Suntec Real Estate Inv Trust
11) Oversea-Chinese Banking Corporation
12) CH Offshore Ltd
13) Maxi-Cash Financial Services Corp Ltd
14) ST Engineering Ltd
15) Bukit Sembawang Estates Ltd 
16) PSL Holding Ltd
17) M1 Limited
18) Hock Lian Seng Holding Ltd
19) Fischer Tech Ltd
20) Keppel Corporation Ltd

Sold United Industrial Corporation Ltd - Bought at 2.810 on 8th Dec and Sold at 3.050 on 6th Jan. I saw the sudden and significant rise in price in January and decide to sell off all my lot. This may seem like a trade but I felt it was time to sell in this volatility period. In addition, I want to increase my liquidity. Nevertheless, I maybe able to buy at a lower price in future during this volatile period.

Bought Fischer Tech Ltd - A value stock that I will write in future. But I only managed 200 shares. Damn SGX, why change 1 lot from 1000 shares to 100 shares?

Bought Keppel Corporation Ltd - This was a punt. The price was really going too low. Only bought 400 shares thought. Will decide on whether to add more when I did a more detailed analysis.

*Maxi-Cash Financial Services Corp Ltd - This was the "remains" of an actual purchase I made long long time ago. I actually made a purchase during its IPO period and sold many many months ago. Then I realized I have 700 shares remaining in my CDP account (must have been some bonus shares or split) and its worth about $64.80 now. Hm... selling them will lose $25 (commission fee)... Thus its still in my portfolio. I doubt I will write about it as I really don't like this stock.

On my previous write ups:
Previous Post: The Value Portfolio - Recent Actions and Views - Post 5
Previous Post: The Value Portfolio - Recent Actions and Views - Post 4
Previous Post: The Value Portfolio - Recent Actions and Views - Post 3
Previous Post: The Value Portfolio - Recent Actions and Views - Post 2
Previous Post: The Value Portfolio - Recent Actions and Views

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

As for the online course, its on! Contact me if you are interested. Furthermore, we are thinking of changing it into a full fledge course (still in the mist of preparing).

Do like our facebook page too...