|Stocks||End Dec14||End Jun15||%|
Two tech stocks in my portfolio Globetronics (YTD +38.4%) & Inari Ametron (YTD +28.0%) have been doing quite well, with continuous high demand for smartphones and depreciation of MYR against USD.
Heng Huat (YTD +55.8%) is my second best performer in 1H15. This is mainly helped by news of bonus issue and main board transfer I guess.
Nevertheless, property stocks were the star performers in KLCI that year until Sep14. Remember?
Somehow this has reduced my "defensiveness" and discipline in avoiding property related stocks.
As a result, I still added a few property stocks such as Asian Pac, Protasco & Hua Yang in year 2014 just before it crashed in Oct14.
Declining crude oil & resin price should benefit Scientex's manufacturing segment but it seems like the company passes the cost-saving to its customers, resulting in lower revenue.
I feel that I will hold Scientex longer than any other stocks in my portfolio currently. It is no doubt a great company that keeps on enhancing shareholders value.
What to expect in the 2nd half of 2015?
European countries might be negatively affected by Greece issue. Personally I don't feel that it can be too serious.
Among the stocks that I have, Geshen seems to have more exposure to Europe through Polyplas. I don't think that worldwide smartphones/tablets demand will be affected significantly.
Foreign fund continue to flee Malaysia, and MYR continue to depreciate against USD & SGD. Net exporters will continue to benefit while net importers will continue to suffer.
One quarter has passed since the implementation of GST.
I'm sure all of us can feel the post-GST effect, in which price of almost everything has gone up.
Even though international crude oil price drops substantially, RON95 fuel price that Malaysian pay at the moment (RM2.15) is even higher than 2014's level (RM2.10) after fuel subsidy was removed since Dec14.
I believe that cost of doing business generally went up, even though most GST can be claimed back. How will it affect the profit margin of all listed companies?
Can billions worth of existing construction contracts still able to generate enough profit to cover the escalating cost? Can property developers still able to enjoy high margin? Can manufacturing sector still able to protect their already thin margin?
How about pre-GST effect?
Investors have to beware of "false" jump in revenue & profit of some companies between Sep14 and Mac15 which is pre-GST period.
These companies are mainly in sectors such as consumer, pharmaceutical, local trading and even property sector.
It's a common sense that end-consumers, retailers and wholesalers will stock up more products or buy early in anticipation of imminent price increase in post-GST era.
This will directly increase revenue and profit of related companies but their subsequent results post-GST might be even worse than before.
I heard news that the government has been very slow in refunding 6% GST claimed back by manufacturers, wholesalers & retailers. This can seriously affect a company's cash flow.
As a result, borrowings might increase and will this benefit financial sector?
Another worrying part for me is potential local political turmoil. It has reached an unprecedented situation.
Anyway, if anything happen, it can be either good or bad for the country.
All my opinions here might not be accurate though.