My Portfolio Aug24

Summary of August 2024

Stock Portfolio @ End of Aug24

Even though KLCI gained a handsome 3.27% in the month of Aug24, my portfolio shrunk by a massive 12%.

All the stocks in my portfolio suffered loss. The worst was Gtronic which dived 32%. It continues to dive in Sep24 after the resignation of its auditor KPMG.

Most of the tech related stocks suffered badly in this month with more than 10% drop. A lot of them has plunged ~30% from their peak this year.

As I was short in cash, I have to sell some stocks.

In hindsight, I should have sold half of my shares in EUPE, LEESK & Fajar earlier. If I did that, I should be able to sit on a good amount of cash and get ready to shop during market correction.

You can't always got it right all the time in stock market. Lessons can be learned and unlearned.

I finally sold all my Fajar shares anyway. I sold half of them before the quarter result announcement, and sold all after that.

I had a feeling that Fajar's FY24Q4 result will be a disappointing one that's why I sold half of its shares first.

The actual result was not great, at least to me.

Its revenue of FY24Q4 kept increasing to RM155mil, but its PATAMI was just RM4.8mil (EPS 0.65sen).

However, its income tax was unusually high at 76% this quarter. Without considering the tax, its PBT of RM19mil was still much lower than RM29mil in its immediate preceding quarter of FY24Q3.

The most disappointing issue to me is its construction division. 

Fajar got almost all its RM594mil construction contracts in the first half of CY2023 but it still suffered RM2mil loss in FY24Q4.

Its property division still contributes strongly to the top and bottom lines but I'm not sure how long it can last.

Initially I predicted that its construction division will contribute meaningful profit in increasing trend from FY24Q3 onwards but it's not the case.

Its construction division probably will turn around in next quarter but I decided to lock in the profit first in such market condition after failing to do so in other stocks. 

Rhonema's shares suddenly jumped towards 80sen and I took this chance to offload all of its shares. 

The investment in Rhonema is considered as a failure, even though I still manage to avoid loss after holding it for over 3.5 years.

Overall it's a 6.4% net gain thanks to its consistent dividends.

Rhonema's share price jumped almost 30% in a matter of days after I bought its shares in Jan21. I didn't sell but instead topped up its shares when it fell back.

After that it's floating around 70sen. I've been waiting for a good price to sell it for quite some time and finally it came.

The share price movement of Rhonema is quite strange recently and may be something is brewing.

Anyway, at least now it gives me some peace of mind with more cash in hands.

I topped up the shares of both Hiaptek and TMCLife in Aug24.

Again, in hindsight, I should have waited for a while. I didn't expect the stock market correction to be so harsh this time.

The continuous drop of Hiaptek's share price is a bit worrying and inevitably I'll link it to a bad upcoming FY24Q4 result this month.

LEESK's FY24Q2 result was not great that's why its share price fell. Its PATAMI was just RM2mil (EPS 0.81sen) which was 46% lower QoQ.

It has almost RM3mil of impairment loss of Cuckoo's receivables as well as PPE in this quarter, compared to around RM1mil in each quarter before that.

Without these extra impairment loss, it should be able to stay on par with previous quarters. 

Share price of Hibiscus continues its down trend towards RM2.00 from RM2.80 in Apr24, as Brent oil price is dropping from USD90 towards USD70.

I still think that Hibiscus is a great company that might give high dividend yield in the future if I buy at current price of RM2 per share.

US will most probably lower its interest rate this week. What kind of immediate reaction can it give to the stock market?

The US presidential election is also approaching in early November. Normally the stock market should not be too bad before any major election right?

Anyway, I'm cautiously optimistic that our local stock market can end the year on high note.