Thursday 20 June 2024

My Portfolio May24

 Summary For May 2024

Portfolio @ End of May24

May24 is not a bad month for me. Even though previous "heavyweights" EUPE & TAS fell 14% and 3.3% respectively, latest heavyweight stock Fajar climbed 38.5%.

I manage to buy more Fajar's shares at average price of 35sen before it released its FY24Q3 result.

As a result, my portfolio was able to gain 3.15% in the month, lifting overall YTD gain to 32.7%.

KLCI's YTD gain has almost reached 10% which is undoubtedly its best performance in more than 10 years.

EUPE fell from its highest point of RM1.68 in early May to close at RM1.35 in the end of May.

In hindsight, perhaps I should have sold some of its shares above RM1.60 but I didn't because it's still far from my target price of at least RM2.00.

I still believe that it can produce EPS of 40sen in its FY25 which has started from Mac24 until Feb25. The launch of its Belfield Circadia at the end of the year might give it a boost.

Recently it has proposed to acquire a piece of 2.46-acre freehold land in Bangsar/Pantai Dalam for RM69.18mil. 

I view this positively since the land is located at good location near University Malaya & Mid Valley.

The jump in Fajar's share price is due to its superb FY24Q3 results with RM142.6Mil revenue and RM27.2mil net profit (EPS 3.67).

Its share price before the result announcement was just 38sen.

However, this result is slightly disappointing as its construction segment is yet to contribute meaningfully, even though it has turned around to register RM1mil profit before tax in its latest quarter.

Almost all of its profit is still supported by its property development segment. Hopefully its construction segment will contribute much more from next quarter onward.

This is not impossible base on the external contracts it won in 2023.

I sold some of my TAS shares at 89.5sen to keep some cash, while also clearing all of my T7Global shares.

As mentioned in earlier post, I'm worried about T7Global's FY24Q1's result that's why I decided to sell all of its shares.

My worry was correct anyway, as the result turned out to be a lower than expected one.

Anyway, its share price is able to stand firm until today despite this disappointing result.

Mi is having a good time recently. Its share price rallied 28% in May24 after releasing a good FY24Q1 result in early May.

It continues its uptrend in June to reach RM2.78 recently.

Without much surprise, JHM slipped into loss in its latest FY24Q1, while Gtronic posted a record low quarter revenue at RM29.9mil with a net profit of RM5.7mil (EPS 0.85sen).

There is still no light at the end of the tunnel for these 2 companies it seems.

Rhonema, LEESK, MFCB & Maybulk all posted OK quarter results. 

LEESK FY24Q1's revenue of RM36mil is its highest in history due to improved sales both domestically and internationally. It has a relatively huge impairment loss of RM1.15mil (25% of its PBT) in the quarter.

Its 1 to 2 bonus issue will be ex-ed soon on 24 Jun24.

Maybulk's new "industrial property" segment is confirmed to be warehousing and is not expected to contribute positively until year 2025.

Its quarterly loss of RM1.8mil is mainly due to forex loss of RM3.5mil and stamp duty expense of RM1.4mil for its warehousing segment.

MFCB has expanded its food security segment with the acquisition of 40% effective stake in CSC Agricultural Holdings S/B. 

CSC is involved in fruits & vegetables farming and wholesaling. In 8-months period ended Mac24, it recorded revenue of RM56.2mil, EBITDA RM1.9mil and breakeven pretax profit. 

It has 1,100 acres of farmlands in Johor & Pahang with approximately 600 acres being developed and planted.

It has initiated a pilot project for modern greenhouse farming of clean leafy vegetables on a 12-acre plot in Johor which has yielded initial success.

TMCLife's FY24Q3 result is rather poor with revenue dropping QoQ to Rm86.1mil while net profit plunged 30% to RM9.96mil (EPS 0.57sen).

As a result, its share price drops non-stop after the result release. If it drops further, I might consider to average down on it.

Hibiscus, again, is affected by some one-off losses in its latest FY24Q3. This time it's a RM78.9mil write-off of well exploration cost.

There is still a potential of RM46.3mil similar write-off in the future if the post-well lab analysis outcome is unfavorable for commercial production.

Despite this, Hibiscus still delivered decent net profit of RM101.8mil (EPS 12.71sen) which was on par with its immediate preceding quarter.

At share price of around RM2.40, I think it's quite "cheap" and I'm quite reluctant to sell its shares even though it does not perform well.

Recently Hibiscus announced its plan to acquire oil & gas assets in Brunei from TotalEnergies EP (Brunei) for USD259.4mil (RM1.217bil).

This represents 37.5% stake in Block B Maharajalela Jamalulalam field, with Shell & Brunei Energy holding the remaining 35.0% and 27.5% respectively.

The concession will expire in 23 Nov 2029 with the option to extend until 23 Nov 2039.

The assets produced RM150mil of net profit in its FY ending Dec23. With 37.5% stake, this is about RM56mil to the bottom line of Hibiscus, which represent another 14% to Hibiscus FY23 PAT of RM400mil.

It's good that Hibiscus does not intend to issue more shares to fund the acquisition. This means there is no earning dilution.

The stock market so far has been bullish in year 2024, even though it has cooled down a bit since May.

I'd expect a more "major correction" some time in the second half of 2024, before it continues its uptrend.

Anyway, I do hope to have a peaceful sailing until the end of the year.

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