My Portfolio Aug21

 

Summary For August 21

Stock Portfolio @ End of Aug21

In August 2021, Malaysia has a change of government again. The stock market viewed it quite positively in which the KLCI gained 100 points (~7%) from 1,500 to 1,600.

In the same month, our Covid-19 vaccination rate continued to be encouraging but new Covid-19 cases soared and stayed above 20,000 cases per day.

As of today, it's reported that over 65% of adults population are FULLY vaccinated. 

Even though we're not sure whether the vaccines can successfully fence off the virus mutants, we should be able to achieve 80% adult vaccination mark at the end of this month.

Stock market wise, my monthly portfolio return of 3% was beaten by KLCI's 7% gain.

My Portfolio May21

Summary For May 2021

Portfolio @ End of May21

Due to the slump in SCIB share price, my portfolio suffers its heaviest loss in one month at -19% since losing 21.7% in Mac20. 

SCIB was my major holding and made up ~40% of my portfolio. It has contributed massively to my portfolio gain this year but now I have to vomit out those gain.

The big news in the stock market in May should be none other than Serba Dinamik's audit issue.

Serbadk first announced its intention to appoint an independent firm to commence a special independent review on its accounting matters raised by external auditor KPMG on 25th May 2021.

It's then followed by a public holiday, 2 days of trading suspension and 2 days of weekend. 

When trading resumed on the 31 May, its share price straight away limited down.

Master: Can History Repeat Itself?

 

After plastic packaging, furniture and EMS sector, recently another manufacturing segment seems to gain more attention.

It is corrugated carton box packaging.

KLSE listed stocks in this industry include Master-Pack, PPHB, Ornapaper, KYM, Muda & Boxpax. 

D'nonce is also involved in corrugated carton box manufacturing but it also has other paper & plastic packaging products.

The share price of D'nonce has gained handsomely since early Aug20 due to its supply to medical gloves companies. It doesn't seem to respond much recently may be because it follows the gloves trend more.

Anyway, the upcoming quarterly result of D'nonce to be announced later this month is worth to keep an eye on.

Is the carton box theme coming back since staging a rally in 2019?

PPHB Into Hotel Biz

Corrugated packaging companies are having a good time recently, as we can see from the share price trend of Master-Pack and PPHB.

In the third quarter of 2019, both companies released wonderful financial results with significant jump in bottom lines.

Both attributed this to better margin or lower manufacturing cost or better cost control. Someone says that the raw material price (paper?) has dropped which probably is the case but I'm not too sure whether it remains low now.

Master's net profit margin increases from 6% to 10%, while net profit margin of PPHB shot up from 10% to 19% in FY19Q3. Personally I hope this trend to sustain for a while, but for how long?

While Master has successfully ventured into Vietnam, PPHB has diversified into hotel business.

Prior to this, PPHB has already involved in property investment through JV. If not mistaken, those properties are CMART Nibong Tebal and the surrounding shoplots. 

Its hotel operation is located at a very strategic area in Georgetown UNESCO World Heritage site (Church Street Ghaut) within walking distance to ferry terminal and famous historical sites there.

The 162-room 4-star hotel is called "The Prestige" and was just launched in Jun 2019.

From its FY19Q2 quarterly report, the hotel division registered PBT loss of RM1.4mil from RM211k of revenue, as it has just started operation for one month.

It's a bit surprise to me that it manage to break even in its subsequent quarter of FY19Q3, with revenue of RM2.15mil and PBT of RM112k.

FY19Q4 is peak season for travel and hotels, so I'd expect it to perform better in this period.

At the moment The Prestige has received lots of positive ratings from travelers who stayed there. It is rated above 9 out of 10 in average from almost all the online hotel booking sites.

Hotel business is not expected to contribute tremendously to PPHB's bottom line. If it doesn't make loss continuously, then it is already good.

Some shareholders may not even like this diversification as the money can be used to grow the core business with perhaps better return.

Nevertheless, I still expect it to make RM1mil net profit per quarter.