My Portfolio Oct21

 

Summary for October 2021

Portfolio @ End of Oct21

October 2021 was a good month for KLCI which advanced 1.6%. My portfolio has done quite well too with a gain of 6.6%, lifting year-to-date gain to 15%.

Major event in October should be Budget 2022 which was announced on 29 Oct21. Again, it's a budget of distributing money which does not benefit me directly.

The government has increased the stamp duty of share trading from 0.1% to 0.15%. If a trader or investor buy RM10,000 worth of shares, he/she has to pay RM15 stamp duty instead of RM10.

Luckily there was no capital gain tax on profit from stock market trading.

"Prosperity Tax" or "Cukai Makmur" is introduced in which listed companies who earn in excess of RM100mil in year 2022 has to pay 33% tax for profit above RM100mil. Profit below RM100mil will be taxed as usual at 24%.

In my current portfolio, I think only Hibiscus, Jaks, MFCB, Scientex & Supermax fall into this category. It's an one-off tax anyway.

Meanwhile, SST exemption of new vehicles has been extended to the end of June 2022 but House Ownership Campaign (HOC) was not extended beyond 2021.

This is rather a bad news to property sector. Could we see a rush in property purchase before the end of this year? I guess so.

Anyway, RPGT was abolished for the sale of property after 5 years of ownership.

These are the items that are more relevant to me in Budget 2022.

What Are Holding Back The Gloves?

Can I still buy Supermax? Should I hold Harta? Careplus has dropped a lot, is it a chance to accumulate? Should I average down on Rubberex? Should I sell Topglove now? Is it a good time to take profit on Kossan? Can I average up on Comfort? How about AT?

There is no doubt that gloves stocks are the hottest stocks in Malaysia stock market since Covid-19 pandemic.

Certain investors will tell you that it's stupid not to buy gloves stocks now, as gloves companies are the only companies that are guaranteed to make gigantic and increasing profits in the near future. 

The advice given is that you must ONLY have gloves stocks in your portfolio.

In early part of Covid-19 pandemic, I think no one would expect Supermax who usually earns around RM30mil net profit a quarter to be able to raise it substantially to RM800mil a quarter.

At this point of time, it's no secret anymore regarding how much glove companies can earn in this pandemic, everybody knows it from their excellent financial reports & forecasts. 

There is also no doubt that gloves companies will continue to make huge profit in the coming few years.

However, it is a different story how the market will value them in term of share price.

My Portfolio Sep20

Summary for September 2020

Portfolio @ End of Sep20

   

    

Finally I sold all my BAuto shares. This is another one which saw a 50% paper gain turning into 27% paper loss, almost the same fate as Hevea.

However, I still manage to register overall gain from these 2 investments, thanks to their high dividends.

When I bought BAuto in Oct15, it was for its growth potential, not its dividends. I predicted that Mazda could overtake Nissan as the third largest foreign passenger car brand in Malaysia.

Up to today, Mazda is still behind Nissan, although the gap has narrowed. Mazda's strategy to build a more premium brand image and keep a higher profit margin has hindered its progress to overtake Nissan.

Slowly BAuto has turned from a growth stock to a dividend stock. As I only want growth at this stage of my investment journey, I decided to sell since last year but only manage to sell now after its share price has dropped so much.

Super Superb Supermax

For 4 full calendar years from 1st Jan 2016 to 31st Dec 2019, Supermax's TOTAL net profit attributable to shareholders (PATAMI) was RM382mil.

Now, in a single quarter of FY20Q4, it achieves a PATAMI of RM399.6mil which is even higher than previous 4 calendar years combined.

In other words, this 3-months result exceeds previous 48-months results. This is simply mind-boggling and I've never seen anything like that.