SG Investor Hub Blog

The Easiest Superpower To Learn

Last week, I found myself standing in front of a crowd of ten people. Everyone was staring at me. One guy was frowning. I was feeling a little jumpy. I wondered whether my fly was open. Crap – I couldn’t remember my opening. I had no idea what to do with my hands. I remembered that “thought […]

Investment Using SRS fund – My Experience

Image Credit : Sgfinance.sg

Many
articles have been written on SRS Account and it’s pro and con. You may find few
good blogs and summary as below :

SUPPLEMENTARY RETIREMENT SCHEME
(‘SRS’) ACCOUNT from HeartlandbOY  (here
)

Is the Sup…

Amara- Interesting reward risk proposition!!!

For a more detailed report on this, please let me know.

Think it presents good risk reward, buy now, pray for breakout, cut loss at S$0.385
TP : S$0.52-0.58

Play on earnings growth– with operational and interest rate savings plus contribution and ramp up of china and thailand hotels that come on board in 2017 and 2015 respectively. (although not sure y interest expense is falling – maybe lower interest rate nego)

With 4 hotels now, and possibly 1 more with JV at Myanamar- spinoff in future as REIT?

Trading in a tight range of S$0.395-0.425 for 11 months.   Noted that since Jun 16- Oct 16, abit of heightened volume. Last week, heightened volume again. Currently on the verge of breakout at S$0.425, 
__________________________________________________________________________
Amara (Price: 0.425, mkt cap: S$244m)- 4 hotels (2 in Sg, 1 in Shanghai, 1 in Bangkok) + 1 retail mall in sg

Properties include:
1)      Amara hotel at Tanjong Pagar-388 guest room
2)      343 guest room at Shanghai + adjoining office and retail mall- to be opened soon,
3)      Amara Sentosa 140 guest room,
4)      Amara BangKok-250 guestroom- opened in mid 2015
5)      Freehold 2-storey terrace house at Hoot Kiam Road
NAV: S$0.6457, P/B: 0.66x; RNAV: S$1.356, P/RNAV: 0.31x – Stock trading near an all time low in terms of P/B.
_____________________________________________________________

Investment highlights:
1)      NAV: S$0.6457, P/B: 0.66x; RNAV: S$1.356, P/RNAV: 0.31x – Stock trading near an all time low in terms of P/B.
2)      More diversified earnings + earnings boost with 2 new hotels – opening of Amara Bangkok in Apr 15 (gradual rampup?), opening of Amara Shanghai (expected in early 2017)
3)      2.8% dividend yield (DPS: S$0.012)
4)      Operational efficiency to start showing for next 3 quarters? Of note 3Q16, showed other expenses dropping 25% yoy (S$1.7m savings)- this was not evident in 2Q16. Interest expense also continue to fall for 2 consecutive quarters. With a 4% growth in sales and cost savings from other expenses, net profit for 3Q16 rose 44% yoy. – annualized 3QFY16- net profit = S$15.8m (PE about 15.4x, have not included China yet which is not yet operational)
5)      Vote of confidence from management
·         CEO bought 100,000 shares at S$0.42 on Aug 16- family owns 72.3% of co. (remuneration not overly high though, with just 1 director with remuneration of S$750k-1m, the rest are below)
·         Management has also constantly state that co. is undervalued (back in 2015, engaged in active buybacks, and price then was S$0.545, now is S$0.425)
Risks:
1)      Increased competition for crown jewel (Tanjong Pagar Hotel) with opening of Clermont hotel
2)      High net D/E of 75% (although we do note, it is backed by properties)

Technicals
·         Trading in a tight range of S$0.395-0.425 for 11 months.
·         Noted that since Jun 16- Oct 16, abit of heightened volume. Last week, heightened volume again. Currently on the verge of breakout at S$0.425,

P/B
TP
upside
0.60
0.39
-8.8%
0.65
0.42
-1.3%
0.70
0.45
6.3%
0.75
0.48
13.9%
0.80
0.52
21.5%
3 year average
0.85
0.55
29.1%
0.90
0.58
36.7%
5 year average
0.95
0.61
44.3%
1.00
0.65
51.9%

The Telco Landscape in Singapore

The telco regulator in Singapore, Infocomm Media Development Authority (IMDA), regularly publishes a list of facts & figures about the telco industry. It is interesting to look at the figures occasionally to understand the trends affecting telcos a…

“I Sell Fried Chicken”

My previous post about my investor friend was super well received. So much so that I’m reluctant to even link it here anymore. I just dunno if he’d appreciate the sudden publicity. Anyway, I said I’d share about another highly successful individual that I know personally. Incidentally, I recently saw a Bloomberg report about him: […]

Change is the only constant

I haven’t been reading much into individual companies. I just felt that with markets hitting new hits, the is now very little room for errors. Why go against the tide? I think in investing, one must really ‘know’ oneself. No … Continue reading

Portfolio Update: February 2017

Markets are climbing slowly and as I am typing out this update, the STI has actually breached 3,100. The total value of the portfolio right now is $390,000 and it is actually up by $10,000 from the previous month. $7,000…

3 Ways Your Parents Can Grow Their Retirement Funds

Money is an emotional topic in Heartland Boy’s family, and often, also the root of all problems in the household. This can all be traced to the diverse perspectives on money held by his family members. As age catches up, Heartland Boy’s parents find it increasingly tiring to stand behind the wok for long hours […]

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