Summary of August 2015 Transactions

Strait Times Index August 2015

As my mindset shifted from being a value investor to an income investor, I made a drastic decision to update my portfolio. Given the current market turmoil, it was certainly a wrong timing to sell but I knew that some of my holdings are bought purely on speculation few years ago and if I did not sell now, losses will compound. I sold Amara Holdings, Boustead Projects, K1 Ventures and Second Chance Properties Ltd. I am not saying these few stocks are not good but it is just that I did not understand or did my home work on them prior to buying them. E.g. I bought Second Chance because of its high yield but I did not study in depth into its fundamentals. Read More

My Personal Analysis of Sheng Siong Group Ltd

Sheng Siong Logo

Established in 1985 and listed on the Singapore Exchange in 2011, we are one of Singapore’s largest retailers with over S$725 million in revenue for FY2014, and we are principally engaged in operating the Sheng Siong Groceries Chain, in 38 locations all across Singapore as at June 2015

Dividends

Sheng Siong pays stable yearly dividends.

Year 2012 2013 2014 2015
Total dividend (cents) 2.8 3.0 3.0 3.3
Earnings per share (cents)  3.01  2.81  3.34  3.4
Dividend payout ratio (%)  93%  107%  90%  97%

Debt

Sheng Siong has no debt over the years.

Year 2012 2013 2014 2015 (30th June)
Net Interest Expense (SGD dollar in thousands) 0 0 0 0
Operating Income (SGD dollar in thousands) 33,833 45,110 71,722 16,623
Debt service ratio (%)  0% 0% 0% 0%

* Figures from Morning Star

Investment Moats

Established Household Brand

Sheng Siong is an established household brand in Singapore known for competitive prices.

Sheng Siong Show

I believe everyone of you have watched “The Sheng Siong Show”. The television variety show, was launched in April 2007 and attracted strong viewership. “The Sheng Siong Show” is now a regular-season (mid-year and year-end) programme on national television, MediaCorp Channel 8. Read More