Goodbye Lippo Malls Indonesia Retail Trust

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After holding Lippo Malls Indonesia Retail Trust for almost 5 years, I have sold it off for a profit of 46.7%. This is inclusive of dividends collected over the years. Lippo Malls currently makes up only 2% of my entire stock portfolio.

Below are the reasons why I sold off Lippo Malls Indonesia Retail Trust

  1. As Lippo Malls Indonesia Retail Trust assets are primarily focus on malls in Indonesia, the volatility of the foreign exchange may impact the foreign loans and distributions per unit.
  2. As Lippo Malls Indonesia Retail Trust makes up a petite 2% of my stock portfolio, I am selling it off as part of restructuring or organizing my stock portfolio. Too many small fragments makes it hard to manage and I have to spent considerably time to review and read the performance each quarter.
  3. Lippo Malls Trust has land leases that is an average of 17 years. The land lease is considerably short and it is uncertain whether they can renew the lease each time.

Having said the above, I am not hinting Lippo Malls Indonesia Retail Trust is a bad REIT as it currently pays a distribution of around 8.19%.

Tai Sin Electric Revenue Fell Due to Prevailing Uncertainties In The Market

Share price of Tai Sin Electric fell today 4.5% today to S$0.425 after releasing a set of weak results. Tai Sin Electric reported revenue declined 12.86% from $320.91 million last year to $279.65 million.

In my previous post (My Personal Analysis of Tai Sin Electric Limited), I mentioned about Tai Sin Electric’s revenue and profits are very dependable on the construction sector which is cylindrical. Not withstanding the slowdown in the property market and continued economic uncertainties, revenue declined across all its business segments (Cable & Wire (C&W), Electrical Material Distribution (EMD), Switchboard (SB), Test and Inspection (T&I)).

It is important to check if Tai Sin Electric is still able to generate enough cash flow to tide through the current uncertainties. In current 2017, net cash from operating activities was 37.4 million. Cash flow for Tai Sin Electric is still going strong despite gloomy economical conditions and it has been growing since 2012. Read More

Thai Beverage Thinks Beer and Fried Chicken Is A Good Match

Thai Beverage plans to acquire 240 KFC branches for 11.3 billion baht via its subsidiary QSR of Asia (QSA). This makes them the third KFC franchisee in Thailand. The other two franchisee are Central Restaurant Group and Restaurant Development Co Ltd.

The brand KFC (“Kentucky Fried Chicken”) is owned by the Yum! Brands Inc, based in Louisville. Drilling into the 4th quarter 2016 results for Yum! Brands Inc, Thailand is considered as an emerging market and contributes 2% of KFC sales. For the full year, KFC sales in Thailand grew 6%. The highest sales contributor for emerging market is China with 27% contribution. Read More