Increase my investment in AirAsia.

Pump in new fund, bought 3000 shares of AirAsia...
now the investment in AirAsia had contribute ~20% weight in my portfolio.

I'm quite optimistic about the growth potential of AirAsia. Its operation in Malaysia would probably continue to grow at rate of 5~10%p.a. though the LCC market already quite matured. The growth momentum of AirAsia would mainly come from its aggressive expansions into regional markets, i.e. Thailand, Indonesia, Philippines, Japan... Taking these into account, I believe that AirAsia's profit in the coming years will grow at a rate of 15%p.a. or higher .

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stock sold recently: Kimhin and Sbagan.

These two were selected into my value-stock portfolio in 2008... now need to be sold because they already hit the 4-yr holding limit that I had set for this value-stock investment strategy.

 x x x

Transaction records for Kimhin:

• Aug-2008: bought 1000 unit at RM1.15,
• Jul-2009: dividend, 5sen per share T.E.,
• Jul-2010: dividend, 5sen per share T.E., 
• Jul-2011: dividend, 5sen per share T.E.,
• Jul-2012: dividend, 5sen per share T.E.,
• Oct-2012: sold at RM1.24.

average return rate during this period is ~5% p.a., a very poor performance compared to others member in this portfolio.

 x x x

Transaction records for Sbagan:

• Oct-2008: bought 500 unit at RM2.40,
• Dec-2008: dividend, 2sen per share less tax,
• Dec-2009: dividend, 2sen per share less tax, 
• Dec-2010: dividend, 2sen per share less tax, 
• Apr-2011: dividend, 1sen per share less tax,
• Dec-2011: dividend, 3.5sen per share less tax,
• Oct-2012: sold at RM2.94.

average return rate also stood at ~5% p.a.

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K-Star Sports Limited.

a new member in my value-stocks portfolio, bought 10,000 units at 18sen.

K-Star is a manufacturer of sport shoes. According to the Jun-2012 quarter-report, its net-working-capital per share was RM0.69. That means i'm buying the share with 70% discount from its NWC. And each share comprise of 38sen of cash.

The company was listed since 2010, but only started to distribute its first dividend this year(2012). However, if the dividend (1.6sen per share) can be maintained in coming years, its DY alone is quite attractive for investment.

Increase holdings in PPB and AirAsia.

Just a transaction record.

Bought another 500 unit of PPB, and 2000 unit of AirAsia, with an injection of new fund amounted RM14k.

now PPB weighed ~10% in my portfolio, and AirAsia had become my 2nd largest investment item, after Hartalega. 

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Perak Corporation sold.

another counter in my value-stock portfolio that hits the 4-years limit.

Transaction records for this investment:

• Aug-2008: bought 1500 shares at RM0.75,
• Jul-2009: dividend payment, 2.5sen per share less 25% tax 
• Jul-2010: dividend payment, 2.5sen per share less 25% tax
• Jul-2011: dividend payment,  2.5 sen per share less 25% tax
• Aug-2012: dividend payment, 3.0 sen per share less 25% tax
• Aug-2012: sold 1500 shares at RM1.31.

IRR calculation shows that the investment provided a return rate at ~16% p.a.

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SMIS Corp Bhd

This is the new member in my value-stocks portfolio. 5000 shares were bought at 41.5sen.

The main business of SMIS Corp is automotive parts. According to its quarter-report Mar-2012, its net-working-capital per share was RM1.05. That means i'm buying the share with 60% discount from its NWC. The better part is, each share comprise 40sen of cash.

Historical data:




the three-years-average of EPS was about 8.0sen, which gave a PER = 5 for the current share price.

The above table shows that SMIS Corp had experienced a significant growth in the past few years. The poor performance of its share price may be a result of loss-making 2011. According to its management, the loss was mainly due to "development cost" of projects, not quite understand what it means... however, the company did come back to profit in Q1-2012.

There are two down side about this stock:
1. no dividend record found.
2. trading volume extremely low.

These may explain why it share price drop to this level...

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Ya Horng sold.

This is a stock that i purchased into my value-stock portfolio about 4 years ago. It was selected using Graham's net-working-capital criteria. (the post: Ya Horng Electronic (M) Bhd.)

According to its quarter-report 30-Apr-2012, Yahorng's financial status still strong, with a net-working-capital per share of RM1.49, and cash per share about RM0.79... so, I'm actually in the opinion that the current share price of RM0.87 is still very cheap, judging with Graham's method.

However, two years ago I had set a 4-year time limit for all the counters I purchased using Graham's NWC strategy (the post: A new framework for my Value-stock-Portfolio.)... Ya Horng was bought on Jul-2008, so it's time to let go.

My investment records for Yahorng:

• Jul-2008: bought 2000 unit at RM0.55,
• May-2009: sold 100 unit at RM0.72,
• Jul-2009: dividend payment, 5sen per share less 25% tax 
• Sep-2009: sold 100 unit at RM1.00, 
• Jul-2010: dividend payment, 10sen per share less 25% tax
• Jul-2011: dividend payment,  2 sen per share less 25% tax
• Jul-2012: dividend payment,  2 sen per share less 25% tax
• Aug-2012: sold 1800 unit at RM0.87.

The average return rate of this investment is about 17% p.a., quite satisfactory but still off from the target I had set for this portfolio (25% p.a.).

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Power Root Bhd

【阅读中文版本】

This is the new investment item in my portfolio.

The main products of Power Root are instant premixed coffee and energy drink. From what we could observed in the hypermarket, I think it's fair enough to say that Alicafe series is now the top local brand in the premixed coffee market. Its Power Root series also had a significant market share in the energy drink segment.

Historical data of the company:

	RM million
FY*	Revenue	PAT
2007	154.0	34.7
2008	178.5	39.3
2009	138.1	9.8
2010	153.1	10.2
2011	184.8	12.2
2012	217.0	16.7

     * FY ended 28-Feb each year.

Its performance had dropped significantly in FY2009. However, the company manage to recover from the economic crisis, and had shown a CAGR of more than 12% during FY2009~2012.

Segmental Data:

	RM million				%	%
FYE	Local	Export	Total		Local	Export
2008	159.4	19.0	178.5		89	11
2009	118.9	19.2	138.1		86	14
2010	133.7	19.4	153.1		87	13
2011	155.0	29.8	184.8		84	16
2012	170.8	46.2	217.0		79	21

We can see that the company's performance in the past few years were partially boosted by the export market. Its export revenue had become more than doubled within two years time from FY2010~2012.

While I'm confident that Power Root could maintain its market share (with mild growth) in local market, I'm in opinion that its growth momentum in the export market will remain strong for the years to come.

Its dividend record:

• 2008： 5.0 sen.
• 2009： 4.0 sen.
• 2010： 6.0 sen.
• 2011： 4.0 sen.

based on the current share price of RM0.52, the average DY is about 10%. I believe that this dividend rate will be maintained in the coming years.

In short, my reasons of investing in Power Root -- riding on its growth momentum (my estimation, 10~15% p.a.), at the same time receiving its high dividend.

Shares bought recently.

New fund of RM14k had been injected into my portfolio recently.

1. bought 500 shares of PPB.

This is a new investment item in my portfolio.

while buying into PPB, i'm actually aiming to ride on the growth momentum of Wilmar International. (buying 1 share of PPB is equivalent to holding 1 share of Wilmar indirectly).

Wimlar had been growing fast in past few years (see here), and i'm in an opinion that this growing trend will persist for some years in the future. While the growth momentum mostly come from M&A and business restructuring, the economical growth in China and India are giving strong support to its existing business.

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2. bought 3000 shares of Notion.

Surprisingly, the flood of Thailand do bring some positive impact on Notion. It's thus facing a strong rebound in the coming quarters. At the same time, orders from new customers are kicking in, boosting its performances to higher level.

currently, Notion is the 2nd largest investment in my portfolio.

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My Portfolio at the end of 2011.

Activities during the year：

• stock sold: none。
• stock bought: Notion-wa, XDL.
• new fund added: RM10,500.

Gloves companies are still my favorite, and thus make up the highest weight in my portfolio. Their share price are quite steady during 2011. While the sharp increase in share price of AirAsia and TSH were beyond my expectation, the performance of Notion, XDL and the net-working-capital portfolio were quite disappointed.

the return rate of my portfolio in year 2011 was 0%, not much different from KLCI's performance.