Bought Supermax

New fund injected into portfolio, bought 7500 shares of Supermx at RM1.85. The new investment result in the glove-companies forming ~28% weight in my whole portfolio now.

a glance of Supermax's historical data:

		RM Million
	Revenue	PBT	PAT
2003	131.2	20.0	17.4
2004	218.4	34.3	30.2
2005	284.7	39.9	36.3
2006	400.3	47.3	39.8
2007	574.3	58.6	55.9
2008	811.8	52.0	47.0
2009	803.6	151.5	126.6
2010	977.3	183.8	159.0
2011	1,021.4	112.1	104.1
2012	1,048.4	140.2	121.5

Supermx is expanding its surgical glove capacity since 2012. According to the management's plan, the nitrile capacity of Supermx will soon be doubled when its new plants are commissioned by next year. This will cause nitrile-glove forming ~50% of the company's total output. 

This change in product portfolio will deliver a better profit margin, hence great potential of profit growth in near future. It's expansion of distribution business in US and Canada will also position the group to secure greater share in these markets.

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Bought LPI.

Pump-in new fund into my portfolio, and here's my new investment in 2013.

Bought 2000 shares of LPI at RM13.80, a PE ratio of about 18.

Reasons of investment:

• a company of Teh Hong Piow, which mean a great management for me.
• great track-record in terms of profitability, ROE, dividend payout, etc.
• and most importantly, sustainable growth potential.

a glance at LPI's records:



LPI's revenue and PAT had achieved a CAGR of ~14% in the past five years (2006~2011), and I believe that it can maintain at least 10% CAGR in the next five years.

the average dividend payout ratio of LPI had been around 100% for years, which translate into a 5%~6% net-dividend-yield according to its current level of earnings and share-price.

My expected return in this investment: a 5% DY, plus 10% annual gain from share price, which means a total return of 15% p.a., for the next few years.

The investment in LPI weighted ~18% in my portfolio, about same level as PPB, AirAsia, Harta.

Increase holding in PPB.

Bought 1,000 shares of PPB lately.

Now the weight of PPB in my portfolio had increased to ~20%, almost same as the weight of AirAsia and Harta.

also sold all my Notion-wb recently and utilised the money to buy 6000 unit of Notion... This is because Notion's share price had experienced a big drop recently while its warrant-b price was less affected.

Jan-2013: sold all my "value-stocks".

I had been maintaining an experimental "value-stock portfolio" since year 2008，which was based on Graham's strategy of net-working-capital.

However, I found that I don't have enough time and energy to manage this group of stocks anymore, hence decided to put it into an end.

All the components in this value-stock portfolio (namely, Tomei, Triumpl, Choobee, Rex, IQgroup, UmsNgb, SmiCorp, Kstar) had been sold recently.

From now on, I will focus only on investment of long-term growth-stocks.

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My Portfolio at the end of 2012.

Activities during the year:

• newly injected fund: RM41,500。
• stock sold: Yahorng，Prkcorp, Sbagan, Kimhin, XDL-wa.
• Increase holding in AirAsia and Notion. Sold all Notion-wa and hold Notion-Wb.
• new investment: Pwroot, PPB.

Gloves companies still make up the highest weight (~25%) in my portfolio, followed by AirAsia which contribute ~20% of my investments. Notions, TSH, PPB and Pwroot weight about ~10% each, and the weight of the net-working-capital portfolio had drop to ~10%.

My return rate of investment in year 2012 was about 10% p.a., not much different from KLCI's performance.

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