Monday, 4 December 2017

Review of Dim Sum Haus

In food paradise Singapore, dim sum has always been one of the frequent choice of food for my wife and I. So we decided to make a trip to one of the newer establishments in town yesterday:

Dim Sum Haus @ 57 Jalan Besar

It was our first time to this shop and having heard good reviews about this place, we went with high hopes.

First off, there are free parking around the area on Sundays. Otherwise Jalan Besar MRT station is less than 5 min walk away.

There are no outdoor seating as far as I can see. All the seats are indoor with air conditioner.

We reached there around lunch time and there were still couple of tables available.

Looking through the menu which although not very extensive, has enough choices to satisfy most people, we decided to order the following (with my personal score based on taste in bracket beside):

1) Plain congee (7/10)

Seasoning and texture of the congee are done just about right. Along with the accompanying crispy you tiao, this dish is not bad.

2) Pan fried carrot cake (6.5/10)

Surface of the carrot cake is not crispy enough. However the carrot cake has the right balance between hardness and softness. You can taste the lup cheong when you bite into it.

3) Crispy chee cheong fun with shrimp (7.5/10)

This is the best dish among what we ordered. First bite into the chee cheong fun you can taste the nice balance of the soft chee cheong fun and the crispiness within. The seasoning is pretty normal, about the same as other places.

4) Fried mee sua kueh (6.6/10)

Not impressed by this. First impression was the kueh has been over fried based on the dark brown colour of the kueh surface. Taste-wise is a tad too salty. Prefer the Swee Choon version.

5) Har gau (6.8/10)

The prawn is fresh and the thickness of the har gau skin is just right too.

6) Salted egg custard bun (7.2/10)

This is a refreshing change from the usual liu sha bao. The crispy exterior of this version adds another dimension to this common dim sum. The salted egg custard is nice too. However from the second piece onwards it gets a bit too much.

7) Hong Kong style egg tart (6/10)

This was quite disappointing. The crust is biscuit-like. The egg is a tad too solid. Personally prefer egg tarts with flaky crust and the egg 'bounceable' when you shake it.


Considering the place was not even full house, the service was quite slow. Took about 20 min for the first dish to arrive after we placed the order.

Catching the staff's attention was a bit of a challenge.

The staff's finger came into contact with our food when she was clearing some empty plates on our table. I'm sure it's not on purpose though.


About the same as elsewhere. Most dishes are within $5.00.

NETS payment, minimum $10.
Credit card payment, minimum $50.


Overall nothing major to complain about. Neither is there anything impressive about this place.

This seems like just another place that serves dim sum. I can't see any differentiating factor between this place and others.

Would I go back again? Probably not on my own accord.

I would stick to my other tried and tested dim sum places where I frequent.

Disclaimer: This is my personal view. I'm not related to any of the establishments nor its owners in any way as far as I know.

Wednesday, 15 November 2017

A Vote of Confidence for Wilmar

Two days ago Kerry Group Limited acquired $225,417 worth of shares in Wilmar at an average price of $3.45.

This has increased their stake in Wilmar to slightly over 11%.

Of particular significance is the price of $3.45 which might be the fair value deemed by the big boys.

This is no doubt a good news and a vote of confidence for Wilmar.

Personally I will continue holding my small stakes. It makes sense for small players to follow the big boys trend isn't it?

Snippet 1: Our former foreign minister Mr George Yeo is the chairman of Kerry Logistics and director of Kerry Holdings Ltd.

Snippet 2: Malaysia's richest man and sugar king Mr Robert Kuok is the chairman of Kerry Group Ltd.

And a big source of his wealth is his stake in Wilmar.

Tuesday, 14 November 2017

City Developments vs CapitaLand

The recent release of CapitaLand's latest financial results sent the share price downwards despite it being a decent set of results.

As I was thinking about this, it led me to the next questions.

Why is it that City Developments can be trading in the region of S$12+ while CapitaLand continues to languish at S$3+ and what are the differences between the two companies?

It piqued my interest as I have never delved into City Developments before and I set to find out more.

The comparisons gave me a big surprise.

 Overview of City Developments (CDL)

City Developments Limited has a history of more than 50 years since their beginning in a small rented office in Amber Mansions on 7th September 1963.

They have since evolved into a Singapore-listed international real estate operating company with presence in 26 countries including Singapore, Australia, China, Japan, UK and rest of Europe.

CDL's portfolio consists of residences, offices, hotels, serviced apartments, integrated developments and shopping malls.

One of their most recognised brands is the Millennium & Copthorne hotels chain.

CDL's core markets are UK, US, China, Japan and China.

Overview of CapitaLand (CPL)

CapitaLand group is a property company created from the merger of Pidemco Land and DBS Land in November 2000.

Since then CPL has grown to become one of Asia's largest real estate companies. Based and listed in Singapore, it is an owner and manager of a S$85 billion portfolio comprising integrated developments, shopping malls, serviced residences, offices, homes, REITs and funds in over 30 countries.

It is also one of the largest investment management businesses in Asia with 14 real estate private equity funds and 5 REITs worth over S$47 billion in assets under management.

CapitaLand acquired Raffles Holdings and The Ascott Group in 2006 and 2008 respectively and the latter is the world's largest international serviced residence owner-operator.

Singapore and China remain the two core markets of CPL, totalling 82% of the group's total assets.

Comparison of the Financial Figures

As mentioned earlier I have never studied CDL before. But inferring from the share price I expect the scale of their business to be much bigger than CapitaLand.

However this is exactly the opposite.

No matter which metric you look at - cash holding, revenue, PATMI, assets or AUM, CapitaLand is clearly the bigger player.

Exception is the EPS where CDL is slightly higher than CPL.

Note: Figures are from the 3Q17 financial reports of both companies.


I then did some quick calculations for the latest P/E and P/B ratios as a gauge of their valuation.

Again CPL is the winner here. In fact CPL is currently trading under book value whereas CDL is trading slightly above book.

Future Growth of City Developments

In 2016 CDL acquired 20% stake in mamahome - China's fast-growing online apartment rental platform.

In 2017 CDL acquired 24% stake in Distrii - China's leading operator of co-working space.

These synergistic acquisitions are a move away from their traditional sources of income and it's nice to see this forward-looking direction of the management.

In the near term, CDL has several upcoming local residential projects including New Futura, a Tampines Ave 10 project and South Beach Residences.

Upcoming overseas residential projects include 1 in China, 7 in UK and 1 in Japan.

CDL also embarked on 2 projects in Australia for luxury retirement village development with expected completion in 2020 and 2021.

CDL is also actively engaging in asset enhancement initiatives for various Millennium & Copthorne hotels in New Zealand, UK, KL and Singapore.

Future Growth of CapitaLand

CapitaLand has over 8,000 residential units with a value of RMB 13.8 billion sold in China and expected to be handed over from 4Q17 onwards. 10% of the value is expected to be recognised in 4Q17 and 70% in 2018.

On the shopping mall front, CPL opened their largest mall - Suzhou Centre Mall three days ago on 11th Nov 2017.

CPL is also set to continue their expansion in markets such as Vietnam and Indonesia. Their residential project in Vietnam - d'Edge is close to 100% sold.

SingPost Centre opened on 12th Oct 2017, is CPL's first managed mall in Singapore under management contract.

Apart from the above, CPL has 6 management contracts in China to date as well.

CPL also launched CapitaLand online mall on Lazada on 16th Oct 2017.

It's good to see these new initiatives from CPL which show that the management is actively looking for new income sources.

On the serviced residences front, Ascott is on track to achieve their target of 80,000 units under management by 2020.

Summary and Conclusion

Beside the fact that both are real estate companies, City Developments and CapitaLand are also similar in terms of assets composition, development type and geographical composition.

In terms of business scale, CapitaLand is much bigger with significantly higher top and bottom lines compared to City Developments.

However in terms of share price, City Developments is the clear winner. Since January this year, share price of CDL has rose 50% while share price of CPL has increased by 18%.

Shareholders make money either through dividends and / or capital appreciation.

Since both CDL and CPL are not fantastic dividend counters I will look at capital appreciation instead.

For capital to appreciate, the share price must appreciate. Simple.

Based on the basic valuation metrics, CapitaLand share price has much room for appreciation.

However since the share price has dropped after the release of 3Q17 results, is it because shareholders feel that the results are not comparable to the previous year?

Comparing Y-o-Y revenue, latest 3Q indeed fell by 0.1%.

However Y-o-Y, profit increased by ~70%, EPS increased from $0.179 to $0.302 and ROE increased to 4.97% from a negative figure.

This is what perplexes me. The company is earning more and generating more returns on the shareholders' investment but the market feels otherwise.

Can anyone enlighten me please?

Friday, 3 November 2017

Viva Industrial Trust - My First Foray Into Industrial REITs

Today (actually it's yesterday since it has passed midnight) marks my first foray into the industrial class of REITs if I don't consider Mapletree Logistics Trust as industrial.

Viva Industrial Trust is not a pure industrial REIT. It has a hotel among its properties.

I have been monitoring Viva Industrial Trust for some time. When the price dropped more than the dividend post-XD today, I decided to take advantage of this and buy into this counter @ $0.955.

Ideally I would like to go in below $0.95 but guess I am not that disciplined.

Results from Viva's latest quarter look promising.

Comparing Y-o-Y and Q-o-Q,

Other results,

Gearing is reasonable at <40%.

WALE is 2.8 years. To be honest I would prefer this to be higher.

And portfolio occupancy is 90.9%.

As a matter of fact, the above figures allude to the good fundamentals and good management of the trust.

Furthermore with the opening of the Downtown line station connecting directly to UE BizHub East, there is a real possibility of upcoming positive rental reversion and increment of the property value.

However the deal clincher for me is the AEI done for their Viva Business Park (VBP) in Chai Chee. I've been to VBP several times in the past for business meetings before they commenced the AEI.

Post-AEI, I've went back several times with my wife and what a world of difference the initiatives made!

The most obvious improvement is the number of retailers and anchor tenants such as Harvey Norman and Decathlon taking up space in the business park.

This is a far cry from the old VBP where majority of the tenants are commercial entities and the only retail shops on the ground floor are cafes and such.

The effort made for the AEI is actually visually-obvious. It changes the whole vibe of the business park. And I have to say I am impressed by what I see.

Paying at $0.955 a piece for Viva means paying a premium to its NAV and this is usually what I don't do.

However I see limited downside and much upside to the price due to the increased buying interest in this REIT, value-realisation of UE BizHub East and potential of increased income from VBP.

The way I see it, Viva will break $1.00 soon.

My plan when I placed the queue order today was this:

a) If the price appreciated within these few days, I might do a short term trade.

b) If the price drops, I will hold as part of my income portfolio. A dividend yield of nearly 8% doesn't hurt.


Saturday, 28 October 2017

Recent Actions - Sept & Oct 2017

Mapletree Logistics Trust

Added 2,300 shares from preferential offering. Total holdings at 7,300 shares.

Received S$85.30 dividend this month.

CapitaLand Commercial Trust

Added 1,000 shares from rights issue. Total holdings at 4,000 shares.

mm2 Asia

Sold for some small profits this month.

Friday, 27 October 2017

ISOTeam AGM 2017

ISOTeam's AGM is held at Sheraton Towers this year. 

The room size is about 100 seating and from my observation about 80% seated.

The AGM started with the usual Q&A and taking the questions are the chairman, CEO and the CFO.

In all only three persons, including myself asked questions. Listed as follows are the Q&A as far as I can remember. Probably have missed couple of them due to my forgetfulness. Was listening intently to the replies from the board. Sorry about that.

Q: General, admin and finance costs are high - pg 66 of annual report. Revenue went down but these costs went up.

A: This is due to the increased in staff and admin costs of the new acquisitions. The company is working to streamline these additional manpower resources to bring down the costs.

Q: Big drop in R&R revenue.

A: This is due to classification of projects. Some projects involve R&R and A&A works for example. The revenue is classified under A&A segment if major portion of the project consists of A&A works.

Secondly due to the recent lift problems, town councils allocated 40% of funds to fire fight lift the issues. So nowadays project values are only around S$1 M compared to S$5 M last time.

Q: Doubtful debt.

A: One customer is in receivableship but this debt is not written off yet.

Q: Cash receivable is negative.

A: This is mainly due to 3 reasons:

ISOTeam invested S$5 M in Sunseap. Bought another company for S$5 M. Invested in a new company HQ in Changi to consolidate operations.

ISOTeam will be selling off existing properties in Kaki Bukit, AMK, etc. This will have cost savings and generate profits.

Q: How is ISOTeam mitigating the increased competition from smaller players in the R&R segment?

A: Streamlining costs and acquisition of recent companies enables ISOTeam to offer a whole suite of services including M&E to customers.

Suggestion: A suggestion was also made to the board to use thinner paper for annual reports next time since it's in line with ISOTeam's 'Green' initiatives and will also leads to some cost savings.

Lastly, all resolutions are passed.

Summary for the Q&A:

Management gives the feeling that they know what they are doing.

Their answers are sincere. No brushing off of questions unlike AGM of other companies.

Most important point of the entire AGM. The food! Haha just joking.

Customary photo of the refreshments as follows. I thought the selection is nice. Not too excessive.

After the meeting has ended, the CEO is seen engaging in small talks with shareholders at the refreshment area. I crept over discreetly to join in and asked some further questions of mine.

This is what I gathered.

Next 1 to 2 years will be exciting years for ISOTeam and shareholders. Fruits of their recent plantings will bear by then and results are going to be very positive.

This is due to the several new streams of income from the new BUs and expected improved macro environment which will boost the performance of their R&R, A&A and C&P segments.

CnO and SGBikes are expected to contribute significantly to the top line and bottom line soon.

CnO is pending registration with NEA as a vector control product. Once done this will be pushed to other areas in Singapore with the support of the town councils. Successful trial has already been conducted in Tampines.

SGBikes is working very closely with the town councils, LTA, NParks and HDB. They have kicked off in Bukit Panjang and will extend very soon to Nee Soon. After that it will go on to other adjoining new towns.

There's another news which I won't share here due to the potential sensitivities. But this will be a huge advantage to SGBikes in the local bike-sharing industry.

By the way SGBikes is targeted to contribute 10% of ISOTeam revenue by next year. Imagine that!

Currently town councils are allocating 40% of their budget to fire-fight the lift issues. This is expected to change soon with the budget reverting to the previous HDB upgrading projects and this will likely boost the earnings of ISOTeam's traditional segments.

One key advantage of ISOTeam is that they are working closely with the government in their initiatives as mentioned above. The close relationships doesn't hurt do they?

Last but not least, get your bullets ready. There MIGHT be a big positive news coming up in months time.

In conclusion, this is somewhat similar to my experience with OCBC AGM 2016. I walked away from that AGM feeling confident of the company.

This time round I felt the same. Perhaps even more. Especially after my chat with the CEO and CSO during the refreshment after AGM.

I learned much more about the company and it's future plans from the informal chat than from the actual AGM and annual report.

I am seriously considering adding another 50,000 shares of ISOTeam now. Currently vested with 50,000.

Wednesday, 25 October 2017

These 3 Reits Go Ex-Dividend in these 2 Days

Since I am reading the results of and following some counters in my free time, I thought I might as well share some brief albeit important points from these readings, especially for the counters that interest me.

Capitaland Mall Trust (C38U.SI)

CMT probably needs no introduction. It is Singapore's first and largest retail Reit by market capitalisation, S$7.1 billion (as of 20 Sept 2017), and is listed on SGX since July 2002.

CMT's portfolio is a diverse list of 16 quality shopping malls with 2,900 local and international leases.

Based on results of 3Q17,

Ex-Date: 26/10/2017
Payment Date: 29/11/2017

Dividend per Unit (DPU): S$0.0278 (2.78 cents)
Annualised DPU: S$0.1103 (11.03 cents)
Based on today's closing price, yield comes up to: 5.43%

Net Property Income (NPI): S$121.4 million (increased of 1.6% yoy)
Distributable Income: S$98.7 million (increased of 0.3% yoy)

Portfolio Occupancy Rate: 99.0%

NAV: S$1.95

First Reit (AW9U.SI)

Listed on November 2006, First Reit is Singapore's first healthcare Reit that aims to invest in real estate and / or real estate-related assets in Asia that are primarily used for healthcare and / or healthcare-related purposes.

First Reit's portfolio valued at S$1.3 billion consists of 19 properties located in Indonesia (15), Singapore (3) and South Korea (1).

Based on results of unaudited 3Q17,

Ex-Date: 27/10/2017
Payment Date: 29/11/2017

Dividend per Unit (DPU): S$0.0214 (2.14 cents)
Annualised DPU: S$0.0858 (8.58 cents)
Based on today's closing price, yield comes up to: 6.1%

Net Property Income (NPI): S$27.47 million (increased of 3.2% yoy)
Distributable Income: S$16.7 million (increased of 2.2% yoy)

NAV: S$1.006

Mapletree Greater China Commercial Trust (RW0U.SI)

Listed on Mar 2013, MGCCT with a market cap of S$3.2 billion, is the first commercial Reit with assets in China and Hong Kong.

MGCCT's portfolio currently consists of 3 properties - Festival Walk (Hong Kong), Gateway Plaza (Beijing) and Sandhill Plaza (Shanghai) which totaled S$6.0 billion in portfolio value.

Based on results of 1H18,

Ex-Date: 26/10/2017
Payment Date: 20/11/2017

Dividend per Unit (DPU): S$0.03714 (3.714 cents)
Annualised DPU: S$0.07428 (7.428 cents)
Based on today's closing price, yield comes up to: 6.06%

Net Property Income (NPI): S$142.9 million (increased of 4.5% yoy)
Distributable Income: S$104.4 million (increased of 4.1% yoy)

Portfolio Occupancy Rate: 98.2%

NAV: S$1.246