Sunday, December 30, 2012

Further purchase of NTPM

As part of my plan to increase my exposure in NTPM, I have bought an additional 6,200 units of the tissue and personal care products maker at RM0.435. Felt that there is further opportunity in NTPM's price being depressed by some Malaysian funds selling down.

This has caused my portfolio to be as follows.

A more detailed view of the performance can be viewed as in here 700 days after creating the fund.

As you can see, besides looking at value, the list of portfolio companies that I have chosen are winners in their own space:

  1. DKSH - largest pure products (pharmaceutical, FMCG) distributor and market expansion company in Malaysia.
  2. Wellcall - a rubber hose maker which does not really has competitive comparison in Malaysia. Its business however is mainly export though. It has steady income growth since its listing days. Very good dividends track record.
  3. Time Dotcom - its largest competitor is Telekom Malaysia which is far bigger but I like TdC after the change in management as it is much focused into what it does. I believe in fiber as the medium for expanding communication.
  4. Airasia - I do not need to say much besides I see this company as the leader and innovator in Asia's airline industry. Will face some stiff competition (which is normal) but being the largest and successful low costs carrier, I think it will be able to continue to grow.
  5. Jobstreet - like the management and it is the leader in online job postings market in several South East Asian countries. Fantastic cashflows and amazingly still growing at a decent pace.
  6. Padini - a growth company in the low to medium range fashion. Lots of competition but able to hold its own. With Asia being the place where the number middle class families will continue to grow at a furious pace, fashion will find its place if done correctly. Will have to find ways and means to grow beyond Malaysia though.
  7. NTPM - main competitor - Kimberley-Clark and several others. Has held its own in Malaysian market by being the largest tissue products provider in the market. I like the way the management grow the company.
  8. Airport - Malaysia Airport will see good growth. Competitors are the regional airports. Nevertheless, air travel will continue to grow at pace above average economic growth rates for the region.
Well, these are the basis for the portfolio companies in my investments moving into 2013 or even further as you can see these types of businesses are the ones which does not really depend on whether what happens to 2013, an election year or what if South East Asia has a slower growth next year.

Happy New Year and have a good year ahead!


CrabGrill said...

Daihatsu is going to invest RM 0.7 bil in Malaysia. Is it a good or bad news for APM?

lg said...

This is a great blog and thanks for this timely post. It has certainly inspires me to start thinking about investing wisely. Why do you think of reits ?
Thanks ans wihing you a financialy blessed 2013!

felicity said...

If Daihatsu is investing, I would think is good news as APM is a distributor to the company - Perodua. However, there is one thing which I am unsure of in the automotive industry - the uncertainties as the Malaysian automotive market has been under protectionism for a while. APM sells quite a fair bit to the 2 local car manufacturers.

Sitting over here, I am not able to know how good is APM in terms of quality as against the others.

felicity said...

REITs is quite close to the property industry. I am afraid of over supply especially in the office REITs. retail REITs may be a bit different as Malaysia is moving nicely growing into a shopping destination.

Unknown said...

This is great blog to study fundamental. I follow up your latest news almost daily. TQ.

Sorry just personal opinion only... NTPM is dangerous in terms of technical view point. Just to say must be careful...

Big Sea said...

I love DKSH. Looking at the wide range of products that it is carrying, it will only grow stronger. Such a wonderful company only trading at such a low PE(8). Unbelievably !

Melvin G said...

Happy New Year Feli!

K C said...

felicity, could you let us know your % return of investment from last year. Just compiling statistics to see if investing following FA, especially for stocks in Malaysia not followed by institutions yield positive alphas. As you know this has been proven affirmative again and again from the US market.

felicity said...

Hi KC, I do not get who you refer to as FA.

But again I do not track it this way as in in yearly performance. The objective for this fund is for a long period, hence the benchmark to me is the Bursa Composite and FD. Again, if we follow a serious no nonsense approach, pick a good strong company, I guess I am confident it will outperform the index over the long term.

Return of 80% over 700 days should not be too bad - in fact it is much difficult to emulate. Over time, however stocks is a good place to be.

K C said...

80% over 700 days, well done. Also agree with what other things you mentioned. FA is the term used extensively by the investing crowd (i guess not common among the professionals) as fundamental analysis. I just used this term recently, thinking that it is already a well accepted term by the masses.

felicity said...

Well, let's not hope for everyday to be a Sunday. Just wanted above average return. Let's not be over excited :)