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Summary For Jun21

Stock Portfolio @ End of Jun21

My Portfolio registered loss in the month of June, mainly "contributed" by the huge drop in SCIB, SCIB-WB, and to some extent, JAKS.

Overall year-to-date return has dropped to merely 2.3%.

I have sold part of SCIB's shares again this month at 77.5sen. Initially I planned to sell all of its shares and warrants to wrap up my investment in it, but last minute I changed my mind and sold only half of the remaining mother shares.

However, its share price continue to drop to 50sen, below my average price of 54.5sen

Anyway, SCIB has finally released its FY21Q1 result which was a bit of relief to me even though the result was slightly below my expectation.

So far there is still no mention of any accounting issue by its external auditor KPMG.

Besides SCIB, JHM also released its delayed FY21Q1 result in June. To me it's a good result even though there is a net forex gain of RM2.3mil.

The management is fairly optimistic about the near future so I think the growth potential is still intact despite being slowed down by multiple MCOs.

JHM recently signed a technical collaboration agreement with Jiangsu Dekai Auto Parts from China to supply automotive lighting for PROTON.

Dekai is China's Tier 1 automotive lighting manufacturer that supply its products directly to OEM customers.

Krono also released its FY21Q1 result (ended Apr21) and I can't say it's not good since it was its highest Q1 revenue and net profit ever.

As usual, the management painted a good picture on the group's prospect so I'll continue to hold its shares at least until it completes the acquisition of remaining shares in Quantum China Limited.

MyNews registered its biggest quarterly loss of RM10.3mil in its FY21Q2, with the loss widened from RM8.9mil in preceding quarter.

This does not come to a surprise to me since it's a period of MCO 2.0. I'd expect the result to be worse in FY21Q3 due to "Full MCO".

Currently CU has only opened 4 stores at Centrepoint Bandar Utama, Bandar Puteri Puchong, Rohas Perkasa KLCC & Desa Petaling. Coming stores will be at IOI City Mall, 1 Utama Shopping Center and perhaps Kepong area.

Definitely the speed of opening up new stores has been slowed down by MCO, but MCO might result in more strategic retail spaces become available.

The bar chart below shows the revenue and after-tax loss of myNews Food Processing Center (FPC) since its commencement in FY19Q3.

FPC is just 51%-owned by myNews. Even though its revenue has dropped approximately 50% since the pandemic, the net losses are still not too bad compared to pre-Covid level.

Anyway, RM3mil loss per quarter is still a RM12mil loss in one year. I'm optimistic that it will turn positive once economy and movement restriction are over in 2022.

The FY21Q3 quarter result of Scientex was impressive. Even though its PATAMI was down 2% QoQ, it's its highest ever Q3 PATAMI by 50%!

Recently despite subdued property market, Scientex is very aggressive in acquiring huge tracts of lands, as below:

  • May21: Tebrau (Johor) 959.7 acres freehold land for RM518mil
  • Apr21: Tasek Gelugor (Penang) 343 acres freehold land RM246.6mil
  • Sep20: Pulai (Johor) 202 acres freehold land for RM185mil
  • Aug20: Jasin (Melaka) 1,357 acres freehold land for RM260mil

These lands are huge and suitable for township development. Together with its existing landbanks, it will certainly keep Scientex busy for at least 10 years!

In its latest quarter report, Scientex mentioned that it has completed the acquisition of 161.6 acres of development land in Sungai Petani, Kedah even though I can't find this announcement in Bursa website.

To me, the location of both Sungai Petani & Tasek Gelugor are not very good but it should be alright for affordable housing development.

Brent crude oil price has reached USD76 which equals it highest level in year 2019 but the share price of Hibiscus still cannot reach 2019's level of above RM1.00. 

The good news of the acquisition of decent producing assets from Repsol does not seem to excite investors too much.

The share price of LeonFB also does not move much despite a super impressive quarter result.

Meanwhile the loss-making Genetec which I sold earlier at average RM4.20, is at RM13 per share now... 

I'm tempted to add one or two new stocks into my portfolio but I have too many stocks now. So eventually I decided to buy a bit more shares in Maybulk & MFCB in June.

Until today, the Covid-19 situation in Malaysia is still rather bad. FMCO has been extended and it seems no sign to an end soon.

There are more sufferings now and people are begging for full re-opening of the economy. However, the number of new Covid-19 cases are climbing above 6,000 for sixth straight days.

Recently a friend called me to gather at his house together with 5 other friends. I said no but he said that there's nothing to be scared since everyone will wear masks.

This mentality is the main reason we can't control our Covid-19 cases. 

Lets say seven people gather and one of them has asymptomatic Covid-19 and spread it to everyone there. Then those 7 people go back home and workplace to spread the virus to their family members and colleagues. 

Initially it's just one Covid-19 case but it has become 20-30 cases because of this gathering.

Can I call this ignorant, selfish, sad or plain stupid?

Anyway, I think the stock market will be flat in July and I'm still optimistic that it will end the year in good fashion.

Our Covid-19 vaccination rate has increased tremendously with 250,000 doses given per day, and will probably go higher as more private clinics and factories will join in.

250,000 doses per day means 7.5 million doses in a month or 3.25 million people will complete 2 doses of vaccination.

In such speed, I think we should be able to achieve herd immunity by year end if the supply of vaccines is adequate.

Nevertheless, vaccination will not give 100% protection.

Sooner or later human will learn to live with Covid-19 virus, and we will surely live, travel and work like we usually do, hopefully soon.

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