This is part 2 of core holdings quarterly report which focus non-Reit counters.

iFAST and 800 Super replaces Micro-Mechanics and SingTel in the core holdings since the last quarterly report. Micro-Mechanics was divested before its last quarterly results as my return provided 5 to 6 years of dividend which was my initial investment reason. Since my divestment, its price has continued to hit new high to remind me of my pain. SingTel just dropped out of the core holdings as I purchased more of the other counters.

The tables below summarizes their performances for the latest quarter.




Another fantastic quarter by Valuetronics. Revenue and net profit increases for the seven consecutive quarters, contributed by both CE and ICE segments. The strong performance for the past few quarters have been attributed to smart lightings of CE segments. The ICE continues to grow but at a slower rate.
It also declared its first interim dividend of HK 7 cents. The momentum should continue to carry on for a few more quarters and I hope to hear more growth from its ICE segments, since it has increased its capital expenditure for the last 2 quarters on new machineries.
At forward PE of about 12x (and only 9x excluding cash), and probable yield of about 4.6% (based on $1 price), it is not a compelling buy. Having said that if the price corrects to around $0.90 or more good news is announced in the coming quarter, I might add more.

Food Empire

Food Empire reported another good quarter with a minor increase in its revenue and a higher growth in its net profit. From the beginning of its turnaround last year, it has continued to generate good cash flow. Coupled with its regular scheduled repayments of its debt, the company  is finally in net cash position after being in net debt from 2013.

Going forward, the growth might not be as strong with management highlighting stiff competition for IndoChina market and maturity of its ingredient business. With the positive experience in the ingredient business and increase in cash, I am confident that the management will announce further expansion in the upstream project in due course.

Having average up a few times over the past year, Food Empire is currently my top holding, occupying 8.5% of my portfolio (by cost). While I believe that it will continue to do well and pay out more dividend, I will not add on more shares as its growth might slow and currency risk while reduced, is still a concern.


iFast continues with a strong showing this quarter as compared to previous year. However, the increase is much lesser from previous quarter. I expect the momentum to continue and its Q4 will be about the same as this quarter, with the potential of upside surprise. The company has also increased its dividend by 10% from $0.0068 to $0.0075.

High valuation of PE 29x if Q4 results is within my expectation and PEG of about 1. So pretty much fairly priced but I continue to like how the company goes about executing its strategies. While China loss widens, it continues to establish itself. the recent step in an institutional business partner in China (Beijing Financial Alliance Technology Co Ltd) is evident of its effort.

I am happy with the gradual growth for the next one to two years with the a possible explosion in growth (and price) once it establishes itself in the China market.


As I was expecting quarter three to continue its growth momentum from the previous two quarters, I was disappointed to see the dip in performance when I first took a glance at the results. Feeling more neutral when I realized that the weaken performance is largely attributed to UWX due to a restriction of visitor to the island. The other attractions reported an increase in revenue.

Straco continues to generate a large amount of cash and now has a net cash position of 137 mil. With a quarter to go, I would expect its net cash to be in the range of 140 to 150 mil by the end of this financial year. That is a whooping $0.17 per share.

Before Straco bought Singapore Flyer (SF) in 2014, it generated about 12 to 15 mil per year. When it acquired SF, its net cash was at 110 mil. After SF, it has been generating about 40 mil per year and with the record cash that it is holding, I am pretty confident that it will increase its dividend for this year.

Hence, I will continue to hold on to my current stake. I am unlikely to increase my stake further until there is more clarity on how the company is going to deal with the cash that they have.

800 Super

800 Super produces a stable quarter with minor increase in revenue and minor decrease in net profit compared to previous year. However, its performance is better than the previous quarter and net profit margin is back to 11%.

It has obtained TOP for its WTE plant and will be carrying out testing of its biomass boiler. The plant is expected to commence operation from 2018 first quarter. The development of sludge treatment plant is in progress and is on track for completion in 2018 second quarter.

Looking forward to the completion of the above two projects in the coming quarters.


Vicom produces another stable quarter with minor decline compared to the previous years. Next quarter’s report will be interesting as we can see the effect of the minor price adjustment for vehicle inspection.

I continue to stay confident of its ability to generate cash and am quite sure it will at least maintain its dividend by the end of the year.


Raffles Medical Group

Results continues to be flat with Hospital Services Division’s revenue increased by 3.1% but Healthcare Services Division’s revenue decreased by 4.2%. Looking forward to the opening of  Raffles Hospital Extension by end of this year which should improve both top and bottom lines as it has been operating at full capacity in recent times.

It continues to generate strong cash flow and cash balance has maintained at  around 110 mil, even after distribution of 9 mil of dividend and payment of 31 mil for investment properties under development.

With Raffles Chongqing opening in 2018 second half and Raffles Shanghai in 2019 second half, it is exciting time for the company.

A “C” grade for current performance but a “B” for its potential in the new few years. I will continue to hold on to my current stake and may add more at the appropriate juncture.