A mixed quarter with iFAST being the star player. Valuetronics provides a pleasant surprise with stronger growth in ICE segment and Vicom is returning to postive growth.

Raffles Medical Group and Food Empire continues to execute their expansion plan while remaining profitable.

Another quarter of decreasing revenue for UMS due to integrated system but the higher margin from components sales allowed them to improve in their net profit and the group maintained their dividend for the quarter.

Straco which just returned to my core holdings has a disappointing quarter with decline in both revenue and net profit.

The tables below summarizes their performances for the latest quarter.

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iFAST continues to produce another record quarter. See the company presentation for its performance and its outlook.

Two things that excite me from this quarter’s presentation are

  • Sharing of their 2028 Vision with the Big, Hairy Audacious Goal of achieving $100 billion AUA. This I believe is primarily anchor to the growth in China and India markets in the coming years. I like their ambition and would certainly be rooting for them. However, I also think that it would not be a smooth journey for them and they will hit some road blocks along the way.
  • Application for Virtual Banking license in Hong Kong. I am not having too much hope that they can get it but if they do, it will be a positive boost for the group.

With iFAST occupying 9.0% of my portfolio, I am not in the rush to buy more at this moment. I will just hold on to my current share and collect the increasing dividend.


Food Empire

Another strong quarter in term of top line growth. For the second consecutive quarters, the group has managed to grow its revenue for all her markets.

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Slightly disappointed with its profit which has dropped by 28%. This was mainly attributable to higher advertising and promotion expenses coupled with higher manpower cost.  Operating cash flow also dropped significantly for the quarter but that is mainly due to a large increase in its inventories.

I am not too concern about the bottom line and cash flow at the moment. For the past two years, the group has reported lower profits for the second quarter. So likely the numbers will improve in the next two quarters. Also unless there is another shocker, Q4 will provide a stronger number over last year. Hence, this year the group should report record profit. Of course, the key risk continues to the currency fluctuation and that might be the damper.

Satisfied with its current state of business and only two years to the completion of its second Instant Coffee processing facility in Andhra Pradesh, I have bought more shares at $0.55 yesterday.


Two consecutive quarters growth in both its top line and bottom lines are reasons to rejoice its performance. The icing on the cake is the higher interim dividend of $0.1346, topping its previous year’s interim dividend of $0.1312. This set of interim dividend is in-line with the 90% dividend payout policy.

A similar performance in the second half would result in a total dividend of $0.27, providing a yield of 4.x% at current price. This does not appear that attractive but if the company decides to dish out last year’s $0.36, then the yield would be near to 6%.

Is it likely she will do that?

“This policy change reflects my earlier remarks in the past AGMs that so long as we do not need the extra cash, we shall return it to the shareholders. I have kept my promise.”
Chairman, 2017 Annual Report

Based on the above statement, company’s current cash pile of $1.10 per share and past 8 year of increasing dividend (with the exception of FY2016), it does look favourable. However, given that its parent ComfortDelgro might not require as much cash now and the forward guidance that the demand for its vehicle testing will be affected due to the recent fall in COE prices, I will dampen my expectation.

I will just hold on to my current stake in both cash and CPF portfolios.

Raffles Medical Group

Seven quarters of flat revenue and net profit growth have taken the shine from the once darling health stock. However, if one considers that the group has maintained its profit during this period where it aims to complete 3 major projects, then I would say its quite a solid performance. Also, the stagnating top line does indicate that the company is right on to go on to this expansion exercise to fuel its next phase of growth. In fact, one can even argue that they should have done it earlier but of course that is only on hindsight.

I am happy with the progress that the group is making in their expansion and would patiently wait for the trees to bear fruits in the future.

With the recent purchase at $1.00, it now occupies 9.1% of my portfolio. I will probably not add more but just continue to participate in DRIP.


As guided in Q1, the CE segment reported a lower numbers due to smart lighting as demand from Signify due to clearing of inventories of Signify’s customers. Signify has guided that demand has normalised, so we should see an increase in number sequentially from next quarter onwards but year-on-year, the numbers should still be lower.

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What I am happier about is the growth in its ICE segment which gives the company a higher margin. Assuming continue growth in this segment and returning to normalcy of its CE number from next quarter, I am now more confident that it can maintain its dividend. Confident is further boosted by its stronger free cash flow this year as it did not spend much to purchase new equipment this year, as compared to last year.

My last purchase was at $0.80 in April and am currently has no intention to buy more.



Revenue continues to decline for a second consecutive quarter with softer revenue for second half. The first half results is mitigated by the stronger components sale as stated in the quarterly report.

Within the semiconductor segment, revenue from its Semiconductor Integrated Systems shrank by 40% to S$14.7 million from S$24.5 million in 2Q2017, while revenue from component sales increased by 13% to S$20.5 million in 2Q2018 vs S$18.2 million for the year-ago period.

And because of the stronger component sales margin, the group’s net profit factually shot up by 26% for the quarter and 14% for the half. Cash flow from operation for the quarter is much lower but comparable to last year.

How will all this affects its dividend? Since 2010, the company has been able to sustain or increase its dividend even in years where the revenue and net profit dropped. This is probably due to their strong balance sheet.  However, with less cash available now after the acquisition of JEP, will it lower its payout? I think it should be able to sustain its dividend if it can sustain its cash flow for second half.

Assuming a 6 cents dividend, that gives me a yield of 6.4% based on my average price of $0.93. Even it dividend drops to 5 cents, the yield of 5.4% is still satisfactory.  Hence, I am likely to hold on my current stake but could reduce it slightly if I need the cash for other ideas.


I decided once again to push Straco out of my core holdings by reducing my stake last week. The positive from the latest quarter continues to be its strong cash generating ability which I projected to reach $0.20 per share by end of the year. The management has not been very forthcoming in their plan for the use of the cash and have not suggested any new direction since the acquisition of Singapore Flyer. As such, I decided to have a smaller stake in the company and hence would not monitor the counter too closely.