It has been a relatively quiet month with no buying and selling, and also no dividend. Things get more interesting over the past week as the earning season begins. Overall, I am delighted with the earning reported this week as they met or exceeded my expectation.
On the local front
The Reits reported a good set of results but given last year’s results was affected by pandemic, the year-on-year change isn’t quite useful. As such, I decided to look further back and see if I can get any insight from the numbers.
| Counter | Period | Current Yield | 2021 | 2020 | 2019 | 2018 | CAGR (3-yr) |
| Frasers Centrepoint Trust | 1H | 4.9% (2.45) | 5.996 | 4.670 | 6.157 | 6.100 | -0.6% |
| Keppel DC Reit | Q1 | 3.6% ($2.72) | 2.462 | 2.085 | 1.920 | 1.800 | 11.0% |
| Mapletree Logistics Trust | Q4 | 4.2% ($1.97) | 2.161 | 2.048 | 2.024 | 1.937 | 3.7% |
| Parkwaylife Reit | Q1 | 3.4% ($4.16) | 3.57 | 3.32 | 3.28 | 3.17 | 4.0% |
As seen from the table, KDC shows the most impressive growth rate. Annualising its latest quarter DPU will give us 9.848 cents, providing a yield of 3.6% at current price of $2.72. While the yield seems low, if KDC can continue to grow at about 10% for the next 3 years, the yield would have increased to about 4.8%.
Vying for the lowest current yield with KDC is PLife. I am awaiting its renewal of its master lease with Parkway Hospitals and possible third growth path beyond Singapore and Japan. While its growth rate is not as impressive as KDC, it has always turn in a steady performance and I expect that to continue going forward.
FCT was affected much by the pandemic but looks like it is on its way to recovery. With the completion of is ARF acquisition and divestment of its smaller malls, it might start to grow again from 2022. Finally, MLT was a recent purchase and it looks pretty stable over the past 3 years too.
Among the four above, I am most likely to add more KDC. I might add a bit more MLT too just to beef up its position in the portfolio.
Beyond the reit, iFAST was the only one counter that reported their results. Another record quarter with its net profit hitting $8.8 mil! Not only was this 140% higher than previous year, it is 30% higher from previous quarter. Assuming that it just maintains this same level of profit for the rest of year, its EPS would hit 12.88 cents and that will be up about 65% from 2020. The outlook for the next few years looks good and I will continue to hold on to my stake. I am unlikely to add more to my position as its current size is approaching 12%.
On the US front
Intuitive Surgical, Netflix and Tractor Supply reported their Quarter 1 results last week. And all reported good numbers as shown below.
| Counter | Revenue | Net Income | EPS |
| Intuitive Surgical | $1.29 bil (+18%) | $427 mil (+32%) | $3.52 (+30%) |
| Netflix | $7.16 bil (+24%) | $1.71 bil (+140%) | $3.75 (+139%) |
| Tractor Supply | $2.79 bil (+43%) | $181 mil (+117%) | $1.55 (+118%) |
The market has reacted positively to ISRG and TSCO results as their outlooks appear bright for the remaining of the year. As for NFLX, there is a bit of uncertainty due to its lower than expected increase in new customers for Q1 and expected lower increase in Q2. This is probably due to the surge in new customers they experienced last year. Will definitely keep a look out at the numbers in the coming quarters.
For all the three counters, I am just going to hold on to my current stake.
That’s if for this week. Next week will see an avalanche of companies reporting their results. Notably, I will be on the lookout for MCT, MINT, DBS, Micro-mechanics on the local front, and Apple, Microsoft, Starbucks and Shopify in the US market.
Towards Financial Independence 