Portfolio 4/30/2012

Name/名稱 Stock code/編碼 Average purchase price/平均買入價 (HKD) Share price/股價 (HKD) Change/變動 NAV/資產淨 (HKD) % of portfolio/組合比例
Weiqiao Textile/魏橋紡織 2698.HK $4.971 $3.840 -22.75% $0.2722 25.39%
Ju Teng Int’l/巨騰國際 3336.HK $1.579 $1.630 3.23% $0.1304 12.16%
China Ting/華鼎控股 3398.HK $0.520 $0.550 5.77% $0.1760 16.41%
AUPU Group/奧普集團 477.HK $0.600 $0.670 11.67% $0.1169 10.91%
Bank of Communications/交通銀行 3328.HK $4.160 $6.000 44.23% $0.0873 8.14%
Herald Holdings/興利集團 114.HK $0.820 $0.920 12.20% $0.0836 7.80%
Cash/現金 $0.2058 19.19%
Portfolio NAV/組合單位淨 $1.0721 100.00%

HSI: 21094.21


2 thoughts on “Portfolio 4/30/2012

  1. Hi, interesting site

    Rarely see any blog posting about HK stocks in English.. ;]

    Just one recommendation: maybe you can post your thought process for each of the stock you are vested in as well? It can really help in clearing your thinking approach. It helps for me.

    Btw, I’ve researched on Ju Teng before. May I know what’s your reason for investing in this company?

    1. There is a number of reasons why I bought Ju Teng.
      1. It was selling for massive discounts when I first bought it (around $1) whereas it’s NAV is about $4 and I think this company is worth more like $6-$7 in the most optimistic case.
      2. Apple has almost killed the pc industry, there should be a revival in the pc market, although I cannot pinpoint the precise timing. The ultrabook, ivy bridge, and windows 8 concepts look promising. I believe intel is in a very precarious situation if their highly touted ultrabook concept fails because apple can and probably will engineer their own processors and ditch intel all together for their MacBooks (just like their house developed chips for iPad, & iPhone). Intel is also massively late to the mobile industry.
      3. There should be a new wave of replacing old laptops. Most laptops were sold in 2009 and most only last for 3 years. I know a lot of friends around me need to replace or have replaced theirs recently.
      4. Ju Teng misread the market entirely for the past two years but I don’t think the ipad can substitute a laptop entirely. It’s competitors fared much better though. It is moving more towards high grade materials for nb casings is very good. 1. Most ultrabooks are wrapped in aluminum and carbon fiber. Appeal is of utmost importance as Steve jobs had taught the pc world harshly. (One of Hp’s laptops is using gorilla glass, personally i think it attracts a lot of fingerprints.) 2. Better for profit margin.
      5. Ju Teng has a very talented CEO in my opinion. He and his brother had only limited school education (formal education) but they can build the largest nb case manufacturer in less than a decade and beat their competition like Foxconn and Catcher is because of their attitudes toward life/business. Their unwillingness to submit to unanswered questions and act as the ultimate truth seeker is vital to the business. Their management method/style is not bad at all, if you have time to read it, take a look at it.
      6. 667.Hk Hannstar, a notebook pcb manufacturer got privatized last year for a very cheap price. Another sign the laptop industry might be reviving. And yesterday’s news: HANNSTAR BOARD said unconsolidated sales in April rose 32.02% to NT$244,112,000 from NT$184,909,000, according to a statement filed to the Taiwan Stock Exchange.

      Downsides and questions:
      1. Way too many share options.
      2. Somewhat highly leveraged.
      3. Reducing profit margin due to many factors. All the above reasonings for buying into this company may come to nothing because of profit margin squeeze. However I still don’t think this company is worth only around $1.
      4. A lot of minority interests. The joint venture with compal aka compal precision that makes metal casings,Compal owns 36.8% and increasing, so Ju Teng doesn’t actually take a lot of the metal casing profits?
      5. Factories in Sichuan are still not built… Can they get the orders on time?
      6. Relocation of the factory, hinders production process despite compensation?
      7. Windows 8 sucks a lot? Steve Ballmer is a brainless ogre?
      8. What about that story about TSMC not being able to manufacture 22nm chips, does it affect pc notebook market?
      9. Apple positioning their products later this year aggressively against the PC notebook market. I know a lot of people have switched to use Apple including myself, and they are not switching back to PC’s. However, most businesses can’t switch to use apple because everything runs on windows.

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