Portfolio Review for May(2) 2021

 

Please click and read this disclaimer if you wish to continue with the contents below.

For my previous portfolio review click here

YTD(2021) I have made a total profit of S$57,002.74 from my equity investments(predominantly in HK) with an XIRR of 58.34%(XIRR is annualized). From my 6 years of tracking, I have made a total of S$156,645.40 from this portfolio alone.

There is a gradual improvement in my performance this month as 10 years treasury rate stabilizes and the tech selloff starts to consolidate. 

Portfolio composition(2 index etfs and 29 stocks):


Transactions:

Initiated a 2.66% position in JD Health(HK:6618)

Sold all China Motor Bus(HK:0026) for 26.3% gain

Commentary:

JXR(HK:1951) saw a 17.51% price increase today(overall up 54.56% for me), as Politburo is pondering on implementation and supporting measures for couples to have three children. Everyone seems to be optimistic that the third child is a positive for Chinese real estate. I think it’s short and long. Short term, It's good because there is a replacement demand for three children.

Long term, the biggest factor suppressing fertility hospitals is high housing prices. If you want to encourage fertility, the housing price issue must be resolved. 

From an investment perspective, good for maternity and infant industry stocks, such as infant milk powder, toy, children's clothing, assisted reproductive industry, the kindergarten industry. Goodbaby International is currently up 30% too. Also need to take note of the market overpricing this. 

This policy has affected the whole healthcare segment, even my CMER Eye Care(HK:3309) saw some positive activity today. See how it goes.

JD Health(HK:6618) is a telemedicine company cum pharmacy ecommerce. I initiated a 2.66% position recently after its price dropped close to 50% from its peak. JD Health direct competitor is Ali Health. Online pharmacy so far has been more profitable than digital medical services, but the suspension of outpatient services during the COVID-19 outbreak triggered a big shift toward online consultation. JD Health is the largest among the Chinese online healthcare services, with revenue nearly double that of its closest competitors, Alibaba Health and PingAn GoodDoctor. In addition to online pharmacy services, JD Health offers its own in-house doctors, a network of external doctors and around-the-clock family doctor service.

Its core currently is still selling medicine(ecommerce) with a smaller segment for telemedicine. JD has the best in house logistic and customer service while Alibaba is outsourcing via Cainao and hence do not have the same standard of customer service as JD. Alibaba is also well known for mismanaging their subsidiaries. Xiami and Youku are a few examples.

JD Health topline is growing faster than Ali Health and has a higher gross margin. Both are trading similarly at ard 15x p/s. JD Health is the undisputed leader currently. I am bullish on China's medical and health tech sector.

APT Satellite(HK:1045) this deep value cash rich stock saw a 65% rise since start of this year. Today its price went up another 7%. Likely due to Chinese space station news here. The technology prowess of China is breaking boundaries. In the past, the Chinese are barred from the ISS and the Americans do not want to share their space knowledge with them. 

Now China created their own space station from scratch and even manage to launch and land a rover onto Mars. Tiangong is China’s first permanent space station and once completed, it is expected to be in operation for at least 10 years, with the capacity to host three permanent residents and three visitors. It will be joined in orbit by the Xuntian optical space telescope. All instructions are in Chinese. The technology prowess of the Chinese I feel, has the per capita brain power and money to surpass the Americans if given time. 

No comments :

Post a Comment