Portfolio Review for March 2021


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For my previous portfolio review click here

YTD(2021) I have made a total profit of S$40,366.60 from my equity investments(predominantly in HK) with an XIRR of 85.56%(XIRR is annualized). From my 6 years of tracking, I have made a total of S$140,009.26 from this portfolio alone.

In terms of benchmarking with STI, HKSE and World index. There was a substantial pullback recently due to inflation and interest rate worries. The large difference between my XIRR and TWR is due to XIRR being annualized in nature and the price appreciation of some of my stocks recently.

Portfolio composition(4 index etfs and 26 stocks):


Sold all Haw Par(SG:H02) at 35% gain

Sold all Great Eastern(SG:G07) at 21% gain

Sold all Swire Properties(HK:1972) at 13% gain

Initiated a 2.35% position in Xinyi Energy(HK:3868)

Initiated a 2.67% position in ZA Online(HK:6060)

Bought back JXR(HK:1951) to 3.46%

Added more Kingsoft(HK:3888) to 5.34%

Added more C-MER(HK:3309) to 3.98%

Added more GDS(HK:9698) to 4.48%

Added more Vobile(HK:3738) to 6.32%


Market is currently unkind towards Chinese innovation. As US prints more than 25% of their total USD float to sustain their recovery(haven't include infra bill and stimulus), bond traders are pricing in an accelerated inflationary scenario. I feel, there are numerous argument against this. Asset inflation is true, due to low rates, property prices will go up. This kind of inflation is temporary as more builders in the US will come in the equalize it. Hence I feel asset inflation which result in commodity inflation(steel, cement etc) are short term spikes. Capitalism will normalize this.

While the eurozone is still at negative interest rates, US treasury yield will have a cap due to arbitrage. This can result in a short squeeze in the bond market. Technology innovation is another deflationary force. Ecommerce has brought down the price of groceries and daily necessities. EV prices are going down due to cheaper batteries overtime. Dvds and entertainment cost are going down drastically due to direct to consumer channels like Netflix and Disney+. Intense competition will also cause factories to take losses instead of hiking prices too much to drive away customers. Mobile data subscription cost is going down due to intense competition from telcos and government policies. Despite the excessive printing by the Fed, there is a high chance that inflation will still be in control.

Hence I feel the current strategy is to buy the dip for tech and not to swap to recoveries as much. I might be wrong but that's what I think.

Xinyi Energy(HK:3868) owns and operate 16 large scale solar farms with an approved capacity of 1514 megawatts. They have never had a power limit in the history of operation. Renewable clean energy is currently being pushed and supported by China.

One of Xinyi Energy's solar farm

Short-term positive factors such as the expected earnings rebound of 47% this year under the normalization of sunlight resources. In the long term, the company's production capacity is expected to grow at a compound annual growth rate of 34% from 2020 to 2023, and 62% of the company's solar farms will achieve market price by 2023, so the company's cash flow will not be affected by the subsidy policy. At the same time, the company has a strong balance sheet and a high increasing dividend yield.

ZA Online(HK:6060) ZA Online's road to subvert the traditional insurance industry has been laid at the beginning of the company's establishment in 2013. The unique Internet gene made the company different. It is the only Insuretech that has joint stake by three giants: Tencent(10.56%), Ant(14%) and Pingan(10.56%).

ZhongAn's online business is mainly divided into two categories. One is the online insurance business empowered by Internet technology. Divided into four major ecosystems: Healthy ecology(Enjoy e-life), Digital life ecology(Return freight insurance), Consumer financial ecology(Guarantee insurance), Car ecology(Car insurance)(Main insurance products in brackets).

Different from traditional insurance companies, ZhongAn Online does not have offline outlets. About half of the employees are engineers and technicians. Technology and Internet genes are ZhongAn’s first technological moat. Rely on technology, the company's business can scale rapidly in the Internet era and maintain rapid growth. Without offline outlets and with much lesser staff, their margins alone are already very disruptive towards traditional insurers.

Last year, it has about 524 million insured users of ZhongAn Online Services. Over 7.9 billion total insurance policies. One out of every six insurance policies in the country comes from ZhongAn. ZhongAn Online broke the top ten ranking in the property insurance industry in China. Became the ninth largest property insurance company in the country. Its app is also one of the highest rated among online insurers.

ZhongAn's rapid growth is not blinding, but high quality. The company has verified the business model of Internet insurance by taking the lead in profitability among global peers. Technology is the key to profitability.

Valuation wise its cheap. It can be seen from the table above. ZhongAn Online's 2020 sales is 23-3x of these three US online insurers. It is also the only one that has reached profitability. But the market value these three loss-making insurtech companies equivalent to 56.84%, 56.86% and 32.95% of ZhongAn respectively. The Price to sales ratio multiples also far exceeded ZhongAn(example Lemonade price to sale is 54.3x vs ZhongAn's 4.19x).

Will go deeper into these counters later on.

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