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Showing posts from April, 2018

Raffles medical AGM 2018

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Highlights I have gleaned from Raffles Medical AGM
1) Revenue stream
56%Hospital
40% healthcare
4% investment holdings, 
There is a sharp increase in investment holdings revenue due to Raffles Holland V rental business / contribution (Similar to REIT business) . Raffles Medical is focused on acquiring space for land intensive hospital business and is converting space to acquire rental. Prevailing trends and strategy
2) In 2017, due to the economic downturn, there is significant price cutting / negotiation in corporate services. Companies are lowering their quotes for insurance and clinic contracts. As Raffles medical is focused on bottom line profitability and not top line sales revenue, they are turning down contracts that have low profit margin to reduce unnecessary expenditures. 
3) There is strong price competition from Malaysia and Thailand. This is worsened by high medical charges in Singapore. This led to industry wide decrease in foreign patients and stagnant patient growth.

Raffles medical 2017 AR review

High level summary of raffles medical 1) Financial health
Strong operating cash flow
Portfolio of investment properties (freehold clincs), which are marked to market and a potential asset play
Increase DPS
Increase revenue 0.8%, increase NPAT 1.1%Strong insider shareholding and insider uptake of share optionsPotential asset play with strong portfolio of freehold and long lease investment properties and clinics (marked to market, might be illiquid) Drawing down in free cash flow and increase on short term and long term unsecured  debt 2) Risks and prospects (to be raised during AGM)
2017 is a challenging year for medical tourism and may have understated it's potential. Do you foresee and short term or long term recovery? Whom are your possible competitors? Scored high in client satisfaction index. Expanding network and services, opening 4 clinics. Also expanding in Hong Kong and Indochina.
Is recruitment efforts in Chongqing going well especially for the 700 bed hospital? Do yo…

Hyflux

Annual report 2017 summaryCould be Diwosifying in energy and environmental services which is out of its circle of competence. Very hard to gauge. Not focused on core water treatment business and lowering costs. Great effort in cleaning up balance sheet of perpetuals but still drawing down from project loans and not profitable Hyflux trying to grow it's way out of insolvency and indebtness. I don't see it happening for this company in the next 2-3 years unless it can sell of TianJin Dagang and Tuaspring to generate free cash flow, and reduce its capex. Price spike due to unverifiable factors. May be a good chance to divest most of my miniature position.Energy market play
Expected to be losing money continually for 2018. Even if the energy market recovers, I don't expect Hyflux energy to be profitable due to the fierce competition of the energy industry in Singapore. I don't see a reasonable chance this company will regain profitability in the next 2-3 years. 2019 onward…

MBTI

I recently attended a talk at thomson toastmasters which is conducting a MBTI workshop. For those whom are unfamiliar with MBTI, it is a popular personality test used by companies to screen for the personality profiles for their candidates. It is regarded well enough to be placed into academia although the reliability of its methodology and results is often criticised. https://en.m.wikipedia.org/wiki/Myers–Briggs_Type_Indicatorhttps://www.16personalities.com/free-personality-testPersonally, I have taken the test and find it to be pretty descriptive of my thinking and behavioral traits. However, the speaker presents a differing point to it. Granted, he is not a professional speaker or an well grounded expert in this particular field, but he provided plenty of food of thought regarding how MBTI should be used. ESTJ: extraversion (E),
sensing (S), thinking
(T), judgment (J)INFP: introversion (I), intuition (N), feeling (F), perception (P)A lot of people focus on the Introvert and extro…

FANG

There was the nifty 50 on the 1970s and 1980s. There was the tech boom in the 1990s. There was a tulip mania in the previous centuries (1637) , and now there is the "mooning" of the cryptocurrency in contemporary times. And now we come to the FANG, a group of US technology companies which share value has appreciated tremendously in recent years. Facebook
Apple
Netflix
Google Unlike Peter lynch or Warren Buffet, I don't have a strong opinion about whether technology companies are worth their salt or not. Both talked about buying simple business that even a idiot can run, a balance sheet that is clean and relatively debt free, capable management, investments moat and that can generate good returns with low capex,  and whether it is within your circle of competence. For facebook, it is a different ball game altogether. Facebook is very management driven and led by leaders with strong vision and personalities to make things happen.
Granted strong management can give the com…