We start to hold 0489 東風集團股份

We have bought into our portfolio at HKD 11.140 today.  We like it as it’s valuation relatively low compare to others in China.  The growth potential is encouraging given the market is huge.  Enhance relationship between China and Japan may also given some lights to it.  We call for a buy at this level and mid term target min HKD 15.00

We bought Gold and AUD while RM is trending lower

We continue to add Gold and AUD to hedge over weakening RM. We believe USD will improve further against RM. BNM may increase another 25 basis points next 6 months. However, BNM will be very cautious as to monitor the impact of GST that will start in 1st April. We believe retail will do well in quarter 1 of 2015 and follow with an extreme slow quarter. Thus giving more stress to RM in 2015.

We bought in EMPEROR group of companies and LAI SUN DEV

Shanghai-Hong Kong Stock Connect will definitely benefits EMPEROR CAPITAL. We believe it is in value now with the stock itself already trading below NTA and low earning ratio.

We also bought in EMPEROR INT’L as its also trading below NTA with high yield. It continues to expand its development by acquiring more assets to enhance group fix recurring income.

Same to LAI SUN DEV with its recent won of tender for Ocean Park hotel project and latest announcement to acquire a London base asset. We believe this will further boost recurring income base and we also added more into our portfolio.

However, all these three stocks are long term hold and buy. We do not know the timing but with our experience in these stocks will typically require holding period more than 12 to 24 months.

We disposed China Water 中國水務 all at HKD 4.20

We have disposed all our holding of China Water at HKD 4.20.  Recent share price increase associate with a subsidiary obtain a 30 years concessions for a province in China.  The owner also bought in share from open market.  But we think PE 20 times above with profit yet to be factored may contain risk.  So we sold off and may buy into Hong Kong retail counters which has been beaten down by the protest.

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