#hapseng

Position: YES

As expected, the earning from her main income generator has fallen apart, instead bigger drop than I am expecting. Still, another challenges will be there for all the planters for the coming quarter ahead if not neutral. For those unfamiliar with HAPSENG, HSPLANT is one of the core profit contributor to HAPSENG and as well a favourite of EPF.

The neutral effect of the drop is well balanced with the gain on disposal of HAPSENG automotive division in VIETNAM. With this gain, HAPSENG can well reward the shareholders, which I am glad on this decision. 8 cent dividend on back of the rough journey ahead is a pleasant gift. 

I have been asked by a friend of mine who is following me, the hassle of disposing my core holding on HAPSENG with the justification of exposure in plantation while accumulating CEPAT at the same time. 

HAPSENG indeed a princess sitting heftily in my core holding. Providing me good dividend while still undervalued for all this time. Instead of further accumulating her base on Warren way, I have decided to make a tad disposal on her. Not that she is not being appreciated but is rather of shuffling my portfolio.

HAPSENG provides a good entry to many good businesses. While plantation remains the head mainstay of her, property and vehicle dealership are indeed a good businesses for her. Though, as a conglomerate, she has been discounted heavily for most of the time. What's worst, she is experiencing a heavy buy back by herself.

In reshuffling my portfolio, I do wish to have a direct exposure on plantation in some ways, even tho plantation sector is experiencing a run down in price and those nifty gritty issues from around the world. In this case, I have channelled some fund from the disposal to collect CEPAT.

The collection is not meaningful in some ways but serve as a base for more to build up or to be disposed shall the price or fundamental is metamorphosing to some way creatures which I may not like. So, any remaining fund will be channelled to any counters which deemed interesting in the coming days.

Position: YES

The reason behind Palm Oil price trending down is obviously exaggerated by the growing production of Soy commodity from United States. At the same time, the growing tension from demands of Europe and the affected big boys (China and India) indeed, sprinkling salts on the wound. CPO price has been heading to months low, question will be, how low will this trend heading?

Due to some consideration, Core Portfolio has decided to reduce holding on conglomerate, HAPSENG. Yes, a while back, I have been evaluating to build my position on her, I have decided to reduce by percentage near 50%. HAPSENG will ex-dividend by this week, 19, on single tier (no tax) mode. I believe the dip and rise of recent are due and well supported by the dividend.

Though, looking into the CPO deeper, I believe the weakness of CPO will creep deeper than expected with further weakening of the bigger consumer out there, China. Shall there be further tension on the growth number, the demand may weaken further. Thus, I am looking into chances to reduce exposure by now.

Disposal does not mean I am lack of love on HAPSENG. I still believe it is an undervalued conglomerate. In terms of any prices weakness, I shall dip in my finger to increase further my bet on her. For the mean time, 50% is good enough to buck me up if the storm arrive earlier than expected. My best wishes for HAPSENG.

Position: YES

I am not a good Technical reader, thus I share this for those who are interested with her. 

http://biz.thestar.com.my/news/story.asp?file=/2013/6/29/business/13297291&sec=business

What I concern more on the potential and value brought by Hapseng Seng Land. The upcoming Hapseng Tower 2 which is significantly bigger than Hapseng Tower 1. At the same time, the project along Jalan Tun Razak which is near to Tun Razak Financial Exchange is catching my interest. What's more with a growing brand in Sabah, where the property boom is set to kicking the warm. 

Although there is such a possibilities to list as a separate entity, the current valuation of Hapseng is indeed attractive if not super fantastic. Evaluate further :)

Position: YES

She is a sleeping beauty to many. A diversified but yet profitable for a decent dividend, has gaining momentum to chart higher than average volume for the past two years. Marching up to break the RM 2 barrier is not something common for her. How well will she sustain the momentum? Only time will well.