Purchases
Meituan: Bought a minor stake at $150, due to exercise of sold put options
My view on Meituan is found in earlier post.
Trip.com: Added more at $65 (before 4Q results release) and $60 (after results release)
It's a direct play on Asia online travel agency (OTA), which should see continuous growth in coming years, as Asian countries become more well-off and increase their travel expenditure.
Marco Polo Marine (listed in Singapore): Start a small stake at $0.053.
- It should see better earnings in 2H 2025 onwards, as it leases out its newly built CSOV (commissioning service operation vessel) and its 4th shipyard in Batam starts to contribute to proifts. The higher income should lower its 2026 PE to 6.x times.
- Downside is that offshore marine industry tend to have uncertainties / unforeseen events.
- After buying, I realise that I may have bought at too high a price for my liking. Will keep the stake for now.
Bosideng: Start a stake at $3.88.
- China brand on down jacket / apparel, with brands for mass market and high-end
- At acceptable valuation with ~6.7% dividend and possible growth of 10% annually over next few years.
Sales
LVMH: Sold my minor stake at ~$700.
- Sold probably because luxury sales may be flattish in next few years, given weak China sales, slowing EU / US economy.
Dream International: Sold a minor stake at $5.70 to lower my position size.
- I am probably worried that US may impose tariffs on Vietnam one day. Thus I reduce my position a little. Dream Intl has factories in Vietnam.
Oiltek: Sold half of remaining stake at $1.30 to take profit
- Still has 1/4 of my original position left. Will let it run and wait for its 1H 2025 results
Sino Land: Sold all my position at $7.88.
- A minor profit, as cost price is $7.50
- Sold to raise cash to buy Bosideng.
China Aviation: Sold all my position at $0.885 (around my cost price)
- Sold after its poorer than expected 2H 2024 results and disappointing dividend payout.
- While it has low valuation (EV / EBIT < 1.5), I prefer it to provide higher dividend payout and not hoard its cash and do nothing. BP owns 20%; yet it allows CAO to pay disappointing dividends. This suggests that BP is not good in capital allocation; which explains partly the disappointing BP results in recent years.
Macro Thoughts
Deepseek's release has improved investors' perception of China tech stocks. The future trajectory of China/HK stocks will depends on the upcoming China NPC meeting in March. If there's more supportive policies to boost China consumption, we will see more sustained positivity around China/HK stocks.
Meanwhile, US President Trump seems to use tariffs to raise tax revenue for US government. As such, we are likely to see more US tariffs on China as well as other countries in 2025. This increases uncertainties in global economic growth for 2025 and 2026.
