ThaiBev 1H17

Total sales revenue dropped by 8.4% to Baht 97,176 million. This is due to the decline in domestic consumption during mourning period. There is slight drop in net profit, the cost control lessen the effect of the mourning period to the bottom line, there is a decrease of 1.8% of net profit to Baht 14,322 million.

Beer sales revenue for 1st Half 2017 has decreased by 9.6% to 30,560 from 33,796. Non-alcoholic Beverages decreased by 2.3% from 8,373 to 8,181. Food has increased by 3% from 3,187 to 3,283. The beer revenue declined by 19.2% which is due to slowdown in ASEAN growth and International Spirits revenue declined by 22.3% due to weak sterling and Chinese spirits sales. Overall, growth is stalled.

Net interest bearing debt decreased from 41,026 in 30 Sep 16 to 38,640 in 31 Mar 17. Net Cash Flow from Operating Activities has decreased from 20,697,748 to 14,371,641. PPE increased and Free Cash Flow is still positive but decreased. Total cash equivalent 2,499,023 including 2018 cash flow from Operation and Financing if required should be able to cover for the 26,129 due by Mar 2018. Debt to Equity ratio for 31 Mar 17 has decreased to 0.48, if this can be decreased to 0.4 by end of the year will be good.

I believe the sales will pick up for 2H 2017. My intrinsic value for ThaiBev is at SGD 0.80, I will acquire near SGD 0.83-0.84. I need to acquire another 200k shares for this counter over the years.

My Family Quest

Today I had a discussion with my mentor, his mentor has stopped his career with Lim & Tan. He has made enough for himself and the family, he decided to call it a day and spend time traveling with the wife.

My mentor has a total equity net worth of about 2.5m worth. He intends to ask his wife to stop working July 2019. The quest is in progress. My quest has a lower benchmark, I will ask my wife to stop working July 2021 with a total equity/cash net worth of 2m.

I saw the news article which interviewed the blogger foreverfinancialfreedom Halim. He is 32 this year and aims to achieve financial freedom by 35. It is a good direction which Halim is working towards and I wish more singaporeans can learn from him.

Presently my household monthly expenses is close to sgd 8k. If both of us stops working, the income tax will not be applicable, then it should come down to lesser than sgd7k. 

I need a passive income of sgd 85k

This year due to special dividend, I am looking at sgd 60k which is not too far off from my ideal range. Probably another 5 years, I should reach my end goal.

2018 January 900k - 36 years old

2018 December 1100k - 36 years old

2019 December 1300k - 37 years old

2020 December 1500k - 38 years old

2021 December 1700k - 39 years old

2020 December 1900k - 40 years old

2021 December 2000k - 41 years old 

Call it a day and try to travel the world, I will continue to work but at my own call. I want my wife to be a housewife and spend time with the family.

One month into the day job

For the past one month, my schedule has been very hectic. I was traveling most of the time for work and there are a lot of work due as the tender submission date is getting close. I will feel emotional when I am away from the family. When I was young, I used to travel extensively for work. I was single then. Now, I have a family, I just want to be with them, to take care of them.

I was so busy, I did not have time to study in detail on many financial statements which I will like to read. I done some quick calculations on a few of watchlist stocks and continue to monitor them.

Coincidentally, I added some IBM into my portfolio at USD 161 and in the next few days, Warren Buffett announced on CNBC that he had sold 1/3 of the shares and immediately IBM drop from USD 161 to 155 and to 150 before finding the temporarily support. 

I sold my stock M in HK to do this switch. Stock M continued its crazy rise! Well, they say never sell your winners as you will be stuck with the losers. This may have some wisdom in it. 

The bank deducted a lump sum from my saving accounts and I should be getting my house deed in a few weeks. Technically I am debt free from big ticket items. The game plan for next 5 years is to transfer all the incoming money from Ordinary Account to Special Account in my CPF to maximise the returns. I do not foresee buying the 2nd property and I will have the capability to pay for my kid's education in the future.

1. Continue to read a book every week
2. Continue to scan for stocks
3. Eliminate affiliate marketing business to focus on ecommerce
4. Try to secure the project

Recently, I am changing my investment strategy, moving away from income strategy but more towards ROE.