Maximising CPF Returns: Topping Up Your MA to BHS Early Makes Financial Sense

I just topped up my CPF Medical Account (MA) with $3,500 in cash, bringing my balance to the Basic Health Sum (BHS) of $79,000 today, 1 January 2026. Topping up my MA to the BHS at the beginning of each year is beneficial for both tax relief and earning a risk-free 4% annual return.

While it may appear that your MA remains unchanged at the BHS throughout the year, the CPF Board credits 4% interest per annum, which is announced and applied on the last day of the year to your OA, SA (not applicable to CPF members above 55), MA, and RA (not applicable to members below 55). Once the BHS limit is reached, any interest earned on your MA is transferred to your OA.

For CPF members over 55, using cash to top up their MA to the BHS is particularly advantageous, as they have the flexibility to withdraw from their OA when cash is needed. If their liquid funds are limited, withdrawing money from their OA (which earns 2.5% p.a.) and topping up the MA (which earns 4% p.a.) still yields an additional 1.5% annual return, making it a solid second-best option.

Prescientsuper
https://superphang.blogspot.com

Contrarian Investing Pays Off: WahSun Delivers 64% Returns Plus 10% Yield

Refer to my post dated 13 Nov 2025 on WahSun Handbags (HK.2683): A potential 6-bagger .

I purchased WahSun Handbags on 3 July 2025, at an average price of HK$0.792, attracted by its low P/E and undervaluation driven by concerns over declining earnings due to Trump's tariffs on Chinese goods.

I was confident then that WahSun Handbags could maintain its competitive edge because while Trump imposed tariffs on all countries, China remains uniquely positioned to constrain US hegemony. American consumers cannot do without China's quality and very affordable goods, and Trump has had to frequently adjust his tariff policies to prevent runaway US inflation and keep American businesses operational. My thesis has been borne out by events.

WahSun Handbags closed trading for 2025 today, 31 December, at HK$1.18. The company paid two dividends since my purchase: one went XD on 6 Oct and another on 15 Dec, each consisting of a 4-cent regular dividend plus a 2-cent special dividend per share. This totals 12 cents per share in dividends, representing a solid 10.17% dividend yield (12/118). Combined with the 12-cent dividend, my paper gain on this investment has reached 64% in less than six months.

I maintain my original price target from the earlier post: The PEG ratio stands at an exceptionally low 0.17, implying a target price of HK$6.50 if the current growth rate is sustained. This represents potential upside of approximately 500%, or a 6-bagger opportunity from the earlier price of HK$1.08. Under a more conservative valuation applying a normalized P/E multiple of 12x, the stock could reach HK$2.50.

2025 has been an excellent year for my investment performance. However, clarity is retrospective, while action must be forward-facing. Guided by my investment methodology, I am optimistic that my approach will continue to deliver strong results in 2026.

Prescientsuper
https://superphang.blogspot.com

Nam Cheong: Positioned to Ride the OSV Market Recovery

Nam Cheong's recent disposal of a 4,000 DWT mid-sized PSV for USD 20.5 million strengthens its balance sheet and positions the company to capitalise on the emerging upcycle in offshore-support vessel (OSV) newbuilds and charter rates.

The transaction demonstrates disciplined capital management and reveals that vessel book values remain at least 50% below current market resale values, suggesting significant hidden value on the balance sheet.

Nam Cheong is well-positioned to benefit from the acute global OSV shortage. Its fleet is younger than industry peers and better equipped to meet increasingly stringent safety and environmental standards, giving it a competitive edge in securing contracts.

The company is already capturing elevated charter rates, with gross margins hovering around 50% and net margins at 30%, while locking in long-term contracts that provide revenue visibility.

According to Nam Cheong's management, the OSV newbuild market is approaching a turning point as aging vessels require replacement, creating a favourable supply-demand dynamic.

Nam Cheong closed at $0.915 today, 30 Dec 2025, gaining $0.045 or 5.17%. Since investing in early Sep 2025 based on its strong earnings potential, I have achieved a paper gain exceeding 26% in under four months.

From my technical perspective, today's breakthrough above the neckline suggests the stock could rally to $1.10 before encountering resistance.

Nam Cheong daily chart as of 30 Dec 2025 close

Prescientsuper
https://superphang.blogspot.com

XMH's Strong 1H2026 Performance Signals Higher Dividends and Continued Share Price Momentum

XMH has announced a very strong set of results for 1H2026 ending 31 Oct 2025.

Earnings improved by 22.6% compared to 1H2025 and by 19.4% compared to 2H2025. ROE for FY2026 is estimated at about 32%.

Net cash flow from operating activities increased significantly from $1m in 1H2025 to $13.2m in 1H2026. Investing cash flow was positive at $12.3m, primarily due to proceeds from the partial disposal of a subsidiary corporation amounting to $12.3m. This means free cash flow has increased substantially, which bodes well for higher dividends in 2H2026 and the potential declaration of bonus shares.

The report also highlighted the following positive developments: The Group delivered a commendable performance in the first half of FY2026, with revenue increasing by 40.5% and profit after tax improving by 23% compared to the corresponding period last year. The strong results reflect sustained market demand and continued contributions from both the Distribution and Project segments.

Building on this momentum, the Group expects business activities to remain healthy in the second half of the financial year. A healthy order book continues to provide good visibility and supports the Group’s outlook for the remainder of FY2026.

The upward trajectory of XMH's share price is expected to continue.

Prescientsuper
https://superphang.blogspot.com

Undervalued Gem: Nam Lee's Explosive Margins Meet Single-Digit P/E Valuation

The main investment merits for Nam Lee Pressed Metal Industries are as follows:

· EPS surged an impressive 102.6% in FY2025 (rebounding from a loss-making FY2023), marking a dramatic turnaround in capital efficiency and profitability.

· Gross and net margins expanded significantly to 24.5% and 11.9% respectively, underpinned by strong revenue growth of 15.7% that demonstrates both operational leverage and pricing power.

At the current price of $0.625, the TTM P/E stands at an attractive 6.07x, while an enhanced dividend yield is expected given the improved profitability.

Nam Lee has successfully transformed from a loss-making operation to generating compelling returns for investors. With robust margins, strong earnings momentum, and highly attractive valuation multiples at 6.07x P/E and 0.81x P/B, Nam Lee stands out as a rare deep-value turnaround story with sustained operational improvement.

I estimate Nam Lee Pressed Metal will rise to $1.03 within the next 12 months, bringing it to a more reasonable valuation of 10x earnings and offering an upside potential of 65%. 

Superphang
https://superphang.blogspot.com

WahSun Handbags (HK.2683): A potential 6-bagger

 · EPS growth accelerated to 48.6% in 1H2026 as forecast by the management on 12 Nov 2025 (HK$0.104 vs HK$0.07 in 1H2025), demonstrating strong operational momentum and margin expansion.

· Net profit surged at least 48.1% YoY to minimum HK$40 million, significantly outpacing the prior half-year comparison of HK$27 million in 1H2025.

· Consistent profitability trajectory across three consecutive reporting periods (1H2025, 2H2025, 1H2026), with sequential EPS improvements of 28.6% and 15.6%, indicating sustainable business fundamentals rather than one-off gains.

· Management confidence is evident in the early profit alert announcement, signaling visibility into sustained profitability and potential for further positive surprises when full results are released.

Conclusion:
The PEG ratio stands at an exceptionally low 0.17, implying a target price of HK$6.50 if the current growth rate is sustained. This represents potential upside of about 500%, or a 6-bagger opportunity from the current price of HK$1.08. Under a more conservative valuation scenario applying a normalized P/E multiple of 12x, the stock could reach HK$2.50, still offering meaningful upside of 131%.


Superphang
https://superphang.blogspot.com

TJDaRenTang USD (T14.SG): 62% Upside from Dual-Listing Arbitrage

 TJDaRenTang USD (T14.SG)

At current levels (T14 US$3.08, A-share 600329 at RMB49.12), the A-share trades at a P/E of 10.57x while the Singapore listing trades at just 4.72x—a significant valuation discount. Taking the midpoint between these two valuations, the fair value for T14 should be around US$5.00, representing upside potential of 62%.

The stock offers a reliable dividend yield of at least 5%, providing attractive income while waiting for the market to recognize its undervaluation.
The substantial valuation gap between the dual listings suggests Singapore investors are overlooking the company's fundamentals, creating an arbitrage opportunity.

Key risks include potential regulatory changes affecting dual-listed stocks, liquidity constraints in the Singapore market that could delay price discovery, and any deterioration in the company's A-share performance that might justify the current discount. However, the extreme valuation gap appears difficult to justify based on fundamentals alone.

The dual-listing discount presents a compelling value opportunity. With a 5%+ dividend yield providing downside protection and earnings support from the A-share market, investors can patiently wait for Mr Market to close the valuation gap and push T14 toward its fair value of US$5 or above. This offers both income and capital appreciation potential with a reasonable margin of safety.

Superphang
https://superphang.blogspot.com