Tontine Wines purchased

This morning I purchased a few more shares in Tontine Wines (HK:389) to the portfolio. Although I expect some margin contraction during the current financial year, the company is still growing its output and expanding its distribution capabilities. The balance sheet is strong (although cash will be run down as the company expands) and I am optimistic that the 4.2% trailing dividend yield can be at least maintained. Although the company will not be a major beneficiary of the latest policy initiative (which focuses on red wine), there may still be some support from the policy.

I paid HK$0.69 for the additional shares.