SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

Stocks categorised to the Capital Goods Industry are involved in a wide range of manufacturing and distribution activities. The majority of Singapore’s 20 biggest Capital Goods stocks have business activities that span across Asia.Singapore lists the third biggest Capital Goods stock in Asia Pacific – Industrial Conglomerate, Jardine Matheson Holdings, which re-joined the STI in November. Over the past 12 months, Jardine Matheson Holdings generated a 15.7% total return, with 2016 turnover 70.6%…

Stocks categorised to the Capital Goods Industry are involved in a wide range of manufacturing and distribution activities. The majority of Singapore’s 20 biggest Capital Goods stocks have business activities that span across Asia.Singapore lists the third biggest Capital Goods stock in Asia Pacific – Industrial Conglomerate, Jardine Matheson Holdings, which re-joined the STI in November. Over the past 12 months, Jardine Matheson Holdings generated a 15.7% total return, with 2016 turnover 70.6%…

Recent Resilience of the Capital Goods Industry

Amareos

Federico Bagiotti, CFA

Equity Bottom-Up

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/019/241/original/ASSFN%20170116%20Toshiba%20Front.jpg?1484562745" class="editor-image img-responsive" data-smartkarma-image-id="19241"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/019/242/original/ASSFN%20170116%20Toshiba%20Table.png?1484562771" class="editor-image img-responsive" data-smartkarma-image-id="19242"></figure>After the 2015 accounting scandal, where profits were overstated by some USD 1.2bn over the previous seven years, another stone has hit Toshiba Corp windshield <a href="#_ftn1" target="_blank">[1]</a>.At the end of December 2016, the Company anticipated that it will have to revise downward the value of its nuclear power subsidiary, Westinghouse Electric Co., due to an increase in the costs of the US reactors it is building. The news triggered a massive sell-off in Toshiba’s share price, slashing the company’s market capitalization…

After the 2015 accounting scandal, where profits were overstated by some USD 1.2bn over the previous seven years, another stone has hit Toshiba Corp windshield [1].At the end of December 2016, the Company anticipated that it will have to revise downward the value of its nuclear power subsidiary, Westinghouse Electric Co., due to an increase in the costs of the US reactors it is building. The news triggered a massive sell-off in Toshiba’s share price, slashing the company’s market capitalization…

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Japanese and Asian equity long/short strategies

Uzabase

Specialising in Japanese and Asian equity long/short strategies with a focus on rigorous, but targeted quantitative analysis to temper evaluations of company strategy, potential and vision. At Uzabase, our team of analysts provides coverage of industry dynamics with a local Asian flavour on Speeda, our financial information platform. Going forward we are aiming to channel our focus toward thematic research on emerging industries and company research.

With the expiration of its eighteen-month deadline approaching in Mar 2017, Toshiba awaits the Tokyo Stock Exchange’s (TSE) final decision which will determine if it continues trading as a listed entity. A probe into the bourse’s recent history suggests that the company stands a good chance to get off the hook, provided the implementation of effective measures addressing the remaining loopholes in compliance and affiliated company management, highlighted in the TSE’s latest review in Dec 2016, is successful. With a lot at stake, not just limited to a delisting, the company is yet to reveal details on its action plan. However the big question on whether Toshiba will secure its listing in the aftermath of an impending financial scandal, and how, awaits an answer over the next three months.

With the expiration of its eighteen-month deadline approaching in Mar 2017, Toshiba awaits the Tokyo Stock Exchange’s (TSE) final decision which will determine if it continues trading as a listed entity. A probe into the bourse’s recent history suggests that the company stands a good chance to get off the hook, provided the implementation of effective measures addressing the remaining loopholes in compliance and affiliated company management, highlighted in the TSE’s latest review in Dec 2016, is successful. With a lot at stake, not just limited to a delisting, the company is yet to reveal details on its action plan. However the big question on whether Toshiba will secure its listing in the aftermath of an impending financial scandal, and how, awaits an answer over the next three months.

Independent, global risk consultancy, Control Risks

Aparajita Verma

Independent, global risk consultancy

Control Risks

Control Risks is an independent, global risk consultancy specialising in helping organisations manage political, integrity and security risks in complex and hostile environments. We support clients by providing strategic consultancy, expert analysis and in-depth investigations, handling sensitive political issues and providing practical on-the-ground protection and support.

Our unique combination of services, geographical reach and the trust our clients place in us ensure we can help them to effectively solve their problems and realise new opportunities across the world.

A series of regulatory changes is raising questions about the ability of foreign companies to compete effectively in China’s automotive sector in the coming years. The latest change – draft rules on batteries for electric vehicles (EV) released by the government on 22 November – has disrupted at least one foreign battery maker’s plans to invest in the sector in China.

A series of regulatory changes is raising questions about the ability of foreign companies to compete effectively in China’s automotive sector in the coming years. The latest change – draft rules on batteries for electric vehicles (EV) released by the government on 22 November – has disrupted at least one foreign battery maker’s plans to invest in the sector in China. 

China: Main Competition Intensifies – Pressure on Foreign Firms' Electric Vehicle Plans

As a follow up to our examination of potential impairment losses we use a rough sum of the parts calculation to try and gauge what the market is factoring in. In particular, we attempt to strip out the implied valuation of the overseas nuclear power business (essentially Westinghouse) to gauge the estimated losses due to delays and technical problems faced by the AP1000 series reactors.A precise calculation is difficult due to sparse disclosures in the past, several changes in segment definitions and what we assume are temporary salary cuts which skew current year OP. Nevertheless, we have assigned rough valuations to the various segments and sub-segments using the valuations of market peers and Toshiba's own listed subsidiaries. We then examine whether a conglomerate discount exists and examine the likely market view of the overseas nuclear power business using the residual value and comparing the share price reactions of Toshiba compared to its subsidiaries.

As a follow up to our examination of potential impairment losses we use a rough sum of the parts calculation to try and gauge what the market is factoring in. In particular, we attempt to strip out the implied valuation of the overseas nuclear power business (essentially Westinghouse) to gauge the estimated losses due to delays and technical problems faced by the AP1000 series reactors.A precise calculation is difficult due to sparse disclosures in the past, several changes in segment definitions and what we assume are temporary salary cuts which skew current year OP. Nevertheless, we have assigned rough valuations to the various segments and sub-segments using the valuations of market peers and Toshiba's own listed subsidiaries. We then examine whether a conglomerate discount exists and examine the likely market view of the overseas nuclear power business using the residual value and comparing the share price reactions of Toshiba compared to its subsidiaries.

Toshiba: Greater or Less Than The Sum of Its Parts?

Japan

Toshiba Corporation manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances.

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Toshiba Corp (6502 JP)

Recent Resilience of the Capital Goods Industry

Stocks categorised to the Capital Goods Industry are involved in a wide range of manufacturing and distribution activities. The majority of...

Singapore Exchange Ltd (SGX)

Toshiba Turns Radioactive

After the 2015 accounting scandal, where profits were overstated by some USD 1.2bn over the previous seven years, another stone has hit Toshiba...

Amareos

Toshiba: On or Off Alert by March?

With the expiration of its eighteen-month deadline approaching in Mar 2017, Toshiba awaits the Tokyo Stock Exchange’s (TSE) final decision which...

Mio Kato

China: Main Competition Intensifies – Pressure on Foreign Firms' Electric Vehicle Plans

A series of regulatory changes is raising questions about the ability of foreign companies to compete effectively in China’s automotive sector in...

Control Risks

Toshiba: Greater or Less Than The Sum of Its Parts?

As a follow up to our examination of potential impairment losses we use a rough sum of the parts calculation to try and gauge what the market is...

Mio Kato

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