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.

Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Singapore’s five most traded technology stocks – AEM, Venture, UMS, ISDN and Nanofilm have averaged 16% gains in the 2020 YTD, bringing their 12M average total return to 87%, with the median total return at 83%.  The five stocks have all ranked as top 50 stocks by turnover in the 2021 YTD. 
	 </li>
	<li>
All five technology stocks reported their FY20 (ended 31 Dec) results in recent weeks. For FY20 net profit vs FY19, AEM reported 85% growth, Nanofilm reported 68% growth, ISDN reported 59% growth, and UMS reported 9% growth, while Venture reported an 18% decline (with 4QFY20 net profit up 8% QoQ). 
	 </li>
	<li>Sector drivers identified across the FY21 outlooks of the five technology stocks included increased demand for industrial automation, accelerating chip sales and increased competition, while in multiple instances, diversification strategies and value chain management remain corporate objectives.   </li>
</ul>
 

Singapore is a hub for innovation. The past 10 years saw Singapore take the lead across ASEAN in Patent Cooperation Treaty publications, with WIPO statistics showing most of Singapore’s publication were made in the fields of computer technology, digital communication, audio-visual technology, electrical machinery, apparatus and energy, and medical technology. 
The increased fields of application of technology has also been a key driver of the stocks of the Technology Sector. Last night, the SIPMM Electronics Sector PMI was reported to remain in expansion mode, at 50.8, now down 0.4 points from the 27 month high of 51.2 formed in December 2020, propelled by demand for technology products and services.  
Singapore’s five most traded Technology stocks over the first nine weeks of 2021 have been AEM Holdings, Venture Corporation, UMS Holdings, ISDN Holdings and Nanofilm technologies International. Together the five stocks have seen close to S$70 million a day in combined daily trading turnover while averaging 16% price gains. This brings their average 12 month total returns to 87%. The past performance of the five stocks outpaced the top quartile of global technology stocks by market value which have generated a 4% median return in the 2021 year-to-date, bringing their average 12 month return to 33%.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock 
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Net Insti Inflow YTD S$M
			</td>
			<td>
			YTD Price Change %
			</td>
			<td>
			12 Months Total Return %
			</td>
			<td>
			10 years Total Return %
			</td>
			<td>
			P/E
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			1093
			</td>
			<td>
			2.7
			</td>
			<td>
			15
			</td>
			<td>
			83
			</td>
			<td>
			7335
			</td>
			<td>
			11
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5553
			</td>
			<td>
			-41.8
			</td>
			<td>
			-1
			</td>
			<td>
			19
			</td>
			<td>
			246
			</td>
			<td>
			19
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			597
			</td>
			<td>
			27.6
			</td>
			<td>
			4
			</td>
			<td>
			25
			</td>
			<td>
			641
			</td>
			<td>
			16
			</td>
		</tr>
<tr>
<td>
			ISDN
			</td>
			<td>
			I07
			</td>
			<td>
			266
			</td>
			<td>
			-0.6
			</td>
			<td>
			51
			</td>
			<td>
			212
			</td>
			<td>
			401
			</td>
			<td>
			23
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			3329
			</td>
			<td>
			-11.1
			</td>
			<td>
			15
			</td>
			<td>
			95*
			</td>
			<td>
			95*
			</td>
			<td>
			N/A
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			16
			</td>
			<td>
			87
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Reuters, Bloomberg, SGX StockFacts (Data as of 2 March 2021) * note returns from IPO price. 
Recent weeks has seen the five stock all report their FY20 (ended 31 Dec) financial results:

 

<ul>
<li>AEM Holdings reported record revenue and profit for FY220 with profit before tax increasing 79% year-on-year to S$113.8 million (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/AFNSYIWCVZZPZLFN/5c92ea1feedfe6c52a6be39af7f9801337a166758f95cbb184d838b323aa8319">here</a> for more).</li>
	<li>Venture Corporation FY20 net profit of S$297.3 million on revenue of S$3,012.9 million, with net margin of 9.9% (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/L6ZQPKYV79LKJQWE/f617244cd9fa3149b7a8b81aaa7502925464d339f9a0dcce308bc17f83763885">here</a> for more).</li>
	<li>UMS Holdings reported S$36.5 million in FY20 net profit attributable to shareholders on record revenue of S$164.4 million (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/AQKARJBM7L37GC5K/c4ed3922af5fc97c8c4913c9b59c8099bc62475526937701befab37d97d81b87">here</a> for more).</li>
	<li>ISDN Holdings reported FY20 net profit increased 59% year-on-year, to S$22.5 million, with total revenue up 24% (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/GEP0SK91M7HYI0BZ/cfa221cf986e25e733a12a3a117e568b7286b8bece31890fef4b421933a10eba">here</a> for more).</li>
	<li>Nanofilm Technologies International achieved a record financial performance for FY20 with net profit up 68.1% year-on-year (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/ZU2I1NQOPZIW8ZPF/1550715651fb59ecb99dcf095dc23eaa180a11118749f577a80dd9b8766ce39e">here</a> for more).</li>
</ul>
 

Both AEM Holdings and UMS Holdings cited World Semiconductor Trade Statistics estimations of the annual global sales of semiconductors expected to increase by 8.4% in 2021, highlighting an upward revision from 6.2% as expected previously. AEM Holdings added that the pandemic accelerated digitalisation and has made work from home the new normal, significantly boosting the Integrated Circuit market which is expected to grow by 11% in 2021 on the back of continuing economic recovery, 5G proliferation and cloud expansion. UMS Holdings also cited a DIGITIMES <a href="https://www.digitimes.com/news/a20201230VL201.html?mod=2">article</a> stating  global chip demand for automotive electronics has been gaining momentum since 4QFY20 and will continue to serve as a key growth driver as demand exceeds supply. 
Venture Corporation noted it has made good headway in the Life Science Technologies, Medical Devices/Equipment and Lifestyle and Wellness Consumer Products domains with the wide-ranging advances and growing applications of Photonics, Networking and 
Communications and Advanced Semiconductor-related Equipment domains is expected to drive our growth in these segments. 
ISDN Holdings meanwhile cited a  Mordor Intelligence <a href="https://www.mordorintelligence.com/industry-reports/china-factory-automation-and-industrial-controls-marketindustry">article</a> estimating that the China Factory Automation and Industrial Controls Market is forecasted to grow at a compound annual growth rate of 9.8% to 2025. At the same time, China’s motion control market is also expected to grow at a steady pace between 2021 and 2026 alongside increased demand for machine tools, robotics, and semiconductors with the support from strategies like “Made in China 2025” (click <a href="https://www.businesswire.com/news/home/20200603005453/en/Assessment-Chinas-Motion-Controller-Industry-2019-2026-Size">here</a> for more). 
Last year’s unicorn debutant, Nanofilm Technologies International noted it is well-positioned for growth opportunities in existing and recently established end industries, underpinned by its deep-tech environmentally sustainable nanotechnology solutions as key catalysts in enabling its customers to achieve high value-add advancements in their end-products. The Group added that for long term strategic objectives, it continues to maximise its core technologies in mission critical applications in new end-markets of favourable secular growth trends, in line with its vision of integrating nanotechnology into the daily lives of end-consumers.
</body></html>





Singapore’s five most traded technology stocks – AEM, Venture, UMS, ISDN and Nanofilm have averaged 16% gains in the 2020 YTD, bringing their 12M average total return to 87%, with the median total return at 83%.  The five stocks have all ranked as top 50 stocks by turnover in the 2021 YTD. 
	 
	
All five technology stocks reported their FY20 (ended 31 Dec) results in recent weeks. For FY20 net profit vs FY19, AEM reported 85% growth, Nanofilm reported 68% growth, ISDN reported 59% growth, and UMS reported 9% growth, while Venture reported an 18% decline (with 4QFY20 net profit up 8% QoQ). 
	 
	Sector drivers identified across the FY21 outlooks of the five technology stocks included increased demand for industrial automation, accelerating chip sales and increased competition, while in multiple instances, diversification strategies and value chain management remain corporate objectives.   

 

Singapore is a hub for innovation. The past 10 years saw Singapore take the lead across ASEAN in Patent Cooperation Treaty publications, with WIPO statistics showing most of Singapore’s publication were made in the fields of computer technology, digital communication, audio-visual technology, electrical machinery, apparatus and energy, and medical technology.  
The increased fields of application of technology has also been a key driver of the stocks of the Technology Sector. Last night, the SIPMM Electronics Sector PMI was reported to remain in expansion mode, at 50.8, now down 0.4 points from the 27 month high of 51.2 formed in December 2020, propelled by demand for technology products and services.   
Singapore’s five most traded Technology stocks over the first nine weeks of 2021 have been AEM Holdings, Venture Corporation, UMS Holdings, ISDN Holdings and Nanofilm technologies International. Together the five stocks have seen close to S$70 million a day in combined daily trading turnover while averaging 16% price gains. This brings their average 12 month total returns to 87%. The past performance of the five stocks outpaced the top quartile of global technology stocks by market value which have generated a 4% median return in the 2021 year-to-date, bringing their average 12 month return to 33%.




			Stock 
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Net Insti Inflow YTD S$M
			
			
			YTD Price Change %
			
			
			12 Months Total Return %
			
			
			10 years Total Return %
			
			
			P/E
			
		


			AEM
			
			
			AWX
			
			
			1093
			
			
			2.7
			
			
			15
			
			
			83
			
			
			7335
			
			
			11
			
		


			Venture
			
			
			V03
			
			
			5553
			
			
			-41.8
			
			
			-1
			
			
			19
			
			
			246
			
			
			19
			
		


			UMS
			
			
			558
			
			
			597
			
			
			27.6
			
			
			4
			
			
			25
			
			
			641
			
			
			16
			
		


			ISDN
			
			
			I07
			
			
			266
			
			
			-0.6
			
			
			51
			
			
			212
			
			
			401
			
			
			23
			
		


			Nanofilm
			
			
			MZH
			
			
			3329
			
			
			-11.1
			
			
			15
			
			
			95*
			
			
			95*
			
			
			N/A
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			16
			
			
			87
			
			
			 
			
			
			 
			
		

Source: Reuters, Bloomberg, SGX StockFacts (Data as of 2 March 2021) * note returns from IPO price.   
Recent weeks has seen the five stock all report their FY20 (ended 31 Dec) financial results:

 


AEM Holdings reported record revenue and profit for FY220 with profit before tax increasing 79% year-on-year to S$113.8 million (click here for more).
	Venture Corporation FY20 net profit of S$297.3 million on revenue of S$3,012.9 million, with net margin of 9.9% (click here for more).
	UMS Holdings reported S$36.5 million in FY20 net profit attributable to shareholders on record revenue of S$164.4 million (click here for more).
	ISDN Holdings reported FY20 net profit increased 59% year-on-year, to S$22.5 million, with total revenue up 24% (click here for more).
	Nanofilm Technologies International achieved a record financial performance for FY20 with net profit up 68.1% year-on-year (click here for more).

 

Both AEM Holdings and UMS Holdings cited World Semiconductor Trade Statistics estimations of the annual global sales of semiconductors expected to increase by 8.4% in 2021, highlighting an upward revision from 6.2% as expected previously. AEM Holdings added that the pandemic accelerated digitalisation and has made work from home the new normal, significantly boosting the Integrated Circuit market which is expected to grow by 11% in 2021 on the back of continuing economic recovery, 5G proliferation and cloud expansion. UMS Holdings also cited a DIGITIMES article stating  global chip demand for automotive electronics has been gaining momentum since 4QFY20 and will continue to serve as a key growth driver as demand exceeds supply.  
Venture Corporation noted it has made good headway in the Life Science Technologies, Medical Devices/Equipment and Lifestyle and Wellness Consumer Products domains with the wide-ranging advances and growing applications of Photonics, Networking and  
Communications and Advanced Semiconductor-related Equipment domains is expected to drive our growth in these segments.  
ISDN Holdings meanwhile cited a  Mordor Intelligence article estimating that the China Factory Automation and Industrial Controls Market is forecasted to grow at a compound annual growth rate of 9.8% to 2025. At the same time, China’s motion control market is also expected to grow at a steady pace between 2021 and 2026 alongside increased demand for machine tools, robotics, and semiconductors with the support from strategies like “Made in China 2025” (click here for more).  
Last year’s unicorn debutant, Nanofilm Technologies International noted it is well-positioned for growth opportunities in existing and recently established end industries, underpinned by its deep-tech environmentally sustainable nanotechnology solutions as key catalysts in enabling its customers to achieve high value-add advancements in their end-products. The Group added that for long term strategic objectives, it continues to maximise its core technologies in mission critical applications in new end-markets of favourable secular growth trends, in line with its vision of integrating nanotechnology into the daily lives of end-consumers.



Singapore’s Five Most Traded Technology Stocks Complete FY20 Reporting

Taiwan

ASE Technology Holding Co., Ltd. offers assembly and testing services. The Company provides outsourced assembly, semiconductor testing, semiconductor packaging, and other related services. ASE Technology Holding operates in Taiwan.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ASE Technology Holding (3711 TT)

Singapore’s Five Most Traded Technology Stocks Complete FY20 Reporting

Singapore’s five most traded technology stocks – AEM, Venture, UMS, ISDN and Nanofilm have averaged 16% gains in the 2020 YTD, bringing their...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)