ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Cross Asset Strategy

<div class="content-highlight">
This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.
This past week's offering reveals an example of the breadth and depth of what is on offer on Smartkarma across ASEAN, with an in-depth Smartkarma Original on Indonesian smartphone retailer <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> from CrossASEAN Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko, </a>a high conviction buy call on <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-perser" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Perser (BBNI IJ)</a> from banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush, </a>an update following a company visit to <a href="https://www.smartkarma.com/entities/semen-indonesia-persero-tbk" target="_blank" data-smartkarma-citation="entities:11161:1" rel="noopener">Semen Indonesia Persero Tbk (SMGR IJ)</a> from CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a>, and a collaborative sector piece on tobacco in Indonesia and India from <a href="https://www.smartkarma.com/profiles/jessica-irene" target="_blank" data-smartkarma-citation="accounts:3145" rel="noopener">Jessica Irene</a> and <a href="https://www.smartkarma.com/profiles/pranav-bhavsar" target="_blank" data-smartkarma-citation="accounts:3191" rel="noopener">Pranav Bhavsar</a>. 
</div><h2>Macro Insights</h2>In <a href="https://www.smartkarma.com/insights/modern-monetary-theory-plan-a-cubed" target="_blank" data-smartkarma-citation="insights:31037" rel="noopener">Modern Monetary Theory: Plan A-Cubed</a>, <a href="https://www.smartkarma.com/profiles/dr-jim-walker" target="_blank" data-smartkarma-citation="accounts:1628" rel="noopener">Dr. Jim Walker</a> lays out his view on the changing (increasingly ugly?) face of global monetary policy.In <a href="https://www.smartkarma.com/insights/prabowo-changes-tack-pertamina-s-offshore-blowout-adverse-water-bill-may-pass-tollroad-tenders" target="_blank" data-smartkarma-citation="insights:31337" rel="noopener">Prabowo Changes Tack / Pertamina's Offshore Blowout / Adverse Water Bill May Pass / Tollroad Tenders,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/kevin-o-rourke" target="_blank" data-smartkarma-citation="accounts:2060" rel="noopener">Kevin O’Rourke</a> comments on the most important political and economic developments in Indonesia over the past week.<h2>Equity Bottom-Up Insights</h2><div class="content-highlight">In this Smartkarma Original, <a href="https://www.smartkarma.com/insights/erajaya-eraa-growing-sustainable-smartphone-demand-in-indonesia-on-the-ground-findings" target="_blank" data-smartkarma-citation="insights:30542" rel="noopener">Erajaya (ERAA): Growing Sustainable Smartphone Demand in Indonesia,</a>CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> takes a deep dive into the Indonesian smartphone retailer <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> and finds an exciting proxy to the huge consumer appetite for smartphones and online activity in Indonesia. </div>In <a href="https://www.smartkarma.com/insights/bni-misunderstood-by-market" target="_blank" data-smartkarma-citation="insights:31308" rel="noopener">BNI – Misunderstood by Market?,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> revisits this leading State-owned Indonesian Bank and finds an exciting, yet appreciated, growth story.In <a href="https://www.smartkarma.com/insights/semen-indonesia-smgr-ij-bedding-down-with-lafarge-holcim-on-the-ground-in-j-town" target="_blank" data-smartkarma-citation="insights:31094" rel="noopener">Semen Indonesia (SMGR IJ) - Bedding Down with Lafarge Holcim,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> takes a close look at this leading Indonesian Cement producer, as it seeks to exploit synergies from the acquisition of Lafarge Holcim Indonesia. In <a href="https://www.smartkarma.com/insights/agm-yoma-yoma-sp-keeping-the-myanmar-dream-alive-pun-family-asks-shareholders-to-remain-patient" target="_blank" data-smartkarma-citation="insights:31281" rel="noopener">AGM Yoma (YOMA SP): Keeping the Myanmar Dream Alive; Pun Family Asks Shareholders to Remain Patient</a>, <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits this Singapore listed Myanmar play after attending the company's AGM. In <a href="https://www.smartkarma.com/insights/jollibee-s-jfc-pm-acquisition-of-coffee-bean-value-buy-in-asia-s-hot-coffee-segment" target="_blank" data-smartkarma-citation="insights:31289" rel="noopener">Jollibee's (JFC PM) Acquisition of Coffee Bean -  Value Buy in Asia's 'Hot' Coffee Segment,</a> consumer specialist <a href="https://www.smartkarma.com/profiles/devi-subhakesan" target="_blank" data-smartkarma-citation="accounts:1913" rel="noopener">Devi Subhakesan</a> discusses <a href="https://www.smartkarma.com/entities/jollibee-foods-corp" target="_blank" data-smartkarma-citation="entities:987:1" rel="noopener">Jollibee Foods (JFC PM)'</a>s latest acquisition of Coffee Bean &amp; Tea Leaf, which propels its reach beyond Asia. In <a href="https://www.smartkarma.com/insights/ptt-global-chemical-buy-target-and-upside-hurdles" target="_blank" data-smartkarma-citation="insights:31223" rel="noopener">PTT Global Chemical Buy Target and Upside Hurdles,</a><a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> works his technical magic on this Thai listed chemical player. He suggests the <a href="https://www.smartkarma.com/entities/ptt-global-chemical-pcl" target="_blank" data-smartkarma-citation="entities:19852:1" rel="noopener">PTT Global Chemical (PTTGC TB)</a> bear cycle is maturing to the point where intermediate trend signals are leaning into a cycle low.<h2>Sector and Thematic Insights</h2><div class="content-highlight"><a href="https://www.smartkarma.com/insights/tobacco-sector-best-of-india-and-indonesia" target="_blank" data-smartkarma-citation="insights:31155" rel="noopener">Tobacco Sector: Best of India and Indonesia</a>is a Joint Insight between <a href="https://www.smartkarma.com/profiles/jessica-irene" target="_blank" data-smartkarma-citation="accounts:3145" rel="noopener">Jessica Irene</a> and <a href="https://www.smartkarma.com/profiles/pranav-bhavsar" target="_blank" data-smartkarma-citation="accounts:3191" rel="noopener">Pranav Bhavsar</a> comparing the tobacco sectors of Indonesia and India, which are both heavy smoking countries, and presenting their top choices for investors. India and Indonesia are two of the top five tobacco consuming country in the world, each with a very different market structure and dynamics. In this insight, they aim to capture a brief summary of both markets and conclude which of the three top tobacco players <a href="https://www.smartkarma.com/entities/itc-ltd" target="_blank" data-smartkarma-citation="entities:327:1" rel="noopener">ITC Ltd (ITC IN)</a>, <a href="https://www.smartkarma.com/entities/hm-sampoerna-tbk-pt" target="_blank" data-smartkarma-citation="entities:617:1" rel="noopener">Hm Sampoerna (HMSP IJ)</a> or <a href="https://www.smartkarma.com/entities/gudang-garam-tbk-pt" target="_blank" data-smartkarma-citation="entities:722:1" rel="noopener">Gudang Garam (GGRM IJ)</a> deserves to be in your Asian portfolio.</div>In <a href="https://www.smartkarma.com/insights/mckinsey-on-asian-banks" target="_blank" data-smartkarma-citation="insights:30044" rel="noopener">McKinsey on Asian Banks,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> reflects on Thai banks having read a book called Banking in Asia by 12 guys from McKinsey and he distils five interesting lessons and how these principles may be applied in Thailand. In <a href="https://www.smartkarma.com/insights/malaysia-telcos-slightly-weak-trends-in-1q19-but-we-remain-broadly-positive-telenor-deal-is-key" target="_blank" data-smartkarma-citation="insights:30573" rel="noopener">Malaysia Telcos: Slightly Weak Trends in 1Q19 but We Remain Broadly Positive. Telenor Deal Is Key,</a> our friends at <a href="https://www.smartkarma.com/companies/new-street-research" target="_blank" data-smartkarma-citation="companies:151" rel="noopener">New Street Research</a> present their views on the Malaysian Telecom Sector post some weak trends showing in 1Q19 results. In <a href="https://www.smartkarma.com/insights/singapore-real-deals-issue-6-a-refreshed-icon" target="_blank" data-smartkarma-citation="insights:31266" rel="noopener">Singapore Real Deals (Issue 6): A Refreshed Icon,</a><a href="https://www.smartkarma.com/profiles/anni-kum" target="_blank" data-smartkarma-citation="accounts:1786" rel="noopener">Anni Kum</a> puts out a fortnightly property digest that takes you through the peculiarities of Singapore's real estate market. This week’s issue is a review of One Pearl Bank (OPB) by <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland Ltd (CAPL SP)</a>.


This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.
This past week's offering reveals an example of the breadth and depth of what is on offer on Smartkarma across ASEAN, with an in-depth Smartkarma Original on Indonesian smartphone retailer Erajaya Swasembada (ERAA IJ) from CrossASEAN Provider Henry Soediarko, a high conviction buy call on Bank Negara Indonesia Perser (BBNI IJ) from banking specialist Daniel Tabbush, an update following a company visit to Semen Indonesia Persero Tbk (SMGR IJ) from CrossASEAN Insight Provider Angus Mackintosh, and a collaborative sector piece on tobacco in Indonesia and India from Jessica Irene and Pranav Bhavsar. 
Macro InsightsIn Modern Monetary Theory: Plan A-Cubed, Dr. Jim Walker lays out his view on the changing (increasingly ugly?) face of global monetary policy.In Prabowo Changes Tack / Pertamina's Offshore Blowout / Adverse Water Bill May Pass / Tollroad Tenders, CrossASEAN Insight Provider Kevin O’Rourke comments on the most important political and economic developments in Indonesia over the past week.Equity Bottom-Up InsightsIn this Smartkarma Original, Erajaya (ERAA): Growing Sustainable Smartphone Demand in Indonesia,CrossASEAN Insight Provider Henry Soediarko takes a deep dive into the Indonesian smartphone retailer Erajaya Swasembada (ERAA IJ) and finds an exciting proxy to the huge consumer appetite for smartphones and online activity in Indonesia. In BNI – Misunderstood by Market?, banking specialist Daniel Tabbush revisits this leading State-owned Indonesian Bank and finds an exciting, yet appreciated, growth story.In Semen Indonesia (SMGR IJ) - Bedding Down with Lafarge Holcim, CrossASEAN Insight Provider Angus Mackintosh takes a close look at this leading Indonesian Cement producer, as it seeks to exploit synergies from the acquisition of Lafarge Holcim Indonesia. In AGM Yoma (YOMA SP): Keeping the Myanmar Dream Alive; Pun Family Asks Shareholders to Remain Patient, Nicolas Van Broekhoven revisits this Singapore listed Myanmar play after attending the company's AGM. In Jollibee's (JFC PM) Acquisition of Coffee Bean -  Value Buy in Asia's 'Hot' Coffee Segment, consumer specialist Devi Subhakesan discusses Jollibee Foods (JFC PM)'s latest acquisition of Coffee Bean &amp; Tea Leaf, which propels its reach beyond Asia. In PTT Global Chemical Buy Target and Upside Hurdles,Thomas Schroeder works his technical magic on this Thai listed chemical player. He suggests the PTT Global Chemical (PTTGC TB) bear cycle is maturing to the point where intermediate trend signals are leaning into a cycle low.Sector and Thematic InsightsTobacco Sector: Best of India and Indonesiais a Joint Insight between Jessica Irene and Pranav Bhavsar comparing the tobacco sectors of Indonesia and India, which are both heavy smoking countries, and presenting their top choices for investors. India and Indonesia are two of the top five tobacco consuming country in the world, each with a very different market structure and dynamics. In this insight, they aim to capture a brief summary of both markets and conclude which of the three top tobacco players ITC Ltd (ITC IN), Hm Sampoerna (HMSP IJ) or Gudang Garam (GGRM IJ) deserves to be in your Asian portfolio.In McKinsey on Asian Banks, our Thai guru Athaporn Arayasantiparb, CFA reflects on Thai banks having read a book called Banking in Asia by 12 guys from McKinsey and he distils five interesting lessons and how these principles may be applied in Thailand. In Malaysia Telcos: Slightly Weak Trends in 1Q19 but We Remain Broadly Positive. Telenor Deal Is Key, our friends at New Street Research present their views on the Malaysian Telecom Sector post some weak trends showing in 1Q19 results. In Singapore Real Deals (Issue 6): A Refreshed Icon,Anni Kum puts out a fortnightly property digest that takes you through the peculiarities of Singapore's real estate market. This week’s issue is a review of One Pearl Bank (OPB) by Capitaland Ltd (CAPL SP).

The Week that Was in ASEAN@Smartkarma - Smartphones, Indonesian Cement, and Tobacco

Singapore Property Analyst

Anni Kum

Thematic (Sector/Industry)

Singapore Real Deals is a fortnightly property digest that takes you through the peculiarities of Singapore's real estate market. This week’s issue is a review of One Pearl Bank (OPB) by <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland Ltd (CAPL SP)</a>. During the launch weekend starting 20 July 2019, Capitaland sold 80% of 200 units released, translating into a strong take-up rate of 21% of the development’s 774 units. The average sale price achieved was $2,400psf, a discount to another newly launched freehold project nearby called Sky Everton along Everton Road. OPB is the redevelopment of Pearl Bank Apartments which Capitaland purchased for S$728mn through a private treaty collective sale in February 2018. It paid an additional S$201.4mn to top up the lease to a fresh 99-year.   OPB offers a wide selection of unit types from studio apartments to penthouses ranging from 431 sqf for a studio to 2,788 sqf for the largest of four penthouses available. It is centrally located in District 3, a coveted address in the heart of Singapore and is the only development atop Pearl’s Hill. It is located close to a major transport node, being a stone’s throw away from Outram MRT Station which serves as a triple-line interchange station for the East-West Line, Northeast Line and the upcoming Thomson-East Coast Line. It is also within walking distance to Chinatown MRT Station, thereby giving residents access to a 4th MRT line, the Downtown Line.The closest pool of potential tenants that the future OPB can tap on will likely be the medical professionals and academia from the sprawling SGH campus that is undergoing redevelopment.Within the development, studio units and 1 bedroom apartments have good investment potential while the bigger units from 700 sqf and above may have a hard time being marketed from an investment angle due to the estimated low yield.Overall, OPB is attractive even for owner-occupiers not only because it is one of Singapore’s icon but also due its location and the future rejuvenation of Chinatown, which could bring about much value appreciation.

Singapore Real Deals is a fortnightly property digest that takes you through the peculiarities of Singapore's real estate market. This week’s issue is a review of One Pearl Bank (OPB) by Capitaland Ltd (CAPL SP). During the launch weekend starting 20 July 2019, Capitaland sold 80% of 200 units released, translating into a strong take-up rate of 21% of the development’s 774 units. The average sale price achieved was $2,400psf, a discount to another newly launched freehold project nearby called Sky Everton along Everton Road. OPB is the redevelopment of Pearl Bank Apartments which Capitaland purchased for S$728mn through a private treaty collective sale in February 2018. It paid an additional S$201.4mn to top up the lease to a fresh 99-year.   OPB offers a wide selection of unit types from studio apartments to penthouses ranging from 431 sqf for a studio to 2,788 sqf for the largest of four penthouses available. It is centrally located in District 3, a coveted address in the heart of Singapore and is the only development atop Pearl’s Hill. It is located close to a major transport node, being a stone’s throw away from Outram MRT Station which serves as a triple-line interchange station for the East-West Line, Northeast Line and the upcoming Thomson-East Coast Line. It is also within walking distance to Chinatown MRT Station, thereby giving residents access to a 4th MRT line, the Downtown Line.The closest pool of potential tenants that the future OPB can tap on will likely be the medical professionals and academia from the sprawling SGH campus that is undergoing redevelopment.Within the development, studio units and 1 bedroom apartments have good investment potential while the bigger units from 700 sqf and above may have a hard time being marketed from an investment angle due to the estimated low yield.Overall, OPB is attractive even for owner-occupiers not only because it is one of Singapore’s icon but also due its location and the future rejuvenation of Chinatown, which could bring about much value appreciation. 

Singapore Real Deals (Issue 6): A Refreshed Icon

<div class="content-highlight">This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.</div><h2>Macro Insights</h2>In<a href="https://www.smartkarma.com/insights/singapore-is-the-first-domino-to-fall-towards-stagnation-approaching-recession" target="_blank" data-smartkarma-citation="insights:31063" rel="noopener"> Singapore Is the First Domino to Fall Towards Stagnation (Approaching Recession),</a> CrossASEAN Economist <a href="https://www.smartkarma.com/profiles/prasenjit-k-basu" target="_blank" data-smartkarma-citation="accounts:612" rel="noopener">Prasenjit K. Basu</a> revisits the Singapore economic outlook in light of recent indicative numbers that suggest that the economy has stalled. In <a href="https://www.smartkarma.com/insights/coal-faces-disarray-nursalims-reprieve-bantleman-s-clemency-2-ministers-rebuked" target="_blank" data-smartkarma-citation="insights:31057" rel="noopener">Coal Faces Disarray / Nursalims' Reprieve? / Bantleman's Clemency / 2 Ministers Rebuked, </a>CrossASEAN Indght Provider <a href="https://www.smartkarma.com/profiles/kevin-o-rourke" target="_blank" data-smartkarma-citation="accounts:2060" rel="noopener">Kevin O’Rourke </a>comments on the most important political and economic developments in Indonesia over the past week. In <a href="https://www.smartkarma.com/insights/taking-off-vietnamese-exports-are-rocking-and-rolling" target="_blank" data-smartkarma-citation="insights:31036" rel="noopener">Taking Off: Vietnamese Exports Are Rocking and Rolling,</a><a href="https://www.smartkarma.com/profiles/dr-jim-walker" target="_blank" data-smartkarma-citation="accounts:1628" rel="noopener">Dr. Jim Walker</a> zeros in on the picture for Asia Exports as the US-China Trade War continues to simmer. In <a href="https://www.smartkarma.com/insights/thai-macro-watch-huawei-trade-wars-and-more" target="_blank" data-smartkarma-citation="insights:29939" rel="noopener">Thai Macro Watch: Huawei, Trade Wars, and More,</a> our Thai Guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA </a>looks at five news on the global front that may impact Thai equities directly or indirectly.<h2>Equity Bottom-Up Insights</h2>In <a href="https://www.smartkarma.com/insights/erajaya-swasembada-eraa-ij-smoke-signals-for-impending-catalysts-on-the-ground-in-j-town" target="_blank" data-smartkarma-citation="insights:30893" rel="noopener">Erajaya Swasembada (ERAA IJ) - Smoke Signals for Impending Catalysts,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> circles back to Indonesia's leading smartphone retailer and finds plenty to cheer about after a conversation with management. In <a href="https://www.smartkarma.com/insights/egm-alliance-mineral-ams-sp-galaxy-investment-approved-by-shareholders-next-stop-full-takeover" target="_blank" data-smartkarma-citation="insights:30970" rel="noopener">EGM Alliance Mineral (AMS SP): Galaxy Investment Approved by Shareholders. Next Stop: Full Takeover?,</a><a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits <a href="https://www.smartkarma.com/entities/alliance-mineral-assets-ltd" target="_blank" data-smartkarma-citation="entities:16331:1" rel="noopener">Alliance Mineral Assets (AMS SP)</a> after attending the company's recent EGM. In <a href="https://www.smartkarma.com/insights/indofood-icbp-ij-big-daddy-of-branded-food-in-indonesia-proxy-for-consumer-food-spend" target="_blank" data-smartkarma-citation="insights:30668" rel="noopener">Indofood (ICBP IJ) - Big Daddy of Branded Food in Indonesia; Proxy for Consumer Food Spend,</a> Consumer specialist <a href="https://www.smartkarma.com/profiles/devi-subhakesan" target="_blank" data-smartkarma-citation="accounts:1913" rel="noopener">Devi Subhakesan</a> takes a close look at this leading Indonesian staples player. In <a href="https://www.smartkarma.com/insights/health-management-int-l-privatisation-easy-peasy" target="_blank" data-smartkarma-citation="insights:30941" rel="noopener">Health Management Int'l Privatisation - Easy Peasy,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> zeros in on this potential privatisation event. In <a href="https://www.smartkarma.com/insights/ipo-radar-s-hotels-resorts-singha-s-hospitality-arm" target="_blank" data-smartkarma-citation="insights:30035" rel="noopener">IPO Radar: S Hotels &amp; Resorts, Singha's Hospitality Arm,</a><a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> takes a close look at the upcoming IPO of Singha Group's hotel arm. In <a href="https://www.smartkarma.com/insights/thanachart-and-tmb-on-the-defensive-an-insurance-policy-for-challenging-times" target="_blank" data-smartkarma-citation="insights:30980" rel="noopener">Thanachart and TMB: On the Defensive. An Insurance Policy for Challenging Times</a>, Banking Specialist looks at this impending merger of these two major financial institutions in Thailand. In <a href="https://www.smartkarma.com/insights/stubworld-just-rumours-for-now-as-sia-engineering-pops" target="_blank" data-smartkarma-citation="insights:30961" rel="noopener">StubWorld: Just Rumours (For Now) As SIA Engineering Pops,</a><a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett </a>examines the possibility of privatisation of <a href="https://www.smartkarma.com/entities/sia-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:16672:1" rel="noopener">Sia Engineering (SIE SP)</a>. <a href="https://www.smartkarma.com/entities/sia-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:16672:1" rel="noopener">Sia Engineering (SIE SP)</a> is <a href="https://links.sgx.com/FileOpen/SGXNET_2019_07_05%20-%20Response%20to%20SGX%20Queries.ashx?App=Announcement&amp;FileID=569173" target="_blank" rel="noopener">not aware</a> of any information, however last week's 15% gain in two days rekindles privatisation talks by <a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP)</a>. In <a href="https://www.smartkarma.com/insights/ascott-ascendas-hospitality-merger-not-unexpected-and-should-be-easy" target="_blank" data-smartkarma-citation="insights:30979" rel="noopener">Ascott &amp; Ascendas Hospitality Merger - Not Unexpected and Should Be Easy,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> looks at this proposed merger, which would create the largest hospitality trust in Asian Pac. <h2>Sector and Thematic Insights</h2>In <a href="https://www.smartkarma.com/insights/indonesian-telecoms-the-recovery-continued-in-1q-and-we-expect-it-to-last" target="_blank" data-smartkarma-citation="insights:30880" rel="noopener">Indonesian Telecoms: The Recovery Continued in 1Q and We Expect It to Last,</a> our friends at <a href="https://www.smartkarma.com/companies/new-street-research" target="_blank" data-smartkarma-citation="companies:151" rel="noopener">New Street Research</a> circle back to the Indonesian Telco sector post 1Q19 results and maintain an upbeat view on the prospects for an increasingly data-driven market.In <a href="https://www.smartkarma.com/insights/singapore-reit-cautious-search-for-high-yield" target="_blank" data-smartkarma-citation="insights:30985" rel="noopener">Singapore REIT - Cautious Search for High Yield,</a> property specialist <a href="https://www.smartkarma.com/profiles/anni-kum" target="_blank" data-smartkarma-citation="accounts:1786" rel="noopener">Anni Kum</a> revisits the REIT sector and identifies her top picks. In <a href="https://www.smartkarma.com/insights/reit-discover-prime-us-reit-ipo-brief-review" target="_blank" data-smartkarma-citation="insights:31059" rel="noopener">REIT Discover: Prime US REIT IPO Brief Review,</a><a href="https://www.smartkarma.com/profiles/anni-kum" target="_blank" data-smartkarma-citation="accounts:1786" rel="noopener">Anni Kum</a> takes a look at the initial public offer (IPO) of <a href="https://www.smartkarma.com/entities/prime-us-reit" target="_blank" data-smartkarma-citation="entities:28144:1" rel="noopener">Prime Us Reit (PRIME SP)</a>.

This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.Macro InsightsIn Singapore Is the First Domino to Fall Towards Stagnation (Approaching Recession), CrossASEAN Economist Prasenjit K. Basu revisits the Singapore economic outlook in light of recent indicative numbers that suggest that the economy has stalled. In Coal Faces Disarray / Nursalims' Reprieve? / Bantleman's Clemency / 2 Ministers Rebuked, CrossASEAN Indght Provider Kevin O’Rourke comments on the most important political and economic developments in Indonesia over the past week. In Taking Off: Vietnamese Exports Are Rocking and Rolling,Dr. Jim Walker zeros in on the picture for Asia Exports as the US-China Trade War continues to simmer. In Thai Macro Watch: Huawei, Trade Wars, and More, our Thai Guru Athaporn Arayasantiparb, CFA looks at five news on the global front that may impact Thai equities directly or indirectly.Equity Bottom-Up InsightsIn Erajaya Swasembada (ERAA IJ) - Smoke Signals for Impending Catalysts, CrossASEAN Insight Provider Angus Mackintosh circles back to Indonesia's leading smartphone retailer and finds plenty to cheer about after a conversation with management. In EGM Alliance Mineral (AMS SP): Galaxy Investment Approved by Shareholders. Next Stop: Full Takeover?,Nicolas Van Broekhoven revisits Alliance Mineral Assets (AMS SP) after attending the company's recent EGM. In Indofood (ICBP IJ) - Big Daddy of Branded Food in Indonesia; Proxy for Consumer Food Spend, Consumer specialist Devi Subhakesan takes a close look at this leading Indonesian staples player. In Health Management Int'l Privatisation - Easy Peasy,Travis Lundy zeros in on this potential privatisation event. In IPO Radar: S Hotels &amp; Resorts, Singha's Hospitality Arm,Athaporn Arayasantiparb, CFA takes a close look at the upcoming IPO of Singha Group's hotel arm. In Thanachart and TMB: On the Defensive. An Insurance Policy for Challenging Times, Banking Specialist looks at this impending merger of these two major financial institutions in Thailand. In StubWorld: Just Rumours (For Now) As SIA Engineering Pops,David Blennerhassett examines the possibility of privatisation of Sia Engineering (SIE SP). Sia Engineering (SIE SP) is not aware of any information, however last week's 15% gain in two days rekindles privatisation talks by Singapore Airlines (SIA SP). In Ascott &amp; Ascendas Hospitality Merger - Not Unexpected and Should Be Easy,Travis Lundy looks at this proposed merger, which would create the largest hospitality trust in Asian Pac. Sector and Thematic InsightsIn Indonesian Telecoms: The Recovery Continued in 1Q and We Expect It to Last, our friends at New Street Research circle back to the Indonesian Telco sector post 1Q19 results and maintain an upbeat view on the prospects for an increasingly data-driven market.In Singapore REIT - Cautious Search for High Yield, property specialist Anni Kum revisits the REIT sector and identifies her top picks. In REIT Discover: Prime US REIT IPO Brief Review,Anni Kum takes a look at the initial public offer (IPO) of Prime Us Reit (PRIME SP). 

The Week that Was in ASEAN@Smartkarma - Singapore's Stagnation, Vietnam Rocks, and Indonesian Telcos

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Ascendas Hospitality Trust / Event-Driven

On 3 July, <a href="https://www.smartkarma.com/entities/ascott-residence-trust" target="_blank" data-smartkarma-citation="entities:6560:1" rel="noopener">Ascott Residence Trust (ART SP)</a>  and <a href="https://www.smartkarma.com/entities/ascendas-hospitality-trust" target="_blank" data-smartkarma-citation="entities:934:1" rel="noopener">Ascendas Hospitality Trust (ASCHT SP)</a> jointly <a href="https://links.sgx.com/FileOpen/Combination_News%20release.ashx?App=Announcement&amp;FileID=566818" target="_blank" rel="noopener">announced</a> a proposed combination, which would result in the combined entity becoming the largest hospitality trust in the Asia Pacific region, one of the top ten globally, with an asset value of S$7.6 billion. It would - using data from the end of June - become the 7th largest trust on the SGX.The deal is for Ascott to acquire ASCHT through a Scheme of Arrangement whereby ASCHT unitholders will receive what was - at the announcement - S$1.0868 per ASCHT Stapled Unit. The exact terms are S$0.0543 in cash and 0.7942 Ascott Reit-BT Stapled Units (issued at a price of S$1.30). That is a ratio of 0.836 but if you do the arithmetic, it comes out as an NAV-flat transaction. Neither ASCHT nor ART shareholders "overly benefit" at the expense of the other, but they both benefit from scale lowering future costs (Ascendas Hospitality unitholders gain from scale the could not achieve on their own (ART is three times larger), earn 1.8% pro-forma DPU accretion, and gain slight accretion in terms of merging with a firm with slightly lower EV/FFO ratio. Ascendas shareholders also gain from diversification. They get a little bit of EM and distribute the asset base across more DMs. Ascott benefits from gaining a little more size and scale, gains debt capacity, and the DPU should be slightly accretive to Ascott holders. For ASCHT holders, the deal came at a 7% premium to NAV, an 11% premium to the last close on 2 July, and a 14%, 19%, 24%, and 32% premium to 1mo, 3mo, 6mo, and 12mo VWAP. At the end of the deal, <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland Ltd (CAPL SP)</a> is expected to own 40.2% of the combined entity and independent shareholders the other 59.8%. Ascott would be tied to Ascott BT via stapling deed and ASCHT and ASCHT BT would be de-stapled, and would be absorbed (ASCHT by Ascott, ASCHT BT by Ascott BT). In December 2015 the Managers of the <a href="https://www.smartkarma.com/entities/ascendas-hospitality-trust" target="_blank" data-smartkarma-citation="entities:934:1" rel="noopener">Ascendas Hospitality Trust (ASCHT SP)</a> announced they were undertaking a strategic review with a possible sale. Blackstone, Gaw Capital Partners, Starwood Capital and Fosun International were all seen as possible acquirers. The shares jumped about 15% but a couple of months later the Managers called off the sale process.That was then, this is now. I think this one gets up.<hr>Quiddity's new <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank" rel="noopener">Quiddity Singapore M&amp;A Guide 2019</a> is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Look for other countries in the series <a href="https://www.smartkarma.com/search?q=Quiddity%20M%26A" target="_blank" rel="noopener">here</a>.

On 3 July, Ascott Residence Trust (ART SP)  and Ascendas Hospitality Trust (ASCHT SP) jointly announced a proposed combination, which would result in the combined entity becoming the largest hospitality trust in the Asia Pacific region, one of the top ten globally, with an asset value of S$7.6 billion. It would - using data from the end of June - become the 7th largest trust on the SGX.The deal is for Ascott to acquire ASCHT through a Scheme of Arrangement whereby ASCHT unitholders will receive what was - at the announcement - S$1.0868 per ASCHT Stapled Unit. The exact terms are S$0.0543 in cash and 0.7942 Ascott Reit-BT Stapled Units (issued at a price of S$1.30). That is a ratio of 0.836 but if you do the arithmetic, it comes out as an NAV-flat transaction. Neither ASCHT nor ART shareholders "overly benefit" at the expense of the other, but they both benefit from scale lowering future costs (Ascendas Hospitality unitholders gain from scale the could not achieve on their own (ART is three times larger), earn 1.8% pro-forma DPU accretion, and gain slight accretion in terms of merging with a firm with slightly lower EV/FFO ratio. Ascendas shareholders also gain from diversification. They get a little bit of EM and distribute the asset base across more DMs. Ascott benefits from gaining a little more size and scale, gains debt capacity, and the DPU should be slightly accretive to Ascott holders. For ASCHT holders, the deal came at a 7% premium to NAV, an 11% premium to the last close on 2 July, and a 14%, 19%, 24%, and 32% premium to 1mo, 3mo, 6mo, and 12mo VWAP. At the end of the deal, Capitaland Ltd (CAPL SP) is expected to own 40.2% of the combined entity and independent shareholders the other 59.8%. Ascott would be tied to Ascott BT via stapling deed and ASCHT and ASCHT BT would be de-stapled, and would be absorbed (ASCHT by Ascott, ASCHT BT by Ascott BT). In December 2015 the Managers of the Ascendas Hospitality Trust (ASCHT SP) announced they were undertaking a strategic review with a possible sale. Blackstone, Gaw Capital Partners, Starwood Capital and Fosun International were all seen as possible acquirers. The shares jumped about 15% but a couple of months later the Managers called off the sale process.That was then, this is now. I think this one gets up.Quiddity's new Quiddity Singapore M&amp;A Guide 2019 is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Look for other countries in the series here.

Ascott & Ascendas Hospitality Merger - Not Unexpected and Should Be Easy

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.





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

Singapore

CapitaLand Limited is a real estate company focused on investment holding. The Company and its subsidiaries are principally engaged in investment holding, real estate development, investment in real estate financial products and real estate assets, investment advisory and management services, as well as the management of serviced residences.

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Capitaland (CAPL SP)

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