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

10 in 10 with Civmec - Providing Australia’s leading turnkey solutions

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SGX's 10 largest OSV stocks, with a combined market cap of more than S$1 billion, have averaged a 30.9% price rebound from their 52W lows, in line with recent crude gains. The five that posted the strongest price rebound from their 12M troughs were: Amos Group (160.9%), Sinwa (57.9%), Vallianz (30.0%), Dyna-Mac (23.0%), and Baker Technology (9.2%). 
	 </li>
	<li>
Five of the 10 largest OSV stocks also saw increased average daily trading values over the past 1M, compared with the preceding 3M. The largest relative increases in trading turnover were generated by Dyna-Mac (83.8%), Baker Technology (57.1%), AusGroup (44.7%), Sinwa (31.9%), and Nordic Group (18.8%). 
	 </li>
	<li>Since the start of 2019, WTI crude has gained more than 30%, supported by production cuts from OPEC and its partners, in addition to supply disruptions in Iran and Venezuela following US sanctions. Last week, oil prices hit a 4M high of US$60/bbl.</li>
</ul>
 

Singapore Exchange lists 35 Offshore Supply Vessel (OSV) players. These companies provide support services to offshore drilling rigs, pipe laying and oil-producing assets – including production platforms as well as floating production, storage and offloading (FPSO) units – used in the exploration and production (E&amp;P) of oil and gas (O&amp;G). 

OSV stocks are heavily dependent on the fortunes of the crude market. They are widely viewed as one of the key beneficiaries of a rebound in oil prices. A robust demand for oil leads to an increase in planned E&amp;P activities, resulting in higher demand for rigs, platforms and FPSOs, which in turn boosts the OSV market.

Crude Hit 4M Highs Last Week 

Since the start of 2019, WTI crude has gained over 30%, supported by production cuts from the Organization of Petroleum Exporting Countries (OPEC) and its partners – known as OPEC+, in addition to supply disruptions in Iran and Venezuela following US sanctions. After hitting a four-month high of US$60 a barrel last week, oil prices have since retreated, as risk-off sentiment increased on continued uncertainty over the US-China trade war and disappointing economic data from US and Europe. Saudi Arabia signalled earlier this month that producers may need to extend their 1.2 million barrels per day of supply curbs past June into the second half of the year, as OPEC’s job of rebalancing the oil market was far from done.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-03/WTI%20CRUDE_1.PNG" alt="WTI Crude">
 </figure>
 <div class="content-caption">WTI Crude</div>
Price Recovery From 12M Troughs

The 10 largest OSV stocks on SGX have a combined market capitalisation of more than S$1 billion. These 10 largest players have also averaged a 30.9% price rebound from their 52-week lows, in line with recent crude gains. Among the 10, five that posted the strongest price rebound from their 12-month troughs were: Amos Group (160.9%), Sinwa Ltd (57.9%), Vallianz Holdings (30.0%), Dyna-Mac Holdings (23.0%), and Baker Technology (9.2%).

The table below details the current and 52-week low prices for the 10 largest OSV stocks, sorted by market capitalisation.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Last Price (S$)
			</td>
			<td>
			52W Low Price (S$)
			</td>
			<td>
			52Wk Low Date
			</td>
			<td>
			% Chg vs 52W Low 
			</td>
		</tr>
<tr>
<td>
			PACC OFFSHORE SERVICES
			</td>
			<td>
			U6C
			</td>
			<td>
			323
			</td>
			<td>
			0.178
			</td>
			<td>
			0.170
			</td>
			<td>
			01/02/2019
			</td>
			<td>
			4.7
			</td>
		</tr>
<tr>
<td>
			CIVMEC LTD
			</td>
			<td>
			P9D
			</td>
			<td>
			200
			</td>
			<td>
			0.400
			</td>
			<td>
			0.380
			</td>
			<td>
			03/07/2019
			</td>
			<td>
			5.3
			</td>
		</tr>
<tr>
<td>
			AMOS GROUP
			</td>
			<td>
			RF7
			</td>
			<td>
			156
			</td>
			<td>
			0.060
			</td>
			<td>
			0.023
			</td>
			<td>
			03/12/2019
			</td>
			<td>
			160.9
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			MR7
			</td>
			<td>
			130
			</td>
			<td>
			0.330
			</td>
			<td>
			0.305
			</td>
			<td>
			03/11/2019
			</td>
			<td>
			8.2
			</td>
		</tr>
<tr>
<td>
			MERMAID MARITIME
			</td>
			<td>
			DU4
			</td>
			<td>
			116
			</td>
			<td>
			0.082
			</td>
			<td>
			0.077
			</td>
			<td>
			10/29/2018
			</td>
			<td>
			6.5
			</td>
		</tr>
<tr>
<td>
			DYNA-MAC HOLDINGS
			</td>
			<td>
			NO4
			</td>
			<td>
			109
			</td>
			<td>
			0.107
			</td>
			<td>
			0.087
			</td>
			<td>
			01/22/2019
			</td>
			<td>
			23.0
			</td>
		</tr>
<tr>
<td>
			VALLIANZ HOLDINGS
			</td>
			<td>
			WPC
			</td>
			<td>
			109
			</td>
			<td>
			0.195
			</td>
			<td>
			0.150
			</td>
			<td>
			12/20/2018
			</td>
			<td>
			30.0
			</td>
		</tr>
<tr>
<td>
			SINWA LTD
			</td>
			<td>
			5CN
			</td>
			<td>
			102
			</td>
			<td>
			0.300
			</td>
			<td>
			0.190
			</td>
			<td>
			08/02/2018
			</td>
			<td>
			57.9
			</td>
		</tr>
<tr>
<td>
			AUSGROUP LTD
			</td>
			<td>
			5GJ
			</td>
			<td>
			85
			</td>
			<td>
			0.028
			</td>
			<td>
			0.027
			</td>
			<td>
			03/08/2019
			</td>
			<td>
			3.7
			</td>
		</tr>
<tr>
<td>
			BAKER TECHNOLOGY
			</td>
			<td>
			BTP
			</td>
			<td>
			84
			</td>
			<td>
			0.415
			</td>
			<td>
			0.380
			</td>
			<td>
			03/12/2019
			</td>
			<td>
			9.2
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 22 March 2019)

Recent Performances

In the 2019 year-to-date, the 10 largest OSV stocks have averaged a total return of +9.8%, bringing their one-year and three-year total returns to -26.0% and -22.4% respectively. The three best-performing OSV players in the YTD were: Amos Group (+160.9%), Sinwa (+15.4%), and PACC Offshore Services (+0.6%).

The table below details the year-to-date, one-year and three-year total returns for the 10 largest OSV stocks, sorted by YTD returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/E
			</td>
			<td>
			P/B
			</td>
		</tr>
<tr>
<td>
			AMOS GROUP
			</td>
			<td>
			RF7
			</td>
			<td>
			101
			</td>
			<td>
			160.9
			</td>
			<td>
			11.1
			</td>
			<td>
			-82.4
			</td>
			<td>
			NA
			</td>
			<td>
			1.3
			</td>
		</tr>
<tr>
<td>
			SINWA LTD
			</td>
			<td>
			5CN
			</td>
			<td>
			101
			</td>
			<td>
			15.4
			</td>
			<td>
			41.1
			</td>
			<td>
			60.0
			</td>
			<td>
			NA
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			PACC OFFSHORE SERVICES
			</td>
			<td>
			U6C
			</td>
			<td>
			319
			</td>
			<td>
			0.6
			</td>
			<td>
			-53.8
			</td>
			<td>
			-49.9
			</td>
			<td>
			NA
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			CIVMEC LTD
			</td>
			<td>
			P9D
			</td>
			<td>
			200
			</td>
			<td>
			0.0
			</td>
			<td>
			-22.7
			</td>
			<td>
			4.9
			</td>
			<td>
			8.2
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			BAKER TECHNOLOGY
			</td>
			<td>
			BTP
			</td>
			<td>
			85
			</td>
			<td>
			-2.4
			</td>
			<td>
			-32.5
			</td>
			<td>
			-50.2
			</td>
			<td>
			4.7
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			MERMAID MARITIME
			</td>
			<td>
			DU4
			</td>
			<td>
			114
			</td>
			<td>
			-5.7
			</td>
			<td>
			-47.4
			</td>
			<td>
			-23.4
			</td>
			<td>
			NA
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			DYNA-MAC HOLDINGS
			</td>
			<td>
			NO4
			</td>
			<td>
			108
			</td>
			<td>
			-6.1
			</td>
			<td>
			-24.1
			</td>
			<td>
			-24.6
			</td>
			<td>
			71.0
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			AUSGROUP LTD
			</td>
			<td>
			5GJ
			</td>
			<td>
			85
			</td>
			<td>
			-12.5
			</td>
			<td>
			-41.1
			</td>
			<td>
			-76.8
			</td>
			<td>
			5.4
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			MR7
			</td>
			<td>
			130
			</td>
			<td>
			-17.5
			</td>
			<td>
			-40.7
			</td>
			<td>
			103.9
			</td>
			<td>
			11.3
			</td>
			<td>
			1.6
			</td>
		</tr>
<tr>
<td>
			VALLIANZ HOLDINGS
			</td>
			<td>
			WPC
			</td>
			<td>
			109
			</td>
			<td>
			-35.0
			</td>
			<td>
			-50.0
			</td>
			<td>
			-85.9
			</td>
			<td>
			7.5
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			9.8
			</td>
			<td>
			-26.0
			</td>
			<td>
			-22.4
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 22 March 2019)
</body></html>





SGX's 10 largest OSV stocks, with a combined market cap of more than S$1 billion, have averaged a 30.9% price rebound from their 52W lows, in line with recent crude gains. The five that posted the strongest price rebound from their 12M troughs were: Amos Group (160.9%), Sinwa (57.9%), Vallianz (30.0%), Dyna-Mac (23.0%), and Baker Technology (9.2%). 
	 
	
Five of the 10 largest OSV stocks also saw increased average daily trading values over the past 1M, compared with the preceding 3M. The largest relative increases in trading turnover were generated by Dyna-Mac (83.8%), Baker Technology (57.1%), AusGroup (44.7%), Sinwa (31.9%), and Nordic Group (18.8%). 
	 
	Since the start of 2019, WTI crude has gained more than 30%, supported by production cuts from OPEC and its partners, in addition to supply disruptions in Iran and Venezuela following US sanctions. Last week, oil prices hit a 4M high of US$60/bbl.

 

Singapore Exchange lists 35 Offshore Supply Vessel (OSV) players. These companies provide support services to offshore drilling rigs, pipe laying and oil-producing assets – including production platforms as well as floating production, storage and offloading (FPSO) units – used in the exploration and production (E&amp;P) of oil and gas (O&amp;G). 

OSV stocks are heavily dependent on the fortunes of the crude market. They are widely viewed as one of the key beneficiaries of a rebound in oil prices. A robust demand for oil leads to an increase in planned E&amp;P activities, resulting in higher demand for rigs, platforms and FPSOs, which in turn boosts the OSV market.

Crude Hit 4M Highs Last Week 

Since the start of 2019, WTI crude has gained over 30%, supported by production cuts from the Organization of Petroleum Exporting Countries (OPEC) and its partners – known as OPEC+, in addition to supply disruptions in Iran and Venezuela following US sanctions. After hitting a four-month high of US$60 a barrel last week, oil prices have since retreated, as risk-off sentiment increased on continued uncertainty over the US-China trade war and disappointing economic data from US and Europe. Saudi Arabia signalled earlier this month that producers may need to extend their 1.2 million barrels per day of supply curbs past June into the second half of the year, as OPEC’s job of rebalancing the oil market was far from done.

      
    
    WTI Crude
Price Recovery From 12M Troughs

The 10 largest OSV stocks on SGX have a combined market capitalisation of more than S$1 billion. These 10 largest players have also averaged a 30.9% price rebound from their 52-week lows, in line with recent crude gains. Among the 10, five that posted the strongest price rebound from their 12-month troughs were: Amos Group (160.9%), Sinwa Ltd (57.9%), Vallianz Holdings (30.0%), Dyna-Mac Holdings (23.0%), and Baker Technology (9.2%).

The table below details the current and 52-week low prices for the 10 largest OSV stocks, sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Last Price (S$)
			
			
			52W Low Price (S$)
			
			
			52Wk Low Date
			
			
			% Chg vs 52W Low 
			
		


			PACC OFFSHORE SERVICES
			
			
			U6C
			
			
			323
			
			
			0.178
			
			
			0.170
			
			
			01/02/2019
			
			
			4.7
			
		


			CIVMEC LTD
			
			
			P9D
			
			
			200
			
			
			0.400
			
			
			0.380
			
			
			03/07/2019
			
			
			5.3
			
		


			AMOS GROUP
			
			
			RF7
			
			
			156
			
			
			0.060
			
			
			0.023
			
			
			03/12/2019
			
			
			160.9
			
		


			NORDIC GROUP
			
			
			MR7
			
			
			130
			
			
			0.330
			
			
			0.305
			
			
			03/11/2019
			
			
			8.2
			
		


			MERMAID MARITIME
			
			
			DU4
			
			
			116
			
			
			0.082
			
			
			0.077
			
			
			10/29/2018
			
			
			6.5
			
		


			DYNA-MAC HOLDINGS
			
			
			NO4
			
			
			109
			
			
			0.107
			
			
			0.087
			
			
			01/22/2019
			
			
			23.0
			
		


			VALLIANZ HOLDINGS
			
			
			WPC
			
			
			109
			
			
			0.195
			
			
			0.150
			
			
			12/20/2018
			
			
			30.0
			
		


			SINWA LTD
			
			
			5CN
			
			
			102
			
			
			0.300
			
			
			0.190
			
			
			08/02/2018
			
			
			57.9
			
		


			AUSGROUP LTD
			
			
			5GJ
			
			
			85
			
			
			0.028
			
			
			0.027
			
			
			03/08/2019
			
			
			3.7
			
		


			BAKER TECHNOLOGY
			
			
			BTP
			
			
			84
			
			
			0.415
			
			
			0.380
			
			
			03/12/2019
			
			
			9.2
			
		

Source: Bloomberg &amp; StockFacts (data as of 22 March 2019)

Recent Performances

In the 2019 year-to-date, the 10 largest OSV stocks have averaged a total return of +9.8%, bringing their one-year and three-year total returns to -26.0% and -22.4% respectively. The three best-performing OSV players in the YTD were: Amos Group (+160.9%), Sinwa (+15.4%), and PACC Offshore Services (+0.6%).

The table below details the year-to-date, one-year and three-year total returns for the 10 largest OSV stocks, sorted by YTD returns.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/E
			
			
			P/B
			
		


			AMOS GROUP
			
			
			RF7
			
			
			101
			
			
			160.9
			
			
			11.1
			
			
			-82.4
			
			
			NA
			
			
			1.3
			
		


			SINWA LTD
			
			
			5CN
			
			
			101
			
			
			15.4
			
			
			41.1
			
			
			60.0
			
			
			NA
			
			
			1.2
			
		


			PACC OFFSHORE SERVICES
			
			
			U6C
			
			
			319
			
			
			0.6
			
			
			-53.8
			
			
			-49.9
			
			
			NA
			
			
			0.7
			
		


			CIVMEC LTD
			
			
			P9D
			
			
			200
			
			
			0.0
			
			
			-22.7
			
			
			4.9
			
			
			8.2
			
			
			1.2
			
		


			BAKER TECHNOLOGY
			
			
			BTP
			
			
			85
			
			
			-2.4
			
			
			-32.5
			
			
			-50.2
			
			
			4.7
			
			
			0.3
			
		


			MERMAID MARITIME
			
			
			DU4
			
			
			114
			
			
			-5.7
			
			
			-47.4
			
			
			-23.4
			
			
			NA
			
			
			0.3
			
		


			DYNA-MAC HOLDINGS
			
			
			NO4
			
			
			108
			
			
			-6.1
			
			
			-24.1
			
			
			-24.6
			
			
			71.0
			
			
			1.0
			
		


			AUSGROUP LTD
			
			
			5GJ
			
			
			85
			
			
			-12.5
			
			
			-41.1
			
			
			-76.8
			
			
			5.4
			
			
			0.9
			
		


			NORDIC GROUP
			
			
			MR7
			
			
			130
			
			
			-17.5
			
			
			-40.7
			
			
			103.9
			
			
			11.3
			
			
			1.6
			
		


			VALLIANZ HOLDINGS
			
			
			WPC
			
			
			109
			
			
			-35.0
			
			
			-50.0
			
			
			-85.9
			
			
			7.5
			
			
			0.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			9.8
			
			
			-26.0
			
			
			-22.4
			
			
			 
			
			
			 
			
		

Source: Bloomberg &amp; StockFacts (data as of 22 March 2019)



Highlights of SGX’s 10 Largest OSV Plays      

Singapore

Civmec Ltd. is an integrated multi-disciplinary construction and heavy engineering services provider to the oil and gas, mining and other industries, such as the infrastructure, utilities, chemical and power industries. The Company provides heavy engineering and other services including fabrication, site civil works, pre-cast concrete and maintenance services.

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52-week Range	0.00 - 0.00
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Civmec Ltd (CVL SP)

10 in 10 with Civmec - Providing Australia’s leading turnkey solutions

Singapore Exchange Ltd (SGX)

Highlights of SGX’s 10 Largest OSV Plays

SGX's 10 largest OSV stocks, with a combined market cap of more than S$1 billion, have averaged a 30.9% price rebound from their 52W lows, in...

Singapore Exchange Ltd (SGX)

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