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

<div><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></div>
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<h2>Hanwell Holdings Limited</h2>
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<h3>Resilient consumer goods business and growing paper packaging segment</h3>
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<li>Hanwell is involved in the manufacturing, brand management and marketing of fast-moving consumer goods (FMCG). The company also has a 64% stake in SGX- listed Tat Seng Packaging, a paper packaging business whose products cater to the Singapore and China markets.</li>
<li>Riding on logistics growth. Hanwell’s packaging business is expected to be the main growth driver amidst robust global logistics demand.</li>
<li>Buoyant demand for consumer goods. While Hanwell’s consumer business has been stable over the past few years, the company plans to expand its consumer goods offerings by 30% in the next 3 to 5 years.</li>
<li>We initiate with a NEUTRAL recommendation and TP of S$0.42, based on 11.0x FY22 EPS.</li>
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<p><strong>Company overview</strong>. Hanwell has a total of four subsidiaries involved in the FMCG business. Its subsidiary Topseller Pte Ltd is a distributor of rice and oil, which includes popular proprietary brands such as Royal Umbrella rice. Tipex Pte. Ltd. distributes paper goods, washroom hygiene products as well as baby and adult diapers. Fortune Food Manufacturing Pte Ltd manufactures noodles, desserts and soya bean-based products such as tofu. Lastly, SOCMA Trading (M) Sendirian Berhad is one of Hanwell’s marketing and distribution arms in Malaysia.</p>
<p><strong>Paper packaging business the key growth driver.</strong> Hanwell’s stake in Singapore-listed Tat Seng contributed approximately 62% to 66% to Hanwell’s total top line over the last 4 years. Amidst the acceleration in e-commerce sales and increased demand for storage materials due to logistics bottlenecks as a result of port congestions and labour shortages, demand for corrugated cardboard boxes is expected to increase.</p>
<p><strong>Stable contribution from consumer goods.</strong> Hanwell’s consumer goods segment has been generating a consistent revenue stream, contributing approximately 33% to 37% over the last 4 years. We expect further growth in this segment as the company expects to expand its offerings by 30% over the next 3 to 5 years.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.






Hanwell Holdings Limited



Resilient consumer goods business and growing paper packaging segment




Hanwell is involved in the manufacturing, brand management and marketing of fast-moving consumer goods (FMCG). The company also has a 64% stake in SGX- listed Tat Seng Packaging, a paper packaging business whose products cater to the Singapore and China markets.
Riding on logistics growth. Hanwell’s packaging business is expected to be the main growth driver amidst robust global logistics demand.
Buoyant demand for consumer goods. While Hanwell’s consumer business has been stable over the past few years, the company plans to expand its consumer goods offerings by 30% in the next 3 to 5 years.
We initiate with a NEUTRAL recommendation and TP of S$0.42, based on 11.0x FY22 EPS.





Company overview. Hanwell has a total of four subsidiaries involved in the FMCG business. Its subsidiary Topseller Pte Ltd is a distributor of rice and oil, which includes popular proprietary brands such as Royal Umbrella rice. Tipex Pte. Ltd. distributes paper goods, washroom hygiene products as well as baby and adult diapers. Fortune Food Manufacturing Pte Ltd manufactures noodles, desserts and soya bean-based products such as tofu. Lastly, SOCMA Trading (M) Sendirian Berhad is one of Hanwell’s marketing and distribution arms in Malaysia.
Paper packaging business the key growth driver. Hanwell’s stake in Singapore-listed Tat Seng contributed approximately 62% to 66% to Hanwell’s total top line over the last 4 years. Amidst the acceleration in e-commerce sales and increased demand for storage materials due to logistics bottlenecks as a result of port congestions and labour shortages, demand for corrugated cardboard boxes is expected to increase.
Stable contribution from consumer goods. Hanwell’s consumer goods segment has been generating a consistent revenue stream, contributing approximately 33% to 37% over the last 4 years. We expect further growth in this segment as the company expects to expand its offerings by 30% over the next 3 to 5 years.















(Non-SGX Report) Hanwell Holdings Limited: Resilient Consumer Goods Business and Growing Paper Packaging Segment

Singapore

Hanwell Holdings Ltd. manufactures, markets, and sells household consumer products, soya bean products, and paper products.  The Company also provides healthcare consultancy and hospital and hotel management services, develops properties, and provides management services to the Econ Minimart chain of stores.

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Hanwell Holdings (HANW SP)

(Non-SGX Report) Hanwell Holdings Limited: Resilient Consumer Goods Business and Growing Paper Packaging Segment

Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

Singapore Exchange Ltd (SGX)

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