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

<ul><li>For 1H23, the STI booked a 2% total return, in-line with the FTSE ASEAN Extended 60 Index’s 1.0% total return with combined STI ETF AUM declining 4% to S$2.145 billion.</li><li>Outside of the STI, actively traded stocks that booked the highest total returns in 1H23 included Dyna-Mac, Tianjin Pharmaceutical Da Ren Tang Group, Delfi, Food Empire Holdings, PropNex, Marco Polo Marine & Samudera Shipping Line.</li><li>However, outlier performances within the Singapore stock market, saw the average total return of the 100 most traded stocks in 1H23 at 3.2% versus the median total return of 0.5%.</li></ul>

For 1H23, the STI booked a 2% total return, in-line with the FTSE ASEAN Extended 60 Index’s 1.0% total return with combined STI ETF AUM declining 4% to S$2.145 billion.Outside of the STI, actively traded stocks that booked the highest total returns in 1H23 included Dyna-Mac, Tianjin Pharmaceutical Da Ren Tang Group, Delfi, Food Empire Holdings, PropNex, Marco Polo Marine & Samudera Shipping Line.However, outlier performances within the Singapore stock market, saw the average total return of the 100 most traded stocks in 1H23 at 3.2% versus the median total return of 0.5%.

STI Books 1.2% Total Return in 1H23 as Global Growth Decelerates

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

External broker reports(aggregated public sources)

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Upgrade Marco Polo Marine to BUY with a 25% higher target price of S$0.060.</li><li>Marco Polo Marine has improved its financials on higher fleet charter and utilisation rates, as well as contributions from its Taiwan-based JV and Indonesian subsidiary acquired in FY22.</li><li>The pickup in oil &amp; gas activity, from exploration and production to decommissioning of rigs, is presenting opportunities to offshore support vessels (OSV) market players with oil prices remaining high.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Upgrade Marco Polo Marine to BUY with a 25% higher target price of S$0.060.Marco Polo Marine has improved its financials on higher fleet charter and utilisation rates, as well as contributions from its Taiwan-based JV and Indonesian subsidiary acquired in FY22.The pickup in oil &amp; gas activity, from exploration and production to decommissioning of rigs, is presenting opportunities to offshore support vessels (OSV) market players with oil prices remaining high.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Marco Polo Marine - Encouraging Times Ahead; Upgrade To BUY

External broker reports(aggregated public sources), RHB Invest

RHB Invest

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>We remain positive on Marco Polo Marine (SGX:5LY), even though Marco Polo Marine's share price has surged by &gt;20% from S$0.043 since our last update.</li><li>Marco Polo Marine remains attractive at 0.6x PEG. Reiterate BUY and S$0.06 target price, 27% upside.</li><li>Vessel demand remains robust, as regional O&amp;G exploration is increasing while North Asian nations build up their offshore windfarms to meet green or renewable energy environmental targets.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We remain positive on Marco Polo Marine (SGX:5LY), even though Marco Polo Marine's share price has surged by &gt;20% from S$0.043 since our last update.Marco Polo Marine remains attractive at 0.6x PEG. Reiterate BUY and S$0.06 target price, 27% upside.Vessel demand remains robust, as regional O&amp;G exploration is increasing while North Asian nations build up their offshore windfarms to meet green or renewable energy environmental targets.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Marco Polo Marine - On Track For Growth; Reiterate BUY

<ul><li>Share buybacks by primary listed companies 26 May - 1 Jun 2023 Institutions were net sellers of Singapore stocks over the five sessions with S$93 million of net outflow following the preceding five sessions of S$4 million of net inflow.</li><li>The consideration of the acquisitions totalled S$11,721,000, increasing Kuok’s total interest in the company from 13.19 per cent to 13.24.</li></ul>

Share buybacks by primary listed companies 26 May - 1 Jun 2023 Institutions were net sellers of Singapore stocks over the five sessions with S$93 million of net outflow following the preceding five sessions of S$4 million of net inflow.The consideration of the acquisitions totalled S$11,721,000, increasing Kuok’s total interest in the company from 13.19 per cent to 13.24.

Wilmar chief Kuok Khoon Hong adds to his stake

<ul><li>The Industrial Sector has ranked among the five strongest performing global Sectors in the YTD, with gains extending to the Asia Pacific.</li><li>Last week the 20 stocks booked S$34 million of net institutional inflow, reducing their combined YTD net institutional outflow to S$55 million.</li><li>Singapore’s 20 most traded Industrial stocks have booked net institutional fund outflows of S$54.5 million over the past 20 weeks, however last week saw S$33.6 million of net institutional fund inflows.</li></ul>

The Industrial Sector has ranked among the five strongest performing global Sectors in the YTD, with gains extending to the Asia Pacific.Last week the 20 stocks booked S$34 million of net institutional inflow, reducing their combined YTD net institutional outflow to S$55 million.Singapore’s 20 most traded Industrial stocks have booked net institutional fund outflows of S$54.5 million over the past 20 weeks, however last week saw S$33.6 million of net institutional fund inflows.

Industrial Sector Recently Led by Marco Polo Marine, YZJSH & SIA 

Singapore

Penguin International Limited operates as an integrated marine and offshore services company. The Company specializes in design, construction, and operation of high-speed aluminum ships. Penguin International owns and operates a fleet of vessels as well as aluminum shipbuilding yards. Penguin International serves customers worldwide.

Metis Energy Limited provides marine services, land reclamation, charter of vessels, and dredging services.  The Company also trades sea-sand, provides logistics, production, and other support services to the coal mining, oil, and gas industries.

Singapore Shipping Corporation Limited owns, charters, and manages ships and vessels.  The Company also provides warehousing and logistics, freight forwarding, tugging, and ancillary marine services. Singapore Shipping also operates shipping agencies and terminals.

Seroja Investments Ltd. provides charter services of tugboats and barges.  The ships are primarily used to transport thermal coal, sand and other quarry materials.

Jason Marine Group Ltd. designs, integrates, installs, and tests marine communications, navigation and automation systems; and maintains and supports those systems.

Samudera Shipping Line Limited owns and operates ocean-going ships and provides containerized feeder shipping services. Through its subsidiaries, the Company also owns and charters vessels, provides sea and air freight forwarding, and operates shipping agency and container freight station services.

GKE Corp. Ltd. operates as an integrated logistics solutions provider. The Company offers one-stop, door-to-door multi-modal solutions for supply chain management.

Vibrant Group Limited operates a logistics, real estate and financial services group. The Company provides international freight forwarding, chemical storage, warehousing and distribution, and record management.  Vibrant Group also engages in real estate development and management as well as provides fund management, financial leasing services, and asset and trust management.

A-Sonic Aerospace Limited provides retrofit solutions, particularly in electronic systems.  The Company also supplies aircraft systems and aerospace components.

Eneco Energy Limited is an oil and gas exploration and production company in Indonesia. The Company also provides supply chain services including inbound and outbound transportation activities, distribution management, seaport and airport cargo handling services, and chemical logistics distribution throughout the region.

Lanhai Medical Investment Co., Ltd. provides domestic and international water transportation for bulk cargos.  The Company also trades petrochemical products and provides storage service.

Lanhai Medical Investment Co.,  (600896 CH)

PT. Trans Power Marine Tbk is a marine shipping transportation company. The Company offers tug and barge services for the transportation of bulk cargo. PT Trans Power Marine operates out of Indonesia and South East Asia.

NAIGAI TRANS LINE LTD is a marine transportation company. The Company mainly offers international and domestic container marine transportation services. NAIGAI TRANS LINE LTD also operates warehousing and cargo handling services.

Nippon Concept Corporation is mainly engaged in providing ISO tank container transportation service.  The Company also offers container cleaning services, logistic solutions, and maintenance services.

Meiji Shipping Co., Ltd. provides marine transportation services. The Company also provides technical management, marine staffing, supplies Italian kitchen fixtures, and supplies nautical equipment. Meiji, also in involved in real estate and operates hotels and restaurants.

Franbo Lines Corp provides bulk marine shipment services. The Company transports a variety of goods including food products, wood, steel, and related items. Franbo serves clients in Taiwan, Mainland China, Southeast Asia, New Guinea, and other area in the Asia Pacific region.

Harbour-Link Group Berhad is an investment holding company and provides management service. The Company, through its subsidiaries, provides shipping, forwarding, and transportation services. Harbour-Link also operates plant and machinery renting business and provides engineering and civil works services.

Shin Yang Shipping Corp Bhd. provides shipping services. The Company provides domestic and international shipping services through its fleet of vessels.  The Company also builds and repairs ships and fabricates metal vessels.

KSS LINE LTD provides marine transportation services.  The Company mainly transports items such as gas and chemical products.  KSS LINE provides worldwide gas product transportation, Far East and South East Asia area for chemical product shipping.

PT Buana Listya Tama Tbk offers freight transportation services.  The Company transports oil and natural gas.  The Company operates oil tankers, gas tankers, chemical tankers, and a floating production storage and offloading unit.

Marco Polo Marine Limited is an integrated shipping company. The Company provides services that include ship chartering, ship building and repair, and brokering services.

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Marco Polo Marine (MPM SP)

STI Books 1.2% Total Return in 1H23 as Global Growth Decelerates

For 1H23, the STI booked a 2% total return, in-line with the FTSE ASEAN Extended 60 Index’s 1.0% total return with combined STI ETF AUM declining...

Singapore Exchange Ltd (SGX)

Marco Polo Marine - Encouraging Times Ahead; Upgrade To BUY

Marco Polo Marine has improved its financials on higher fleet charter and utilisation rates, as well as contributions from its Taiwan-based JV and...

UOB Kay Hian

Marco Polo Marine - On Track For Growth; Reiterate BUY

We remain positive on Marco Polo Marine (SGX:5LY), even though Marco Polo Marine's share price has surged by >20% from S$0.043 since our last update.

RHB Invest

Wilmar chief Kuok Khoon Hong adds to his stake

Share buybacks by primary listed companies 26 May - 1 Jun 2023 Institutions were net sellers of Singapore stocks over the five sessions with S$93...

Singapore Exchange Ltd (SGX)

Industrial Sector Recently Led by Marco Polo Marine, YZJSH & SIA

The Industrial Sector has ranked among the five strongest performing global Sectors in the YTD, with gains extending to the Asia Pacific. Last...

Singapore Exchange Ltd (SGX)

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