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

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-06/share%20buyback_1.PNG' alt='Share Buybacks' />
 </figure>
 <div class='content-caption'>Share Buybacks</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
FOR the 5 trading sessions that spanned Jun 17 to 23, the Straits Times Index (STI) declined 0.2 per cent, with the FTSE China A50 Index gaining 2.8 per cent, the Hang Seng Index adding 2.5 per cent and the FTSE Bursa Malaysia KLCI falling 2.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$116 million of net inflow, following S$166 million of net outflow for the preceding 5 sessions. DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land led the net institutional inflows for the 5 sessions through to Jun 23.

 

Share buybacks

There were 27 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 23, with a total consideration of S$64.6 million, approximately half the previous week’s consideration tally. Wilmar International and Keppel Corporation again led the consideration tally, buying back shares at average prices of S$4.02, and S$6.59 respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw 70 changes to director interests and substantial shareholdings filed for 35 primary-listed stocks. This included 15 company director acquisitions with 3 disposals filed, while substantial shareholders filed 11 acquisitions and 3 disposals.

 United Hampshire US Reit

On Jun 20 and 22, United Hampshire US Reit Management non-independent non-executive director David Tuvia Goss acquired 500,000 units of United Hampshire US Reit (UHReit) at an average price of 60.9 US cents per unit. With a consideration of US$304,650 this took his direct interest in UHReit to 0.09 per cent. 
UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 (ended Mar 31) distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021.

Goss is the managing director of UOB Global Capital since September 1998. Prior to co-founding UOB Global Capital, he was president and CEO of AIG Asset Management Services in New York from March 1995, with global responsibility for AIG’s third-party asset management activities. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

 

Oiltek International

On Jun 20, Koh Brothers Eco Engineering acquired 1 million shares of Oiltek International at 23.0 cents per share. The married deal increased non-executive director Koh Keng Siang’s total interest in the integrated process and renewable energy solutions provider from 67.44 per cent to 68.14 per cent. Koh has been a non-executive director of the subsidiaries, Oiltek Sdn Bhd and Oiltek Global Energy Sdn Bhd since February 2013. He is the managing director and group CEO of Koh Brothers Group, which is the ultimate controlling shareholder of Oiltek International through its shareholding interest in Koh Brothers Eco Engineering. 
Listed on Catalist, Oiltek International operates 3 key businesses – the edible &amp; non-edible oil refinery segment, renewable energy segment, and product sales and trading segment. Oiltek International’s revenue for FY21 (ended Dec 31) grew 15.0 per cent to RM100.63 million from FY20, mainly due to new projects secured in FY21 for the group’s edible &amp; non-edible oil refinery segment.

 

Hong Fok Corporation

On Jun 17, Hong Fok Corporation executive director and joint CEO Cheong Pin Chuan acquired 201,800 shares of the company, for a consideration of S$187,665 at 93.0 cents per share. This increased his total interest in the property developer from 20.64 per cent to 20.66 per cent. He is principally involved in the group’s overall operations and management with greater emphasis in Hong Kong and has over 50 years of experience in property development at both management and board levels in Singapore and Hong Kong.

 

PropNex

Between Jun 16 and 17, PropNex executive director Kelvin Fong Keng Seong acquired 101,100 shares of the company, at an average price of S$1.63 per share. This took his deemed interest in PropNex from 8.71 per cent to 8.73 per cent. His preceding acquisitions were between May 24 and 26, with 300,000 shares acquired at S$1.70 per share. Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019.

Fong oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry. For its Q1 FY22 (ended Mar 31), PropNex reported that revenue grew 9.5 per cent year on year to S$241.6 million, with net profit declining 8.1 per cent year on year to S$14.9 million.

The company, which is Singapore’s largest listed real estate agency noted that its Q1 FY22 was impacted by the government’s new cooling measures, growing uncertainties arising from the Russian-Ukraine war, concerns over rising inflation and interest rates dampening sentiment, while limited new launches and the seasonal lull reined in sales volumes.

Looking forward, PropNex noted in May that it expects the private housing market to remain fairly resilient this year and prices could grow by 3 per cent to 5 per cent in 2022, as reflected in the 0.7 per cent price increase in Q1 2022 and higher new launch prices expected in subsequent quarters. The company also highlighted that it is well on its way to attaining its goal of having 12,000 salespersons by end 2022. It has already achieved a growth of 26.4 per cent in the number of salespersons from 8,918 as at Jan 1, 2021 to 11,268 as at Apr 11, 2022.

 Singapore Shipping Corporation

Between Jun 16 and 21, Singapore Shipping Corporation executive chairman Ow Chio Kiat acquired 225,400 shares at an average price of 28.4 cents per share. With a consideration of S$63,948, this increased his total stake in the company from 41.92 per cent to 41.97 per cent. With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. Singapore Shipping Corporation is a spin-off from Stamford Land Corporation (formerly known as Hai Sun Hup Group) when the latter de-merged its shipping and logistics businesses in 2000 to concentrate on its hotel and property businesses. 
On May 26, Singapore Shipping Corporation reported that its revenue for FY22 (ended Mar 31) increased 8.6 per cent from FY21, with attributable profit down 4.3 per cent from FY21.

 

Centurion Corporation

Between Jun 17 and 23, Centurion Corporation : OU8 0% executive director and joint chairman David Loh Kim Kang acquired 200,000 shares of the purpose-built accommodation developer and manager for a consideration of S$70,000. At 35.0 cents per share, this took his total interest from 55.40 per cent to 55.43 per cent. His preceding acquisitions were between May 20 and 26, with 1,860,400 shares also acquired at 35.0 cents per share.

 Uni-Asia Group

On Jun 23, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares at S$1.00 per share. This increased his total interest in the company from 3.44 per cent to 3.50 per cent. This closely followed his acquisition of 150,000 shares at S$1.04 per share on Jun 13 and 50,000 shares at S$S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 Sasseur Reit

On Jun 17, Sasseur Asset Management CEO Cecilia Tan Hong Lye acquired 22,000 units of Sasseur Reit at an average price of 73.8 cents per unit. This increased her direct interest in the first outlet mall Reit to be listed in Asia to 40,000 units. Tan has been the CEO of the manager of Sasseur Reit since Aug 1, 2021. She has more than 20 years of professional career experience spanning across a wide spectrum of real estate expertise in real estate investment banking, real estate direct investment, Reit management, real estate fund management and property development.

Prior to joining Sasseur Asset Management, she was the senior strategic adviser to Vito Xu, the chairman of Sasseur Group from July 2019 to June 2021.

Back on May 12, Sasseur Reit reported a record high Q1 (ended Mar 31) distributable income of S$24.7 million, which was up 4.7 per cent from Q1 2021.

 

Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/koh-brothers-group-ceo-koh-keng-siang-adds-to-his-oiltek-stake"> read </a>the original version.
</body></html>


      
    
    Share Buybacks


FOR the 5 trading sessions that spanned Jun 17 to 23, the Straits Times Index (STI) declined 0.2 per cent, with the FTSE China A50 Index gaining 2.8 per cent, the Hang Seng Index adding 2.5 per cent and the FTSE Bursa Malaysia KLCI falling 2.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$116 million of net inflow, following S$166 million of net outflow for the preceding 5 sessions. DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land led the net institutional inflows for the 5 sessions through to Jun 23.

 

Share buybacks

There were 27 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 23, with a total consideration of S$64.6 million, approximately half the previous week’s consideration tally. Wilmar International and Keppel Corporation again led the consideration tally, buying back shares at average prices of S$4.02, and S$6.59 respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw 70 changes to director interests and substantial shareholdings filed for 35 primary-listed stocks. This included 15 company director acquisitions with 3 disposals filed, while substantial shareholders filed 11 acquisitions and 3 disposals.

 United Hampshire US Reit

On Jun 20 and 22, United Hampshire US Reit Management non-independent non-executive director David Tuvia Goss acquired 500,000 units of United Hampshire US Reit (UHReit) at an average price of 60.9 US cents per unit. With a consideration of US$304,650 this took his direct interest in UHReit to 0.09 per cent. 
UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 (ended Mar 31) distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021.

Goss is the managing director of UOB Global Capital since September 1998. Prior to co-founding UOB Global Capital, he was president and CEO of AIG Asset Management Services in New York from March 1995, with global responsibility for AIG’s third-party asset management activities. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

 

Oiltek International

On Jun 20, Koh Brothers Eco Engineering acquired 1 million shares of Oiltek International at 23.0 cents per share. The married deal increased non-executive director Koh Keng Siang’s total interest in the integrated process and renewable energy solutions provider from 67.44 per cent to 68.14 per cent. Koh has been a non-executive director of the subsidiaries, Oiltek Sdn Bhd and Oiltek Global Energy Sdn Bhd since February 2013. He is the managing director and group CEO of Koh Brothers Group, which is the ultimate controlling shareholder of Oiltek International through its shareholding interest in Koh Brothers Eco Engineering. 
Listed on Catalist, Oiltek International operates 3 key businesses – the edible &amp; non-edible oil refinery segment, renewable energy segment, and product sales and trading segment. Oiltek International’s revenue for FY21 (ended Dec 31) grew 15.0 per cent to RM100.63 million from FY20, mainly due to new projects secured in FY21 for the group’s edible &amp; non-edible oil refinery segment.

 

Hong Fok Corporation

On Jun 17, Hong Fok Corporation executive director and joint CEO Cheong Pin Chuan acquired 201,800 shares of the company, for a consideration of S$187,665 at 93.0 cents per share. This increased his total interest in the property developer from 20.64 per cent to 20.66 per cent. He is principally involved in the group’s overall operations and management with greater emphasis in Hong Kong and has over 50 years of experience in property development at both management and board levels in Singapore and Hong Kong.

 

PropNex

Between Jun 16 and 17, PropNex executive director Kelvin Fong Keng Seong acquired 101,100 shares of the company, at an average price of S$1.63 per share. This took his deemed interest in PropNex from 8.71 per cent to 8.73 per cent. His preceding acquisitions were between May 24 and 26, with 300,000 shares acquired at S$1.70 per share. Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019.

Fong oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry. For its Q1 FY22 (ended Mar 31), PropNex reported that revenue grew 9.5 per cent year on year to S$241.6 million, with net profit declining 8.1 per cent year on year to S$14.9 million.

The company, which is Singapore’s largest listed real estate agency noted that its Q1 FY22 was impacted by the government’s new cooling measures, growing uncertainties arising from the Russian-Ukraine war, concerns over rising inflation and interest rates dampening sentiment, while limited new launches and the seasonal lull reined in sales volumes.

Looking forward, PropNex noted in May that it expects the private housing market to remain fairly resilient this year and prices could grow by 3 per cent to 5 per cent in 2022, as reflected in the 0.7 per cent price increase in Q1 2022 and higher new launch prices expected in subsequent quarters. The company also highlighted that it is well on its way to attaining its goal of having 12,000 salespersons by end 2022. It has already achieved a growth of 26.4 per cent in the number of salespersons from 8,918 as at Jan 1, 2021 to 11,268 as at Apr 11, 2022.

 Singapore Shipping Corporation

Between Jun 16 and 21, Singapore Shipping Corporation executive chairman Ow Chio Kiat acquired 225,400 shares at an average price of 28.4 cents per share. With a consideration of S$63,948, this increased his total stake in the company from 41.92 per cent to 41.97 per cent. With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. Singapore Shipping Corporation is a spin-off from Stamford Land Corporation (formerly known as Hai Sun Hup Group) when the latter de-merged its shipping and logistics businesses in 2000 to concentrate on its hotel and property businesses. 
On May 26, Singapore Shipping Corporation reported that its revenue for FY22 (ended Mar 31) increased 8.6 per cent from FY21, with attributable profit down 4.3 per cent from FY21.

 

Centurion Corporation

Between Jun 17 and 23, Centurion Corporation : OU8 0% executive director and joint chairman David Loh Kim Kang acquired 200,000 shares of the purpose-built accommodation developer and manager for a consideration of S$70,000. At 35.0 cents per share, this took his total interest from 55.40 per cent to 55.43 per cent. His preceding acquisitions were between May 20 and 26, with 1,860,400 shares also acquired at 35.0 cents per share.

 Uni-Asia Group

On Jun 23, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares at S$1.00 per share. This increased his total interest in the company from 3.44 per cent to 3.50 per cent. This closely followed his acquisition of 150,000 shares at S$1.04 per share on Jun 13 and 50,000 shares at S$S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 Sasseur Reit

On Jun 17, Sasseur Asset Management CEO Cecilia Tan Hong Lye acquired 22,000 units of Sasseur Reit at an average price of 73.8 cents per unit. This increased her direct interest in the first outlet mall Reit to be listed in Asia to 40,000 units. Tan has been the CEO of the manager of Sasseur Reit since Aug 1, 2021. She has more than 20 years of professional career experience spanning across a wide spectrum of real estate expertise in real estate investment banking, real estate direct investment, Reit management, real estate fund management and property development.

Prior to joining Sasseur Asset Management, she was the senior strategic adviser to Vito Xu, the chairman of Sasseur Group from July 2019 to June 2021.

Back on May 12, Sasseur Reit reported a record high Q1 (ended Mar 31) distributable income of S$24.7 million, which was up 4.7 per cent from Q1 2021.

 

Inside Insights is a weekly column on The Business Times, read the original version.



Koh Brothers group CEO, Koh Keng Siang adds to his Oiltek stake

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/propnex-ltd" target="_blank" data-smartkarma-citation="entities:27209" rel="noopener">Propnex Ltd (PROP SP)</a> 1Q22 NPAT fell 8% YoY; Expects prices to grow 3-5% in 2022</li><li>Condo resale prices edge up +0.7% MoM as suburban prices hit new record high</li><li><a href="https://www.smartkarma.com/entities/centurion-corp-ltd" target="_blank" data-smartkarma-citation="entities:5186" rel="noopener">Centurion Corp (CENT SP)</a> 1Q22 revenue rose ~47% YoY on enlarged capacity and new business streams</li></ul>

Propnex Ltd (PROP SP) 1Q22 NPAT fell 8% YoY; Expects prices to grow 3-5% in 2022Condo resale prices edge up +0.7% MoM as suburban prices hit new record highCenturion Corp (CENT SP) 1Q22 revenue rose ~47% YoY on enlarged capacity and new business streams

ASEAN Builder's Scoop (11May22) - PROP Home Prices to Rise 3-5% in 2022

<ul><li><a href="https://www.smartkarma.com/entities/capitaland-investment-ltd-si" target="_blank" data-smartkarma-citation="entities:33774" rel="noopener">Capitaland Investment (CLI SP)</a> FY21 performance beats as fund management business takes off; Lodging recovering further</li><li><a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57" rel="noopener">City Developments (CIT SP)</a> returns to black in 2H21; A surprise CDREIT dividend in specie</li><li><a href="https://www.smartkarma.com/entities/propnex-ltd" target="_blank" data-smartkarma-citation="entities:27209" rel="noopener">Propnex Ltd (PROP SP)</a> 4Q21 net profit rose 90.5% YoY; Declared total dividends of S$0.125/share (~7.3% implied yield)</li></ul>

Capitaland Investment (CLI SP) FY21 performance beats as fund management business takes off; Lodging recovering furtherCity Developments (CIT SP) returns to black in 2H21; A surprise CDREIT dividend in speciePropnex Ltd (PROP SP) 4Q21 net profit rose 90.5% YoY; Declared total dividends of S$0.125/share (~7.3% implied yield)

ASEAN Builder's Scoop 25Feb22 - CLI Fund Management Takes Off

<ul><li><a href="https://www.smartkarma.com/entities/cdl-hospitality-trusts" target="_blank" data-smartkarma-citation="entities:936" rel="noopener">CDL Hospitality Trusts (CDREIT SP)</a> acquires Hotel Brooklyn in Manchester, UK; ~1.1% accretion to DPU</li><li>Joint investment of Sumitomo units and ARA invest S$297m in Capital Square</li><li><a href="https://www.smartkarma.com/entities/sm-prime-holdings-inc" target="_blank" data-smartkarma-citation="entities:89" rel="noopener">Sm Prime Holdings (SMPH PM)</a> earnings surprise on the upside (Regina Capital)</li></ul>

CDL Hospitality Trusts (CDREIT SP) acquires Hotel Brooklyn in Manchester, UK; ~1.1% accretion to DPUJoint investment of Sumitomo units and ARA invest S$297m in Capital SquareSm Prime Holdings (SMPH PM) earnings surprise on the upside (Regina Capital)

ASEAN Builder's Scoop 22Feb22 - CDREIT Buys Manchester Hotel

Bukit Sembawang Estates / Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
January ’22 private home sales +3.5% MoM and was highest level of Jan month sales since 2014 (with exception of 2021). This built on the record 2021 sales, which was the highest in 8 years. 
	 </li>
	<li>
While the sector has posted c. 3% YTD and rallied c. 29% off the lows seen in March ’20 (start of COVID-19 pandemic), it is still c . 23% below the last peak seen in 2018. Sector’s P/B are currently -1 S.D. below the historical mean. 
	 </li>
	<li>The most actively traded real estate stocks with Singapore property exposure average YTD total return is relatively flattish, as compared to the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. 7 of the 10 stocks with are currently trading below their 5-year historical average P/B ratios.</li>
</ul>
 

Jan ’22 Private Home Sales +3.5%and Above Historical Jan Month Sales in 2014-2020 
According to data from Urban Redevelopment Authority (URA), Singapore saw sale of 673 new private homes excl. executive condominiums (ECs) (+3.5% MoM, -58.8% YoY) in Jan ’22 and represented the highest level of Jan sales in 2014-2020. Private homes sales in the month was largely in the Rest of Central Region (RCR) and Outside Central Region (OCR). New private home sales in 2021 was at over 13,000 units and represented the highest number since 2013. Prices in 2021 posted a 10.6% YoY gain, which was the highest since 2010. 
To recap, on 15 December, the Government announced a package of measures to cool the private homes and HDB resale markets where additional buyer’s stamp duty (ABSD) rates were raised and total debt servicing ratio (TDSR) threshold and HDB LTV limit for loans were tightened. 
In the recently announced Budget 2022, residential properties marginal property tax rates will be raised in two steps starting with the tax payable in 2023. The rates from 2024 are:

<ul>
<li>
Non-owner-occupied residential properties (inc. investment properties) will see property tax rates increased to 12-36% (vs. current 10-20%).</li>
	<li>Concurrently, property tax rates for owner-occupied homes for portion of annual value in excess of S$30,000 will also be raised to a range of 6-32% (vs. 4-16% currently).</li>
</ul>
 Real Estate Developers &amp; Operators Sector +3% YTD but still 23% Below 2018 Peak 
Looking at the sector performance, the iEdge SG Real Estate Developers &amp; Operators Index has posted c. 3% price gains in the YTD, and c. +29% off the lows in March ’20 (at the start of the COVID-19 pandemic). The index is still c. 23% below the last peak seen in 2018. 
The iEdge SG Real Estate Developers &amp; Operators Index is a free-float, market capitalization-weighted index that measures the performance of listed real estate developers and operators in Singapore.
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture%201_2.PNG' alt='iEdge SG Real Estate Developers' />
 </figure>
 <div class='content-caption'>iEdge SG Real Estate Developers</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>Sector P/B Trading -1 S.D. Below Mean 
The sector’s P/B ratio is at 0.44x (vs. historical mean of 0.59x) and also -1 S.D. below the historical mean. This is close to the level last seen during the start of the pandemic in March ’20, where there was a broad-based market correction and well below the levels see in 2017.</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture_14.PNG' alt='iEdge SG Real Estate Developers' />
 </figure>
 <div class='content-caption'>iEdge SG Real Estate Developers</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
Most Actively-Traded SGX Stocks with Singapore Real Estate Exposure 
The top actively traded SGX listed stocks with Singapore real estate exposure posted a YTD total returns of -0.4%, which compares with the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. City Developments will report its FY21 results before the open on 25 Feb, UOL will report its CY21 results on 28 Feb, and Ho Bee Land will report after the 28 Feb close.  
These names have an average dividend yield of 2.7% with an average 0.6x P/B ratio. Of the 10 names with 5-year trading history, 7 of them currently have P/B ratios that are below 5-year P/B averages.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock Name 
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			5Y Avg. P/B
			</td>
			<td>
			P/B
			</td>
			<td>
			Div Yield (%)
			</td>
			<td>
			2022 YTD Total Return 

			%
			</td>
		</tr>
<tr>
<td>
			City Developments
			</td>
			<td>
			C09
			</td>
			<td>
			6,657
			</td>
			<td>
			0.9
			</td>
			<td>
			0.8
			</td>
			<td>
			1.1
			</td>
			<td>
			7.8
			</td>
		</tr>
<tr>
<td>
			UOL Group
			</td>
			<td>
			U14
			</td>
			<td>
			6,164
			</td>
			<td>
			0.7
			</td>
			<td>
			0.6
			</td>
			<td>
			2.1
			</td>
			<td>
			3.0
			</td>
		</tr>
<tr>
<td>
			Frasers Property
			</td>
			<td>
			TQ5
			</td>
			<td>
			4,358
			</td>
			<td>
			0.6
			</td>
			<td>
			0.5
			</td>
			<td>
			1.8
			</td>
			<td>
			-0.9
			</td>
		</tr>
<tr>
<td>
			Ho Bee Land
			</td>
			<td>
			H13
			</td>
			<td>
			1,892
			</td>
			<td>
			0.5
			</td>
			<td>
			0.5
			</td>
			<td>
			3.5
			</td>
			<td>
			2.2
			</td>
		</tr>
<tr>
<td>
			GuocoLand
			</td>
			<td>
			F17
			</td>
			<td>
			1,810
			</td>
			<td>
			0.5
			</td>
			<td>
			0.4
			</td>
			<td>
			4.0
			</td>
			<td>
			1.3
			</td>
		</tr>
<tr>
<td>
			Wing Tai Holdings
			</td>
			<td>
			W05
			</td>
			<td>
			1,367
			</td>
			<td>
			0.4
			</td>
			<td>
			0.4
			</td>
			<td>
			1.7
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			Bukit Sembawang
			</td>
			<td>
			B61
			</td>
			<td>
			1,292
			</td>
			<td>
			1.0
			</td>
			<td>
			0.9
			</td>
			<td>
			0.8
			</td>
			<td>
			-0.4
			</td>
		</tr>
<tr>
<td>
			OUE
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,150
			</td>
			<td>
			0.4
			</td>
			<td>
			0.3
			</td>
			<td>
			1.5
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			Oxley Holdings
			</td>
			<td>
			5UX
			</td>
			<td>
			759
			</td>
			<td>
			1.1
			</td>
			<td>
			0.8
			</td>
			<td>
			1.4
			</td>
			<td>
			-4.8
			</td>
		</tr>
<tr>
<td>
			PropNex
			</td>
			<td>
			OYY
			</td>
			<td>
			629
			</td>
			<td>
			N.A.
			</td>
			<td>
			6.6
			</td>
			<td>
			5.6
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			Tuan Sing Holdings
			</td>
			<td>
			T24
			</td>
			<td>
			547
			</td>
			<td>
			0.4
			</td>
			<td>
			0.4
			</td>
			<td>
			1.3
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			APAC Realty
			</td>
			<td>
			CLN
			</td>
			<td>
			229
			</td>
			<td>
			N.A.
			</td>
			<td>
			1.4
			</td>
			<td>
			8.1
			</td>
			<td>
			-10.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			                          2.7
			</td>
			<td>
			-0.4
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 18 February 2022).
</body></html>





January ’22 private home sales +3.5% MoM and was highest level of Jan month sales since 2014 (with exception of 2021). This built on the record 2021 sales, which was the highest in 8 years. 
	 
	
While the sector has posted c. 3% YTD and rallied c. 29% off the lows seen in March ’20 (start of COVID-19 pandemic), it is still c . 23% below the last peak seen in 2018. Sector’s P/B are currently -1 S.D. below the historical mean. 
	 
	The most actively traded real estate stocks with Singapore property exposure average YTD total return is relatively flattish, as compared to the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. 7 of the 10 stocks with are currently trading below their 5-year historical average P/B ratios.

 

Jan ’22 Private Home Sales +3.5%and Above Historical Jan Month Sales in 2014-2020  
According to data from Urban Redevelopment Authority (URA), Singapore saw sale of 673 new private homes excl. executive condominiums (ECs) (+3.5% MoM, -58.8% YoY) in Jan ’22 and represented the highest level of Jan sales in 2014-2020. Private homes sales in the month was largely in the Rest of Central Region (RCR) and Outside Central Region (OCR). New private home sales in 2021 was at over 13,000 units and represented the highest number since 2013. Prices in 2021 posted a 10.6% YoY gain, which was the highest since 2010.  
To recap, on 15 December, the Government announced a package of measures to cool the private homes and HDB resale markets where additional buyer’s stamp duty (ABSD) rates were raised and total debt servicing ratio (TDSR) threshold and HDB LTV limit for loans were tightened.  
In the recently announced Budget 2022, residential properties marginal property tax rates will be raised in two steps starting with the tax payable in 2023. The rates from 2024 are:



Non-owner-occupied residential properties (inc. investment properties) will see property tax rates increased to 12-36% (vs. current 10-20%).
	Concurrently, property tax rates for owner-occupied homes for portion of annual value in excess of S$30,000 will also be raised to a range of 6-32% (vs. 4-16% currently).

  Real Estate Developers &amp; Operators Sector +3% YTD but still 23% Below 2018 Peak  
Looking at the sector performance, the iEdge SG Real Estate Developers &amp; Operators Index has posted c. 3% price gains in the YTD, and c. +29% off the lows in March ’20 (at the start of the COVID-19 pandemic). The index is still c. 23% below the last peak seen in 2018.  
The iEdge SG Real Estate Developers &amp; Operators Index is a free-float, market capitalization-weighted index that measures the performance of listed real estate developers and operators in Singapore.



      
    
    iEdge SG Real Estate Developers

Sector P/B Trading -1 S.D. Below Mean  
The sector’s P/B ratio is at 0.44x (vs. historical mean of 0.59x) and also -1 S.D. below the historical mean. This is close to the level last seen during the start of the pandemic in March ’20, where there was a broad-based market correction and well below the levels see in 2017.


      
    
    iEdge SG Real Estate Developers


Most Actively-Traded SGX Stocks with Singapore Real Estate Exposure  
The top actively traded SGX listed stocks with Singapore real estate exposure posted a YTD total returns of -0.4%, which compares with the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. City Developments will report its FY21 results before the open on 25 Feb, UOL will report its CY21 results on 28 Feb, and Ho Bee Land will report after the 28 Feb close.   
These names have an average dividend yield of 2.7% with an average 0.6x P/B ratio. Of the 10 names with 5-year trading history, 7 of them currently have P/B ratios that are below 5-year P/B averages.




			Stock Name 
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			5Y Avg. P/B
			
			
			P/B
			
			
			Div Yield (%)
			
			
			2022 YTD Total Return 

			%
			
		


			City Developments
			
			
			C09
			
			
			6,657
			
			
			0.9
			
			
			0.8
			
			
			1.1
			
			
			7.8
			
		


			UOL Group
			
			
			U14
			
			
			6,164
			
			
			0.7
			
			
			0.6
			
			
			2.1
			
			
			3.0
			
		


			Frasers Property
			
			
			TQ5
			
			
			4,358
			
			
			0.6
			
			
			0.5
			
			
			1.8
			
			
			-0.9
			
		


			Ho Bee Land
			
			
			H13
			
			
			1,892
			
			
			0.5
			
			
			0.5
			
			
			3.5
			
			
			2.2
			
		


			GuocoLand
			
			
			F17
			
			
			1,810
			
			
			0.5
			
			
			0.4
			
			
			4.0
			
			
			1.3
			
		


			Wing Tai Holdings
			
			
			W05
			
			
			1,367
			
			
			0.4
			
			
			0.4
			
			
			1.7
			
			
			0.0
			
		


			Bukit Sembawang
			
			
			B61
			
			
			1,292
			
			
			1.0
			
			
			0.9
			
			
			0.8
			
			
			-0.4
			
		


			OUE
			
			
			LJ3
			
			
			1,150
			
			
			0.4
			
			
			0.3
			
			
			1.5
			
			
			-2.9
			
		


			Oxley Holdings
			
			
			5UX
			
			
			759
			
			
			1.1
			
			
			0.8
			
			
			1.4
			
			
			-4.8
			
		


			PropNex
			
			
			OYY
			
			
			629
			
			
			N.A.
			
			
			6.6
			
			
			5.6
			
			
			0.6
			
		


			Tuan Sing Holdings
			
			
			T24
			
			
			547
			
			
			0.4
			
			
			0.4
			
			
			1.3
			
			
			0.0
			
		


			APAC Realty
			
			
			CLN
			
			
			229
			
			
			N.A.
			
			
			1.4
			
			
			8.1
			
			
			-10.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			                          2.7
			
			
			-0.4
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 18 February 2022).



SG Real Estate Sector Valuation Below Historical Mean Amidst Resilient Private Home Sales

Singapore

Propnex Limited operates as a real estate agency. The Company offers business strategies, consultation, training, marketing support, and technological innovations for real estate sector, as buying, selling, and renting of properties. Propnex serves customers in Singapore, Indonesia, and Malaysia.

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

Propnex Ltd (PROP SP)

Koh Brothers group CEO, Koh Keng Siang adds to his Oiltek stake

FOR the 5 trading sessions that spanned Jun 17 to 23, the Straits Times Index (STI) declined 0.2 per cent, with the FTSE China...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (11May22) - PROP Home Prices to Rise 3-5% in 2022

Suburban resale condo prices hit new record in Apr22; SMPH boosted by rebounding mall biz; Office demand outside NCR improving

SCCM Asia Research

ASEAN Builder's Scoop 25Feb22 - CLI Fund Management Takes Off

CIT surprise CDREIT divvy in specie; PROP ~7.3% implied divvy yield; ALLHC 4Q21 earnings fell 27% YoY; SDPR targets MYR2.8bn new launches

SCCM Asia Research

ASEAN Builder's Scoop 22Feb22 - CDREIT Buys Manchester Hotel

ARA JVs invests ~S$300m in Capital Square; SMPH earnings surprised on upside; Stable revs buoys RCR earnings; Astra Land JVs with HKL to grow...

SCCM Asia Research

SG Real Estate Sector Valuation Below Historical Mean Amidst Resilient Private Home Sales

January ’22 private home sales +3.5% MoM and was highest level of Jan month sales since 2014 (with exception of 2021). This built on the record...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)