Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After 14 months of Strategic Review and preparation for a Demerger of its generation and distribution businesses, the Board has <a href="https://www.asx.com.au/asxpdf/20220530/pdf/459fg181kqf4tl.pdf" target="_blank" rel="noopener">dropped the Demerger Proposal</a> in face of shareholder opposition.</li>
<li>While it isn't clear exactly how much opposition there was, Michael Cannon-Brookes held 11+% and General Meetings have garnered 50-75% of investors for a vote which needed 75% approval.</li>
<li>CEO and Chair have announced their resignations, two other board members will leave, and now the Board will start another strategic review using preparation at hand.</li>
</ul>


After 14 months of Strategic Review and preparation for a Demerger of its generation and distribution businesses, the Board has dropped the Demerger Proposal in face of shareholder opposition.
While it isn't clear exactly how much opposition there was, Michael Cannon-Brookes held 11+% and General Meetings have garnered 50-75% of investors for a vote which needed 75% approval.
CEO and Chair have announced their resignations, two other board members will leave, and now the Board will start another strategic review using preparation at hand.


AGL Drops Demerger Proposal - Back To Square Two

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

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<ul>
<li>Singapore’s 1Q22 GDP expanded 3.7% YoY, continuing the above trend momentum seen in 2021 with 7.6% growth. The GDP forecast for the full 2022 year is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. Manufacturing was again a key driver, expanding 7.1% YoY in 1Q22, extending 15.5% growth in 4Q21.</li>
</ul>
<ul>
<li>The STI has gained 3.4% in the 2022 YTD, with reinvested dividends boosting the total return to 5.5%. This has coincided with 30 constituents booking S$538 million of net institutional inflow. Singtel which reported FY22 results on Friday led the net institutional inflows of all SGX-listed stocks in the 2022 YTD, with S$666 million of net buying. </li>
</ul>
<ul>
<li>As many as 11 of the STI stocks have generated double digit percentage gains in the 2022 YTD. These stocks are Sembcorp Industries (44%), Jardine C&amp;C (43%), Yangzijiang Shipbuilding (40%), Keppel Corp (37%), City Dev (25%), CapitaLand Invest (19%), Singtel (16%), SATS (16%), ST Engineering (11%), UOB (11%) and Singapore Airlines (10%).</li>
</ul>
 

 

The STI has generated a 5.5% total return in the 2022 YTD, outpacing the FTSE Developed Index which has generated an 11.0% decline in total return in SGD terms. With average total returns of 4.6%, the trio of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank have had the most impact on the STI performance due to their leading, heavy weightage. United Overseas Bank has led the trio in the 2022 YTD, with double-digit total returns of 11.4%. Globally, banks have seen just one-third of the declines of the technology sector, with index performances significantly influenced by their technology stock weights.

Asides from United Overseas Bank, there have been another 10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022. These 10 stocks, represent as many as seven sectors and are tabled below.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-05/table%201.PNG' alt='10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022' />
 </figure>
 <div class='content-caption'>10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022</div>
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Globally, Energy and Utilities stocks have been the strongest sectors for the 2022 YTD, while Indonesia has been among the strongest emerging stock markets in the 2022 YTD. This has coincided with Sembcorp Industries and Jardine Cycle &amp; Carriage leading the STI over the past 21 weeks. Meanwhile the regional re-openings, have also coincided with City Developments, CapitaLand Investment, SATS and Singapore Airlines posting double digit percentage total returns in the 2022 YTD. 

On Friday, Singapore Telecommunications reported its FY22 (ended 31 Mar) underlying net profit improved 11% YoY to S$1.92 billion, mainly lifted by Bharti Airtel’s resilient turnaround. Singapore Telecommunications is pursuing an ongoing strategic reset to develop new growth engines in ICT and digital services aiming transform NCS into an Asian B2B digital services champion, and NCS-originated revenue was up a record 9% in FY22 as NCS has continued to diversify its revenue streams, with Digital, Cloud, Platforms and Cyber revenue now contributing 49% of total operating revenue, up from 41% last year.

 

Singapore GDP forecast to grow 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range.

Last week, Singapore’s 1Q22 GDP was <a href="https://www.singstat.gov.sg/gdp?force_isolation=true">reported</a> to grow 3.7% YoY, continuing the above trend momentum of 2021 at 7.6% YoY growth.

<ul>
<li>The GDP forecast for 2022 is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. The manufacturing sector expanded 7.1% YoY in 1Q22, extending the 15.5% growth in 4Q21, while construction grew 2.1% YoY, easing from the 2.9% YoY growth in 4Q21. Services Producing industries expanded 4.2% YoY, similar to the 4Q21 pace of 4.4% YoY growth, and led by growth in the real estate, information and communications and professional services segments.</li>
</ul>
<ul>
<li>For professional services the GDP report noted that “the rollout of the Vaccinated Travel Framework, alongside the easing of border restrictions in regional economies, is likely to boost the growth of the professional services sector as firms in segments like consultancy and legal can now better engage their overseas clients. Similarly, air travel and visitor arrivals are expected to pick up more quickly than earlier projected, thereby accelerating the recovery of aviation- and tourism-related sectors like air transport and arts, entertainment &amp; recreation”.</li>
</ul>
<ul>
<li>On a cautionary note, the report also maintained the external environment continues to be a challenge with the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening and continued impact of COVID, and thus the growth outlook for some outward-oriented sectors in the Singapore economy has weakened. For instance the report noted that “as China is a key market for petroleum and chemicals products from Singapore, its economic slowdown is likely to adversely affect the growth prospects of Singapore’s chemicals cluster and the fuel &amp; chemicals segment of the wholesale trade sector”.</li>
</ul>
 

Singapore’s April Industrial Production Up 6.2% YoY

The Singapore 1Q22 GDP report noted last week that “the electronics cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres”. Last week, Singapore’s April Industrial Production was <a href="https://www.edb.gov.sg/en/about-edb/media-releases-publications/monthly-manufacturing-performance.html">reported</a> to grow 6.2% YoY, with transport engineering and electronics growing 17.2% YoY and 10.4% respectively. This means Singapore’s industrial production has gained ~7% in the first four months of 2022, following the ~13% growth of 2021.  

 

The STI includes two Singapore-based manufacturers – Venture Corporation and ST Engineering.

<ul>
<li>
Venture Corporation has declined 2.0% in the 2022 YTD, after a similar 1.9% decline in total return 2021. On 29 April, Venture reported its growth momentum continued from 2021, with a 30% YoY increase in 1Q22 revenue to S$889M on robust demand from customers in the Lifestyle &amp; Wellness, Advanced Payment Systems, Advanced Industrial and Instrumentation, Test and Measurement technology domains. Additionally, the company highlighted that several iniatives from its R&amp;D Labs have enabled it to mitigate supply chain disruptions and expand its capabilities to fulfil more orders.</li>
</ul>
<ul>
<li>
ST Engineering has generated an 11.5% total return in the 2022 YTD after a 2.3% gain in 2021. On 13 May, ST Engineering highlighted it had secured S$2.4B in new contracts in 1Q22, with an overall robust order book of S$21.3B, incl. $1.6B from TransCore and S$5.8B expected to be delivered in the remaining months of 2022. Management also flagged alignment with Digitalisation with the Cloud, AI Analytics, Cyber business to triple to &gt;S$500m by 2026.</li>
</ul>
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-05/table%202.PNG' alt='The full 30 STI stocks are tabled below.' />
 </figure>
 <div class='content-caption'>The full 30 STI stocks are tabled below.</div>




Singapore’s 1Q22 GDP expanded 3.7% YoY, continuing the above trend momentum seen in 2021 with 7.6% growth. The GDP forecast for the full 2022 year is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. Manufacturing was again a key driver, expanding 7.1% YoY in 1Q22, extending 15.5% growth in 4Q21.


The STI has gained 3.4% in the 2022 YTD, with reinvested dividends boosting the total return to 5.5%. This has coincided with 30 constituents booking S$538 million of net institutional inflow. Singtel which reported FY22 results on Friday led the net institutional inflows of all SGX-listed stocks in the 2022 YTD, with S$666 million of net buying. 


As many as 11 of the STI stocks have generated double digit percentage gains in the 2022 YTD. These stocks are Sembcorp Industries (44%), Jardine C&amp;C (43%), Yangzijiang Shipbuilding (40%), Keppel Corp (37%), City Dev (25%), CapitaLand Invest (19%), Singtel (16%), SATS (16%), ST Engineering (11%), UOB (11%) and Singapore Airlines (10%).

 

 

The STI has generated a 5.5% total return in the 2022 YTD, outpacing the FTSE Developed Index which has generated an 11.0% decline in total return in SGD terms. With average total returns of 4.6%, the trio of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank have had the most impact on the STI performance due to their leading, heavy weightage. United Overseas Bank has led the trio in the 2022 YTD, with double-digit total returns of 11.4%. Globally, banks have seen just one-third of the declines of the technology sector, with index performances significantly influenced by their technology stock weights.

Asides from United Overseas Bank, there have been another 10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022. These 10 stocks, represent as many as seven sectors and are tabled below.



      
    
    10 STI constituents that have generated double-digit total returns over the first 21 weeks of 2022


Globally, Energy and Utilities stocks have been the strongest sectors for the 2022 YTD, while Indonesia has been among the strongest emerging stock markets in the 2022 YTD. This has coincided with Sembcorp Industries and Jardine Cycle &amp; Carriage leading the STI over the past 21 weeks. Meanwhile the regional re-openings, have also coincided with City Developments, CapitaLand Investment, SATS and Singapore Airlines posting double digit percentage total returns in the 2022 YTD. 

On Friday, Singapore Telecommunications reported its FY22 (ended 31 Mar) underlying net profit improved 11% YoY to S$1.92 billion, mainly lifted by Bharti Airtel’s resilient turnaround. Singapore Telecommunications is pursuing an ongoing strategic reset to develop new growth engines in ICT and digital services aiming transform NCS into an Asian B2B digital services champion, and NCS-originated revenue was up a record 9% in FY22 as NCS has continued to diversify its revenue streams, with Digital, Cloud, Platforms and Cyber revenue now contributing 49% of total operating revenue, up from 41% last year.

 

Singapore GDP forecast to grow 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range.

Last week, Singapore’s 1Q22 GDP was reported to grow 3.7% YoY, continuing the above trend momentum of 2021 at 7.6% YoY growth.


The GDP forecast for 2022 is currently 3.0% to 5.0%, with growth likely to come in at the lower half of the forecast range. The manufacturing sector expanded 7.1% YoY in 1Q22, extending the 15.5% growth in 4Q21, while construction grew 2.1% YoY, easing from the 2.9% YoY growth in 4Q21. Services Producing industries expanded 4.2% YoY, similar to the 4Q21 pace of 4.4% YoY growth, and led by growth in the real estate, information and communications and professional services segments.


For professional services the GDP report noted that “the rollout of the Vaccinated Travel Framework, alongside the easing of border restrictions in regional economies, is likely to boost the growth of the professional services sector as firms in segments like consultancy and legal can now better engage their overseas clients. Similarly, air travel and visitor arrivals are expected to pick up more quickly than earlier projected, thereby accelerating the recovery of aviation- and tourism-related sectors like air transport and arts, entertainment &amp; recreation”.


On a cautionary note, the report also maintained the external environment continues to be a challenge with the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening and continued impact of COVID, and thus the growth outlook for some outward-oriented sectors in the Singapore economy has weakened. For instance the report noted that “as China is a key market for petroleum and chemicals products from Singapore, its economic slowdown is likely to adversely affect the growth prospects of Singapore’s chemicals cluster and the fuel &amp; chemicals segment of the wholesale trade sector”.

 

Singapore’s April Industrial Production Up 6.2% YoY

The Singapore 1Q22 GDP report noted last week that “the electronics cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres”. Last week, Singapore’s April Industrial Production was reported to grow 6.2% YoY, with transport engineering and electronics growing 17.2% YoY and 10.4% respectively. This means Singapore’s industrial production has gained ~7% in the first four months of 2022, following the ~13% growth of 2021.  

 

The STI includes two Singapore-based manufacturers – Venture Corporation and ST Engineering.



Venture Corporation has declined 2.0% in the 2022 YTD, after a similar 1.9% decline in total return 2021. On 29 April, Venture reported its growth momentum continued from 2021, with a 30% YoY increase in 1Q22 revenue to S$889M on robust demand from customers in the Lifestyle &amp; Wellness, Advanced Payment Systems, Advanced Industrial and Instrumentation, Test and Measurement technology domains. Additionally, the company highlighted that several iniatives from its R&amp;D Labs have enabled it to mitigate supply chain disruptions and expand its capabilities to fulfil more orders.



ST Engineering has generated an 11.5% total return in the 2022 YTD after a 2.3% gain in 2021. On 13 May, ST Engineering highlighted it had secured S$2.4B in new contracts in 1Q22, with an overall robust order book of S$21.3B, incl. $1.6B from TransCore and S$5.8B expected to be delivered in the remaining months of 2022. Management also flagged alignment with Digitalisation with the Cloud, AI Analytics, Cyber business to triple to &gt;S$500m by 2026.




      
    
    The full 30 STI stocks are tabled below.

STI Maintains 5.5% YTD Total Return as Economy Grew 3.7% in 1Q22

China Everbright Water / Equity Bottom-Up

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<ul>
<li>
Utility Stocks have outpaced global stock benchmarks since the end of 2021 with global utility indices generating near even total returns while global benchmarks which have declined in the vicinity of 12%, weighed by Technology stocks, which have declined by 22%. 
	 </li>
	<li>
Singapore’s five most traded Utility stocks include Sembcorp Industries, Keppel Infrastructure Trust, China Everbright Water, SIIC Environment Holdings and Union Gas Holdings. The five stocks have averaged a 3% total return in the 2022 YTD, followed by 40% in 2021, 25% in 2020 and 6% in 2019. 
	 </li>
	<li>
Three of the five stocks maintain varied revenue exposure to Singapore - Sembcorp Industries, Keppel Infrastructure Trust and Union Gas Holdings revenue. Together, the trio all outpaced the STI’s 19.0% total return since the end of 2018, with respective total returns of 133% for Sembcorp Industries, 46% for KIT and 243% for Union Gas Holdings. 
	 </li>
	<li>Union Gas Holdings also transferred from Catalist to the Mainboard in July 2021 and in 2021 completed its acquisition of Sembas (Asia) Trading Pte Ltd, Semgas Supply Pte Ltd, and Summit Gas Systems Pte Ltd from Union Energy Corporation Pte. Ltd., which expanded its LPG operations.</li>
</ul>
 

Utility stocks comprise between 3% to 4% of the value of the global stock market, with Asia’s largest Utility play by market value, China Yangtze Power Co (CYPC), an operator of hydropower plants on the Yangtze River. CYPC has declined 1.9% in the 2022 year to 16 May, trimming its total return since the end of 2018 to 66.9%. While the stock has outperformed both regional and global utility benchmarks since 2018, the duration has seen Singapore’s biggest Utility play, Sembcorp Industries, double CYPC’s gain with a 133.2% total return. With the Energy Sector and Agriculture Industry leading the global stock market for much of the 2022 YTD with contrary gains, the Utilities Sector has been among the most defensive sectors with the least declines. 
In Singapore, the five most traded stocks associated with Utility Sector have averaged a 3% total return over the first 19 weeks of 2022, with mixed returns ranging from a 17% decline for Union Gas Holdings to a 40% total return for Sembcorp Industries. This coincided with Sembcorp Industries reporting its 2021 net profit increased 78% YoY to S$279 million, while Group net profit before exceptional items increased 57% YoY to S$472 million rising from higher contributions across all segments.

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded Utility Stocks Listed on SGX
			</td>
			<td>
			Code
			</td>
			<td>
			YTD Avg Daily T/O (S$M)
			</td>
			<td>
			YTD Insti Net Flow S$M
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			2019 TR %
			</td>
			<td>
			2020 TR %
			</td>
			<td>
			2021 TR %
			</td>
			<td>
			2022 YTD TR %
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			14.31
			</td>
			<td>
			126.4
			</td>
			<td>
			4,944
			</td>
			<td>
			-8
			</td>
			<td>
			51
			</td>
			<td>
			20
			</td>
			<td>
			40
			</td>
		</tr>
<tr>
<td>
			Keppel Infra Tr
			</td>
			<td>
			A7RU
			</td>
			<td>
			2.64
			</td>
			<td>
			15.4
			</td>
			<td>
			2,770
			</td>
			<td>
			21
			</td>
			<td>
			6
			</td>
			<td>
			7
			</td>
			<td>
			5
			</td>
		</tr>
<tr>
<td>
			China Everbright Water
			</td>
			<td>
			U9E
			</td>
			<td>
			0.17
			</td>
			<td>
			-1.5
			</td>
			<td>
			844
			</td>
			<td>
			10
			</td>
			<td>
			-25
			</td>
			<td>
			51
			</td>
			<td>
			-3
			</td>
		</tr>
<tr>
<td>
			SIIC Environment
			</td>
			<td>
			BHK
			</td>
			<td>
			0.12
			</td>
			<td>
			-1.7
			</td>
			<td>
			567
			</td>
			<td>
			0
			</td>
			<td>
			-32
			</td>
			<td>
			52
			</td>
			<td>
			-10
			</td>
		</tr>
<tr>
<td>
			Union Gas
			</td>
			<td>
			1F2
			</td>
			<td>
			0.10
			</td>
			<td>
			-2.1
			</td>
			<td>
			222
			</td>
			<td>
			8
			</td>
			<td>
			124
			</td>
			<td>
			69
			</td>
			<td>
			-17
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			6
			</td>
			<td>
			25
			</td>
			<td>
			40
			</td>
			<td>
			3
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (data as of 13 May 2022). 
In 2021, Singapore accounted for 62% of Sembcorp Industries’ revenue, 35% of Keppel Infrastructure Trust’s (KIT) revenue and 100% of Union Gas Holdings’ revenue. Together, the trio have all outpaced the STI’s 19.0% total return since the end of 2018, with respective total returns of 133% for Sembcorp Industries, 46% for KIT and 243% for Union Gas Holdings. Both Sembcorp Industries and KIT have generated positive total returns in 2020, 2021 and the 2022 YTD. However, Union Gas Holdings has declined 17% in the 2022 YTD, after outpacing both Sembcorp and KIT in 2020 and 2021. Union Gas Holdings’ three main business segments include Liquefied Petroleum Gas (“LPG”), Natural Gas and Diesel. In April, the Group noted that the ongoing Covid-19 situation continued to disrupt supply chains and was expected to worsen because of recent geo-political tensions in Eastern Europe, thus escalating energy prices and leading to rising cost of operations for the Group. The Group noted it can implement measures that are necessary to cushion against the impact of higher fuel prices, which may include raising the prices of its energy products. Nevertheless, Union Gas Holdings remains positive about the industry outlook, supported by the essential nature of its business, its fully integrated operations and also the expansion of its LPG services and offerings. Union Gas Holdings also transferred from the Catalist Board to the Mainboard in July 2021. 
China Everbright Water and SIIC Environment Holdings also make up the five most traded utility stocks in Singapore. China Everbright Water is an environmental protection company focusing on water environment management. For 2021 the Group reported a 17% increase in profit attributable to shareholders to HK$1.20 billion. As at 31 December, China Everbright Water invested in and operated water treatment projects with a designed daily water treatment capacity of over 7 million cubic metres. SIIC Environment Holdings, a leading water treatment and environmental protection company in China, reported on 13 May, its net 1Q22 profit attributable to shareholders climbed 9.8% to RMB 176 million. The Group’s construction income increased 7.1% YoY to RMB 611 million, as its benchmark solid waste treatment project, Shanghai Baoshan Renewable Energy Utilization Center which is scheduled to commence operation in 2022, saw accelerated construction progress compared with the corresponding period last year, and thus led to the higher construction income, which was partially offset by the delay of other projects’ construction progress. 
Other SGX-listed stocks that are associated with the Utility Sector which have averaged less than S$0.1 million in average daily trading turnover this year are Leader Environmental Tech, Memiontec Holdings, Colex Holdings, Gallant Venture, Moya Holdings Asia, Asian Micro Holdings, Pan Asian Holdings, Sanli Environment, Renaissance United and Zheneng Jinjiang Environment.
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Utility Stocks have outpaced global stock benchmarks since the end of 2021 with global utility indices generating near even total returns while global benchmarks which have declined in the vicinity of 12%, weighed by Technology stocks, which have declined by 22%.  
	 
	
Singapore’s five most traded Utility stocks include Sembcorp Industries, Keppel Infrastructure Trust, China Everbright Water, SIIC Environment Holdings and Union Gas Holdings. The five stocks have averaged a 3% total return in the 2022 YTD, followed by 40% in 2021, 25% in 2020 and 6% in 2019. 
	 
	
Three of the five stocks maintain varied revenue exposure to Singapore - Sembcorp Industries, Keppel Infrastructure Trust and Union Gas Holdings revenue. Together, the trio all outpaced the STI’s 19.0% total return since the end of 2018, with respective total returns of 133% for Sembcorp Industries, 46% for KIT and 243% for Union Gas Holdings. 
	 
	Union Gas Holdings also transferred from Catalist to the Mainboard in July 2021 and in 2021 completed its acquisition of Sembas (Asia) Trading Pte Ltd, Semgas Supply Pte Ltd, and Summit Gas Systems Pte Ltd from Union Energy Corporation Pte. Ltd., which expanded its LPG operations.

 

Utility stocks comprise between 3% to 4% of the value of the global stock market, with Asia’s largest Utility play by market value, China Yangtze Power Co (CYPC), an operator of hydropower plants on the Yangtze River. CYPC has declined 1.9% in the 2022 year to 16 May, trimming its total return since the end of 2018 to 66.9%. While the stock has outperformed both regional and global utility benchmarks since 2018, the duration has seen Singapore’s biggest Utility play, Sembcorp Industries, double CYPC’s gain with a 133.2% total return.  With the Energy Sector and Agriculture Industry leading the global stock market for much of the 2022 YTD with contrary gains, the Utilities Sector has been among the most defensive sectors with the least declines.  
In Singapore, the five most traded stocks associated with Utility Sector have averaged a 3% total return over the first 19 weeks of 2022, with mixed returns ranging from a 17% decline for Union Gas Holdings to a 40% total return for Sembcorp Industries. This coincided with Sembcorp Industries reporting its 2021 net profit increased 78% YoY to S$279 million, while Group net profit before exceptional items increased 57% YoY to S$472 million rising from higher contributions across all segments.




			Most Traded Utility Stocks Listed on SGX
			
			
			Code
			
			
			YTD Avg Daily T/O (S$M)
			
			
			YTD Insti Net Flow S$M
			
			
			Mkt Cap S$M
			
			
			2019 TR %
			
			
			2020 TR %
			
			
			2021 TR %
			
			
			2022 YTD TR %
			
		


			Sembcorp Ind
			
			
			U96
			
			
			14.31
			
			
			126.4
			
			
			4,944
			
			
			-8
			
			
			51
			
			
			20
			
			
			40
			
		


			Keppel Infra Tr
			
			
			A7RU
			
			
			2.64
			
			
			15.4
			
			
			2,770
			
			
			21
			
			
			6
			
			
			7
			
			
			5
			
		


			China Everbright Water
			
			
			U9E
			
			
			0.17
			
			
			-1.5
			
			
			844
			
			
			10
			
			
			-25
			
			
			51
			
			
			-3
			
		


			SIIC Environment
			
			
			BHK
			
			
			0.12
			
			
			-1.7
			
			
			567
			
			
			0
			
			
			-32
			
			
			52
			
			
			-10
			
		


			Union Gas
			
			
			1F2
			
			
			0.10
			
			
			-2.1
			
			
			222
			
			
			8
			
			
			124
			
			
			69
			
			
			-17
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			6
			
			
			25
			
			
			40
			
			
			3
			
		

 Source: SGX, Refinitiv, Bloomberg (data as of 13 May 2022).  
In 2021, Singapore accounted for 62% of Sembcorp Industries’ revenue, 35% of Keppel Infrastructure Trust’s (KIT) revenue and 100% of Union Gas Holdings’ revenue. Together, the trio have all outpaced the STI’s 19.0% total return since the end of 2018, with respective total returns of 133% for Sembcorp Industries, 46% for KIT and 243% for Union Gas Holdings. Both Sembcorp Industries and KIT have generated positive total returns in 2020, 2021 and the 2022 YTD. However, Union Gas Holdings has declined 17% in the 2022 YTD, after outpacing both Sembcorp and KIT in 2020 and 2021. Union Gas Holdings’ three main business segments include Liquefied Petroleum Gas (“LPG”), Natural Gas and Diesel. In April, the Group noted that the ongoing Covid-19 situation continued to disrupt supply chains and was expected to worsen because of recent geo-political tensions in Eastern Europe, thus escalating energy prices and leading to rising cost of operations for the Group. The Group noted it can implement measures that are necessary to cushion against the impact of higher fuel prices, which may include raising the prices of its energy products. Nevertheless, Union Gas Holdings remains positive about the industry outlook, supported by the essential nature of its business, its fully integrated operations and also the expansion of its LPG services and offerings. Union Gas Holdings also transferred from the Catalist Board to the Mainboard in July 2021.  
China Everbright Water and SIIC Environment Holdings also make up the five most traded utility stocks in Singapore. China Everbright Water is an environmental protection company focusing on water environment management. For 2021 the Group reported a 17% increase in profit attributable to shareholders to HK$1.20 billion. As at 31 December, China Everbright Water invested in and operated water treatment projects with a designed daily water treatment capacity of over 7 million cubic metres.  SIIC Environment Holdings, a leading water treatment and environmental protection company in China, reported on 13 May, its net 1Q22 profit attributable to shareholders climbed 9.8% to RMB 176 million. The Group’s construction income increased 7.1% YoY to RMB 611 million, as its benchmark solid waste treatment project, Shanghai Baoshan Renewable Energy Utilization Center which is scheduled to commence operation in 2022, saw accelerated construction progress compared with the corresponding period last year, and thus led to the higher construction income, which was partially offset by the delay of other projects’ construction progress.  
Other SGX-listed stocks that are associated with the Utility Sector which have averaged less than S$0.1 million in average daily trading turnover this year are Leader Environmental Tech, Memiontec Holdings, Colex Holdings, Gallant Venture, Moya Holdings Asia, Asian Micro Holdings, Pan Asian Holdings, Sanli Environment, Renaissance United and Zheneng Jinjiang Environment.



Global Utility Stocks Maintain Defensive Line in 2022 YTD

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<li>
For the first 18 weeks of 2022, eight stocks whose share price gains have been largely associated with higher commodity prices, have averaged a 64% total return for the period, following on from averaging 121% total returns in 2021. Five of the eight stocks are associated with energy, the sector that has led global stocks over the period. 
	 </li>
	<li>
The combined average daily trading turnover of the eights stocks has soared 250% from S$24 million in 2021 to S$61 million over the past 18 weeks. Golden Energy and Resources and Geo Energy Resources saw the biggest jump in turnover, as May Indonesia Thermal Coal futures rallied close to 90% to US$97/MT. 
	 </li>
	<li>Sembcorp Industries led the STI stocks over the 18 weeks with a 49% total return, while ranking among the top five Singapore stocks by net institutional inflow. Pressing ahead with strategic transformation of its portfolio from brown to green energy, last week the company announced it secured a S$1.2 billion sustainability-linked loan facility.</li>
</ul>
 

For the first 18 weeks of 2022, energy and agriculture stocks have led the global stock market, as supply constraints from the Ukraine crisis have exacerbated price gains, which had been previously been driven by demand factors. 
Among Singapore’s most actively traded 100 stocks this year are Sembcorp Industries, Rex International, Geo Energy Resources, RH Petrogas, Golden Energy and Resources, with the five stocks averaging 77% gains in the 2022 YTD, following 176% average total returns in 2021. Brent Crude Oil is currently trading 45% above the end of 2021 levels, while May Indonesia Thermal Coal futures are trading 90% above their end of 2021 levels. 
On the agriculture side, Crude Palm Oil producers have also outpaced the region in the 2022 YTD, with Golden Agri-Resources, First Resources and Bumitama Agri, which also rank among the top 100 stocks by turnover this year, averaging 42% total returns following 31% average total returns in 2021. July CPO futures are also trading more than 50% above their end of 2021 levels. 
The comparative performances of the eight stocks which has seen combined net institutional inflows of S$174 million in the 2022 YTD are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			2022 YTD Total Return %
			</td>
			<td>
			2022 YTD Avg. Daily T/O (S$M)
			</td>
			<td>
			2022 YTD Net Insti Inflow (S$M)
			</td>
			<td>
			2021 Total Return %
			</td>
			<td>
			2021 Avg. Daily T/O (S$M)
			</td>
			<td>
			T/O Growth
			</td>
			<td>
			12M Volatility %
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			5,266
			</td>
			<td>
			49
			</td>
			<td>
			14.2
			</td>
			<td>
			133.9
			</td>
			<td>
			20
			</td>
			<td>
			8.2
			</td>
			<td>
			73%
			</td>
			<td>
			25
			</td>
			<td>
			Utilities
			</td>
		</tr>
<tr>
<td>
			Rex Intl
			</td>
			<td>
			5WH
			</td>
			<td>
			443
			</td>
			<td>
			11
			</td>
			<td>
			9.8
			</td>
			<td>
			-17.8
			</td>
			<td>
			109
			</td>
			<td>
			4.8
			</td>
			<td>
			104%
			</td>
			<td>
			54
			</td>
			<td>
			Energy/ Oil &amp; Gas
			</td>
		</tr>
<tr>
<td>
			Geo Energy Res
			</td>
			<td>
			RE4
			</td>
			<td>
			747
			</td>
			<td>
			74
			</td>
			<td>
			9.1
			</td>
			<td>
			18.3
			</td>
			<td>
			118
			</td>
			<td>
			2.1
			</td>
			<td>
			341%
			</td>
			<td>
			57
			</td>
			<td>
			Energy/ Oil &amp; Gas
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			3,995
			</td>
			<td>
			33
			</td>
			<td>
			8.8
			</td>
			<td>
			10.0
			</td>
			<td>
			60
			</td>
			<td>
			4.2
			</td>
			<td>
			111%
			</td>
			<td>
			39
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			First Resources
			</td>
			<td>
			EB5
			</td>
			<td>
			3,328
			</td>
			<td>
			43
			</td>
			<td>
			6.8
			</td>
			<td>
			9.1
			</td>
			<td>
			21
			</td>
			<td>
			2.3
			</td>
			<td>
			195%
			</td>
			<td>
			35
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			RH Petrogas
			</td>
			<td>
			T13
			</td>
			<td>
			251
			</td>
			<td>
			81
			</td>
			<td>
			5.9
			</td>
			<td>
			-0.9
			</td>
			<td>
			552
			</td>
			<td>
			1.6
			</td>
			<td>
			257%
			</td>
			<td>
			121
			</td>
			<td>
			Energy/ Oil &amp; Gas
			</td>
		</tr>
<tr>
<td>
			Golden Energy
			</td>
			<td>
			AUE
			</td>
			<td>
			2,058
			</td>
			<td>
			169
			</td>
			<td>
			4.5
			</td>
			<td>
			12.7
			</td>
			<td>
			80
			</td>
			<td>
			0.8
			</td>
			<td>
			472%
			</td>
			<td>
			80
			</td>
			<td>
			Energy/ Oil &amp; Gas
			</td>
		</tr>
<tr>
<td>
			Bumitama Agri
			</td>
			<td>
			P8Z
			</td>
			<td>
			1,353
			</td>
			<td>
			51
			</td>
			<td>
			1.4
			</td>
			<td>
			8.4
			</td>
			<td>
			11
			</td>
			<td>
			0.5
			</td>
			<td>
			206%
			</td>
			<td>
			34
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			17,439
			</td>
			<td>
			 
			</td>
			<td>
			61
			</td>
			<td>
			174
			</td>
			<td>
			 
			</td>
			<td>
			24
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			64
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			121
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			56
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX, Bloomberg (Data as of 6 May 2022)

 

Financial Milestones in 2021 
In 2021, Sembcorp Industries reported revenue of S$7.8 billion compared to S$5.4 billion in 2020. The increase was driven by improvements across all segments, with the biggest contribution from conventional energy at 86% of Group turnover. The company is pressing ahead with strategic transformation of its portfolio from brown to green energy, with an objective for sustainable solutions to make up 70% of its net profit by 2025, which would be up from 20% in 2020. 
Rex International recorded revenue of US$158.44 million in 2021, a 240% increase from US$46.66 million in 2020, mainly from subsidiary Masirah Oil Ltd’s share of produced oil after the Oman government’s take. RH Petrogas also reported net profit after tax of US$27.3 million, a sharp reversal from a loss of US$4.8 million recorded in 2020. Last year, Geo Energy Resources achieved a record revenue of US$641.9 million in 2021, an increase of 109% from 2020, while Golden Energy and Resources also delivered record revenue of US$1,874 million, its highest revenue since listing in 2016. 
In 2021, Golden-Agri Resources’ revenue for the full year crossed the US$10 billion level, an all-time high corresponding to strong CPO prices. First Resources also delivered record sales in 2021, with the topline revenue surging 56.3% YoY to US$1,032.3 million while underlying net profit rose 53.8% to US$149.2 million. Meanwhile, stronger production in 2021 enabled Bumitama Agri to capitalise on soaring prices and surpass the IDR 10-trillion revenue milestone and a record-breaking profit of IDR 2.09 trillion in 2021.
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For the first 18 weeks of 2022, eight stocks whose share price gains have been largely associated with higher commodity prices, have averaged a 64% total return for the period, following on from averaging 121% total returns in 2021. Five of the eight stocks are associated with energy, the sector that has led global stocks over the period. 
	 
	
The combined average daily trading turnover of the eights stocks has soared 250% from S$24 million in 2021 to S$61 million over the past 18 weeks. Golden Energy and Resources and Geo Energy Resources saw the biggest jump in turnover, as May Indonesia Thermal Coal futures rallied close to 90% to US$97/MT.  
	 
	Sembcorp Industries led the STI stocks over the 18 weeks with a 49% total return, while ranking among the top five Singapore stocks by net institutional inflow. Pressing ahead with strategic transformation of its portfolio from brown to green energy, last week the company announced it secured a S$1.2 billion sustainability-linked loan facility.

 

For the first 18 weeks of 2022, energy and agriculture stocks have led the global stock market, as supply constraints from the Ukraine crisis have exacerbated price gains, which had been previously been driven by demand factors.  
Among Singapore’s most actively traded 100 stocks this year are Sembcorp Industries, Rex International, Geo Energy Resources, RH Petrogas, Golden Energy and Resources, with the five stocks averaging 77% gains in the 2022 YTD, following 176% average total returns in 2021. Brent Crude Oil is currently trading 45% above the end of 2021 levels, while May Indonesia Thermal Coal futures are trading 90% above their end of 2021 levels.   
On the agriculture side, Crude Palm Oil producers have also outpaced the region in the 2022 YTD, with Golden Agri-Resources, First Resources and Bumitama Agri, which also rank among the top 100 stocks by turnover this year, averaging 42% total returns following 31% average total returns in 2021. July CPO futures are also trading more than 50% above their end of 2021 levels.  
The comparative performances of the eight stocks which has seen combined net institutional inflows of S$174 million in the 2022 YTD are tabled below.




			Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			2022 YTD Total Return %
			
			
			2022 YTD Avg. Daily T/O (S$M)
			
			
			2022 YTD Net Insti Inflow (S$M)
			
			
			2021 Total Return %
			
			
			2021 Avg. Daily T/O (S$M)
			
			
			T/O Growth
			
			
			12M Volatility %
			
			
			Sector
			
		


			Sembcorp Ind
			
			
			U96
			
			
			5,266
			
			
			49
			
			
			14.2
			
			
			133.9
			
			
			20
			
			
			8.2
			
			
			73%
			
			
			25
			
			
			Utilities
			
		


			Rex Intl
			
			
			5WH
			
			
			443
			
			
			11
			
			
			9.8
			
			
			-17.8
			
			
			109
			
			
			4.8
			
			
			104%
			
			
			54
			
			
			Energy/ Oil &amp; Gas
			
		


			Geo Energy Res
			
			
			RE4
			
			
			747
			
			
			74
			
			
			9.1
			
			
			18.3
			
			
			118
			
			
			2.1
			
			
			341%
			
			
			57
			
			
			Energy/ Oil &amp; Gas
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			3,995
			
			
			33
			
			
			8.8
			
			
			10.0
			
			
			60
			
			
			4.2
			
			
			111%
			
			
			39
			
			
			Consumer Non-Cyclicals
			
		


			First Resources
			
			
			EB5
			
			
			3,328
			
			
			43
			
			
			6.8
			
			
			9.1
			
			
			21
			
			
			2.3
			
			
			195%
			
			
			35
			
			
			Consumer Non-Cyclicals
			
		


			RH Petrogas
			
			
			T13
			
			
			251
			
			
			81
			
			
			5.9
			
			
			-0.9
			
			
			552
			
			
			1.6
			
			
			257%
			
			
			121
			
			
			Energy/ Oil &amp; Gas
			
		


			Golden Energy
			
			
			AUE
			
			
			2,058
			
			
			169
			
			
			4.5
			
			
			12.7
			
			
			80
			
			
			0.8
			
			
			472%
			
			
			80
			
			
			Energy/ Oil &amp; Gas
			
		


			Bumitama Agri
			
			
			P8Z
			
			
			1,353
			
			
			51
			
			
			1.4
			
			
			8.4
			
			
			11
			
			
			0.5
			
			
			206%
			
			
			34
			
			
			Consumer Non-Cyclicals
			
		


			Total
			
			
			 
			
			
			17,439
			
			
			 
			
			
			61
			
			
			174
			
			
			 
			
			
			24
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			64
			
			
			 
			
			
			 
			
			
			121
			
			
			 
			
			
			 
			
			
			56
			
			
			 
			
		

 Source: SGX, Bloomberg (Data as of 6 May 2022)

 

Financial Milestones in 2021   
In 2021, Sembcorp Industries reported revenue of S$7.8 billion compared to S$5.4 billion in 2020. The increase was driven by improvements across all segments, with the biggest contribution from conventional energy at 86% of Group turnover. The company is pressing ahead with strategic transformation of its portfolio from brown to green energy, with an objective for sustainable solutions to make up 70% of its net profit by 2025, which would be up from 20% in 2020.  
Rex International recorded revenue of US$158.44 million in 2021, a 240% increase from US$46.66 million in 2020, mainly from subsidiary Masirah Oil Ltd’s share of produced oil after the Oman government’s take. RH Petrogas also reported net profit after tax of US$27.3 million, a sharp reversal from a loss of US$4.8 million recorded in 2020. Last year, Geo Energy Resources achieved a record revenue of US$641.9 million in 2021, an increase of 109% from 2020, while Golden Energy and Resources also delivered record revenue of US$1,874 million, its highest revenue since listing in 2016.  
In 2021, Golden-Agri Resources’ revenue for the full year crossed the US$10 billion level, an all-time high corresponding to strong CPO prices. First Resources also delivered record sales in 2021, with the topline revenue surging 56.3% YoY to US$1,032.3 million while underlying net profit rose 53.8% to US$149.2 million. Meanwhile, stronger production in 2021 enabled Bumitama Agri to capitalise on soaring prices and surpass the IDR 10-trillion revenue milestone and a record-breaking profit of IDR 2.09 trillion in 2021.



Active Commodity Plays Average 60%+ YTD Return on Strong Turnover 

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For the 5 trading sessions that spanned Apr 1 to 7, the Straits Times Index (STI) declined 0.1 per cent, with the FTSE China A50 Index gaining 1.0 per cent, the Hang Seng Index declining 0.4 per cent and the FTSE Bursa Malaysia KLCI adding 1.0 per cent.

Overall, institutions were net sellers over the 5 sessions with S$124 million of net outflow. DBS Group Holdings, UOB, Yangzijiang Shipbuilding, OCBC, and Singapore Press Holdings led the net institutional outflows for the 5 sessions through to Apr 7.

Meanwhile, City Developments, Mapletree North Commercial Asia Trust, Singapore Exchange, Singapore Telecommunications and Sembcorp Industries received the highest net institutional inflows for the 5 sessions. This brings total net institutional inflows in the 2022 year to Apr 7 to S$1.0 billion. Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$13.2 million, up from S$11.9 million for the preceding week. OCBC, Hong Fok Corporation and Raffles Medical Group led the buyback consideration tally. The trio were also the 3 stocks which lodged the highest buyback consideration over the preceding 5 sessions.

OCBC paid an average price of S$12.34 per share, Hong Fok paid an average price of 88.1 cents per share, while Raffles Medical Group paid an average price of S$1.16 per share. As of Apr 7, Hong Fok had bought back 0.71 per cent of its shares (excluding treasury shares) on the current share buyback mandate.  Director and substantial shareholder transactions

The 5 trading sessions saw close to 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 7 company director acquisitions with no disposals filed, while substantial shareholders filed 5 acquisitions and 4 disposals.

SinoCloud Group

On Apr 4, SinoCloud Group substantial shareholder Terence Joe Lam Cho Ying sold in aggregate 3,437,557,250 shares of the Catalist-listed company to Zhang Dai. Of the 3,437,557,250 shares, 2,209,952,100 shares were held directly by Lam and 1,227,605,150 shares were held by Alternus Capital, a company wholly-owned by Lam.

Dai increased his total interest in SinoCloud Group from 1.6 per cent to 23.3 per cent, while Lam reduced his total interest in the company from 27.0 per cent to 5.3 per cent.

SinoCloud announced on Apr 6, that the group had obtained continuing support from Lam and Alternus Capital, to enable the group to operate as a going concern and to meet its obligations as and when they fall due.

In view of this share disposal, the management of the company has also reached out to Zhang to engage in further discussions with him, in particular, whether he intends to furnish the financial support to the group. The company will provide updates to shareholders in due course, including but not limited to, the board's assessment of the going concern of the company.

Olam Group

On Apr 6, Olam Group non-executive and independent director Nihal Kaviratne acquired 152,800 shares of the company at S$1.77 per share and consideration of S$270,456. He maintains a 0.01 per cent direct interest in Olam Group. This followed his acquisition of 133,100 shares at S$1.79 per share on Mar 28.

Kaviratne was previously the chairman and CEO for the Unilever group across Asia, Europe and Latin America. His career with the Unilever Group spanned 40 years which also covered senior level management positions in sales, marketing, brand and strategic planning and development. Kaviratne is also a director of GlaxoSmithKline Pharmaceuticals and StarHub.

From March 15, Olam Group has replaced Olam International as the listed company. Olam Group directly holds Olam Food Ingredients, Olam Agri and Olam Global Holdco which owns Olam Ventures, and Olam Technology and Business Services as separate subsidiaries.

As maintained by the chairman non-executive and independent director, Lim Ah Doo, this structure allows the group to explore the sequential sale, spin-off or IPO of Olam Food Ingredients, Olam Agri and potentially the other businesses of the group.

Hong Fok Corporation

On Apr 1, Hong Fok Corporation executive director and joint-CEO Cheong Sim Eng acquired 80,000 shares of the listed company for a consideration of S$70,400 at an average price of 88.0 cents per share. He maintains a 20.08 per cent total interest in Hong Fok, gradually increasing his total interest in the property developer from 19.06 per cent as at the end of 2018.

His preceding acquisitions were on March 1, with 42,000 shares acquired at 74.0 cents per share and November 20, 2020, with 64,500 shares acquired at an average price of 70.7 cents per share.

Cheong is principally involved in the group's overall operations and management with greater emphasis in Singapore. He has over 37 years of experience in the property development business.

Hong Fok is an investment holding company whose subsidiaries are primarily engaged in property investment, property development and construction, property management, investment trading and investment holding and management. Despite the ongoing Covid-19 pandemic, the group returned to profitability in FY21 (ended Dec 31).

With tourism arrivals and tourism receipts remaining weak in 2021, revenue from the group's hotel investment property, YOTEL Singapore Orchard Road made only a small contribution to the group's revenue.

However, the group reported an uptick in sales revenue from its residential units in Concourse Skyline. This saw Hong Fok report an attributable net profit of S$38.9 million in FY21 compared to a loss of S$8.7 million in FY20.

Amos Group

Between Mar 30 and 31, Amos Group AMOS Group : 49B 0% executive chairman Kyle Shaw acquired 237,400 shares of the company at an average price of 19.9 cents per share. With a consideration of S$47,156, this increased his deemed interest in the company from 80.77 per cent to 80.90 per cent. This followed his acquisition of 465,000 shares of at an average price of 17.2 cents per share between Mar 28 and 29.

Shaw is the founder and managing partner of ShawKwei &amp; Partners, an international private equity fund manager investing in mid-market industrial and service businesses across Asia, the US, and Europe.

Huationg Global

On Mar 30, Huationg Global executive director and CEO, Patrick Ng Kian Ann acquired 200,000 shares of the Catalist-listed company at an average price of 9.7 cents per share. With a consideration of S$19,400, this increased his total interest in the company from 69.33 per cent to 69.44 per cent.

Ng has 20 years of experience in the civil engineering construction industry and is responsible for the overall management, strategic planning and oversees the business expansion of the group.

Huationg Global is principally engaged in the provision of civil engineering services for infrastructure projects and ancillary inland logistics support services.

On Mar 1, Huationg Global reported the group's FY21 (ended 31 Dec) revenue increased by approximately S$54.4 million or 47.0 per cent to S$170.4 million from S$116.0 million in FY20, mainly due to a higher level of business activities in its business segments after some easing measures from the Circuit Breaker.

The group is also involved in the sale of construction materials such as sand and granite aggregates, recycled concrete aggregate and liquefied soil stabiliser.

Hafary Holdings

On Mar 31, Hafary Holdings non-independent non-executive director Eric Low See Ching acquired 98,400 shares of the company at 19.0 cents per share. With a consideration of S$18,696, this further increased his direct interest in the company from 25.36 per cent to 25.38 per cent.

Mr Low was appointed as the non-independent non-executive director of Hafary Holdings in January 2014. Prior to this appointment, he served in the board as executive director and in the company as CEO. He joined the main subsidiary of the company, Hafary Pte Ltd, in 2000, and rose through the ranks from sales executive to CEO in 2005.

Low is also presently the executive director and deputy CEO of Oxley Holdings and an alternate director of Aspen (Group) Holdings.

Hafary Holdings is a leading building material supplier that has been defining living spaces with premium products. With over 5,000 products sourced from around the world, the group maintains it carries the largest collection of surfacing materials in Singapore.

One of the questions received in connection with the company's Annual Report 2021 pertained to whether the group had been affected by supply chain disruptions, particularly from shipping.

The group replied that as it sources its raw materials from various countries, some of its operations have been affected by such global supply change disruptions, and the group continues to monitor the situation and will make the appropriate announcements in the event that such disruptions are material. Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/hong-fok-continues-buybacks-as-joint-ceo-raises-stake-0"> read </a>the original version.
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    Share buyback


For the 5 trading sessions that spanned Apr 1 to 7, the Straits Times Index (STI) declined 0.1 per cent, with the FTSE China A50 Index gaining 1.0 per cent, the Hang Seng Index declining 0.4 per cent and the FTSE Bursa Malaysia KLCI adding 1.0 per cent.

Overall, institutions were net sellers over the 5 sessions with S$124 million of net outflow. DBS Group Holdings, UOB, Yangzijiang Shipbuilding, OCBC, and Singapore Press Holdings led the net institutional outflows for the 5 sessions through to Apr 7.

Meanwhile, City Developments, Mapletree North Commercial Asia Trust, Singapore Exchange, Singapore Telecommunications and Sembcorp Industries received the highest net institutional inflows for the 5 sessions. This brings total net institutional inflows in the 2022 year to Apr 7 to S$1.0 billion.  Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$13.2 million, up from S$11.9 million for the preceding week. OCBC, Hong Fok Corporation and Raffles Medical Group led the buyback consideration tally. The trio were also the 3 stocks which lodged the highest buyback consideration over the preceding 5 sessions.

OCBC paid an average price of S$12.34 per share, Hong Fok paid an average price of 88.1 cents per share, while Raffles Medical Group paid an average price of S$1.16 per share. As of Apr 7, Hong Fok had bought back 0.71 per cent of its shares (excluding treasury shares) on the current share buyback mandate.   Director and substantial shareholder transactions

The 5 trading sessions saw close to 90 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 7 company director acquisitions with no disposals filed, while substantial shareholders filed 5 acquisitions and 4 disposals.

SinoCloud Group

On Apr 4, SinoCloud Group substantial shareholder Terence Joe Lam Cho Ying sold in aggregate 3,437,557,250 shares of the Catalist-listed company to Zhang Dai. Of the 3,437,557,250 shares, 2,209,952,100 shares were held directly by Lam and 1,227,605,150 shares were held by Alternus Capital, a company wholly-owned by Lam.

Dai increased his total interest in SinoCloud Group from 1.6 per cent to 23.3 per cent, while Lam reduced his total interest in the company from 27.0 per cent to 5.3 per cent.

SinoCloud announced on Apr 6, that the group had obtained continuing support from Lam and Alternus Capital, to enable the group to operate as a going concern and to meet its obligations as and when they fall due.

In view of this share disposal, the management of the company has also reached out to Zhang to engage in further discussions with him, in particular, whether he intends to furnish the financial support to the group. The company will provide updates to shareholders in due course, including but not limited to, the board's assessment of the going concern of the company.

Olam Group

On Apr 6, Olam Group non-executive and independent director Nihal Kaviratne acquired 152,800 shares of the company at S$1.77 per share and consideration of S$270,456. He maintains a 0.01 per cent direct interest in Olam Group. This followed his acquisition of 133,100 shares at S$1.79 per share on Mar 28.

Kaviratne was previously the chairman and CEO for the Unilever group across Asia, Europe and Latin America. His career with the Unilever Group spanned 40 years which also covered senior level management positions in sales, marketing, brand and strategic planning and development. Kaviratne is also a director of GlaxoSmithKline Pharmaceuticals and StarHub.

From March 15, Olam Group has replaced Olam International as the listed company. Olam Group directly holds Olam Food Ingredients, Olam Agri and Olam Global Holdco which owns Olam Ventures, and Olam Technology and Business Services as separate subsidiaries.

As maintained by the chairman non-executive and independent director, Lim Ah Doo, this structure allows the group to explore the sequential sale, spin-off or IPO of Olam Food Ingredients, Olam Agri and potentially the other businesses of the group.

Hong Fok Corporation

On Apr 1, Hong Fok Corporation executive director and joint-CEO Cheong Sim Eng acquired 80,000 shares of the listed company for a consideration of S$70,400 at an average price of 88.0 cents per share. He maintains a 20.08 per cent total interest in Hong Fok, gradually increasing his total interest in the property developer from 19.06 per cent as at the end of 2018.

His preceding acquisitions were on March 1, with 42,000 shares acquired at 74.0 cents per share and November 20, 2020, with 64,500 shares acquired at an average price of 70.7 cents per share.

Cheong is principally involved in the group's overall operations and management with greater emphasis in Singapore. He has over 37 years of experience in the property development business.

Hong Fok is an investment holding company whose subsidiaries are primarily engaged in property investment, property development and construction, property management, investment trading and investment holding and management. Despite the ongoing Covid-19 pandemic, the group returned to profitability in FY21 (ended Dec 31).

With tourism arrivals and tourism receipts remaining weak in 2021, revenue from the group's hotel investment property, YOTEL Singapore Orchard Road made only a small contribution to the group's revenue.

However, the group reported an uptick in sales revenue from its residential units in Concourse Skyline. This saw Hong Fok report an attributable net profit of S$38.9 million in FY21 compared to a loss of S$8.7 million in FY20.

Amos Group

Between Mar 30 and 31, Amos Group AMOS Group : 49B 0% executive chairman Kyle Shaw acquired 237,400 shares of the company at an average price of 19.9 cents per share. With a consideration of S$47,156, this increased his deemed interest in the company from 80.77 per cent to 80.90 per cent. This followed his acquisition of 465,000 shares of at an average price of 17.2 cents per share between Mar 28 and 29.

Shaw is the founder and managing partner of ShawKwei &amp; Partners, an international private equity fund manager investing in mid-market industrial and service businesses across Asia, the US, and Europe.

Huationg Global

On Mar 30, Huationg Global executive director and CEO, Patrick Ng Kian Ann acquired 200,000 shares of the Catalist-listed company at an average price of 9.7 cents per share. With a consideration of S$19,400, this increased his total interest in the company from 69.33 per cent to 69.44 per cent.

Ng has 20 years of experience in the civil engineering construction industry and is responsible for the overall management, strategic planning and oversees the business expansion of the group.

Huationg Global is principally engaged in the provision of civil engineering services for infrastructure projects and ancillary inland logistics support services.

On Mar 1, Huationg Global reported the group's FY21 (ended 31 Dec) revenue increased by approximately S$54.4 million or 47.0 per cent to S$170.4 million from S$116.0 million in FY20, mainly due to a higher level of business activities in its business segments after some easing measures from the Circuit Breaker.

The group is also involved in the sale of construction materials such as sand and granite aggregates, recycled concrete aggregate and liquefied soil stabiliser.

Hafary Holdings

On Mar 31, Hafary Holdings non-independent non-executive director Eric Low See Ching acquired 98,400 shares of the company at 19.0 cents per share. With a consideration of S$18,696, this further increased his direct interest in the company from 25.36 per cent to 25.38 per cent.

Mr Low was appointed as the non-independent non-executive director of Hafary Holdings in January 2014. Prior to this appointment, he served in the board as executive director and in the company as CEO. He joined the main subsidiary of the company, Hafary Pte Ltd, in 2000, and rose through the ranks from sales executive to CEO in 2005.

Low is also presently the executive director and deputy CEO of Oxley Holdings and an alternate director of Aspen (Group) Holdings.

Hafary Holdings is a leading building material supplier that has been defining living spaces with premium products. With over 5,000 products sourced from around the world, the group maintains it carries the largest collection of surfacing materials in Singapore.

One of the questions received in connection with the company's Annual Report 2021 pertained to whether the group had been affected by supply chain disruptions, particularly from shipping.

The group replied that as it sources its raw materials from various countries, some of its operations have been affected by such global supply change disruptions, and the group continues to monitor the situation and will make the appropriate announcements in the event that such disruptions are material.  Inside Insights is a weekly column on The Business Times, read the original version.



Hong Fok continues buybacks as joint-CEO raises stake

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