Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Back on the 14 August 2020, <a href="https://www.smartkarma.com/entities/straits-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:15745:1" rel="noopener">Straits Trading (STRTR SP)</a> announced its <a href="https://straitstrading.listedcompany.com/newsroom/20200814_171924_S20_ETSA0B9VKYMLZIBA.2.pdf" target="_blank" rel="noopener">1H20 result</a>s, which showed a 62.9/87.5% decline yoy in EBITDA and EPS, due in part to lower average tin prices and lower sales quantity of refined tin; and the knock on-effects from COVID-19 to its hospitality operations.
Tin prices are up 38% since the March low and 10% since  30 June. There are signs of life in the hospitality front, with talk of bubble travel between countries, which may indicate operational losses have troughed.
But of more interest is STR's 22.06% stake in ARA Asset Management. STR added 1.1% in <a href="https://links.sgx.com/FileOpen/R706A%20Announcement.ashx?App=Announcement&amp;FileID=627835" target="_blank" rel="noopener">May</a> of this year at for S$30.2mn. There is talk of IPO'ing ARA, some four years after it was taken private.
STR's stake in ARA, based on its recent stake increase, is worth around the same as its current market cap - indicating the market is assigning almost zero value for the remaining real estate, hospitality segment, and the 54.8% stake in <a href="https://www.smartkarma.com/entities/malaysia-smelting-corp-bhd" target="_blank" data-smartkarma-citation="entities:14425:1" rel="noopener">Malaysia Smelting Corp (SMELT MK)</a>, and stake in <a href="https://www.smartkarma.com/entities/suntec-reit" target="_blank" data-smartkarma-citation="entities:151:1" rel="noopener">Suntec REIT (SUN SP)</a>.
Illiquid, depressed pricing, with a potential major catalyst in the pipeline, this appears ripe for Tecity to take the company private.
As always, more below the fold.

Back on the 14 August 2020, Straits Trading (STRTR SP) announced its 1H20 results, which showed a 62.9/87.5% decline yoy in EBITDA and EPS, due in part to lower average tin prices and lower sales quantity of refined tin; and the knock on-effects from COVID-19 to its hospitality operations.
Tin prices are up 38% since the March low and 10% since  30 June. There are signs of life in the hospitality front, with talk of bubble travel between countries, which may indicate operational losses have troughed.
But of more interest is STR's 22.06% stake in ARA Asset Management. STR added 1.1% in May of this year at for S$30.2mn. There is talk of IPO'ing ARA, some four years after it was taken private.
STR's stake in ARA, based on its recent stake increase, is worth around the same as its current market cap - indicating the market is assigning almost zero value for the remaining real estate, hospitality segment, and the 54.8% stake in Malaysia Smelting Corp (SMELT MK), and stake in Suntec REIT (SUN SP).
Illiquid, depressed pricing, with a potential major catalyst in the pipeline, this appears ripe for Tecity to take the company private.
As always, more below the fold.

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.

Thematic (Sector/Industry)

<ul>
<li>SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.</li>
<li>
Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…</li>
</ul>


SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.

Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…


Average 19% YTD Gain in Key Mining Stocks

Singapore

Straits Trading Company Limited operates as an investment holding company that positions its investments in real estate, hospitality, resources and other investments in the Asia Pacific region. The Company is also engaged in tin mining and smelting through its subsidiary.

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Straits Trading (STRTR SP)

Straits Trading - Ripe For Privatisation

Stratis Trading is a buy ahead of a potential re-rating from an ARA IPO, and the recovery in underlying real estate and tin ops.

David Blennerhassett

Average 19% YTD Gain in Key Mining Stocks

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold...

Singapore Exchange Ltd (SGX)

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