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

CNMC Goldmine Holdings Ltd. explores for gold and processes mined ore into gold dore.  The Company operates in Kelantan State of Malaysia.

Enviro-Hub Holdings Limited is an investment holding company whose subsidiaries operate geotechnic and piling works, and develop properties.  The Company also sells, services and rents engineering hardware, construction machinery and equipment, and recycles metals and plastics.

Pacific Star Development Limited is a property investment management and development firm. The Company invests and develops office, retail, and residential properties throughout Southeast Asia . Pacific Star Development also engages in the provision of aluminum works and the manufacturing of traction devices and vehicle parts.

China Sunsine Chemical Holdings Limited produces rubber chemicals, primarily rubber accelerators and other related rubber chemicals such as anti-scorching agents.

China Sunsine Chemical Holdings Ltd (CSSC SP)

Sapphire Corp Limited is an investment holding company that invests in infrastructure and mining operations businesses. The Company's subsidiaries specialize in design and construction for rail transport infrastructure, as well as mining and resources related businesses.

NSL Ltd. manufactures construction materials and chemicals, and markets engineering products and services.  The Company manufactures and trades lime, industrial chemicals and spreader cranes, provides environmental and engineering services, building products and services, and engages in property and resort development.

AsiaPhos Limited explores and develops mineral properties. The Company focuses on the exploration of phosphate mining properties, processing and refining phosphate rocks, and producing phosphate based chemical products.

China Mining International Limited is a mining company. The Company mines for minerals in China.

Avarga Limited operates as an investment holding company. The Company, through its subsidiaries, focuses on paper manufacturing, power generation, and building materials distribution. Avarga also recycles corrugated cartons, newspapers, magazines, office waste, and any other printed paper material. Avarga serves customers worldwide.

Nico Steel Holdings Limited is a full service coil center that primarily provides metallurgical solutions to meet the needs of various industries.  The Company provides commercial and customized ferrous and non-ferrous materials in strip-in-coils to metal stamping and fabrication companies.

PT Archi Indonesia Tbk operates as a mining company. The Company explores and develops silver and gold projects. Archi Indonesia serves customers worldwide.

Jilin Liyuan Precision Manufacturing Co., Ltd manufactures and sells aluminum ex trusion profiles.  The Company's products include military, industrial, architec tural,  decoration and electronic aluminum profiles.

Jilin Liyuan Precision Manufactrg (002501 CH)

Beijing Lier High-temperature Materials Co.,Ltd. manufactures and sells steel, construction material, non-ferrous metals, and other refractory material.  The Company also designs, develops, constructs, installs, equips, uses, and maintains industrial furnace.

Beijing Lier High Temperatr Mtrls (002392 CH)

Jiangsu Alcha Aluminum Company Ltd. manufactures and markets pure aluminum foil, hydrophilic-coated aluminum foil, and aluminum scrip coil.

Jiangsu Alcha Aluminum Co, Ltd. (002160 CH)

Nippon Yakin Kogyo Co., Ltd. is a stainless steel producer.  The Company also produces super alloy, alloyed metal for electronic materials, and stainless processed products.

Nittetsu Mining Co., Ltd., an affiliate of Nippon Steel Group, mines for limestone mining for the steel industry.  The Company also smelts copper ore into ingots, and produces flame-retardant ceramic papers, mining machinery, and environment-related products.  Nittetsu Mining also operates real estate.

Xingfa Aluminium Holdings Ltd manufactures architectural and industrial aluminum profiles. The Company's products include sliding windows, casement windows, sliding doors, and others. Xingfa also offers equipment, such as fusion casting, extrusion, surface treatment, vertical coating, fluorocarbon coating, and mould making center equipment.

Jayaswal Neco Industries Ltd. manufactures steel and steel products.  The Company produces steel for manufacturers of automobiles, appliances, and other products; produces ferrous and non-ferrous castings for the railroad, automobile, construction, and valve manufacturing industries; and mines coal.

Tata Steel Long Products Limited manufactures sponge iron and sponge iron products. Tata Iron & Steel Company (TISCO) is a majority shareholder in the company.

AICHI STEEL CORPORATION is a manufacturer of specialty steel.   The Company's products include rolled steel and forged products.  Aichi Steel jointly works with Toyota Motors to develop automobile parts.  The Company also makes magnetic and electronic parts, including plastic magnets.

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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