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)

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty.

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty. 

Buoyant Returns Beyond the Benchmark in 2016 YTD

Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

Zydus Lifesciences Ltd / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/12914" target="_blank" data-smartkarma-citation="entities:12914:1">Cadila Healthcare Ltd (CDH IN)</a> is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E ratio of 25x, the share price could be worth INR 479.55 (at FY 2018 sell-side consensus EPS estimate of INR 19.182, excluding extraordinary items), representing about 31% potential upside. The company also pays 0.86% dividend. Consensus sell-side analyst estimate for the stock price is INR 398.63 (35 analysts). The common stock also appears undervalued at the current price using the reverse DCF approach.

Cadila Healthcare Ltd (CDH IN) is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E ratio of 25x, the share price could be worth INR 479.55 (at FY 2018 sell-side consensus EPS estimate of INR 19.182, excluding extraordinary items), representing about 31% potential upside. The company also pays 0.86% dividend. Consensus sell-side analyst estimate for the stock price is INR 398.63 (35 analysts). The common stock also appears undervalued at the current price using the reverse DCF approach.

Cadila Healthcare: Potential More than 30% Upside.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

This Insight is an update from <a href="https://www.smartkarma.com/insights/generic-drug-antitrust-inquiry-a-primer" target="_blank" data-smartkarma-citation="insights:6951">Generic Drug Antitrust Inquiry: A Primer</a>. Several generic drug companies caught up in government investigations into alleged price collusion have reported results since the US presidential election. A few of them made public comments on their conference calls (most companies stayed quiet, but have disclosures in their SEC filings):Teva Pharmaceutical Industries CEO Erez Vigodman:<blockquote>Finally, I cannot conclude this part of my remarks without briefly addressing the U.S…</blockquote>

This Insight is an update from Generic Drug Antitrust Inquiry: A Primer. Several generic drug companies caught up in government investigations into alleged price collusion have reported results since the US presidential election. A few of them made public comments on their conference calls (most companies stayed quiet, but have disclosures in their SEC filings):Teva Pharmaceutical Industries CEO Erez Vigodman:Finally, I cannot conclude this part of my remarks without briefly addressing the U.S…

Recent news stories reporting looming criminal antitrust charges against certain generic drug companies (and possibly executives) are wighing on the shares of generic drug manufacturers. This Insight discusses US antitrust laws and penalties; certain aspects of the investigative process; and known facts about some of the products involved in the inquiry. We think that investors should wait for negative newsflow (likely coming soon) before getting involved in the stocks.

Recent news stories reporting looming criminal antitrust charges against certain generic drug companies (and possibly executives) are wighing on the shares of generic drug manufacturers. This Insight discusses US antitrust laws and penalties; certain aspects of the investigative process; and known facts about some of the products involved in the inquiry. We think that investors should wait for negative newsflow (likely coming soon) before getting involved in the stocks.  

Sun Pharmaceutical Industries / Equity Bottom-Up

We initiated coverage on <a href="https://www.smartkarma.com/entities/98" target="_blank" data-smartkarma-citation="entities:98:1">Sun Pharmaceutical Indus (SUNP IN)</a> with Buy rating and common stock price target of INR 855 earlier this month. Link to our initiation article is given below.<a href="https://www.smartkarma.com/insights/sun-pharmaceuticals-time-to-buy-this-world-class-pharma-company-on-this-pullback" target="_blank">Sun Pharmaceuticals: Time To Buy This World Class Pharma Company On This Pullback.</a>The stock has rallied 9.1% this week along with the entire global pharmaceutical and biotechnology sector after Trump's victory in U.S. Presidential election eased the drug price control fears on the sector.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/016/221/original/big.gif?1478980386" class="editor-image img-responsive" data-smartkarma-image-id="16221"></figure><div class="content-caption">(Sun Pharma, common stock…</div>

We initiated coverage on Sun Pharmaceutical Indus (SUNP IN) with Buy rating and common stock price target of INR 855 earlier this month. Link to our initiation article is given below.Sun Pharmaceuticals: Time To Buy This World Class Pharma Company On This Pullback.The stock has rallied 9.1% this week along with the entire global pharmaceutical and biotechnology sector after Trump's victory in U.S. Presidential election eased the drug price control fears on the sector.(Sun Pharma, common stock…

Another Post-Trump Trade: Revisiting Sun Pharmaceuticals (SUNP IN) After Q2 (FY2017) Earnings

India

Sun Pharmaceutical Industries Limited manufactures and markets pharmaceuticals for domestic and international distribution. The Company's pharmaceutical portfolio includes drugs in the areas of diabetes, cardiology, neurology, psychiatry and  gastroenterology.

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Sun Pharmaceutical Industries (SUNP IN)

Buoyant Returns Beyond the Benchmark in 2016 YTD

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI)...

Singapore Exchange Ltd (SGX)

Cadila Healthcare: Potential More than 30% Upside.

Cadila Healthcare Ltd (CDH IN) is the 4th largest pharmaceutical company in India and 9th largest generic drug company in the U.S. At FY 2018 P/E...

Dr. Bhavneesh Sharma, MD, MBA

No Trump Cards for This Risk

This Insight is an update from Generic Drug Antitrust Inquiry: A Primer. Several generic drug companies caught up in government investigations into...

Kemp Dolliver, CFA

Generic Drug Antitrust Inquiry: A Primer

Recent news stories reporting looming criminal antitrust charges against certain generic drug companies (and possibly executives) are wighing on...

Kemp Dolliver, CFA

Another Post-Trump Trade: Revisiting Sun Pharmaceuticals (SUNP IN) After Q2 (FY2017) Earnings

We initiated coverage on Sun Pharmaceutical Indus (SUNP IN) with Buy rating and common stock price target of INR 855 earlier this month. Link to...

Dr. Bhavneesh Sharma, MD, MBA

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