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

<ul><li>Singapore's Mid-to-Small Cap group averaged S$40 million daily trading turnover, with Technology stocks contributing 35% over 8 weeks.</li><li>UMS, CSE Global, and Valuetronics ranked among the top 10 Mid-to-Small Cap stocks with highest net institutional inflow.</li><li>PC Partner Group anticipates FY24 net profit of at least HK$250 million, up from HK$60 million in FY23.</li></ul>

Singapore's Mid-to-Small Cap group averaged S$40 million daily trading turnover, with Technology stocks contributing 35% over 8 weeks.UMS, CSE Global, and Valuetronics ranked among the top 10 Mid-to-Small Cap stocks with highest net institutional inflow.PC Partner Group anticipates FY24 net profit of at least HK$250 million, up from HK$60 million in FY23.

Tech Sector's Recent Influence on Singapore's Mid-to-Small Cap Stocks

<ul><li>Back in 1H24, Gartner projected significant growth in global semiconductor sales for 2024 and 2025, driven by a rebound in AI chips, memory pricing, PCs, smartphones, and consumer devices.</li><li>Aztech, Valuetronics and ISDN have shown mixed returns this year, with Valuetronics trading above its 5-year P/S average.</li><li>Aztech, Valuetronics and ISDN have been enhancing their manufacturing operations with Manufacturing Execution Systems (MES), leveraging software to increase production efficiency.</li></ul>

Back in 1H24, Gartner projected significant growth in global semiconductor sales for 2024 and 2025, driven by a rebound in AI chips, memory pricing, PCs, smartphones, and consumer devices.Aztech, Valuetronics and ISDN have shown mixed returns this year, with Valuetronics trading above its 5-year P/S average.Aztech, Valuetronics and ISDN have been enhancing their manufacturing operations with Manufacturing Execution Systems (MES), leveraging software to increase production efficiency.

Recent Driving Forces in the Technology Sector

<ul><li>Just over 40 Singapore-listed stocks that posted price gains over the past year, maintain single-digit P/E ratios and double-digit ROEs.</li><li>Aside from Singapore Airlines, the most traded stocks of the cohort over the past 5 weeks were Geo Energy Res, Golden Agri, Food Empire, TJ DaRenTang, Valuetronics, Marco Polo Marine, Ley Choon, Bumitama Agri and Stamford Land.</li><li>Among these stocks, Golden Agri, Food Empire, TJ DaRenTang, Bumitama Agri are currently trading below their Consensus Estimate Target Prices.</li></ul>

Just over 40 Singapore-listed stocks that posted price gains over the past year, maintain single-digit P/E ratios and double-digit ROEs.Aside from Singapore Airlines, the most traded stocks of the cohort over the past 5 weeks were Geo Energy Res, Golden Agri, Food Empire, TJ DaRenTang, Valuetronics, Marco Polo Marine, Ley Choon, Bumitama Agri and Stamford Land.Among these stocks, Golden Agri, Food Empire, TJ DaRenTang, Bumitama Agri are currently trading below their Consensus Estimate Target Prices.

Singapore’s Most Defensive High ROE & Low P/E Stocks Over Past Year

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

External broker reports(aggregated public sources)

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Valuetronics' FY23 net profit of HK$123m (+8.3% y-o-y/+12.6% h-o-h) was slightly above our forecast, forming 106% of our full-year estimate, due to a lower-than-expected revenue decline.</li><li>Valuetronics' outlook remains conservative as it expects the ripple effect of the supply chain bottlenecks to last beyond 2023.</li><li>Other uncertainties include the Russia-Ukraine conflict, US Fed rate hikes and rising inflationary pressures.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Valuetronics' FY23 net profit of HK$123m (+8.3% y-o-y/+12.6% h-o-h) was slightly above our forecast, forming 106% of our full-year estimate, due to a lower-than-expected revenue decline.Valuetronics' outlook remains conservative as it expects the ripple effect of the supply chain bottlenecks to last beyond 2023.Other uncertainties include the Russia-Ukraine conflict, US Fed rate hikes and rising inflationary pressures.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Valuetronics - FY23 Slightly Above Expectations, Conservative Amid Global Headwinds

Singapore

Valuetronics Holdings Ltd. offers original equipment manufacturing and original design manufacturing services.  The Company serves customers in the telecommunications, industrial, commercial electronic products, and consumer electronic products industries.

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Valuetronics Holdings (VALUE SP)

Tech Sector's Recent Influence on Singapore's Mid-to-Small Cap Stocks

Singapore's Mid-to-Small Cap group averaged S$40 million daily trading turnover, with Technology stocks contributing 35% over 8 weeks. UMS, CSE...

Singapore Exchange Ltd (SGX)

Company Spotlight: Valuetronics

Company Spotlight: Valuetronics

Singapore Exchange Ltd (SGX)

Recent Driving Forces in the Technology Sector

Back in 1H24, Gartner projected significant growth in global semiconductor sales for 2024 and 2025, driven by a rebound in AI chips, memory...

Singapore Exchange Ltd (SGX)

Singapore’s Most Defensive High ROE & Low P/E Stocks Over Past Year

Just over 40 Singapore-listed stocks that posted price gains over the past year, maintain single-digit P/E ratios and double-digit ROEs. Aside...

Singapore Exchange Ltd (SGX)

Valuetronics - FY23 Slightly Above Expectations, Conservative Amid Global Headwinds

Valuetronics' FY23 net profit of HK$123m (+8.3% y-o-y/+12.6% h-o-h) was slightly above our forecast, forming 106% of our full-year estimate, due to...

UOB Kay Hian

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