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.





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Cross Asset Strategy

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This week's offering of Insights across <a href="mailto:ASEAN@Smartkarma" target="_blank">ASEAN@Smartkarma</a> is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.
The highlights this week in <a href="mailto:ASEAN@Smartkarma" target="_blank">ASEAN@Smartkarma</a> include commentary from CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/2060" target="_blank" data-smartkarma-citation="accounts:2060">Kevin O’Rourke</a> on the simmering political situation in Indonesia, which has been putting pressure on both the stock market and the currency there, as we approach the deadline for the results of the "real count" from the country's recent Presidential Election. It is more a question as to whether Prabowo will gracefully accept a convincing defeat rather than over an argument over the actual result. We also have an insight from<a href="https://www.smartkarma.com/profiles/3145" target="_blank" data-smartkarma-citation="accounts:3145">Jessica Irene</a> on <a href="https://www.smartkarma.com/entities/424" target="_blank" data-smartkarma-citation="entities:424:1">Bekasi Fajar Industrial Estate (BEST IJ)</a>, which is part of an ongoing series of insights on Indonesian Property under Smartkarma Originals. CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/1208" target="_blank" data-smartkarma-citation="accounts:1208">Nicolas Van Broekhoven</a> also writes on <a href="https://www.smartkarma.com/entities/18395" target="_blank" data-smartkarma-citation="entities:18395:1">Sunpower Group (SPWG SP)</a>, <a href="https://www.smartkarma.com/entities/14150" target="_blank" data-smartkarma-citation="entities:14150:1">Silverlake Axis (SILV SP)</a>, <a href="https://www.smartkarma.com/entities/16331" target="_blank" data-smartkarma-citation="entities:16331:1">Alliance Mineral Assets (AMS SP)</a>and <a href="https://www.smartkarma.com/profiles/1005" target="_blank" data-smartkarma-citation="accounts:1005">Howard J Klein</a>comments on what is wrong with the metrics that Asian Gaming Analysts are using to analyse that sector. 
</div><h2>Macro Insights</h2>In <a href="https://www.smartkarma.com/insights/jkt-unrest-possible-next-week-rp-slides-margin-nears-11-ga-tariff-cap-smi-sees-slower-growth" target="_blank" data-smartkarma-citation="insights:29871">Jkt Unrest Possible Next Week, Rp Slides / Margin Nears 11% / GA Tariff Cap / SMI Sees Slower Growth</a>, CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/2060" target="_blank" data-smartkarma-citation="accounts:2060">Kevin O’Rourke</a> provides his value added on the most important political and economic developments over the past week. Prabowo remains defiant and vitriolic, escalating tensions and contributing to a rupiah slide.  He may forgo an electoral appeal and move to protest next week, although his party backers differ.  Widodo's 'Real Count' margin over Prabowo is likely to finish at 11%.  Ministers cut the domestic airfare price cap by 12-16%, impacting <a href="https://www.smartkarma.com/entities/12151" target="_blank" data-smartkarma-citation="entities:12151:1">Garuda Indonesia (Persero) (GIAA IJ)</a>, jeopardizing cash flows -- and safety standards -- while demonstrating that excessive regulation persists despite Widodo having secured re-election.  The finance minister cited weak tax receipts and warned of an economic slowdown akin to 2014-15.  Plus: Kevin provides his assessment of incoming parliament. <h2>Equity Bottom-Up Insights</h2><div class="content-highlight">In <a href="https://www.smartkarma.com/insights/indonesia-property-in-search-of-the-end-of-the-rainbow-part-8-bekasi-fajar-best-ij" target="_blank" data-smartkarma-citation="insights:29557">Indonesia Property - In Search of the End of the Rainbow - Part 8 - Bekasi Fajar (BEST IJ)</a>, CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/3145" target="_blank" data-smartkarma-citation="accounts:3145">Jessica Irene</a> takes a deep dive into Industrial Estate player <a href="https://www.smartkarma.com/entities/424" target="_blank" data-smartkarma-citation="entities:424:1">Bekasi Fajar Industrial Estate (BEST IJ)</a> as part of an ongoing Smartkarma Originals Series on Indonesia Property. The company is an industrial estate operator in the Cikarang, East of Greater Jakarta with an overall estate portfolio of 2,300ha. About 1,250ha is fully developed, leaving BEST with 1,051ha gross landbank (716ha net). BEST's estate is located 30km from Central Jakarta, the closest one to the city centre among other integrated industrial estates in the Cikarang Area. </div>In <a href="https://www.smartkarma.com/insights/sunpower-spwg-sp-1q19-shows-revenue-and-profits-growing-30-yoy-fair-value-1-sgd-112-upside" target="_blank" data-smartkarma-citation="insights:29806">Sunpower (SPWG SP): 1Q19 Shows Revenue and Profits Growing 30% YoY; Fair Value 1 SGD (112% Upside)</a>, CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/1208" target="_blank" data-smartkarma-citation="accounts:1208">Nicolas Van Broekhoven</a> revisits <a href="https://www.smartkarma.com/entities/18395" target="_blank" data-smartkarma-citation="entities:18395:1">Sunpower Group (SPWG SP)</a>, which has seen an incredible transformation over the past 24 months.In <a href="https://www.smartkarma.com/insights/silverlake-axis-silv-sp-third-consecutive-quarter-of-strong-growth-merimen-to-become-new-star" target="_blank" data-smartkarma-citation="insights:29819">Silverlake Axis (SILV SP): Third Consecutive Quarter of Strong Growth, Merimen to Become New Star</a>, <a href="https://www.smartkarma.com/profiles/1208" target="_blank" data-smartkarma-citation="accounts:1208">Nicolas Van Broekhoven</a> revisits enterprise software player <a href="https://www.smartkarma.com/entities/14150" target="_blank" data-smartkarma-citation="entities:14150:1">Silverlake Axis (SILV SP)</a> and continues to favour the company. In <a href="https://www.smartkarma.com/insights/alliance-mineral-ams-sp-galaxy-resources-now-largest-shareholder-tick-tock-until-full-takeover" target="_blank" data-smartkarma-citation="insights:29830">Alliance Mineral (AMS SP): Galaxy Resources Now Largest Shareholder, Tick Tock Until Full Takeover?</a>, <a href="https://www.smartkarma.com/profiles/1208" target="_blank" data-smartkarma-citation="accounts:1208">Nicolas Van Broekhoven</a> circles back to this mining play following the news that Australian company <a href="https://www.smartkarma.com/entities/13914" target="_blank" data-smartkarma-citation="entities:13914:1">Galaxy Resources (GXY AU)</a> has become its largest shareholder. In <a href="https://www.smartkarma.com/insights/singapore-airlines-sia-sp-c6l-uncomfortable-rate-of-descent-to-continue" target="_blank" data-smartkarma-citation="insights:29815">Singapore Airlines (SIA: SP) (C6L)– Uncomfortable Rate of Descent to Continue</a>, <a href="https://www.smartkarma.com/profiles/667" target="_blank" data-smartkarma-citation="accounts:667">Alan Greene</a> revisits <a href="https://www.smartkarma.com/entities/74" target="_blank" data-smartkarma-citation="entities:74:1">Singapore Airlines (SIA SP)</a> and lays out his thoughts on the company ahead of last week's results.  In <a href="https://www.smartkarma.com/insights/golden-land-tender-offer-into-the-home-straight" target="_blank" data-smartkarma-citation="insights:29785">Golden Land: Tender Offer Into The Home Straight</a>, <a href="https://www.smartkarma.com/profiles/840" target="_blank" data-smartkarma-citation="accounts:840">David Blennerhassett</a> takes another look at <a href="https://www.smartkarma.com/entities/12764" target="_blank" data-smartkarma-citation="entities:12764:1">Golden Land Prop Dvlp (GOLD TB)</a> which is in the midst of a takeover.  In <a href="https://www.smartkarma.com/insights/budweiser-brewing-company-apac-pre-ipo-it-will-be-a-us-5bn-raise-owing-to-its-clean-balance-sheet" target="_blank" data-smartkarma-citation="insights:29748">Budweiser Brewing Company APAC Pre-IPO - It Will Be a US$5bn+ Raise Owing to Its Clean Balance Sheet</a>, <a href="https://www.smartkarma.com/profiles/4" target="_blank" data-smartkarma-citation="accounts:4">Sumeet Singh</a> lays out his thoughts on this upcoming IPO. Budweiser Brewing Company APAC Limited (ABIAPAC) filed for its Hong Kong listing last week. While media reports have been indicating a raising of US$5bn, looking at the numbers it looks like it will probably be bigger. <a href="https://www.smartkarma.com/entities/865" target="_blank" data-smartkarma-citation="entities:865:1">Anheuser Busch Inbev Sa/Nv (ABI BB)</a>, the parent entity, has not allocated much debt to the Asia operations which will mean its market cap will be higher than the range Sumeet spoke about in his previous insight. In <a href="https://www.smartkarma.com/insights/fct-placement-little-dpu-accretiveness-but-a-quality-target-for-long-term-growth" target="_blank" data-smartkarma-citation="insights:29834">FCT Placement: Little DPU Accretiveness but A Quality Target for Long Term Growth</a>, <a href="https://www.smartkarma.com/profiles/1680" target="_blank" data-smartkarma-citation="accounts:1680">Arun George</a> comments on recent money-raising plans from <a href="https://www.smartkarma.com/entities/2870" target="_blank" data-smartkarma-citation="entities:2870:1">Frasers Centrepoint Trust (FCT SP)</a>. <h2>
<a href="https://www.smartkarma.com/insights/frasers-centrepoint-trust-placement-accretive-acquisitions" target="_blank" data-smartkarma-citation="insights:29847"></a>Sector and Thematic Insights</h2>In <a href="https://www.smartkarma.com/insights/asia-gaming-sector-why-buy-side-analysis-needs-sharper-earnings-call-metrics" target="_blank" data-smartkarma-citation="insights:29875">Asia Gaming Sector: Why Buy Side Analysis Needs Sharper Earnings Call Metrics</a>, Gaming Specialist <a href="https://www.smartkarma.com/profiles/1005" target="_blank" data-smartkarma-citation="accounts:1005">Howard J Klein</a> suggests that analysts of the sector are somewhat lacking in the metric they use. In <a href="https://www.smartkarma.com/insights/company-visits-chayo-precious-shipping" target="_blank" data-smartkarma-citation="insights:29098">Company Visits: CHAYO, Precious Shipping</a>, our Thai Guru <a href="https://www.smartkarma.com/profiles/766" target="_blank" data-smartkarma-citation="accounts:766">Athaporn Arayasantiparb, CFA</a> comments on <a href="https://www.smartkarma.com/entities/26729" target="_blank" data-smartkarma-citation="entities:26729:1">Chayo Group PCL (CHAYO TB)</a> and <a href="https://www.smartkarma.com/entities/13819" target="_blank" data-smartkarma-citation="entities:13819:1">Precious Shipping (PSL TB)</a> following visits to those two companies. In <a href="https://www.smartkarma.com/insights/singapore-s-key-technology-stocks-average-23-ytd-total-return" target="_blank" data-smartkarma-citation="insights:29844">Singapore’s Key Technology Stocks Average 23% YTD Total Return</a>, <a href="https://www.smartkarma.com/profiles/847" target="_blank" data-smartkarma-citation="accounts:847">Geoff Howie</a> takes a close look at the performance of Listed Technology Stocks in Singapore. In <a href="https://www.smartkarma.com/insights/singapore-property-30-decline-in-property-sales-in-april-rising-inventory-remains-a-concern" target="_blank" data-smartkarma-citation="insights:29825">Singapore Property – 30% Decline in Property Sales in April; Rising Inventory Remains a Concern</a>, <a href="https://www.smartkarma.com/profiles/2053" target="_blank" data-smartkarma-citation="accounts:2053">Royston Foo</a> analyses the most recent property sales numbers coming out of Singapore.


This week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.
The highlights this week in ASEAN@Smartkarma include commentary from CrossASEAN Insight Provider Kevin O’Rourke on the simmering political situation in Indonesia, which has been putting pressure on both the stock market and the currency there, as we approach the deadline for the results of the "real count" from the country's recent Presidential Election. It is more a question as to whether Prabowo will gracefully accept a convincing defeat rather than over an argument over the actual result. We also have an insight fromJessica Irene on Bekasi Fajar Industrial Estate (BEST IJ), which is part of an ongoing series of insights on Indonesian Property under Smartkarma Originals. CrossASEAN Insight Provider Nicolas Van Broekhoven also writes on Sunpower Group (SPWG SP), Silverlake Axis (SILV SP), Alliance Mineral Assets (AMS SP)and Howard J Kleincomments on what is wrong with the metrics that Asian Gaming Analysts are using to analyse that sector. 
Macro InsightsIn Jkt Unrest Possible Next Week, Rp Slides / Margin Nears 11% / GA Tariff Cap / SMI Sees Slower Growth, CrossASEAN Insight Provider Kevin O’Rourke provides his value added on the most important political and economic developments over the past week. Prabowo remains defiant and vitriolic, escalating tensions and contributing to a rupiah slide.  He may forgo an electoral appeal and move to protest next week, although his party backers differ.  Widodo's 'Real Count' margin over Prabowo is likely to finish at 11%.  Ministers cut the domestic airfare price cap by 12-16%, impacting Garuda Indonesia (Persero) (GIAA IJ), jeopardizing cash flows -- and safety standards -- while demonstrating that excessive regulation persists despite Widodo having secured re-election.  The finance minister cited weak tax receipts and warned of an economic slowdown akin to 2014-15.  Plus: Kevin provides his assessment of incoming parliament. Equity Bottom-Up InsightsIn Indonesia Property - In Search of the End of the Rainbow - Part 8 - Bekasi Fajar (BEST IJ), CrossASEAN Insight Provider Jessica Irene takes a deep dive into Industrial Estate player Bekasi Fajar Industrial Estate (BEST IJ) as part of an ongoing Smartkarma Originals Series on Indonesia Property. The company is an industrial estate operator in the Cikarang, East of Greater Jakarta with an overall estate portfolio of 2,300ha. About 1,250ha is fully developed, leaving BEST with 1,051ha gross landbank (716ha net). BEST's estate is located 30km from Central Jakarta, the closest one to the city centre among other integrated industrial estates in the Cikarang Area. In Sunpower (SPWG SP): 1Q19 Shows Revenue and Profits Growing 30% YoY; Fair Value 1 SGD (112% Upside), CrossASEAN Insight Provider Nicolas Van Broekhoven revisits Sunpower Group (SPWG SP), which has seen an incredible transformation over the past 24 months.In Silverlake Axis (SILV SP): Third Consecutive Quarter of Strong Growth, Merimen to Become New Star, Nicolas Van Broekhoven revisits enterprise software player Silverlake Axis (SILV SP) and continues to favour the company. In Alliance Mineral (AMS SP): Galaxy Resources Now Largest Shareholder, Tick Tock Until Full Takeover?, Nicolas Van Broekhoven circles back to this mining play following the news that Australian company Galaxy Resources (GXY AU) has become its largest shareholder. In Singapore Airlines (SIA: SP) (C6L)– Uncomfortable Rate of Descent to Continue, Alan Greene revisits Singapore Airlines (SIA SP) and lays out his thoughts on the company ahead of last week's results.  In Golden Land: Tender Offer Into The Home Straight, David Blennerhassett takes another look at Golden Land Prop Dvlp (GOLD TB) which is in the midst of a takeover.  In Budweiser Brewing Company APAC Pre-IPO - It Will Be a US$5bn+ Raise Owing to Its Clean Balance Sheet, Sumeet Singh lays out his thoughts on this upcoming IPO. Budweiser Brewing Company APAC Limited (ABIAPAC) filed for its Hong Kong listing last week. While media reports have been indicating a raising of US$5bn, looking at the numbers it looks like it will probably be bigger. Anheuser Busch Inbev Sa/Nv (ABI BB), the parent entity, has not allocated much debt to the Asia operations which will mean its market cap will be higher than the range Sumeet spoke about in his previous insight. In FCT Placement: Little DPU Accretiveness but A Quality Target for Long Term Growth, Arun George comments on recent money-raising plans from Frasers Centrepoint Trust (FCT SP). 
Sector and Thematic InsightsIn Asia Gaming Sector: Why Buy Side Analysis Needs Sharper Earnings Call Metrics, Gaming Specialist Howard J Klein suggests that analysts of the sector are somewhat lacking in the metric they use. In Company Visits: CHAYO, Precious Shipping, our Thai Guru Athaporn Arayasantiparb, CFA comments on Chayo Group PCL (CHAYO TB) and Precious Shipping (PSL TB) following visits to those two companies. In Singapore’s Key Technology Stocks Average 23% YTD Total Return, Geoff Howie takes a close look at the performance of Listed Technology Stocks in Singapore. In Singapore Property – 30% Decline in Property Sales in April; Rising Inventory Remains a Concern, Royston Foo analyses the most recent property sales numbers coming out of Singapore.  

The Week that Was in ASEAN@Smartkarma - Jakarta Unrest (?), Indonesia Property, and Asia Gaming

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Recently heavily traded Technology companies listed on SGX have included Venture, AEM Holdings, Hi-P International, Frencken Group, UMS Holdings &amp; Valuetronics. Five of the six companies have recently reported earnings, with Valuetronics to report on 29 May.   
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Technology stocks have led stocks in multiple financial centres in the 2019 YTD. The above six companies, in addition to NetLink NBN Trust, averaged an 23% total return in the year thus far, following 23% declines in 2018 and all six companies booking triple digit gains in 2017. 
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	<li>Recent expansionary initiatives amongst the companies include new product launches, expanding operations over more countries, providing test services to 5G products, diversifying into broader engineering services and strategies to move up the value chain. </li>
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Strong Market Participation of S$275 million Combined Turnover in Past Five Sessions

A number of Singapore’s technology stocks have maintained strong trading activity in recent months. Although Venture Corporation (‘Venture’) ranks as a top 40 stock by market capitalisation, it commonly sits just outside the top 10 stocks by turnover. The July 2017-listed Business Trust, NetLink NBN Trust, which ranks as a top 50 stock by market capitalisation typically ranks as top 30 stock by turnover.

Hi-P international sits just outside the top 100 stocks by market capitalisation, yet it now commonly ranks within the top 40 stocks by turnover. There is also AEM Holdings, a top 200 stock by market capitalisation, and a top 30 stock by turnover over the past week. In addition other top 200 stocks by market capitalisation like UMS Holdings, Frencken Group and Valuetronics Holdings generally rank as a top 60 stock by turnover. The aforementioned six companies and NetLink NBN Trust have a combined market capitalisation of S$9 billion and saw S$275 million in combined market turnover over the past five sessions alone. 

High Yields and Varied Volatility

These six companies and the Business Trust averaged 45% annualised volatility over the past 12 months, which ranged from 12% for NetLink NBN Trust to 69% for AEM Holdings.  NetLink NBN Trust also maintains the second highest dividend yield of the six Technology plays which is 5.8%, based on the 15 May close price and the distribution going ex-dividend on 23 May. UMS Holdings currently maintains the highest dividend yield of the group, which is 6.3% based on the 15 May close and the distribution going ex-dividend on 10 July.
On a cumulative basis, the largest of the technology stocks, and a constituent of the Straits Times Index (“STI”), Venture has paid out over S$2.0 billion in dividends since its public listing in 1992.
Most Actively Traded Technology Stocks Average 18% YTD Gain

In the 2019 year-to-date, technology stocks have rebounded somewhat with FY18 revenue results (as discussed below), not contracting as much as market had expected going into 2019.

Illustrated below is the average and median performances of Venture, Hi-P International, AEM Holdings, UMS Holdings, Frencken Group &amp; Valuetronics Holdings over the past few years, with the total return of NetLink NBN Trust added to the group in 2018 and 2019.
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 <img src="https://api2.sgx.com/sites/default/files/2019-05/Returns%20of%20Technology%20Companies%20%26%20Netlink%20NBN%20Trust.JPG" alt="Total Returns of Six Most Actively Traded Technology Companies &amp; NetLink NBN Trust">
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 <div class="content-caption">Total Returns of Six Most Actively Traded Technology Companies &amp; NetLink NBN Trust</div>
The next five most actively traded technology stocks typically include Memtech International, Silverlake Axis, Creative Technology, Chuan Hup Holdings and Sunningdale Tech. Similarly, these five stocks have averaged a 26% total return in the 2019 year-to-date, following 36% average total returns in 2018, with the 2018 average skewed by Creative Technologies total return of 254% (post the launch of their Super X-FI offering).

Technology Sector Recovery in Early 2019

Technology stocks began 2019 on a firmer note, with the Sector providing some of strongest stocks in Singapore, the United States, Japan, Korea, Thailand and Australia over the first four months of the year.

This was amidst common concerns of the ongoing, US-China trade concerns, deceleration in 2019 growth (in particular semiconductor capital equipment expenditure) and the PMI signs of a slowdown in manufacturing.

On the other side of the outlook, 5G testing continues, with the market for cloud computing, big data, artificial intelligence and the Internet of Things (“IoT “) continuing to expand. Electronic Manufacturing Service (“EMS”) providers are also buoyed by the growth in connected devices and transformation of the automotive industry.

According to SEMI, the global industry association for the electronics manufacturing supply chain, even though worldwide sales of new semiconductor manufacturing equipment are projected to dip by 4% in 2019, it will bounce back to a 20.7% growth to hit an all-time high of US$71.9 billion in 2020. Wider data trends have also been cited by UMS Holdings, with global data usage expected to see exponential growth, from about 40ZB in 2018 to 50ZB in 2020, leaping to 163ZB in 2026.

Company Revenue Highlights from 1QFY19 (&amp;FY18)

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<li>For its 1QFY19 (ended 31 March 2019), Venture registered revenue of S$928.8 million, an increase of 8.5% YoY. This was on the back of broad-based growth across the Group's portfolio of technology domains and solid execution of customers' programmes. Venture turned in revenue ofS$3.5 billion for its FY18, which was 13.0% lower YoY, after group revenue surpassed S$4.0 billion for FY17, which was then an increase of 39.3% from FY16. 
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Hi-P International reported its revenue for 1QFY19 (ended 31 March 2019), rose 2.0% yoy to S$286.8 million. This followed on from the Group maintaining its revenue at S$1.4 billion for FY18. Its FY17 revenue of S$1.4 billion in FY17 was an all-time record. 
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AEM Holdings reported its revenue increased sequentially 34.0% in 1QFY19 (ended 31 March 2019), compared with 4QFY18, and declined 19.7% YoY from 1QFY18. Overall, AEM Holdings reported Group revenue increased by 18.4% YoY to S$262.3 million in FY18 which was primarily generated by its Equipment Systems Solutions (“ESS”) business, which increased by 19.5% YoY to S$256.6 million. 
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UMS Holdings reported that compared to 4QFY18, Group revenue improved about 10% in 1QFY19, attributed to higher sales achieved by the semiconductor segment in 1QFY19. However, its 1QFY19 revenue declined 24% YoY due to a 27% decrease in revenue from its semiconductor business. On the other hand, sales from Kalf Engineering’s projects and Starke Singapore’s material distribution business shot up.  UMS Holdings revenue fell by 21% to S$128 million in FY18,  from its record-breaking $162 million in FY17. 
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	<li>For its 1QFY19 (ended 31 March 2019), Frencken Group reported a 14.7% YoY increase in revenue to S$159.1 million with the revenue at the Mechatronics Division increasing 19.7%. In FY18, Frencken Group’s revenue grew 21.5% YoY to reach a record S$625.8 million, also driven by strong sales growth of 33.1% at the Mechatronics Division. 
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Valuetronics Holdings will announce its financial results for the FY19 year ended 31 March before the market open on 29 May.  For the 9MFY19 Valuetronics Holdings reported a 2.7% decline in revenue which followed on Group’s revenue hitting a record since its IPO to reach HK$2.85 billion in FY18, a 25.4% increase from its FY17.</li>
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Venture’s New Launches

Venture has highlighted that in 2018 it supported the successful launch of several new products across various technology domains, validating its transformational engineering capabilities and wide-ranging domain expertise.

Last year, Venture assisted several customers in their new product introductions and replacement product launches. One of them was for a leading laboratory analytical instrument company, which is a long-term partner in the liquid chromatography domain. In addition, Venture forged several strategic partnerships during the year. Venture is also pursuing collaborations in the Life Science domain, introducing new facilities in Milpitas, Silicon Valley, USA and in 1QFY19 announced the acquisition of a new facility in Tebrau, Johor, Malaysia.

Hi-P International’s Expansion

Hi-P International has been seeking to expand its non-China manufacturing base with a view to serve some of our customers better by avoiding tariffs amidst US-China trade tensions. It has also focused efforts on diversifying its customer base into various regions such as Europe, Japan, China and South Asia, as well as diversifying its product mix into new areas such as automotive, medical and IoT ecosystem.

AEM Holdings &amp; the 5G Rollout

AEM Holdings’ handling solutions provide high-volume, multi-process manufacturing automation for 5G products worldwide. AEM adds its customers manufacture unit volumes ranging from a few thousand to hundreds of millions of units annually, each with significant testing and handling complexity.

In October 2018, AEM Holdings was selected by Huawei Technologies Co., Ltd. (“Huawei”) for the testing and development of its high-performance short reach cabling links for Huawei’s 5G backhaul network.

UMS Holdings Diversifying Beyond Semiconductors with JEP Holdings

As highlighted in the introduction of this Market Update, while UMS Holdings has maintained its near-term outlook continues to be challenging due to much uncertainty in customers’ order flows amid the ongoing China-US trade tensions affecting demand from semiconductor chipmakers, the longer-term outlook remains upbeat.

On 13 May, UMS Holdings acquired 43,841,202 shares of its associated Catalist-listed JEP Holdings for a consideration near S$6.6 million. This took its substantial shareholding in JEP Holdings from 27.96 per cent to 38.78 per cent. Pursuit to this married deal, JEP Holdings announced that UMS Holdings is making a mandatory conditional cash offer to acquire all the remaining issued and paid-up ordinary shares of JEP Holdings other than those already owned, controlled, or agreed to be acquired by UMS Holdings.

In January 2018, UMS Holdings acquired 29.5 per cent of JEP Holdings. Mr Luong had since joined JEP Holdings’ board and under the strategic guidance of Mr Luong, JEP Holdings managed to increase its profit by 166% from S$0.8 million in FY17 to a profit of S$2.2 million in FY18.

Frencken Group Moving Up the Value Chain

Frencken Group has multiple design centres and manufacturing sites spanning Asia, Europe and the USA.  The Group maintains its Mechatronics Division will remain focused on moving up the value chain and offering high value-added solutions to reinforce its partnerships with customers.  The division is currently embarking on a strategy to evolve its business from a “Build to Print” model into a “Build to Spec” or “Original Design Manufacturer” model to ensure it stays in line with the demand trends of its current and future customers.

To attain its strategic objective, the division is implementing several initiatives such as improving customer focus, core competence development and manufacturing supply chain excellence. In addition, the Mechatronics Division will continue to invest in equipment to upgrade its precision manufacturing and process capabilities as well as cleanroom facilities to better support the future demand requirements of its customers.

Valuetronics Holdings to Report FY19 Results on 29 May

As discussed above Valuetronics Holdings will announce its financial results for the FY19 year ended 31 March before the market open on 29 May.  Click on the stock name to see more financial information on each stock in SGX StockFacts.

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			SGX Technology Stocks Amongst 60 Highest stocks By Turnover Over Past Week
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			Total Return May MTD %
			</td>
			<td>
			Total Return 2019 YTD %
			</td>
			<td>
			Annualised Total Return 5 Years %
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/V03">Venture Corporation</a>
			</td>
			<td>
			V03
			</td>
			<td>
			            4,580
			</td>
			<td>
			-3
			</td>
			<td>
			18
			</td>
			<td>
			23
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/CJLU">NetLink NBN Trust</a>
			</td>
			<td>
			CJLU
			</td>
			<td>
			          3,254
			</td>
			<td>
			1
			</td>
			<td>
			9
			</td>
			<td>
			N/A
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/H17">Hi-P International</a>
			</td>
			<td>
			H17
			</td>
			<td>
			1,042
			</td>
			<td>
			-8
			</td>
			<td>
			51
			</td>
			<td>
			26
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/558">UMS Holdings</a>
			</td>
			<td>
			558
			</td>
			<td>
			              343
			</td>
			<td>
			-10
			</td>
			<td>
			15
			</td>
			<td>
			10
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/BN2">Valuetronics Holdings</a>
			</td>
			<td>
			BN2
			</td>
			<td>
			              275
			</td>
			<td>
			-7
			</td>
			<td>
			-4
			</td>
			<td>
			24
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/AWX">AEM Holdings</a>
			</td>
			<td>
			AWX
			</td>
			<td>
			              268
			</td>
			<td>
			-13
			</td>
			<td>
			20
			</td>
			<td>
			53
			</td>
		</tr>
<tr>
<td>
			<a href="https://www2.sgx.com/securities/equities/E28">Frencken Group</a>
			</td>
			<td>
			E28
			</td>
			<td>
			              260
			</td>
			<td>
			-4
			</td>
			<td>
			51
			</td>
			<td>
			16
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-6
			</td>
			<td>
			23
			</td>
			<td>
			25
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Bloomberg (Data as of 15 May 2019)

Aside from the six companies, NetLink NBN Trust continues to rank amongst Singapore’s most active stocks on a day-to-day basis. NetLink NBN Management Pte. Ltd., the Trustee-Manager of NetLink NBN Trust announced on Tuesday that it’s the NetLink NBN Trust EBITDA and Profit After Tax for its 4QFY19 (ended 31 March 2019)  exceeded projections by 1.6% and 11.7% respectively.
</body></html>





Recently heavily traded Technology companies listed on SGX have included Venture, AEM Holdings, Hi-P International, Frencken Group, UMS Holdings &amp; Valuetronics. Five of the six companies have recently reported earnings, with Valuetronics to report on 29 May.    
	 
	
Technology stocks have led stocks in multiple financial centres in the 2019 YTD. The above six companies, in addition to NetLink NBN Trust, averaged an 23% total return in the year thus far, following 23% declines in 2018 and all six companies booking triple digit gains in 2017. 
	 
	Recent expansionary initiatives amongst the companies include new product launches, expanding operations over more countries, providing test services to 5G products, diversifying into broader engineering services and strategies to move up the value chain. 

Strong Market Participation of S$275 million Combined Turnover in Past Five Sessions

A number of Singapore’s technology stocks have maintained strong trading activity in recent months. Although Venture Corporation (‘Venture’) ranks as a top 40 stock by market capitalisation, it commonly sits just outside the top 10 stocks by turnover. The July 2017-listed Business Trust, NetLink NBN Trust, which ranks as a top 50 stock by market capitalisation typically ranks as top 30 stock by turnover.

Hi-P international sits just outside the top 100 stocks by market capitalisation, yet it now commonly ranks within the top 40 stocks by turnover. There is also AEM Holdings, a top 200 stock by market capitalisation, and a top 30 stock by turnover over the past week. In addition other top 200 stocks by market capitalisation like UMS Holdings, Frencken Group and Valuetronics Holdings generally rank as a top 60 stock by turnover. The aforementioned six companies and NetLink NBN Trust have a combined market capitalisation of S$9 billion and saw S$275 million in combined market turnover over the past five sessions alone. 

High Yields and Varied Volatility

These six companies and the Business Trust averaged 45% annualised volatility over the past 12 months, which ranged from 12% for NetLink NBN Trust to 69% for AEM Holdings.  NetLink NBN Trust also maintains the second highest dividend yield of the six Technology plays which is 5.8%, based on the 15 May close price and the distribution going ex-dividend on 23 May. UMS Holdings currently maintains the highest dividend yield of the group, which is 6.3% based on the 15 May close and the distribution going ex-dividend on 10 July.
On a cumulative basis, the largest of the technology stocks, and a constituent of the Straits Times Index (“STI”), Venture has paid out over S$2.0 billion in dividends since its public listing in 1992.
Most Actively Traded Technology Stocks Average 18% YTD Gain

In the 2019 year-to-date, technology stocks have rebounded somewhat with FY18 revenue results (as discussed below), not contracting as much as market had expected going into 2019.

Illustrated below is the average and median performances of Venture, Hi-P International, AEM Holdings, UMS Holdings, Frencken Group &amp; Valuetronics Holdings over the past few years, with the total return of NetLink NBN Trust added to the group in 2018 and 2019.

      
    
    Total Returns of Six Most Actively Traded Technology Companies &amp; NetLink NBN Trust
The next five most actively traded technology stocks typically include Memtech International, Silverlake Axis, Creative Technology, Chuan Hup Holdings and Sunningdale Tech. Similarly, these five stocks have averaged a 26% total return in the 2019 year-to-date, following 36% average total returns in 2018, with the 2018 average skewed by Creative Technologies total return of 254% (post the launch of their Super X-FI offering).

Technology Sector Recovery in Early 2019

Technology stocks began 2019 on a firmer note, with the Sector providing some of strongest stocks in Singapore, the United States, Japan, Korea, Thailand and Australia over the first four months of the year.

This was amidst common concerns of the ongoing, US-China trade concerns, deceleration in 2019 growth (in particular semiconductor capital equipment expenditure) and the PMI signs of a slowdown in manufacturing.

On the other side of the outlook, 5G testing continues, with the market for cloud computing, big data, artificial intelligence and the Internet of Things (“IoT “) continuing to expand. Electronic Manufacturing Service (“EMS”) providers are also buoyed by the growth in connected devices and transformation of the automotive industry.

According to SEMI, the global industry association for the electronics manufacturing supply chain, even though worldwide sales of new semiconductor manufacturing equipment are projected to dip by 4% in 2019, it will bounce back to a 20.7% growth to hit an all-time high of US$71.9 billion in 2020. Wider data trends have also been cited by UMS Holdings, with global data usage expected to see exponential growth, from about 40ZB in 2018 to 50ZB in 2020, leaping to 163ZB in 2026.

Company Revenue Highlights from 1QFY19 (&amp;FY18)


For its 1QFY19 (ended 31 March 2019), Venture registered revenue of S$928.8 million, an increase of 8.5% YoY. This was on the back of broad-based growth across the Group's portfolio of technology domains and solid execution of customers' programmes. Venture turned in revenue ofS$3.5 billion for its FY18, which was 13.0% lower YoY, after group revenue surpassed S$4.0 billion for FY17, which was then an increase of 39.3% from FY16. 
	 
	
Hi-P International reported its revenue for 1QFY19 (ended 31 March 2019), rose 2.0% yoy to S$286.8 million. This followed on from the Group maintaining its revenue at S$1.4 billion for FY18. Its FY17 revenue of S$1.4 billion in FY17 was an all-time record. 
	 
	
AEM Holdings reported its revenue increased sequentially 34.0% in 1QFY19 (ended 31 March 2019), compared with 4QFY18, and declined 19.7% YoY from 1QFY18. Overall, AEM Holdings reported Group revenue increased by 18.4% YoY to S$262.3 million in FY18 which was primarily generated by its Equipment Systems Solutions (“ESS”) business, which increased by 19.5% YoY to S$256.6 million. 
	 
	
UMS Holdings reported that compared to 4QFY18, Group revenue improved about 10% in 1QFY19, attributed to higher sales achieved by the semiconductor segment in 1QFY19. However, its 1QFY19 revenue declined 24% YoY due to a 27% decrease in revenue from its semiconductor business. On the other hand, sales from Kalf Engineering’s projects and Starke Singapore’s material distribution business shot up.  UMS Holdings revenue fell by 21% to S$128 million in FY18,  from its record-breaking $162 million in FY17. 
	 
	For its 1QFY19 (ended 31 March 2019), Frencken Group reported a 14.7% YoY increase in revenue to S$159.1 million with the revenue at the Mechatronics Division increasing 19.7%. In FY18, Frencken Group’s revenue grew 21.5% YoY to reach a record S$625.8 million, also driven by strong sales growth of 33.1% at the Mechatronics Division. 
	 
	
Valuetronics Holdings will announce its financial results for the FY19 year ended 31 March before the market open on 29 May.  For the 9MFY19 Valuetronics Holdings reported a 2.7% decline in revenue which followed on Group’s revenue hitting a record since its IPO to reach HK$2.85 billion in FY18, a 25.4% increase from its FY17.

Venture’s New Launches

Venture has highlighted that in 2018 it supported the successful launch of several new products across various technology domains, validating its transformational engineering capabilities and wide-ranging domain expertise.

Last year, Venture assisted several customers in their new product introductions and replacement product launches. One of them was for a leading laboratory analytical instrument company, which is a long-term partner in the liquid chromatography domain. In addition, Venture forged several strategic partnerships during the year. Venture is also pursuing collaborations in the Life Science domain, introducing new facilities in Milpitas, Silicon Valley, USA and in 1QFY19 announced the acquisition of a new facility in Tebrau, Johor, Malaysia.

Hi-P International’s Expansion

Hi-P International has been seeking to expand its non-China manufacturing base with a view to serve some of our customers better by avoiding tariffs amidst US-China trade tensions. It has also focused efforts on diversifying its customer base into various regions such as Europe, Japan, China and South Asia, as well as diversifying its product mix into new areas such as automotive, medical and IoT ecosystem.

AEM Holdings &amp; the 5G Rollout

AEM Holdings’ handling solutions provide high-volume, multi-process manufacturing automation for 5G products worldwide. AEM adds its customers manufacture unit volumes ranging from a few thousand to hundreds of millions of units annually, each with significant testing and handling complexity.

In October 2018, AEM Holdings was selected by Huawei Technologies Co., Ltd. (“Huawei”) for the testing and development of its high-performance short reach cabling links for Huawei’s 5G backhaul network.

UMS Holdings Diversifying Beyond Semiconductors with JEP Holdings

As highlighted in the introduction of this Market Update, while UMS Holdings has maintained its near-term outlook continues to be challenging due to much uncertainty in customers’ order flows amid the ongoing China-US trade tensions affecting demand from semiconductor chipmakers, the longer-term outlook remains upbeat.

On 13 May, UMS Holdings acquired 43,841,202 shares of its associated Catalist-listed JEP Holdings for a consideration near S$6.6 million. This took its substantial shareholding in JEP Holdings from 27.96 per cent to 38.78 per cent. Pursuit to this married deal, JEP Holdings announced that UMS Holdings is making a mandatory conditional cash offer to acquire all the remaining issued and paid-up ordinary shares of JEP Holdings other than those already owned, controlled, or agreed to be acquired by UMS Holdings.

In January 2018, UMS Holdings acquired 29.5 per cent of JEP Holdings. Mr Luong had since joined JEP Holdings’ board and under the strategic guidance of Mr Luong, JEP Holdings managed to increase its profit by 166% from S$0.8 million in FY17 to a profit of S$2.2 million in FY18.

Frencken Group Moving Up the Value Chain

Frencken Group has multiple design centres and manufacturing sites spanning Asia, Europe and the USA.  The Group maintains its Mechatronics Division will remain focused on moving up the value chain and offering high value-added solutions to reinforce its partnerships with customers.  The division is currently embarking on a strategy to evolve its business from a “Build to Print” model into a “Build to Spec” or “Original Design Manufacturer” model to ensure it stays in line with the demand trends of its current and future customers.

To attain its strategic objective, the division is implementing several initiatives such as improving customer focus, core competence development and manufacturing supply chain excellence. In addition, the Mechatronics Division will continue to invest in equipment to upgrade its precision manufacturing and process capabilities as well as cleanroom facilities to better support the future demand requirements of its customers.

Valuetronics Holdings to Report FY19 Results on 29 May

As discussed above Valuetronics Holdings will announce its financial results for the FY19 year ended 31 March before the market open on 29 May.  Click on the stock name to see more financial information on each stock in SGX StockFacts.




			SGX Technology Stocks Amongst 60 Highest stocks By Turnover Over Past Week
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			Total Return May MTD %
			
			
			Total Return 2019 YTD %
			
			
			Annualised Total Return 5 Years %
			
		


			Venture Corporation
			
			
			V03
			
			
			            4,580
			
			
			-3
			
			
			18
			
			
			23
			
		


			NetLink NBN Trust
			
			
			CJLU
			
			
			          3,254
			
			
			1
			
			
			9
			
			
			N/A
			
		


			Hi-P International
			
			
			H17
			
			
			1,042
			
			
			-8
			
			
			51
			
			
			26
			
		


			UMS Holdings
			
			
			558
			
			
			              343
			
			
			-10
			
			
			15
			
			
			10
			
		


			Valuetronics Holdings
			
			
			BN2
			
			
			              275
			
			
			-7
			
			
			-4
			
			
			24
			
		


			AEM Holdings
			
			
			AWX
			
			
			              268
			
			
			-13
			
			
			20
			
			
			53
			
		


			Frencken Group
			
			
			E28
			
			
			              260
			
			
			-4
			
			
			51
			
			
			16
			
		


			Average
			
			
			 
			
			
			 
			
			
			-6
			
			
			23
			
			
			25
			
		

Source: SGX StockFacts, Bloomberg (Data as of 15 May 2019)

Aside from the six companies, NetLink NBN Trust continues to rank amongst Singapore’s most active stocks on a day-to-day basis. NetLink NBN Management Pte. Ltd., the Trustee-Manager of NetLink NBN Trust announced on Tuesday that it’s the NetLink NBN Trust EBITDA and Profit After Tax for its 4QFY19 (ended 31 March 2019)  exceeded projections by 1.6% and 11.7% respectively.



Singapore’s Key Technology Stocks Average 23% YTD Total Return

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million, the second-highest inflow after REITs (+S$242.6 million). 
	 </li>
	<li>
The 20 largest IT stocks on SGX have a combined market cap of nearly S$16 billion, and averaged a total return of +21.7% in the 2019 YTD. They also averaged a PE ratio of 13.6x, ROE of 13.8% and dividend indicated yield of 3.5%. 
	 </li>
	<li>Among the 20, the five best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%). The five have averaged a YTD total return of +45.4%, bringing their 1Y and 3Y total returns to +11.9% and +194.3% respectively.</li>
</ul>
Sector Draws Institutional Interest 

In the first quarter of 2019, Information Technology (IT) was the best-performing sector on SGX with a total return of 28.6%, reversing the -16.3% total return in calendar year 2018.

IT was also among the top net buy sectors for the January-March quarter, garnering total institutional inflow of S$100.5 million, according to SGX data. This comprised S$33.1 million, S$45.7 million, and S$21.7 million for the months of January, February and March 2019 respectively. IT received the second-highest inflows in the quarter after REITs, which garnered S$242.6 million.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-04/IT%20Sector%20Insti%20inflows.PNG" alt="Institutional Inflows">
 </figure>
 <div class="content-caption">Institutional Inflows</div>
March Electronics Manufacturing Activity 

The <a href="https://sipmm.io/singapore-manufacturing-activity-picks-up-march-but-electronics-decline/">Purchasing Managers' Index (PMI)</a> for Singapore's key electronics sector edged higher in March to 49.8 from 49.5 in February, but remains in contraction – below the expansionary level of 50 – for the fifth consecutive month.

However, the overall manufacturing PMI – a key barometer of economic activity in the broader manufacturing industry – stood at 50.8 in March, up 0.4 percentage point from February. March’s reading marks the index’s 31st straight month of expansion.

The <a href="https://sipmm.edu.sg/">Singapore Institute of Purchasing and Materials Management</a> (SIPMM), which compiles the index by surveying around 150 industrial companies, attributed the stronger performance in March to faster growth in new orders, factory output and inventory levels.

Best-Performing IT Stocks in YTD

The 20 largest capitalised IT stocks on SGX have a combined market cap of nearly S$16 billion. In the 2019 year-to-date, they have averaged a total return of +21.7%, bringing their one-year and three-year total returns to -4.1% and +171.5% respectively.

These 20 largest IT stocks also averaged a price-earnings ratio of 13.6x, a Return on Equity (ROE) of 13.8% and a dividend indicated yield of 3.5%.

Among the 20, the five best performers in the YTD were: Hi-P International (+65.0%), TPV Technology (+46.2%), Innotek Ltd (+41.0%), Venture Corp (+37.9%), and CSE Global (+36.8%).

These five stocks – which are focused on the businesses of consumer electronics, electronics components, office automation, industrial machinery and electronics manufacturing services – have averaged a YTD total return of +45.4%, bringing their one-year and three-year total returns to +11.9% and +194.3% respectively.

The table below details the 20 largest IT stocks on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/E (x)
			</td>
			<td>
			Div Ind Yield (%)
			</td>
			<td>
			ROE (%)
			</td>
		</tr>
<tr>
<td>
			HI-P INTL
			</td>
			<td>
			H17
			</td>
			<td>
			1,170
			</td>
			<td>
			65.0
			</td>
			<td>
			-27.3
			</td>
			<td>
			343.2
			</td>
			<td>
			11.7
			</td>
			<td>
			3.4
			</td>
			<td>
			18.5
			</td>
		</tr>
<tr>
<td>
			TPV TECHNOLOGY
			</td>
			<td>
			T18
			</td>
			<td>
			669
			</td>
			<td>
			46.2
			</td>
			<td>
			45.5
			</td>
			<td>
			70.2
			</td>
			<td>
			23.0
			</td>
			<td>
			0.6
			</td>
			<td>
			1.4
			</td>
		</tr>
<tr>
<td>
			INNOTEK LTD
			</td>
			<td>
			M14
			</td>
			<td>
			134
			</td>
			<td>
			41.0
			</td>
			<td>
			41.2
			</td>
			<td>
			354.0
			</td>
			<td>
			6.6
			</td>
			<td>
			1.7
			</td>
			<td>
			14.3
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			5,542
			</td>
			<td>
			37.9
			</td>
			<td>
			-30.4
			</td>
			<td>
			164.7
			</td>
			<td>
			13.8
			</td>
			<td>
			3.6
			</td>
			<td>
			16.4
			</td>
		</tr>
<tr>
<td>
			CSE GLOBAL
			</td>
			<td>
			544
			</td>
			<td>
			264
			</td>
			<td>
			36.8
			</td>
			<td>
			30.5
			</td>
			<td>
			39.4
			</td>
			<td>
			13.3
			</td>
			<td>
			5.3
			</td>
			<td>
			11.7
			</td>
		</tr>
<tr>
<td>
			CHUAN HUP
			</td>
			<td>
			C33
			</td>
			<td>
			343
			</td>
			<td>
			34.5
			</td>
			<td>
			27.4
			</td>
			<td>
			55.5
			</td>
			<td>
			28.5
			</td>
			<td>
			2.7
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			AWX
			</td>
			<td>
			293
			</td>
			<td>
			30.9
			</td>
			<td>
			-36.4
			</td>
			<td>
			1414.9
			</td>
			<td>
			8.8
			</td>
			<td>
			3.2
			</td>
			<td>
			45.5
			</td>
		</tr>
<tr>
<td>
			UMS HOLDINGS
			</td>
			<td>
			558
			</td>
			<td>
			386
			</td>
			<td>
			26.3
			</td>
			<td>
			-33.9
			</td>
			<td>
			75.8
			</td>
			<td>
			9.0
			</td>
			<td>
			6.3
			</td>
			<td>
			19.4
			</td>
		</tr>
<tr>
<td>
			PCI LTD
			</td>
			<td>
			P19
			</td>
			<td>
			263
			</td>
			<td>
			24.5
			</td>
			<td>
			69.1
			</td>
			<td>
			271.3
			</td>
			<td>
			12.1
			</td>
			<td>
			2.3
			</td>
			<td>
			16.9
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			5CP
			</td>
			<td>
			1,349
			</td>
			<td>
			23.8
			</td>
			<td>
			0.1
			</td>
			<td>
			3.1
			</td>
			<td>
			21.2
			</td>
			<td>
			2.6
			</td>
			<td>
			29.1
			</td>
		</tr>
<tr>
<td>
			MEMTECH INTL
			</td>
			<td>
			BOL
			</td>
			<td>
			134
			</td>
			<td>
			22.3
			</td>
			<td>
			-34.6
			</td>
			<td>
			50.4
			</td>
			<td>
			10.4
			</td>
			<td>
			3.1
			</td>
			<td>
			7.6
			</td>
		</tr>
<tr>
<td>
			NERA TELECOM
			</td>
			<td>
			N01
			</td>
			<td>
			114
			</td>
			<td>
			16.7
			</td>
			<td>
			-10.8
			</td>
			<td>
			-15.9
			</td>
			<td>
			14.7
			</td>
			<td>
			7.9
			</td>
			<td>
			11.4
			</td>
		</tr>
<tr>
<td>
			CREATIVE TECH
			</td>
			<td>
			C76
			</td>
			<td>
			320
			</td>
			<td>
			12.1
			</td>
			<td>
			-25.7
			</td>
			<td>
			302.8
			</td>
			<td>
			19.8
			</td>
			<td>
			NA
			</td>
			<td>
			11.1
			</td>
		</tr>
<tr>
<td>
			ELEC &amp; ELTEK
			</td>
			<td>
			E16
			</td>
			<td>
			363
			</td>
			<td>
			9.5
			</td>
			<td>
			-3.8
			</td>
			<td>
			75.3
			</td>
			<td>
			11.0
			</td>
			<td>
			NA
			</td>
			<td>
			6.2
			</td>
		</tr>
<tr>
<td>
			NETLINK NBN TRUST
			</td>
			<td>
			CJLU
			</td>
			<td>
			3,254
			</td>
			<td>
			9.2
			</td>
			<td>
			10.6
			</td>
			<td>
			NA
			</td>
			<td>
			1.0*
			</td>
			<td>
			4.9
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			MICRO-MECHANICS
			</td>
			<td>
			5DD
			</td>
			<td>
			238
			</td>
			<td>
			4.3
			</td>
			<td>
			-9.4
			</td>
			<td>
			158.1
			</td>
			<td>
			15.1
			</td>
			<td>
			5.3
			</td>
			<td>
			27.1
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS LTD
			</td>
			<td>
			BN2
			</td>
			<td>
			295
			</td>
			<td>
			3.0
			</td>
			<td>
			-25.0
			</td>
			<td>
			82.2
			</td>
			<td>
			8.5
			</td>
			<td>
			5.2
			</td>
			<td>
			18.9
			</td>
		</tr>
<tr>
<td>
			MDR LTD
			</td>
			<td>
			A27
			</td>
			<td>
			130
			</td>
			<td>
			0.0
			</td>
			<td>
			-28.7
			</td>
			<td>
			-44.1
			</td>
			<td>
			20.0
			</td>
			<td>
			1.6
			</td>
			<td>
			2.7
			</td>
		</tr>
<tr>
<td>
			SUNNINGDALE TECH
			</td>
			<td>
			BHQ
			</td>
			<td>
			254
			</td>
			<td>
			-4.2
			</td>
			<td>
			-18.5
			</td>
			<td>
			21.4
			</td>
			<td>
			8.6
			</td>
			<td>
			5.6
			</td>
			<td>
			8.0
			</td>
		</tr>
<tr>
<td>
			GP INDUSTRIES
			</td>
			<td>
			G20
			</td>
			<td>
			283
			</td>
			<td>
			-4.9
			</td>
			<td>
			-21.7
			</td>
			<td>
			7.8
			</td>
			<td>
			14.3
			</td>
			<td>
			5.1
			</td>
			<td>
			5.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			21.7
			</td>
			<td>
			-4.1
			</td>
			<td>
			171.5
			</td>
			<td>
			13.6
			</td>
			<td>
			3.5
			</td>
			<td>
			13.8
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 18 April 2019)

*Note P/B ratio used instead of P/E for NetLink as more relevant for business trusts
</body></html>





In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million, the second-highest inflow after REITs (+S$242.6 million).  
	 
	
The 20 largest IT stocks on SGX have a combined market cap of nearly S$16 billion, and averaged a total return of +21.7% in the 2019 YTD. They also averaged a PE ratio of 13.6x, ROE of 13.8% and dividend indicated yield of 3.5%. 
	 
	Among the 20, the five best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%). The five have averaged a YTD total return of +45.4%, bringing their 1Y and 3Y total returns to +11.9% and +194.3% respectively.

Sector Draws Institutional Interest 

In the first quarter of 2019, Information Technology (IT) was the best-performing sector on SGX with a total return of 28.6%, reversing the -16.3% total return in calendar year 2018.

IT was also among the top net buy sectors for the January-March quarter, garnering total institutional inflow of S$100.5 million, according to SGX data. This comprised S$33.1 million, S$45.7 million, and S$21.7 million for the months of January, February and March 2019 respectively. IT received the second-highest inflows in the quarter after REITs, which garnered S$242.6 million.

      
    
    Institutional Inflows
March Electronics Manufacturing Activity 

The Purchasing Managers' Index (PMI) for Singapore's key electronics sector edged higher in March to 49.8 from 49.5 in February, but remains in contraction – below the expansionary level of 50 – for the fifth consecutive month.

However, the overall manufacturing PMI – a key barometer of economic activity in the broader manufacturing industry – stood at 50.8 in March, up 0.4 percentage point from February. March’s reading marks the index’s 31st straight month of expansion.

The Singapore Institute of Purchasing and Materials Management (SIPMM), which compiles the index by surveying around 150 industrial companies, attributed the stronger performance in March to faster growth in new orders, factory output and inventory levels.

Best-Performing IT Stocks in YTD

The 20 largest capitalised IT stocks on SGX have a combined market cap of nearly S$16 billion. In the 2019 year-to-date, they have averaged a total return of +21.7%, bringing their one-year and three-year total returns to -4.1% and +171.5% respectively.

These 20 largest IT stocks also averaged a price-earnings ratio of 13.6x, a Return on Equity (ROE) of 13.8% and a dividend indicated yield of 3.5%.

Among the 20, the five best performers in the YTD were: Hi-P International (+65.0%), TPV Technology (+46.2%), Innotek Ltd (+41.0%), Venture Corp (+37.9%), and CSE Global (+36.8%).

These five stocks – which are focused on the businesses of consumer electronics, electronics components, office automation, industrial machinery and electronics manufacturing services – have averaged a YTD total return of +45.4%, bringing their one-year and three-year total returns to +11.9% and +194.3% respectively.

The table below details the 20 largest IT stocks on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/E (x)
			
			
			Div Ind Yield (%)
			
			
			ROE (%)
			
		


			HI-P INTL
			
			
			H17
			
			
			1,170
			
			
			65.0
			
			
			-27.3
			
			
			343.2
			
			
			11.7
			
			
			3.4
			
			
			18.5
			
		


			TPV TECHNOLOGY
			
			
			T18
			
			
			669
			
			
			46.2
			
			
			45.5
			
			
			70.2
			
			
			23.0
			
			
			0.6
			
			
			1.4
			
		


			INNOTEK LTD
			
			
			M14
			
			
			134
			
			
			41.0
			
			
			41.2
			
			
			354.0
			
			
			6.6
			
			
			1.7
			
			
			14.3
			
		


			VENTURE CORP
			
			
			V03
			
			
			5,542
			
			
			37.9
			
			
			-30.4
			
			
			164.7
			
			
			13.8
			
			
			3.6
			
			
			16.4
			
		


			CSE GLOBAL
			
			
			544
			
			
			264
			
			
			36.8
			
			
			30.5
			
			
			39.4
			
			
			13.3
			
			
			5.3
			
			
			11.7
			
		


			CHUAN HUP
			
			
			C33
			
			
			343
			
			
			34.5
			
			
			27.4
			
			
			55.5
			
			
			28.5
			
			
			2.7
			
			
			3.1
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			293
			
			
			30.9
			
			
			-36.4
			
			
			1414.9
			
			
			8.8
			
			
			3.2
			
			
			45.5
			
		


			UMS HOLDINGS
			
			
			558
			
			
			386
			
			
			26.3
			
			
			-33.9
			
			
			75.8
			
			
			9.0
			
			
			6.3
			
			
			19.4
			
		


			PCI LTD
			
			
			P19
			
			
			263
			
			
			24.5
			
			
			69.1
			
			
			271.3
			
			
			12.1
			
			
			2.3
			
			
			16.9
			
		


			SILVERLAKE AXIS
			
			
			5CP
			
			
			1,349
			
			
			23.8
			
			
			0.1
			
			
			3.1
			
			
			21.2
			
			
			2.6
			
			
			29.1
			
		


			MEMTECH INTL
			
			
			BOL
			
			
			134
			
			
			22.3
			
			
			-34.6
			
			
			50.4
			
			
			10.4
			
			
			3.1
			
			
			7.6
			
		


			NERA TELECOM
			
			
			N01
			
			
			114
			
			
			16.7
			
			
			-10.8
			
			
			-15.9
			
			
			14.7
			
			
			7.9
			
			
			11.4
			
		


			CREATIVE TECH
			
			
			C76
			
			
			320
			
			
			12.1
			
			
			-25.7
			
			
			302.8
			
			
			19.8
			
			
			NA
			
			
			11.1
			
		


			ELEC &amp; ELTEK
			
			
			E16
			
			
			363
			
			
			9.5
			
			
			-3.8
			
			
			75.3
			
			
			11.0
			
			
			NA
			
			
			6.2
			
		


			NETLINK NBN TRUST
			
			
			CJLU
			
			
			3,254
			
			
			9.2
			
			
			10.6
			
			
			NA
			
			
			1.0*
			
			
			4.9
			
			
			2.4
			
		


			MICRO-MECHANICS
			
			
			5DD
			
			
			238
			
			
			4.3
			
			
			-9.4
			
			
			158.1
			
			
			15.1
			
			
			5.3
			
			
			27.1
			
		


			VALUETRONICS LTD
			
			
			BN2
			
			
			295
			
			
			3.0
			
			
			-25.0
			
			
			82.2
			
			
			8.5
			
			
			5.2
			
			
			18.9
			
		


			MDR LTD
			
			
			A27
			
			
			130
			
			
			0.0
			
			
			-28.7
			
			
			-44.1
			
			
			20.0
			
			
			1.6
			
			
			2.7
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			254
			
			
			-4.2
			
			
			-18.5
			
			
			21.4
			
			
			8.6
			
			
			5.6
			
			
			8.0
			
		


			GP INDUSTRIES
			
			
			G20
			
			
			283
			
			
			-4.9
			
			
			-21.7
			
			
			7.8
			
			
			14.3
			
			
			5.1
			
			
			5.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			21.7
			
			
			-4.1
			
			
			171.5
			
			
			13.6
			
			
			3.5
			
			
			13.8
			
		

Source: Bloomberg &amp; StockFacts (data as of 18 April 2019)

*Note P/B ratio used instead of P/E for NetLink as more relevant for business trusts



Five Largest, Best-Performing IT Stocks Averaged 45% YTD Total Return





On 9 Apr 2019, SPH kick-started the latest quarterly reporting season with the release of its fiscal second quarter results ended 28 February 2019. 
	 
	
Today, CapitaLand Commercial Trust and Keppel Corp are scheduled to release their financial results for the first quarter of 2019. The remaining constituents of the benchmark STI are expected to report their latest quarterly or full-year results in the coming weeks. 
	 
	The STI has generated total returns of -6.5% and 9.6%  in 2018 and in the 2019 YTD respectively. With a combined market capitalisation of S$535 billion, the 30 constituents of the index have averaged Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios of 18.9x and 1.9x respectively.

SPH kick-started the latest quarterly reporting season with the release of its fiscal second quarter results ended 28 February 2019, while CapitaLand Commercial Trust and Keppel Corp will release their first quarter financial results today. The rest of the constituents of the benchmark Straits Times Index (STI) are expected to report their latest quarter or full-year results in the coming weeks.

Investors can subscribe to the weekly Economic Calendar (click here) for confirmed schedules of other STI component stocks closer to the date.

The table below details the confirmed, estimated and released dates of earnings releases by STI constituent stocks, sorted by date.




			Name
			
			
			SGX Code
			
			
			Date
			
			
			Date type
			
			
			Period
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			9-Apr-19
			
			
			Reported
			
			
			Q2
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			18-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			Keppel Corp
			
			
			BN4
			
			
			18-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			24-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			Singapore Exchange
			
			
			S68
			
			
			25-Apr-19
			
			
			Estimated
			
			
			Q3
			
		


			Venture Corp
			
			
			V03
			
			
			25-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			Yangzijiang Shipbuilding
			
			
			BS6
			
			
			26-Apr-19
			
			
			Estimated
			
			
			Q1
			
		


			Hutchison Port Holdings Trust
			
			
			NS8U
			
			
			26-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			26-Apr-19
			
			
			Estimated
			
			
			Q1
			
		


			Ascendas REIT
			
			
			A17U
			
			
			29-Apr-19
			
			
			Confirmed
			
			
			FY18
			
		


			DBS
			
			
			D05
			
			
			29-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			CapitaLand
			
			
			C31
			
			
			30-Apr-19
			
			
			Confirmed
			
			
			Q1
			
		


			United Overseas Bank
			
			
			U11
			
			
			3-May-19
			
			
			Confirmed
			
			
			Q1
			
		


			UOL Group
			
			
			U14
			
			
			10-May-19
			
			
			Estimated
			
			
			Q1
			
		


			City Developments
			
			
			C09
			
			
			10-May-19
			
			
			Estimated
			
			
			Q1
			
		


			Genting Singapore
			
			
			G13
			
			
			10-May-19
			
			
			Estimated
			
			
			Q1
			
		


			Wilmar International
			
			
			F34
			
			
			10-May-19
			
			
			Estimated
			
			
			Q1
			
		


			Singapore Technologies Engineering
			
			
			S63
			
			
			10-May-19
			
			
			Estimated
			
			
			Q1
			
		


			Oversea-Chinese Banking Corp
			
			
			O39
			
			
			10-May-19
			
			
			Confirmed
			
			
			Q1
			
		


			ComfortDelGro
			
			
			C52
			
			
			14-May-19
			
			
			Confirmed
			
			
			Q1
			
		


			Golden Agri-Resources
			
			
			E5H
			
			
			15-May-19
			
			
			Estimated
			
			
			Q1
			
		


			Sembcorp Industries
			
			
			U96
			
			
			15-May-19
			
			
			Confirmed
			
			
			Q1
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			15-May-19
			
			
			Estimated
			
			
			Q2
			
		


			Singapore Telecommunications
			
			
			Z74
			
			
			17-May-19
			
			
			Estimated
			
			
			FY18
			
		


			Singapore Airlines
			
			
			C6L
			
			
			17-May-19
			
			
			Estimated
			
			
			FY18
			
		


			SATS
			
			
			S58
			
			
			30-May-19
			
			
			Estimated
			
			
			FY18
			
		


			Hongkong Land*
			
			
			H78
			
			
			26-Jul-19
			
			
			Estimated
			
			
			S1
			
		


			Dairy Farm International*
			
			
			D01
			
			
			1-Aug-19
			
			
			Confirmed
			
			
			S1
			
		


			Jardine Matheson*
			
			
			J36
			
			
			2-Aug-19
			
			
			Confirmed
			
			
			S1
			
		


			Jardine Strategic*
			
			
			J37
			
			
			2-Aug-19
			
			
			Confirmed
			
			
			S1
			
		

Source: Bloomberg &amp; StockFacts as of 17 Apr 2019

*These stocks report earnings on a semi-annual basis

Performance of the STI Constituents

The STI has generated a total return of 9.6% in the 2019 year-to-date, after registering a total return of -6.5% in 2018. The 30 constituents of the Index have a combined market capitalisation of over S$535 billion and have averaged Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios of 18.9x and 1.9x respectively. The STI also has a dividend yield of 4%.

The table below details the comparative performances of the 30 constituents of the STI, sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			DBS
			
			
			D05
			
			
			69,483
			
			
			16.0
			
			
			1.6
			
			
			98.7
			
		


			Singapore Telecommunications
			
			
			Z74
			
			
			51,272
			
			
			6.8
			
			
			-1.8
			
			
			-4.9
			
		


			Oversea-Chinese Banking Corp
			
			
			O39
			
			
			49,626
			
			
			4.1
			
			
			-8.5
			
			
			40.3
			
		


			Jardine Matheson^
			
			
			J36
			
			
			46,635
			
			
			-7.0
			
			
			7.3
			
			
			17.5
			
		


			United Overseas Bank
			
			
			U11
			
			
			44,408
			
			
			9.4
			
			
			-1.5
			
			
			52.6
			
		


			Jardine Strategic^
			
			
			J37
			
			
			40,928
			
			
			1.8
			
			
			-1.3
			
			
			23.5
			
		


			Wilmar International
			
			
			F34
			
			
			23,034
			
			
			18.3
			
			
			21.0
			
			
			13.9
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			20,216
			
			
			35.5
			
			
			4.2
			
			
			26.5
			
		


			Hongkong Land^
			
			
			H78
			
			
			16,752
			
			
			15.0
			
			
			3.9
			
			
			22.6
			
		


			CapitaLand
			
			
			C31
			
			
			15,239
			
			
			18.3
			
			
			4.1
			
			
			28.3
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			13,628
			
			
			1.8
			
			
			6.4
			
			
			-8.6
			
		


			Singapore Technologies Engineering
			
			
			S63
			
			
			12,018
			
			
			10.6
			
			
			12.0
			
			
			31.1
			
		


			Keppel Corp
			
			
			BN4
			
			
			12,010
			
			
			14.4
			
			
			-9.6
			
			
			24.7
			
		


			Singapore Airlines
			
			
			C6L
			
			
			11,659
			
			
			4.9
			
			
			-4.9
			
			
			-4.1
			
		


			Genting Singapore
			
			
			G13
			
			
			11,635
			
			
			-1.5
			
			
			-16.8
			
			
			23.1
			
		


			Dairy Farm International^
			
			
			D01
			
			
			10,673
			
			
			-11.2
			
			
			-2.0
			
			
			32.1
			
		


			Ascendas REIT
			
			
			A17U
			
			
			9,177
			
			
			14.4
			
			
			16.9
			
			
			38.4
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			8,704
			
			
			3.8
			
			
			17.6
			
			
			26.2
			
		


			City Developments
			
			
			C09
			
			
			8,452
			
			
			14.0
			
			
			-25.2
			
			
			10.5
			
		


			Singapore Exchange
			
			
			S68
			
			
			7,756
			
			
			2.5
			
			
			2.3
			
			
			3.4
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			7,386
			
			
			12.9
			
			
			11.9
			
			
			62.3
			
		


			Yangzijiang Shipbuilding
			
			
			BS6
			
			
			6,353
			
			
			27.2
			
			
			38.1
			
			
			74.3
			
		


			UOL Group
			
			
			U14
			
			
			6,265
			
			
			25.7
			
			
			-8.3
			
			
			37.2
			
		


			SATS
			
			
			S58
			
			
			5,850
			
			
			12.7
			
			
			3.2
			
			
			43.6
			
		


			ComfortDelGro
			
			
			C52
			
			
			5,652
			
			
			21.9
			
			
			25.8
			
			
			1.9
			
		


			Venture Corp
			
			
			V03
			
			
			5,573
			
			
			37.8
			
			
			-30.2
			
			
			165.8
			
		


			Sembcorp Industries
			
			
			U96
			
			
			4,861
			
			
			7.5
			
			
			-10.1
			
			
			-3.9
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			3,915
			
			
			4.7
			
			
			-0.6
			
			
			-30.5
			
		


			Golden Agri-Resources
			
			
			E5H
			
			
			3,820
			
			
			24.5
			
			
			-11.3
			
			
			-23.6
			
		


			Hutchison Port Holdings Trust^
			
			
			NS8U
			
			
			2,047
			
			
			2.4
			
			
			-20.8
			
			
			-38.7
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.6
			
			
			0.8
			
			
			26.1
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			P/E (x)
			
			
			P/B (x)
			
			
			Div Ind Yld (%)
			
		


			DBS
			
			
			D05
			
			
			69,483
			
			
			12.8
			
			
			1.3
			
			
			4.4
			
		


			Singapore Telecommunications
			
			
			Z74
			
			
			51,272
			
			
			16.5
			
			
			2.0
			
			
			5.6
			
		


			Oversea-Chinese Banking Corp
			
			
			O39
			
			
			49,626
			
			
			11.0
			
			
			1.3
			
			
			3.7
			
		


			Jardine Matheson^
			
			
			J36
			
			
			46,635
			
			
			13.8
			
			
			0.9
			
			
			2.7
			
		


			United Overseas Bank
			
			
			U11
			
			
			44,408
			
			
			11.5
			
			
			1.2
			
			
			3.7
			
		


			Jardine Strategic^
			
			
			J37
			
			
			40,928
			
			
			11.5
			
			
			1.4
			
			
			0.9
			
		


			Wilmar International
			
			
			F34
			
			
			23,034
			
			
			15.0
			
			
			0.9
			
			
			2.9
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			20,216
			
			
			20.9
			
			
			4.3
			
			
			2.1
			
		


			Hongkong Land^
			
			
			H78
			
			
			16,752
			
			
			6.8
			
			
			0.5
			
			
			3.1
			
		


			CapitaLand
			
			
			C31
			
			
			15,239
			
			
			9.5
			
			
			0.8
			
			
			3.3
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			13,628
			
			
			25.0
			
			
			1.9
			
			
			3.3
			
		


			Singapore Technologies Engineering
			
			
			S63
			
			
			12,018
			
			
			24.5
			
			
			4.6
			
			
			3.9
			
		


			Keppel Corp
			
			
			BN4
			
			
			12,010
			
			
			13.1
			
			
			1.2
			
			
			3.7
			
		


			Singapore Airlines
			
			
			C6L
			
			
			11,659
			
			
			17.7
			
			
			0.9
			
			
			3.9
			
		


			Genting Singapore
			
			
			G13
			
			
			11,635
			
			
			15.3
			
			
			2.1
			
			
			3.7
			
		


			Dairy Farm International^
			
			
			D01
			
			
			10,673
			
			
			116.0
			
			
			6.3
			
			
			2.7
			
		


			Ascendas REIT
			
			
			A17U
			
			
			9,177
			
			
			18.1
			
			
			1.3
			
			
			4.5
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			8,704
			
			
			12.3
			
			
			1.1
			
			
			4.2
			
		


			City Developments
			
			
			C09
			
			
			8,452
			
			
			16.2
			
			
			1.2
			
			
			1.5
			
		


			Singapore Exchange
			
			
			S68
			
			
			7,756
			
			
			21.0
			
			
			8.2
			
			
			4.8
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			7,386
			
			
			13.6
			
			
			1.1
			
			
			3.8
			
		


			Yangzijiang Shipbuilding
			
			
			BS6
			
			
			6,353
			
			
			8.7
			
			
			1.1
			
			
			2.8
			
		


			UOL Group
			
			
			U14
			
			
			6,265
			
			
			15.1
			
			
			0.8
			
			
			2.3
			
		


			SATS
			
			
			S58
			
			
			5,850
			
			
			22.2
			
			
			3.7
			
			
			3.4
			
		


			ComfortDelGro
			
			
			C52
			
			
			5,652
			
			
			18.7
			
			
			1.6
			
			
			4.0
			
		


			Venture Corp
			
			
			V03
			
			
			5,573
			
			
			13.8
			
			
			2.7
			
			
			3.6
			
		


			Sembcorp Industries
			
			
			U96
			
			
			4,861
			
			
			14.1
			
			
			0.8
			
			
			1.5
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			3,915
			
			
			14.4
			
			
			1.2
			
			
			3.5
			
		


			Golden Agri-Resources
			
			
			E5H
			
			
			3,820
			
			
			-
			
			
			0.9
			
			
			1.9
			
		


			Hutchison Port Holdings Trust^
			
			
			NS8U
			
			
			2,047
			
			
			-
			
			
			0.7
			
			
			10.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			18.9
			
			
			1.9
			
			
			3.5
			
		

Source: Bloomberg &amp; StockFacts (17 April 2019)

^These stocks are traded in USD, with their SGD equivalents shown in table.



March Quarter Earnings Schedule for STI Constituents

Singapore

GP Industries Limited develops, manufactures, and markets electronics, batteries and electrical installation products.  The Company also manufactures and markets wire harness and cables, automotive electronics, specialty electronics, parts and components, and loudspeakers.

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.

Multi-Chem Limited provides printed circuit boards (PCB) manufacturing services, mainly precision drilling services to PCB fabricators.  The Company also distributes specialty chemicals and other related products and equipment to PCB fabricators.

Chuan Hup Holdings Limited is an investment holding company with a diversified portfolio of core investments in industries in relation to electronics manufacturing services, offshore support services to the oil and gas industry and property development.

Broadway Industrial Group Limited manufactures and sells foams, pulps, thermo-formed packaging products.  The Company also manufactures and distributes precision machined components.

SUTL Enterprise develops and operates marinas, and also provides marina consultancy, marina development and yacht chartering services. It owns the prestigious ONE°15 Marina at Sentosa Cove in Singapore and operates ONE15 Luxury Yachting, which offers yacht chartering services at the club.

Willas-Array distributes active and passive electronics components for use in the audio and video, telecommunications, industrial, consumer and computer segments.  The Company also provides value added services such as technical advice, application and development support and failure analysis.

Serial System Limited trades computer peripherals and components and provides board level integration services and solutions.  The Company also designs, develops, and manufactures consumer digital appliances, integrated circuits, and related electronic components.

PNE Industries Limited manufactures and trades electronic and electrical appliances. The Company also sells emergency lighting and light fittings under the PNE brand name.

TeleChoice International Limited provides mobile network engineering services and solutions.  The Company also imports, markets, and distributes telecommunication equipment and electronic products.  TeleChoice provides after sales support, public mobile data and location tracking services, radio paging services, and international direct dial services.

Cowell e Holdings Inc, is a holding company, which operates electronics and optical components manufacturing entities. The products include camera modules, optical lens and prisms.

OSI Systems, Inc. produces medical monitoring and anesthesia systems; security and inspection systems; and lasers, optics, and optoelectronic components.  The Company's products include blood pressure monitors, anesthesia machines and hemoglobin saturation monitors; systems for inspecting baggage, people, and vehicles; and lasers, lenses, prisms, and microelectronic components.

IsuPetasys Co., Ltd. manufactures printed circuit boards (PCBs) specializing in high multilayer PCBs.  The Company exports its products to Cisco Systems, Brocade Communications Systems, and Sun Microsystems in the United States.

Nan Ya Printed Circuit Board Corporation manufactures and markets printed circuit boards (PCBs) and integrated circuit (IC) substrates.

Zhejiang Crystal-Optech Co., Ltd. researches, manufactures and markets photoelectric parts. The key products are OLPF, IR Cut Filter, IR Filter Housing Assembly, Thermal Diffusion Panel and Cover Glass.

Huagong Tech Co., Ltd. manufactures laser equipment, laser false-proof products, sensitive electronic components, optical telecommunication products, and biopharmaceuticals.  The Company also develops computer software and provides computer system integration services.

Vishay Intertechnology, Inc. manufactures a broad line of passive and discreet active electronic components, particularly resistors, capacitors, inductors, diodes, and transistors.  The Company's products are utilized in computers, telephones, televisions, automobiles, household appliance, medical equipment, satellites, and military and aerospace equipment.

Sinbon Electronics Co., Ltd. markets cable, connectors, and modems.  The Company exports its products mainly to other Asian countries, America, and Europe.

Shenzhen Sunlord Electronics Co.,Ltd. manufactures and markets chip passive components including chip inductor, chip ferrite bead, chip varistor, NTC thermistor and chip common mode choke coil.

Shenzhen Sunlord Electronics Co, Ltd. (002138 CH)

Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. manufactures and markets electronic components and equipment.  The Company's products include capacitors, resistors, electronic materials, integrated circuits, and other related products.

Guangdong Fenghua Adv. Tech. (Hldg) Co (000636 CH)

Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide.  The Company also provides manufacturing, design, engineering, customization, and logistic services.  Venture Corporation trades and manufactures electronics and computer-related products, develops and markets color imaging products for label printing.

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