Singapore

• The review period for the MSCI May SAIR starts on Monday, 18 April and will run for 10 trading days, though MSCI usually selects one of the first five days.
• GoTo (GOTO IJ) listed during the last week and could be a Fast Entry to the IDX indices. The Yangzijiang Shipbuilding (YZJSGD SP) spinoff has index implications.
• Relatively large inflows into China focused ETFs during the week, while there were outflows from Korea focused ETFs.

• Shares in Singapore Press Holdings (SPH SP) stopped trading a week ago. The election period to choose cash or cash and SPH REIT shares started yesterday.
• The OBVIOUS choice is to take the cash. But you have ten days to see SPH REIT gain 2% to change your mind. 
• I note Keppel wanted SPH back when SPHREIT was worth a fair bit less, but at that time they didn’t want SPHREIT when an MGO would have been cheaper.

• WT Microelectronics (3036 TT) has entered into an agreement to acquire electronic component distributor  Excelpoint Technology (EXLP SP) by way of a Scheme at a cash consideration of S$1.93/share.
• This is an Offer premium 7.8% to last close but a 21.4% premium prior to the announcement Excelpoint was in discussions with a third party involving the company’s shares.
• Albert Phuay (founder and CEO) will reinvest part of his cash consideration under the Scheme in 20% equity of the Acquiring Entity, with the balance 80% stake owned by WT. 

• WT Microelectronics (3036 TT) will offer S$1.93 in cash and a final FY2021 dividend (ex-div date: 28 April, payment date: 13 May) of S$0.088 for a total consideration of S$2.018.
• The key scheme conditions are shareholder approval and Court approval. The scheme meeting will be held sometime in late June to early July.
• The offer price represents a 10-year share price high. At the last close of S$1.96, the gross and annualised spread for a mid-Sep effective date is 3.0% and 7.1%, respectively.

• Yangzijiang Shipbuilding (YZJSGD SP) is looking to spin-off its investment segment, Yangzijiang Financial Holding Ltd (YZJFH). The EGM is on 18 April and the book closure is 25 April.
• There will be no flows from the MSCI and FTSE trackers given that both stocks should continue to remain members of the MSCI Small Cap and FTSE All-World indices.
• There will be a deletion from the FTSE Straits Times Index (STI) (STI INDEX) though, where either YZJSGD, YZJFH or Comfortdelgro Corp (CD SP) will be deleted from the index.

In our next Webinar, Analyst Kyle Rudden continues his series on ESG, in collaboration with SGX (SGX SP). Part 7 in the series explores the current state of Sustainability/ESG reporting, going through general and niche report frameworks like GRI, SASB, TCFD, and GRESB, and reporting-related initiatives such as those started by stock exchanges. Kyle will also outline the importance of global standardisation and look into the future of reporting.

The webinar will be hosted on Wednesday, 13 April 2022, 17:00 SGT/HKT.

• Yangzijiang Shipbuilding (YZJSGD SP) aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.
• YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.
• This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.

• Yangzijiang Shipbuilding (YZJSGD SP)‘s EGM will be held on 18 April to vote on the proposed spin-off and listing of the company’s investment segment, YZJ Financial Holdings Ltd (YZJFH).
• This spin-off involves an in-specie distribution of YSJFH, with a possible listing by month-end.
• YZJ’s shares have had a solid run since the initial restructuring announcement last November. There looks to be still more juice left in the trade. 

• Shopee India will lay off over 300 staff after it decided to shut down operations in the South Asian country.
• The news came as a shocker to its employees, who were unaware until Monday that the company was wrapping up its business in India, sources told Tech in Asia.
• While the ecommerce firm’s India unit had about 300 employees in December 2021, that number has since gone up to 350 workers, an employee told Tech in Asia on condition of anonymity.

• Ten days after Olam Group (OLG SP)‘s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).
• The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.
• The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI. 

• Sea Ltd’s (SE US) decision to exit India came as a surprise but looks like a prudent move given the heightened risk for Shopee there post the FreeFire ban.
• The move will allow Sea Ltd (SE US) to focus its attention and resources on a more profitable markets such as Brazil, which is already seen as a core market.
• Sea Ltd’s growth model is intact with losses in its core e-commerce markets declining fast on a per order basis. Valuations are less challenging on 3.4x FY2023E EV/Sales.

• We believe Kimly is a yummy, undervalued re-opening, F&B play in Singapore. 
• With Singapore increasingly reopening for travel and reducing various COVID related restrictions, this could have a positive impact on the company’s F&B business. 
• As such, we have a positive view of Kimly and we believe this stock is well poised to outperform the market in the next 6-12 months. 

• Singapore Exchange (SGX SP) and OCBC (OCBC SP) recently launched a new sustainability/ESG index – the IEdge-OCBC Singapore Low Carbon Select 50 Capped Index (SGLC50CN INDEX).
• Whilst country-Specific carbon indices are often too narrow for index-linked products, they are invaluable as carbon performance benchmarks for climate change mitigation and planning.
• The iEdge-OCBC index, along with the broad-based iEdge Singapore Low Carbon Index (SGLCN INDEX), consistently outperformed (backcast) comparable indices, often with lower volatility.

• Shopee, the e-commerce arm of Singapore-based Sea Ltd (SE US), announced today that they are shutting down operations in India due to global market uncertainties.
• We feel this could turn even the most hopeful followers of Sea Ltd as they must be running out of angles to justify their bullish calls on the company.
• We think, Sea Ltd shares could easily fall below the pre-COVID level once it starts losing these ardent followers.