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.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

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Singapore’s five largest capitalised utility stocks are Keppel Infrastructure Trust, CITIC Envirotech, China Everbright Water, China Jinjiang Environment and SIIC Environment Holdings, with a combined market capitalisation of S$5.7 billion. 
	 </li>
	<li>
All five stocks have made a firm start to the 2019 YTD, with the average total return of the five stocks at 17% and the rebound following on from an average decline of 31% in 2018. The Utilities Sector led market cap weighted sector performances in Dec 2018 &amp; Jan 2019.    
	 </li>
	<li>
The most recent stock of the Utilities Sector to list was Union Gas Holdings, which has gained 6% in the 2019 YTD following a comparative defensive total return of 2% in 2018. The company has 40+ years of operating track record in Retail LPG, CNG and Diesel. 
	 </li>
</ul>
The Utilities Sector is typically made up of stocks that provide gas, electric or water with population growth the underlying driver of demand for these services.  While the Utilities Sector has traditionally been labeled as more defensive than cyclical, comparisons of regional Utility Indices to the broader Parent Indices show more variability in the earnings that utility stocks have generated with shareholder investments.

Because of their strategic significance, utility services have traditionally been provided by the public sector. However, ballooning population growth, and fiscal constraints, have resulted in more of the worlds’ utility services to spring from the private sector, which face similar macroeconomic headwinds as other key industries.

Singapore’s five largest capitalised Utility stocks are Keppel Infrastructure Trust, CITIC Envirotech, China Everbright Water, China Jinjiang Environment and SIIC Environment Holdings. The five stocks have a combined market capitalisation of S$5.7 billion. Together the five stocks were recipient of net institutional inflow of S$1.9 million for the six weeks ending 7 February. 

 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap S$M
			</td>
			<td>
			2019 YTD %
			</td>
			<td>
			2018 Total Return %
			</td>
			<td>
			Dividend Yield
			</td>
			<td>
			P/B
			</td>
			<td>
			Net Institutional Flow YTD S$M
			</td>
		</tr>
<tr>
<td>
			Keppel Infrastructure Trust
			</td>
			<td>
			A7RU
			</td>
			<td>
			1948
			</td>
			<td>
			6.0
			</td>
			<td>
			-9.5
			</td>
			<td>
			7.4%
			</td>
			<td>
			1.85
			</td>
			<td>
			6.1
			</td>
		</tr>
<tr>
<td>
			CITIC Envirotech 
			</td>
			<td>
			CEE
			</td>
			<td>
			1078
			</td>
			<td>
			17.1
			</td>
			<td>
			-47.5
			</td>
			<td>
			3.4%
			</td>
			<td>
			0.62
			</td>
			<td>
			-4.3
			</td>
		</tr>
<tr>
<td>
			China Everbright Water 
			</td>
			<td>
			U9E
			</td>
			<td>
			950
			</td>
			<td>
			18.3
			</td>
			<td>
			-29.3
			</td>
			<td>
			1.4%
			</td>
			<td>
			0.69
			</td>
			<td>
			-0.7
			</td>
		</tr>
<tr>
<td>
			China Jinjiang Environment 
			</td>
			<td>
			BWM
			</td>
			<td>
			844
			</td>
			<td>
			27.2
			</td>
			<td>
			-25.9
			</td>
			<td>
			8.5%
			</td>
			<td>
			0.80
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			SIIC Environment Holdings
			</td>
			<td>
			BHK
			</td>
			<td>
			834
			</td>
			<td>
			16.4
			</td>
			<td>
			-45.0
			</td>
			<td>
			3.1%
			</td>
			<td>
			0.55
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			17.0
			</td>
			<td>
			-31.4
			</td>
			<td>
			4.7%
			</td>
			<td>
			0.90
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Bloomberg, Thomson Reuters (Data as of 7 February 2019)

Keppel Infrastructure Trust is the largest capitalised stock of the five utility stocks tabled above with its portfolio of highly strategic and core assets diversified across Energy (28%), Distribution &amp; Network (53%) and Water &amp; Waste (19%).

The two best performing stocks of the above five in the 2019 year through to 7 February were China Jinjiang Environment and China Everbright Water:

<ul>
<li>
China Jinjiang Environment generated a 27.2% total return in the 2019 year to 6 February, reversing its 25.9% loss in 2018.  The pioneer and leading waste-to-energy operator in China's waste incineration power generation industry listed on the SGX Mainboard in August 2016. As of its FY17 (ended 31 December) Jinjiang Environment operated 20 waste-to-energy facilities in 12 provinces, autonomous regions and centrally-administered municipalities in China, and had an additional three WTE facilities under construction as well as 21 WTE projects in the preparatory stage. The estimated total installed waste treatment capacity of all the WTE facilities, when fully completed and acquired, would be approximately 59,261 tons/day. Click <a href="http://en.jinjiang-env.com/">here</a> for more. 
	 </li>
	<li>
China Everbright Water is principally engaged in water environment management, sponge city construction, river-basin ecological restoration, water supply, waste water treatment, reusable water, waste water source heat pump, sludge treatment and disposal, research and development of water technologies, and engineering and construction, etc. The Company’s geographical footprint spans across East, Central, South, North, Northeast and Northwest China, including Beijing, Jiangsu, Shandong, Shaanxi, Henan, Hubei, Guangxi Zhuang Autonomous Region, Liaoning and Inner Mongolia Autonomous Region. Click <a href="http://www.ebwater.com/html/about.php">here</a> for more. Back in December 2014, Everbright International spun off and injected its water business into SGX-listed HanKore Environment Tech Group via a reverse takeover and renamed it China Everbright Water.</li>
</ul>
The early year 17.1% gains of CITIC Envirotech have been on increased volume. For the period 28 December 2018 to 7 February 2019, the average daily trading volumes of CITIC Envirotech was more than four times higher than its preceding 12 month average daily volume.   

The most recently listed stock of the Utilities Sector is Union Gas Holdings which listed on Catalist in July 2017. Its share price has gained 6.3% in the 2019 year through to 7 February following a comparative defensive total return of 1.7% in 2018. Union Gas Holdings is an established provider of fuel products in Singapore with over 40 years of operating track record in the business of Retail LPG, CNG and Diesel.
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Singapore’s five largest capitalised utility stocks are Keppel Infrastructure Trust, CITIC Envirotech, China Everbright Water, China Jinjiang Environment and SIIC Environment Holdings, with a combined market capitalisation of S$5.7 billion. 
	 
	
All five stocks have made a firm start to the 2019 YTD, with the average total return of the five stocks at 17% and the rebound following on from an average decline of 31% in 2018. The Utilities Sector led market cap weighted sector performances in Dec 2018 &amp; Jan 2019.     
	 
	
The most recent stock of the Utilities Sector to list was Union Gas Holdings, which has gained 6% in the 2019 YTD following a comparative defensive total return of 2% in 2018. The company has 40+ years of operating track record in Retail LPG, CNG and Diesel. 
	 

The Utilities Sector is typically made up of stocks that provide gas, electric or water with population growth the underlying driver of demand for these services.  While the Utilities Sector has traditionally been labeled as more defensive than cyclical, comparisons of regional Utility Indices to the broader Parent Indices show more variability in the earnings that utility stocks have generated with shareholder investments.

Because of their strategic significance, utility services have traditionally been provided by the public sector. However, ballooning population growth, and fiscal constraints, have resulted in more of the worlds’ utility services to spring from the private sector, which face similar macroeconomic headwinds as other key industries.

Singapore’s five largest capitalised Utility stocks are Keppel Infrastructure Trust, CITIC Envirotech, China Everbright Water, China Jinjiang Environment and SIIC Environment Holdings. The five stocks have a combined market capitalisation of S$5.7 billion. Together the five stocks were recipient of net institutional inflow of S$1.9 million for the six weeks ending 7 February. 

 




			Name
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			2019 YTD %
			
			
			2018 Total Return %
			
			
			Dividend Yield
			
			
			P/B
			
			
			Net Institutional Flow YTD S$M
			
		


			Keppel Infrastructure Trust
			
			
			A7RU
			
			
			1948
			
			
			6.0
			
			
			-9.5
			
			
			7.4%
			
			
			1.85
			
			
			6.1
			
		


			CITIC Envirotech 
			
			
			CEE
			
			
			1078
			
			
			17.1
			
			
			-47.5
			
			
			3.4%
			
			
			0.62
			
			
			-4.3
			
		


			China Everbright Water 
			
			
			U9E
			
			
			950
			
			
			18.3
			
			
			-29.3
			
			
			1.4%
			
			
			0.69
			
			
			-0.7
			
		


			China Jinjiang Environment 
			
			
			BWM
			
			
			844
			
			
			27.2
			
			
			-25.9
			
			
			8.5%
			
			
			0.80
			
			
			0.5
			
		


			SIIC Environment Holdings
			
			
			BHK
			
			
			834
			
			
			16.4
			
			
			-45.0
			
			
			3.1%
			
			
			0.55
			
			
			0.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			17.0
			
			
			-31.4
			
			
			4.7%
			
			
			0.90
			
			
			 
			
		

Source: SGX StockFacts, Bloomberg, Thomson Reuters (Data as of 7 February 2019)

Keppel Infrastructure Trust is the largest capitalised stock of the five utility stocks tabled above with its portfolio of highly strategic and core assets diversified across Energy (28%), Distribution &amp; Network (53%) and Water &amp; Waste (19%).

The two best performing stocks of the above five in the 2019 year through to 7 February were China Jinjiang Environment and China Everbright Water:



China Jinjiang Environment generated a 27.2% total return in the 2019 year to 6 February, reversing its 25.9% loss in 2018.  The pioneer and leading waste-to-energy operator in China's waste incineration power generation industry listed on the SGX Mainboard in August 2016. As of its FY17 (ended 31 December) Jinjiang Environment operated 20 waste-to-energy facilities in 12 provinces, autonomous regions and centrally-administered municipalities in China, and had an additional three WTE facilities under construction as well as 21 WTE projects in the preparatory stage. The estimated total installed waste treatment capacity of all the WTE facilities, when fully completed and acquired, would be approximately 59,261 tons/day. Click here for more. 
	 
	
China Everbright Water is principally engaged in water environment management, sponge city construction, river-basin ecological restoration, water supply, waste water treatment, reusable water, waste water source heat pump, sludge treatment and disposal, research and development of water technologies, and engineering and construction, etc. The Company’s geographical footprint spans across East, Central, South, North, Northeast and Northwest China, including Beijing, Jiangsu, Shandong, Shaanxi, Henan, Hubei, Guangxi Zhuang Autonomous Region, Liaoning and Inner Mongolia Autonomous Region. Click here for more. Back in December 2014, Everbright International spun off and injected its water business into SGX-listed HanKore Environment Tech Group via a reverse takeover and renamed it China Everbright Water.

The early year 17.1% gains of CITIC Envirotech have been on increased volume. For the period 28 December 2018 to 7 February 2019, the average daily trading volumes of CITIC Envirotech was more than four times higher than its preceding 12 month average daily volume.   

The most recently listed stock of the Utilities Sector is Union Gas Holdings which listed on Catalist in July 2017. Its share price has gained 6.3% in the 2019 year through to 7 February following a comparative defensive total return of 1.7% in 2018. Union Gas Holdings is an established provider of fuel products in Singapore with over 40 years of operating track record in the business of Retail LPG, CNG and Diesel.



Big Utility Stocks Began 2019 with Momentum       

Siic Environment Holdings Ltd

Big Utility Stocks Began 2019 with Momentum