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.

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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

Equity Bottom-Up

<p><em><strong>These equity research reports are not written by the SGX.</strong> SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
<h2>EC World REIT (ECWREIT SP)</h2>
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<p><strong>E-Commerce taking over the World</strong></p>
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<p>EC World REIT is the only specialized and e-commerce logistics S-REIT that provides investment access into China’s booming e-commerce industry. c.40% of its investment assets (by AUM valuation) are also quality port logistics assets with prime and coveted access to the Beijing- Hangzhou Grand Canal due to recent UNESCO Heritage Site zonings.</p>
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<p>EC World REIT also has the established and capable Forchn Holdings Group co as its sponsor, who was also one of the founding members of Cainiao Network Tech Co Ltd., along with partners Alibaba Group and Fosun Group. We believe that with the support and guidance of its sponsor, there is still a long runway for future growth and expansion.</p>
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<p>We initiate coverage on EC World REIT (ECW) with an OUTPERFORM recommendation. Our target price of SGD$0.84 represents a total upside of 23.4%, inclusive of FY20F dividend yield of 9.1%<br><br>Investment Thesis</p>
<p><strong>High income visibility.</strong> ECW’s portfolio is well-diversified into the three main logistics segments: Port, Specialised, and E- Commerce logistics, lending stability to its income. They have also proven stable 99%-100% occupancy levels since IPO, and have a WALE of 4.3 years by net lettable area (NLA), as of 30 September 2019. Four of its eight properties are directly and indirectly master-leased to its sponsor (representing c.70% of gross rental income (GRI)), while another is leased to a China State-Owned-Enterprise (SOE), China Tobacco Zhejiang Industrial Co., Ltd.</p>
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<p><strong>Established, capable, &amp; committed sponsor.</strong> The Sponsor, Forchn Holdings Group Co Ltd., is a well-established operator of port facilities in China with over 20 years of experience. It has both constructed and operated the Chongxian Port facility - a key construction project duly recognised by the China government. Alongside partners Alibaba Group, Fosun Group, and other key logistics companies, the Sponsor was also one of the founding members of Cainiao Network Technology Co., Ltd. (菜鸟网络科技有限公司).</p>
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These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.
EC World REIT (ECWREIT SP)



E-Commerce taking over the World





EC World REIT is the only specialized and e-commerce logistics S-REIT that provides investment access into China’s booming e-commerce industry. c.40% of its investment assets (by AUM valuation) are also quality port logistics assets with prime and coveted access to the Beijing- Hangzhou Grand Canal due to recent UNESCO Heritage Site zonings.


EC World REIT also has the established and capable Forchn Holdings Group co as its sponsor, who was also one of the founding members of Cainiao Network Tech Co Ltd., along with partners Alibaba Group and Fosun Group. We believe that with the support and guidance of its sponsor, there is still a long runway for future growth and expansion.


We initiate coverage on EC World REIT (ECW) with an OUTPERFORM recommendation. Our target price of SGD$0.84 represents a total upside of 23.4%, inclusive of FY20F dividend yield of 9.1%  Investment Thesis
High income visibility. ECW’s portfolio is well-diversified into the three main logistics segments: Port, Specialised, and E- Commerce logistics, lending stability to its income. They have also proven stable 99%-100% occupancy levels since IPO, and have a WALE of 4.3 years by net lettable area (NLA), as of 30 September 2019. Four of its eight properties are directly and indirectly master-leased to its sponsor (representing c.70% of gross rental income (GRI)), while another is leased to a China State-Owned-Enterprise (SOE), China Tobacco Zhejiang Industrial Co., Ltd.



Established, capable, &amp; committed sponsor. The Sponsor, Forchn Holdings Group Co Ltd., is a well-established operator of port facilities in China with over 20 years of experience. It has both constructed and operated the Chongxian Port facility - a key construction project duly recognised by the China government. Alongside partners Alibaba Group, Fosun Group, and other key logistics companies, the Sponsor was also one of the founding members of Cainiao Network Technology Co., Ltd. (菜鸟网络科技有限公司).










Non-SGX Report: EC World REIT (ECWREIT SP): E-Commerce Taking over the World

EC World Reit

Non-SGX Report: EC World REIT (ECWREIT SP): E-Commerce Taking over the World