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

Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage producers are Wilmar International, Thai Beverage and Golden Agri-Resources (GAR). 
	 </li>
	<li>
The trio have seen resilient operational performances, with relatively little impact from COVID-19 due to the essential nature of their products. The trio expect a stable performance for 2H 2020 and are moving ahead with their respective growth plans. 
	 </li>
	<li>Wilmar has led the three in YTD performances with a 7.4% total return, compared to a decline of 27.4% for Thai Beverage PCL and a decline of 37.2% for GAR. The three stocks have also seen a total of S$319 of net retail inflow this year. For a report on Food Producers and the YKA listing last month, click <a href="http://edm.sgx.com/a/hBfeuecB86%24MfB92-cbAAApi2xC/link1?t_params=tn-vzRejzs5eQDDJ-g3lR8bHaYhLxTdVhnpGgUYVFEac37phrri9e2i%24M6gxhPV3TlWst6b3oRGkh%24hFG5G9SQjYL">here</a>. </li>
</ul>
 

The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services Industries (ICB code 3000 or 5000) under the FTSE ST All-Share Index. 
Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index, and are liquidity screened to ensure that the index is tradable. sdf 
Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage manufacturers or producers are Wilmar International, Thai Beverage and Golden Agri-Resources (“GAR”). Note Dairy Farm International while also representing the Consumer Goods Industry is sub categorised as a retailer. 
For the factsheet on the FTSE ST Consumer Goods &amp; Services Index, click <a href="https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=FSTACT&amp;IsManual=False&amp;">here</a>. 
 

Highlights from Wilmar International’s recent announcements

<ul>
<li>The Group achieved <a href="https://links.sgx.com/1.0.0/corporate-announcements/06BK6WF6PAICPY11/637248_Wilmar_3Q2020_Executive_Financial_Summary_30Oct2020.pdf">core net profit of US$501.4 million</a> in the quarter ended 30 September 2020, the highest 3Q core results since listing</li>
	<li>Together with non-operating gains from investment activities, net profit for the quarter increased by 20.0% to US$536.6 million</li>
	<li>All core segments continued to perform better than the previous year, in terms of both revenue and profit, on the back of strong demand for our food products and higher crushing activities as the African Swine Fever situation in China eased</li>
	<li>With the containment of the coronavirus in China and the rebound of the Chinese economy, coupled with greater emphasis by consumers on the importance of eating safer and healthier food, our range of quality food products will benefit</li>
	<li>We also expect volume to pick up in those Asian countries where lockdown measures have eased</li>
	<li>With the tight global vegetable oils situation, we expect palm prices to remain firm into early 2021, driving our Palm Oil Mill and Plantation results for the next quarter</li>
	<li>Processing margins for Tropical Oils and Oilseed crushing margins are also expected to be satisfactory for the rest of the year</li>
	<li>Our Sugar operations are expected to do well for this year, aided by the strong white sugar premium and the recent recovery in sugar prices</li>
	<li>Barring unforeseen circumstances, we expect results for the rest of the year to be good</li>
	<li>Our China subsidiary, Yihai Kerry Arawana Holdings Co Ltd (YKA), now a 89.99% subsidiary of Wilmar, was officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020</li>
	<li>Net proceeds amounting to US$2.05 billion were received from the new YKA shares issued in connection with its IPO amounting to 10% of the enlarged share capital of YKA</li>
	<li>The Board is pleased to announce that a special dividend, of approximately 15% of the total IPO proceeds, will be declared in 2021 to commemorate the successful listing of YKA</li>
</ul>
 

Highlights from Thai Beverage’s recent announcements

<ul>
<li>ThaiBev unveiled “<a href="https://links.sgx.com/1.0.0/corporate-announcements/27WPI556HTFCNRVF/633619_PASSION_2025.pdf">PASSION 2025</a>” on 1 October 2020, which encapsulates its roadmap for the next five years</li>
	<li>This builds upon ThaiBev’s success in implementing initiatives in line with the five strategic imperatives – Growth, Diversity, Brands, Reach, and Professionalism – under its “Vision 2020”</li>
	<li>PASSION 2025 encompasses three domains:
	<ul>
<li>First, the Group aims to build new capabilities by innovating to enhance its business and service model, its product offerings, and its channels, as well as by partnering stakeholders to grow with sustainability</li>
		<li>Second, the Group endeavors to strengthen its leadership positions in its core markets – Thailand, Vietnam, Myanmar, Singapore and Malaysia; this will be driven by an increased focus on supply chain, process innovation and digitalization, as well as on brand portfolio management</li>
		<li>Third, the Group seeks to unlock potential to enhance shareholder value by building partnerships, asset value creation, and developing a world class workforce</li>
	</ul>
</li>
	<li>Underpinned by robust fundamentals, ThaiBev is moving forward with its growth plans despite the current tough operating environment</li>
	<li>Having navigated various challenges over the past few years, its businesses have emerged stronger and have proven to be resilient amid the ongoing COVID-19 pandemic</li>
	<li>As the Group continues to manage its businesses responsibly, holistically safeguarding stakeholders’ interests, it believes it remains well-placed to deliver sustainable value to shareholders</li>
	<li>On 28 September, the executive committee of ThaiBev approved <a href="https://links.sgx.com/1.0.0/corporate-announcements/59QTK14GX5QRMAMS/633125_Management_Line_Up.pdf">the appointment</a> of five senior management staff and two senior vice-presidents to help the company realise its growth objectives</li>
	<li>These appointments, effective 1 October 2020, will prepare the Group for its next phase of growth, boosting its strategic focus in growth, diversity, brands, reach and professionalism</li>
	<li>Operations for the nine months ended 30 June 2020 proved to be stable despite impact of COVID-19 lockdowns</li>
	<li>The Group’s Spirits business proved resilient, with solid EBITDA growth of 4.9% YoY despite sales revenue being flat YoY</li>
	<li>It achieved a record high in market share of Thailand’s beer market since the Chang relaunch, with strong improvement in sales volumes in May and June</li>
</ul>
 

Highlights from Golden Agri-Resources’s recent announcements

<ul>
<li>On 6 October, GAR announced it is incorporating a <a href="https://links.sgx.com/1.0.0/corporate-announcements/PQS14DLDF23WJ2DK/634057_GAR39-06-10-2020-New%20Brazilian%20sugar%20subsidiary%20complements%20GAR%20existing%20palm%20oil%20distribution%20network.pdf">wholly owned subsidiary</a> in Sao Paolo, Brazil – Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil) – to help the Group enhance its sugar trading business</li>
	<li>Establishing a presence in Brazil, one of the biggest sugar exporters in the world, is a logical extension of its current sugar activities</li>
	<li>By taking advantage of GAR’s extensive palm-based distribution capabilities, GAR’s entry into sugar merchandising provides a low cost, asset-light, niche contribution to its business</li>
	<li>The Group can continue to offer excellent service to its existing palm oil customer base, offer an aligned sugar service to those palm customers where it is a related ingredient, and use its distribution capabilities efficiently to serve new and existing, sugar-only customers</li>
	<li>The global markets, especially in key consuming countries, have been recovering progressively as expected, while strong commitment was seen  from the Indonesia government on its B30 mandate implementation</li>
	<li>Supply for the rest of the year is expected to remain tight, even as the high production season approaches</li>
	<li>The continued replanting by the industry, combined with drought conditions and lower fertiliser application by small players in 2019, have put pressure on supply growth this year, exacerbated by high rainfall experienced in some parts in Sumatra and Kalimantan during 1H 2020</li>
	<li>We expect Crude palm oil (CPO) price to maintain its healthy level, although there may be periods of volatility</li>
	<li>GAR remains confident in the robust long-term supply and demand fundamentals for palm oil supported by its high versatility (including biodiesel) and low cost of production</li>
	<li>Indonesia growing biodiesel mixture mandate is a major catalyst to the industry</li>
</ul>
</body></html>





Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage producers are Wilmar International, Thai Beverage and Golden Agri-Resources (GAR). 
	 
	
The trio have seen resilient operational performances, with relatively little impact from COVID-19 due to the essential nature of their products. The trio expect a stable performance for 2H 2020 and are moving ahead with their respective growth plans. 
	 
	Wilmar has led the three in YTD performances with a 7.4% total return, compared to a decline of 27.4% for Thai Beverage PCL and a decline of 37.2% for GAR. The three stocks have also seen a total of S$319 of net retail inflow this year. For a report on Food Producers and the YKA listing last month, click here. 

 

The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services Industries (ICB code 3000 or 5000) under the FTSE ST All-Share Index.  
Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index, and are liquidity screened to ensure that the index is tradable. sdf  
Of the 10 largest constituents in the FTSE ST Consumer Goods &amp; Services Index, the three largest food and/or beverage manufacturers or producers are Wilmar International, Thai Beverage and Golden Agri-Resources (“GAR”). Note Dairy Farm International while also representing the Consumer Goods Industry is sub categorised as a retailer.  
For the factsheet on the FTSE ST Consumer Goods &amp; Services Index, click here. 
 

Highlights from Wilmar International’s recent announcements


The Group achieved core net profit of US$501.4 million in the quarter ended 30 September 2020, the highest 3Q core results since listing
	Together with non-operating gains from investment activities, net profit for the quarter increased by 20.0% to US$536.6 million
	All core segments continued to perform better than the previous year, in terms of both revenue and profit, on the back of strong demand for our food products and higher crushing activities as the African Swine Fever situation in China eased
	With the containment of the coronavirus in China and the rebound of the Chinese economy, coupled with greater emphasis by consumers on the importance of eating safer and healthier food, our range of quality food products will benefit
	We also expect volume to pick up in those Asian countries where lockdown measures have eased
	With the tight global vegetable oils situation, we expect palm prices to remain firm into early 2021, driving our Palm Oil Mill and Plantation results for the next quarter
	Processing margins for Tropical Oils and Oilseed crushing margins are also expected to be satisfactory for the rest of the year
	Our Sugar operations are expected to do well for this year, aided by the strong white sugar premium and the recent recovery in sugar prices
	Barring unforeseen circumstances, we expect results for the rest of the year to be good
	Our China subsidiary, Yihai Kerry Arawana Holdings Co Ltd (YKA), now a 89.99% subsidiary of Wilmar, was officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020
	Net proceeds amounting to US$2.05 billion were received from the new YKA shares issued in connection with its IPO amounting to 10% of the enlarged share capital of YKA
	The Board is pleased to announce that a special dividend, of approximately 15% of the total IPO proceeds, will be declared in 2021 to commemorate the successful listing of YKA

 

Highlights from Thai Beverage’s recent announcements


ThaiBev unveiled “PASSION 2025” on 1 October 2020, which encapsulates its roadmap for the next five years
	This builds upon ThaiBev’s success in implementing initiatives in line with the five strategic imperatives – Growth, Diversity, Brands, Reach, and Professionalism – under its “Vision 2020”
	PASSION 2025 encompasses three domains:
	
First, the Group aims to build new capabilities by innovating to enhance its business and service model, its product offerings, and its channels, as well as by partnering stakeholders to grow with sustainability
		Second, the Group endeavors to strengthen its leadership positions in its core markets – Thailand, Vietnam, Myanmar, Singapore and Malaysia; this will be driven by an increased focus on supply chain, process innovation and digitalization, as well as on brand portfolio management
		Third, the Group seeks to unlock potential to enhance shareholder value by building partnerships, asset value creation, and developing a world class workforce
	

	Underpinned by robust fundamentals, ThaiBev is moving forward with its growth plans despite the current tough operating environment
	Having navigated various challenges over the past few years, its businesses have emerged stronger and have proven to be resilient amid the ongoing COVID-19 pandemic
	As the Group continues to manage its businesses responsibly, holistically safeguarding stakeholders’ interests, it believes it remains well-placed to deliver sustainable value to shareholders
	On 28 September, the executive committee of ThaiBev approved the appointment of five senior management staff and two senior vice-presidents to help the company realise its growth objectives
	These appointments, effective 1 October 2020, will prepare the Group for its next phase of growth, boosting its strategic focus in growth, diversity, brands, reach and professionalism
	Operations for the nine months ended 30 June 2020 proved to be stable despite impact of COVID-19 lockdowns
	The Group’s Spirits business proved resilient, with solid EBITDA growth of 4.9% YoY despite sales revenue being flat YoY
	It achieved a record high in market share of Thailand’s beer market since the Chang relaunch, with strong improvement in sales volumes in May and June

 

Highlights from Golden Agri-Resources’s recent announcements


On 6 October, GAR announced it is incorporating a wholly owned subsidiary in Sao Paolo, Brazil – Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil) – to help the Group enhance its sugar trading business
	Establishing a presence in Brazil, one of the biggest sugar exporters in the world, is a logical extension of its current sugar activities
	By taking advantage of GAR’s extensive palm-based distribution capabilities, GAR’s entry into sugar merchandising provides a low cost, asset-light, niche contribution to its business
	The Group can continue to offer excellent service to its existing palm oil customer base, offer an aligned sugar service to those palm customers where it is a related ingredient, and use its distribution capabilities efficiently to serve new and existing, sugar-only customers
	The global markets, especially in key consuming countries, have been recovering progressively as expected, while strong commitment was seen  from the Indonesia government on its B30 mandate implementation
	Supply for the rest of the year is expected to remain tight, even as the high production season approaches
	The continued replanting by the industry, combined with drought conditions and lower fertiliser application by small players in 2019, have put pressure on supply growth this year, exacerbated by high rainfall experienced in some parts in Sumatra and Kalimantan during 1H 2020
	We expect Crude palm oil (CPO) price to maintain its healthy level, although there may be periods of volatility
	GAR remains confident in the robust long-term supply and demand fundamentals for palm oil supported by its high versatility (including biodiesel) and low cost of production
	Indonesia growing biodiesel mixture mandate is a major catalyst to the industry




FTSE Consumer Index’s Three Largest F&B Producers

Golden Agri Resources

FTSE Consumer Index’s Three Largest F&B Producers