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

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<h2>Fu Yu Corp</h2>
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<p><strong>Shaken at the core</strong></p>
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<p><strong>Maintain HOLD and TP of S$0.21</strong>. We continue to expect FY2020F to be weak on the back of the pandemic affecting manufacturing activity and a weakened economic outlook. While we do not expect core earnings to return to pre-COVID- 19 levels in FY21F, a bright spot could be the potential bottoming of core earnings in 1H20.</p>
<p><strong>1Q20 core earnings (excluding FX gain of S$3.2m) down 44% y-o-y.</strong> FUYU’s core earnings decline was mainly driven by lower revenue, which fell 25.5% y-o-y to S$34.8m. China saw the largest decline of 37.0% largely due to the shutdown of operations. Gross profit margins improved y-o-y to 19.8% in 1Q20, from 17.7% in 1Q19 due to improvement in operational efficiencies but declined q-o-q from 25.6% in 4Q19 amid lower utilisation levels. Including the FX gain of S$3.2m, FUYU’s PATMI rose 177% to S$4.4m.</p>
<p><strong>Where we differ:</strong> We are more positive on its gross profit margins from cost-efficiency initiatives.</p>
<p><strong>Potential catalysts</strong>: Improvement in the COVID-19 situation and manufacturing activity, M&amp;A.</p>
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Fu Yu Corp




Shaken at the core




Maintain HOLD and TP of S$0.21. We continue to expect FY2020F to be weak on the back of the pandemic affecting manufacturing activity and a weakened economic outlook. While we do not expect core earnings to return to pre-COVID- 19 levels in FY21F, a bright spot could be the potential bottoming of core earnings in 1H20.
1Q20 core earnings (excluding FX gain of S$3.2m) down 44% y-o-y. FUYU’s core earnings decline was mainly driven by lower revenue, which fell 25.5% y-o-y to S$34.8m. China saw the largest decline of 37.0% largely due to the shutdown of operations. Gross profit margins improved y-o-y to 19.8% in 1Q20, from 17.7% in 1Q19 due to improvement in operational efficiencies but declined q-o-q from 25.6% in 4Q19 amid lower utilisation levels. Including the FX gain of S$3.2m, FUYU’s PATMI rose 177% to S$4.4m.
Where we differ: We are more positive on its gross profit margins from cost-efficiency initiatives.
Potential catalysts: Improvement in the COVID-19 situation and manufacturing activity, M&amp;A.













Fu Yu Corp Ltd

Fu Yu Corp: Shaken at the Core