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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The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services sectors under the FTSE ST All-Share Index. 
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The five largest constituents are: Wilmar International, Thai Beverage, Singapore Airlines, Genting Singapore, and ComfortDelGro Corp. 
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	<li>For the quarter ended 30 Sept 2020, Wilmar unveiled its best 3Q performance since listing, while Thai Beverage, ComfortDelGro and Genting Singapore reported QoQ improvements following the easing of COVID-19 restrictions. Singapore Airlines continued to enjoy robust YoY cargo load factors, and looks forward to gradual recovery in passenger operations with the progressive reinstatement of flights in the region.</li>
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The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services sectors under the FTSE ST All-Share Index. The five largest constituents are: Wilmar International, Thai Beverage, Singapore Airlines, Genting Singapore, and ComfortDelGro Corp. Wilmar International

<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</a> of US$501.4 million 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>
	<li>Yihai Kerry Arawana reported its <a href="https://links.sgx.com/1.0.0/corporate-announcements/1DWR1YIF97CQQQ7X/637415_Wilmar_announcement_on_YKA_9M2020_30Oct2020.pdf">3Q 2020</a> attributable net profit jumped 10.0% YoY to RMB 2.1 billion, while revenue rose 13.7% to RMB 53.0 billion</li>
</ul>
 Thai Beverage

<ul>
<li>
<a href="https://links.sgx.com/1.0.0/corporate-announcements/P64LAC4K5TFNAEZK/641425_THBEV_Moodys.pdf">Moody's</a> Investors Service has affirmed ThaiBev's Baa3 issuer rating, while changing the rating outlook from negative to stable</li>
	<li>For the <a href="https://links.sgx.com/1.0.0/corporate-announcements/K5KJFPLPOL12ONXG/640478_YearEnd_2020_SGX_Format.PDF">full year</a> ended Sept 30, 2020, ThaiBev reported a 2% decline in net profit to 22.75 billion baht, hit by the overall contraction in the beverage industry due to COVID-19 prevention measures</li>
	<li>Revenue fell 5.2% YoY to 253.48 billion baht due to a decrease in sales revenue from the beer, non-alcoholic beverages and food business segments, though it was partially mitigated by an increase in sales of spirits</li>
	<li>Thailand's alcoholic and non-alcoholic beverage industry in 2020 contracted due to the impact of the COVID-19 prevention measures, which led to the closure of important sale channels; there was also a ban on the sale of alcoholic beverages from April to early May</li>
	<li>Its spirits segment remained resilient, driven by off-premise consumption, while beers, which relied more on on-premise consumption, were impacted by temporary closure of entertainment venues and restaurants</li>
	<li>On the non-alcoholic beverages front, ThaiBev continued to prudently manage its costs by reducing advertising and promotion expenses</li>
	<li>Following the easing of COVID-19 prevention measures, ThaiBev said that recovery is underway for the domestic beverage industry, which has led to sales improvement in the final quarter for FY20</li>
</ul>
 Singapore Airlines

<ul>
<li>SIA has signed a commercial <a href="https://links.sgx.com/1.0.0/corporate-announcements/VM7JV0UP0IN8OQCI/641667_JR_0920.pdf">cooperation framework agreement</a> with Vistara, the joint venture it formed with India’s Tata Sons</li>
	<li>This latest agreement will allow SIA and Vistara to offer passengers seamless services as they work together in areas such as capacity planning, sales, marketing, joint fare products, customer services and operations</li>
	<li>The agreement is an extension of an earlier codeshare partnership that began in 2017 and will require regulatory approvals</li>
	<li>SIA has priced <a href="https://links.sgx.com/1.0.0/corporate-announcements/7WXLMZXC595QW8KS/640210_NE-2220.pdf">S$500 million</a> worth of 3.5% notes due 2030 under its S$10 billion multi-currency medium-term note programme, which it has <a href="https://links.sgx.com/1.0.0/corporate-announcements/GT2O7W2JKNU9617B/639484_Increase%20in%20MTN%20Limit%202020.pdf">upsized</a> from S$5 billion previously.</li>
	<li>The offer was launched at an offer size of S$300 million in response to an initial expression of interest, and was increased to S$500 million after strong appetite was apparent from a select group of private investors</li>
	<li>Its earlier <a href="https://links.sgx.com/1.0.0/corporate-announcements/D63MVIL5272PQUZP/638951_Convertible%20Bonds%20-%20Launch%20Announcement%20.pdf">S$850 million</a> five-year convertible bonds were also upsized and will carry a 1.625% coupon</li>
	<li>In its monthly <a href="https://links.sgx.com/1.0.0/corporate-announcements/8PLKN1VU4RC0ZG79/639387_opstats-oct20.pdf">operating results</a>, SIA reported a 98.1% YoY decline in passenger carriage in October, resulting in a passenger load factor of 15.8%, down 68.6 percentage points YoY</li>
	<li>Cargo load factor was 23.7 percentage points higher YoY as the capacity contraction of 57.8% YoY outpaced the 41.7% decline in cargo traffic</li>
	<li>All route regions recorded YoY increases in cargo load factor in October</li>
	<li>Demand for air travel remained tepid as border controls and travel restrictions remained in place in most countries to curb the spread of Covid-19</li>
	<li>Nonetheless, there were positive developments in October, including the inclusion of additional cities from which passengers can transfer, through Singapore, to other destinations</li>
	<li>The Group’s airlines continue to progressively restore services and rebuild their networks</li>
	<li>In addition to SIA launching non-stop services to New York, SIA and SilkAir will also reinstate flights to Brunei, Fukuoka, Male, and Shenzhen between  November 2020 and January 2021</li>
	<li>Scoot will add flights to Melbourne between November 2020 and December 2020</li>
	<li>The frequency of selected existing services in the passenger network will also be increased</li>
	<li>The SIA Group looks forward to a gradual recovery in passenger operations as countries explore means to facilitate the re-opening of borders</li>
	<li>The Group will continue to closely monitor demand patterns in international air travel, and be swift and decisive in deploying capacity</li>
</ul>
 Genting Singapore

<ul>
<li>In its <a href="https://links.sgx.com/1.0.0/corporate-announcements/206BW433BW0QY1JK/639318_Q3%202020%20QUARTERLY%20BUSINESS%20OVERVIEW.pdf">3Q 2020</a> business update, Genting reported it swung to a net profit of $54.4 million for the three months to 30 Sept 2020 from a net loss of $163.3 million in the previous quarter</li>
	<li>On a YoY basis, 3Q earnings were down 66% YoY due to weak demand</li>
	<li>As Singapore entered phase 2 of the gradual reopening, Resorts World Sentosa started welcoming guests back to Universal Studios Singapore and S.E.A. Aquarium from 1 July 2020, with all necessary safe management measures in place</li>
	<li>3Q gaming revenue was S$212.9 million, up from S$6.5 million in the previous quarter, but down 41% YoY</li>
	<li>3Q non-gaming revenue rose to S$$59.9 million, from $16.3 million in the previous quarter, and fell 74% YoY</li>
	<li>As part of our journey towards eventual recovery of tourism, the Group is seizing this period of adversity to re-imagine and re-adapt our guest offerings</li>
	<li>With travel restrictions still in place and the festive season round the corner, RWS has rolled out specially-curated staycation packages for local residents by pairing up our uniquely themed destination hotels with trips to our attractions or dining experience at our award-winning restaurants</li>
	<li>We also curated the Aqua Gastronomy Experience, a multi-sensorial dining experience at S.E.A. Aquarium where diners get to enjoy culinary artistry featuring 100% sustainably sourced seafood in a surreal underwater world setting with all our marine life</li>
	<li>During the circuit breaker period, the aquarium successfully bred new animal residents, some of which are listed as “Vulnerable” and “Threatened” in the International Union for Conservation of Nature Red List of Threatened Species</li>
	<li>Visitors can admire these newborn inhabitants at the newly opened zone that journeys through three habitats - from the tropical rainforest and intertidal coastal terrains to the coral reef section</li>
	<li>Looking ahead, the Group’s growth strategy includes our commitment to develop the S$4.5 billion mega expansion in Singapore</li>
	<li>As part of the Group’s geographical diversification strategy, the Group is keenly exploring the Yokohama integrated resort opportunity in Japan</li>
	<li>We will evaluate the conditions of the Request-for-Proposal (RFP) and the investment environment when the formal bidding process begins and will respond with a proposal if these conditions meet the Group’s investment criteria</li>
</ul>
 ComfortDelGro Corp

<ul>
<li>In its <a href="https://links.sgx.com/1.0.0/corporate-announcements/IKFERFYVINA7LBYC/638905_CDG%20-%203Q2020%20Business%20Update.pdf">3Q 2020</a> business update, CDG reported a net profit of S$21.7 million for the three months ended 30 Sept 2020, down 69% YoY, but up from its 1H net loss, while revenue sank 16.3% to S$816.5 million</li>
	<li>Excluding government relief and impairment, it would have achieved a profit after tax and minority interest of S$6.7 million</li>
	<li>Public transport services saw the largest loss of S$86.1 million, with losses of S$49.8 million in the taxi segment, and S$21.9 million for automotive engineering services</li>
	<li>Without government reliefs in its various geographical markets, CDG would have made an operating loss of S$0.2 million</li>
	<li>By region, CDG achieved operating profits in Singapore, Australia and China, but the UK saw an operating loss of S$18.3 million, including an impairment provision of S$17.5 million recognised in 3Q for taxi and regional coach businesses</li>
	<li>The Group's balance sheet remains strong, with a net cash position of S$115.5 million and a gross gearing ratio of 21.6%</li>
	<li>The Group continues to generate cash, and has cash and available facilities of over S$1.4 billion as at 30 Sept 2020</li>
</ul>
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The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services sectors under the FTSE ST All-Share Index. 
	 
	
The five largest constituents are: Wilmar International, Thai Beverage, Singapore Airlines, Genting Singapore, and ComfortDelGro Corp. 
	 
	For the quarter ended 30 Sept 2020, Wilmar unveiled its best 3Q performance since listing, while Thai Beverage, ComfortDelGro and Genting Singapore reported QoQ improvements following the easing of COVID-19 restrictions. Singapore Airlines continued to enjoy robust YoY cargo load factors, and looks forward to gradual recovery in passenger operations with the progressive reinstatement of flights in the region.

 

The FTSE ST Consumer Goods &amp; Services Index comprises the constituents in either the Consumer Goods or the Consumer Services sectors under the FTSE ST All-Share Index. The five largest constituents are: Wilmar International, Thai Beverage, Singapore Airlines, Genting Singapore, and ComfortDelGro Corp.  Wilmar International


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
	Yihai Kerry Arawana reported its 3Q 2020 attributable net profit jumped 10.0% YoY to RMB 2.1 billion, while revenue rose 13.7% to RMB 53.0 billion

 Thai Beverage



Moody's Investors Service has affirmed ThaiBev's Baa3 issuer rating, while changing the rating outlook from negative to stable
	For the full year ended Sept 30, 2020, ThaiBev reported a 2% decline in net profit to 22.75 billion baht, hit by the overall contraction in the beverage industry due to COVID-19 prevention measures
	Revenue fell 5.2% YoY to 253.48 billion baht due to a decrease in sales revenue from the beer, non-alcoholic beverages and food business segments, though it was partially mitigated by an increase in sales of spirits
	Thailand's alcoholic and non-alcoholic beverage industry in 2020 contracted due to the impact of the COVID-19 prevention measures, which led to the closure of important sale channels; there was also a ban on the sale of alcoholic beverages from April to early May
	Its spirits segment remained resilient, driven by off-premise consumption, while beers, which relied more on on-premise consumption, were impacted by temporary closure of entertainment venues and restaurants
	On the non-alcoholic beverages front, ThaiBev continued to prudently manage its costs by reducing advertising and promotion expenses
	Following the easing of COVID-19 prevention measures, ThaiBev said that recovery is underway for the domestic beverage industry, which has led to sales improvement in the final quarter for FY20

 Singapore Airlines


SIA has signed a commercial cooperation framework agreement with Vistara, the joint venture it formed with India’s Tata Sons
	This latest agreement will allow SIA and Vistara to offer passengers seamless services as they work together in areas such as capacity planning, sales, marketing, joint fare products, customer services and operations
	The agreement is an extension of an earlier codeshare partnership that began in 2017 and will require regulatory approvals
	SIA has priced S$500 million worth of 3.5% notes due 2030 under its S$10 billion multi-currency medium-term note programme, which it has upsized from S$5 billion previously.
	The offer was launched at an offer size of S$300 million in response to an initial expression of interest, and was increased to S$500 million after strong appetite was apparent from a select group of private investors
	Its earlier S$850 million five-year convertible bonds were also upsized and will carry a 1.625% coupon
	In its monthly operating results, SIA reported a 98.1% YoY decline in passenger carriage in October, resulting in a passenger load factor of 15.8%, down 68.6 percentage points YoY
	Cargo load factor was 23.7 percentage points higher YoY as the capacity contraction of 57.8% YoY outpaced the 41.7% decline in cargo traffic
	All route regions recorded YoY increases in cargo load factor in October
	Demand for air travel remained tepid as border controls and travel restrictions remained in place in most countries to curb the spread of Covid-19
	Nonetheless, there were positive developments in October, including the inclusion of additional cities from which passengers can transfer, through Singapore, to other destinations
	The Group’s airlines continue to progressively restore services and rebuild their networks
	In addition to SIA launching non-stop services to New York, SIA and SilkAir will also reinstate flights to Brunei, Fukuoka, Male, and Shenzhen between  November 2020 and January 2021
	Scoot will add flights to Melbourne between November 2020 and December 2020
	The frequency of selected existing services in the passenger network will also be increased
	The SIA Group looks forward to a gradual recovery in passenger operations as countries explore means to facilitate the re-opening of borders
	The Group will continue to closely monitor demand patterns in international air travel, and be swift and decisive in deploying capacity

 Genting Singapore


In its 3Q 2020 business update, Genting reported it swung to a net profit of $54.4 million for the three months to 30 Sept 2020 from a net loss of $163.3 million in the previous quarter
	On a YoY basis, 3Q earnings were down 66% YoY due to weak demand
	As Singapore entered phase 2 of the gradual reopening, Resorts World Sentosa started welcoming guests back to Universal Studios Singapore and S.E.A. Aquarium from 1 July 2020, with all necessary safe management measures in place
	3Q gaming revenue was S$212.9 million, up from S$6.5 million in the previous quarter, but down 41% YoY
	3Q non-gaming revenue rose to S$$59.9 million, from $16.3 million in the previous quarter, and fell 74% YoY
	As part of our journey towards eventual recovery of tourism, the Group is seizing this period of adversity to re-imagine and re-adapt our guest offerings
	With travel restrictions still in place and the festive season round the corner, RWS has rolled out specially-curated staycation packages for local residents by pairing up our uniquely themed destination hotels with trips to our attractions or dining experience at our award-winning restaurants
	We also curated the Aqua Gastronomy Experience, a multi-sensorial dining experience at S.E.A. Aquarium where diners get to enjoy culinary artistry featuring 100% sustainably sourced seafood in a surreal underwater world setting with all our marine life
	During the circuit breaker period, the aquarium successfully bred new animal residents, some of which are listed as “Vulnerable” and “Threatened” in the International Union for Conservation of Nature Red List of Threatened Species
	Visitors can admire these newborn inhabitants at the newly opened zone that journeys through three habitats - from the tropical rainforest and intertidal coastal terrains to the coral reef section
	Looking ahead, the Group’s growth strategy includes our commitment to develop the S$4.5 billion mega expansion in Singapore
	As part of the Group’s geographical diversification strategy, the Group is keenly exploring the Yokohama integrated resort opportunity in Japan
	We will evaluate the conditions of the Request-for-Proposal (RFP) and the investment environment when the formal bidding process begins and will respond with a proposal if these conditions meet the Group’s investment criteria

 ComfortDelGro Corp


In its 3Q 2020 business update, CDG reported a net profit of S$21.7 million for the three months ended 30 Sept 2020, down 69% YoY, but up from its 1H net loss, while revenue sank 16.3% to S$816.5 million
	Excluding government relief and impairment, it would have achieved a profit after tax and minority interest of S$6.7 million
	Public transport services saw the largest loss of S$86.1 million, with losses of S$49.8 million in the taxi segment, and S$21.9 million for automotive engineering services
	Without government reliefs in its various geographical markets, CDG would have made an operating loss of S$0.2 million
	By region, CDG achieved operating profits in Singapore, Australia and China, but the UK saw an operating loss of S$18.3 million, including an impairment provision of S$17.5 million recognised in 3Q for taxi and regional coach businesses
	The Group's balance sheet remains strong, with a net cash position of S$115.5 million and a gross gearing ratio of 21.6%
	The Group continues to generate cash, and has cash and available facilities of over S$1.4 billion as at 30 Sept 2020




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