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





Singapore’s 50 most actively traded companies in 2019 generated a 12% average total return and 6% median total return over the first two months of the final quarter for 2019.  This brought their 11 month average total return to 27%, with a median total return of 12%.  
	 
	
Companies amongst this 50 stocks that outpaced every S-REIT over the first 11 months of 2019, include Global Invacom, Rex International, AEM Holdings, Frencken Group, Hi-P International, UMS Holdings and Sunpower.  
	 
	All seven stocks have incorporated technology advancements into their business and generated total returns in excess of 60% over the first 11 months of 2019. They also have international businesses and attracted net positive institutional inflows over the 11 months. 

 

 

Singapore’s 50 most traded companies by turnover have outpaced the 43 trusts that make up the broad S-REIT Sector in the 2019 quarter-to-date. Together the 50 companies generated a 12% average total return and 6% median total return over the first two months of the final quarter for 2019. This compared to the S-REIT Sector generating a 1% average total return and 2% median total return.

 

REITs Performances Set a High Benchmark in 2019  

The FOMC press conference on Oct 30 provided insight that the Fed Reserve had completed its mid-cycle interest rates cuts, and it was not until Nov 28 that Fed Reserve commentary strengthened the rationale for the mid-cycle cuts. As a result, the performance of REIT Sectors (which had been the main beneficiary of the lower interest rate outlook) both in Singapore and abroad were mostly muted in October and November, compared to the preceding nine months.

Nevertheless, the trusts of the S-REIT Sector that had been listed for the duration still generated an average total return of 23% and median total return of 20% for the past 11 months. In Singapore, the Sector has seen record secondary fundraisings in 2019 totalling more than S$6 billion, with the four REIT IPOs ranking amongst South East Asia’s five biggest IPOs in 2019 by deal value. The five strongest REIT performances during the 11 months were Keppel DC REIT, Ascendas Hospitality Trust (Stapled Trust), Ascendas India Trust (Business Trust), Mapletree Commercial Trust and Sasseur REIT. 

 

Seven Companies that Outpaced the Strongest REITs in 2019 

While Keppel DC REIT generated a total return of 60% over the 11 months, seven companies that were amongst Singapore’s 50 most traded companies for the duration all generated total returns in excess of 60%. These companies were Global Invacom, Rex International, AEM Holdings, Frencken Group, Hi-P International, UMS Holdings and Sunpower. All seven stocks have incorporated technology advancements into their business, for instance: 

 



Global Invacom is a fully integrated satellite communications equipment provider.  Global Invacom has  six manufacturing plants across China, Israel, Malaysia, UK and the US.  Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Satellite Networks. Its revenue for 9MFY19 (ended Sep 30) increased 22% YoY  to US$104 million with net profit increasing by 107% to US$0.2 million. Click here for more. 
	 
	
Aside from oil exploration interests in Oman and Norway, Rex International has developed proprietary technology. Rex Virtual Drilling is based on a set of computer algorithms for seismic data analysis to identify the presence of liquid hydrocarbons. This year Rex international monetised the Rolvsnes discovery and related assets in Norway (in 1QFY19 ended Mar 31), and farmed in and participated in the drilling on PL838 in the Norwegian Sea which yielded an oil and gas discovery (in 3QFY19). The Group is currently focusing its efforts on drilling an appraisal well in Oman in end-2019 and achieving oil production in 1Q-2020. Its most recent financial statements can be found here. 
	 
	
AEM Holdings provides solutions in equipment systems; precision components and related manufacturing services across various industries.  AEM Holdings reported net profit of S$13.7 million for 3QFY19 (ended Sep 30), a 20% YoY gain. The Executive Chairman noted that as the interconnected 5G and data-centric worlds gather momentum, the industry has become increasingly aware of the significance and benefits of system level testing. The company also noted that as the Group’s key customer introduces new products based on more advanced semiconductor nodes, AEM’s test handlers that are optimized for testing complex and sophisticated chips, witnessed an increase in demand. Its most recent financial statement can be found here. 
	 
	
Frencken Group is a global high-tech capital and consumer equipment service provider. Its Mechatronics Division is a full service main supplier with a strong reputation as a problem solving technology partner for the manufacture of high precision industrial machinery and capital equipment to global Original Equipment Manufacturers. Frencken Group’s net profit for the 9MFY19 (ended Sep 30) rose 63% YoY and its most recent financial statement can be found here. 
	 
	
Hi-P International provides one-stop technology solutions to customers in various industries. These include wireless telecommunications, consumer electronics, computing and peripherals, the Internet of Things, medical devices and industrial devices from product development, component manufacturing to complete product assembly. Hi-P International’s net profit for the 9MFY19 (ended Sep 30) rose 3% YoY and its most recent financial statement can be found here.  
	 
	
UMS Holdings is a one-stop strategic integration partner providing equipment manufacturing and engineering services to Original Equipment Manufacturers of semiconductors and related products. Its revenue for 9MFY19 eased 10% YoY to S$91.5 million mainly due to 15% decline in semiconductor segment sales. Its most recent financial statement and outlook for the semiconductor industry can be found here. 
	 
	
Sunpower  is an environmental protection solutions specialist in proprietary energy saving and clean power technologies, with a strong focus on expanding into anti-pollution investment projects. The Group posted 47% YoY growth in underlying net profit for its 9MFY19 (ended Sep 30) attributed to its Manufacturing &amp; Services segment and Green Investment businesses. Sunpower has rapidly expanded its Green Investment business in recent years by leveraging on its existing core technologies of high-efficiency heat transfer, long distance heat insulated steam distribution, energy saving and ultra-low emission clean power generation. Its most recent financial statement can be found here. 


 

The 50 SGX-listed companies which have been the most actively traded over the first 11 months of 2019 have been recipient of S$1.2 billion in net institutional inflow, and are tabled below.




			Name
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			11M Price Return %
			
			
			11M Total Return %
			
			
			11M Average Daily Turnover (S$,000)
			
			
			11M Net Insti Flow
			
			
			Sep &amp; Nov Total Return %
			
		


			DBS
			
			
			D05
			
			
			64,504
			
			
			7
			
			
			13
			
			
			101,498
			
			
			-156
			
			
			2
			
		


			SingTel
			
			
			Z74
			
			
			55,193
			
			
			15
			
			
			19
			
			
			67,012
			
			
			580
			
			
			9
			
		


			UOB
			
			
			U11
			
			
			43,076
			
			
			5
			
			
			10
			
			
			61,650
			
			
			-114
			
			
			1
			
		


			OCBC Bank
			
			
			O39
			
			
			47,469
			
			
			-4
			
			
			0
			
			
			56,006
			
			
			-182
			
			
			-1
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			4,036
			
			
			-18
			
			
			-15
			
			
			34,318
			
			
			2
			
			
			7
			
		


			Genting Sing
			
			
			G13
			
			
			11,153
			
			
			-5
			
			
			-2
			
			
			26,109
			
			
			-150
			
			
			5
			
		


			CapitaLand
			
			
			C31
			
			
			18,538
			
			
			18
			
			
			22
			
			
			25,754
			
			
			193
			
			
			4
			
		


			SGX
			
			
			S68
			
			
			9,478
			
			
			24
			
			
			28
			
			
			23,240
			
			
			444
			
			
			6
			
		


			Keppel Corp
			
			
			BN4
			
			
			12,206
			
			
			14
			
			
			18
			
			
			22,368
			
			
			-50
			
			
			13
			
		


			HongkongLand USD
			
			
			H78
			
			
			17,693
			
			
			-12
			
			
			-10
			
			
			20,473
			
			
			-103
			
			
			-3
			
		


			Venture
			
			
			V03
			
			
			4,578
			
			
			14
			
			
			19
			
			
			20,408
			
			
			-25
			
			
			4
			
		


			JMH USD
			
			
			J36
			
			
			56,732
			
			
			-19
			
			
			-17
			
			
			20,129
			
			
			-13
			
			
			4
			
		


			Wilmar Intl
			
			
			F34
			
			
			25,921
			
			
			31
			
			
			35
			
			
			19,944
			
			
			234
			
			
			10
			
		


			ComfortDelGro
			
			
			C52
			
			
			5,090
			
			
			9
			
			
			14
			
			
			18,173
			
			
			70
			
			
			-2
			
		


			ST Engineering
			
			
			S63
			
			
			12,880
			
			
			18
			
			
			23
			
			
			16,897
			
			
			197
			
			
			8
			
		


			CityDev
			
			
			C09
			
			
			9,377
			
			
			27
			
			
			30
			
			
			16,416
			
			
			109
			
			
			5
			
		


			ThaiBev
			
			
			Y92
			
			
			22,351
			
			
			46
			
			
			49
			
			
			15,379
			
			
			187
			
			
			1
			
		


			JSH USD
			
			
			J37
			
			
			48,106
			
			
			-13
			
			
			-12
			
			
			12,414
			
			
			1
			
			
			5
			
		


			SIA
			
			
			C6L
			
			
			10,891
			
			
			-2
			
			
			1
			
			
			11,182
			
			
			-48
			
			
			1
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			12,110
			
			
			-13
			
			
			-10
			
			
			10,785
			
			
			-13
			
			
			2
			
		


			SPH
			
			
			T39
			
			
			3,508
			
			
			-6
			
			
			-4
			
			
			10,445
			
			
			17
			
			
			6
			
		


			AEM
			
			
			AWX
			
			
			486
			
			
			118
			
			
			127
			
			
			10,381
			
			
			70
			
			
			59
			
		


			SATS
			
			
			S58
			
			
			5,569
			
			
			7
			
			
			11
			
			
			8,835
			
			
			22
			
			
			4
			
		


			UOL
			
			
			U14
			
			
			6,545
			
			
			25
			
			
			28
			
			
			8,685
			
			
			94
			
			
			3
			
		


			Sembcorp Ind
			
			
			U96
			
			
			3,912
			
			
			-14
			
			
			-12
			
			
			8,302
			
			
			-98
			
			
			5
			
		


			Sembcorp Marine
			
			
			S51
			
			
			2,636
			
			
			-18
			
			
			-18
			
			
			8,251
			
			
			-60
			
			
			7
			
		


			Hi-P
			
			
			H17
			
			
			1,247
			
			
			75
			
			
			81
			
			
			7,227
			
			
			31
			
			
			38
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			2,738
			
			
			-12
			
			
			-10
			
			
			6,049
			
			
			-21
			
			
			-4
			
		


			DairyFarm USD
			
			
			D01
			
			
			10,820
			
			
			-35
			
			
			-33
			
			
			5,952
			
			
			-33
			
			
			-8
			
		


			StarHub
			
			
			CC3
			
			
			2,424
			
			
			-20
			
			
			-14
			
			
			4,211
			
			
			-91
			
			
			9
			
		


			Rex Intl
			
			
			5WH
			
			
			238
			
			
			233
			
			
			233
			
			
			4,122
			
			
			3
			
			
			135
			
		


			SingPost
			
			
			S08
			
			
			2,081
			
			
			1
			
			
			5
			
			
			2,875
			
			
			9
			
			
			-5
			
		


			United Engineers
			
			
			U04
			
			
			1,715
			
			
			6
			
			
			8
			
			
			2,720
			
			
			43
			
			
			6
			
		


			UMS
			
			
			558
			
			
			485
			
			
			59
			
			
			66
			
			
			2,718
			
			
			39
			
			
			51
			
		


			Yanlord Land
			
			
			Z25
			
			
			2,260
			
			
			-4
			
			
			1
			
			
			2,587
			
			
			-14
			
			
			0
			
		


			Valuetronics
			
			
			BN2
			
			
			326
			
			
			14
			
			
			21
			
			
			1,768
			
			
			-3
			
			
			23
			
		


			Sheng Siong
			
			
			OV8
			
			
			1,879
			
			
			18
			
			
			22
			
			
			1,721
			
			
			22
			
			
			13
			
		


			First Resources
			
			
			EB5
			
			
			2,851
			
			
			17
			
			
			19
			
			
			1,567
			
			
			12
			
			
			12
			
		


			SIA Engineering
			
			
			S59
			
			
			3,159
			
			
			24
			
			
			29
			
			
			1,522
			
			
			-7
			
			
			10
			
		


			Japfa
			
			
			UD2
			
			
			1,090
			
			
			-20
			
			
			-17
			
			
			1,416
			
			
			-19
			
			
			30
			
		


			Frencken
			
			
			E28
			
			
			377
			
			
			112
			
			
			119
			
			
			1,380
			
			
			25
			
			
			32
			
		


			Raffles Medical
			
			
			BSL
			
			
			1,819
			
			
			-10
			
			
			-7
			
			
			1,217
			
			
			-20
			
			
			1
			
		


			Silverlake Axis
			
			
			5CP
			
			
			1,122
			
			
			2
			
			
			6
			
			
			1,025
			
			
			-10
			
			
			-5
			
		


			Olam Intl
			
			
			O32
			
			
			5,672
			
			
			8
			
			
			12
			
			
			1,023
			
			
			11
			
			
			-1
			
		


			Yoma Strategic
			
			
			Z59
			
			
			674
			
			
			4
			
			
			4
			
			
			1,012
			
			
			5
			
			
			13
			
		


			COSCO SHP SG
			
			
			F83
			
			
			683
			
			
			-8
			
			
			-8
			
			
			1,010
			
			
			8
			
			
			11
			
		


			Citic Envirotech*
			
			
			CEE
			
			
			1,302
			
			
			41
			
			
			44
			
			
			1,007
			
			
			7
			
			
			67
			
		


			Sunpower
			
			
			5GD
			
			
			430
			
			
			63
			
			
			64
			
			
			994
			
			
			16
			
			
			13
			
		


			G Invacom^
			
			
			QS9
			
			
			42
			
			
			337
			
			
			337
			
			
			991
			
			
			1
			
			
			6
			
		


			China Aviation
			
			
			G92
			
			
			1,067
			
			
			17
			
			
			21
			
			
			960
			
			
			-5
			
			
			7
			
		


			Average
			
			
			 
			
			
			 
			
			
			24
			
			
			27
			
			
			 
			
			
			 
			
			
			12
			
		


			Median
			
			
			 
			
			
			 
			
			
			7
			
			
			12
			
			
			 
			
			
			 
			
			
			6
			
		

Source: SGX, Thomson Reuters (Data as of 30 Nov 2019) *information on pre-conditional exit offer can be found here. ^ denotes SGX Watch-list in June 2018. In the case of Global Invacom the stock joined the Watch-List under the Minimum Trading Price (“MTP”) Entry Criteria.



Seven Companies that Outpaced Every S-REIT in First 11 Months of 2019   