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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Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with June’s 3.0% MoM decline being the largest MoM decline since October. Similarly, Singapore’s 20 most traded manufacturing-related stocks averaged a 15.7% gain in 1H21, followed by averaging a 0.2% decline since 30 June. 
	 </li>
	<li>
While the 20 stocks represent 11% of the total market value of all stocks listed on Singapore Exchange, the 20 stocks almost double their impact in daily turnover, with the combined S$266 million in average daily turnover in the 2021 YTD representing 20% of the total average daily turnover of all stocks listed on SGX. 
	 </li>
	<li>As the Semiconductor cluster expanded 26.2% YoY in 1H21 from 1H20, AEM, UMS and Frencken, which rank as top 50 stocks by turnover, averaged 32.9% total returns over the same period. Since the end of June, the trio have generated highly symmetrical gains of 5.5%, which includes a dividend distribution by UMS Holdings. </li>
</ul>
 

Singapore’s 20 most traded manufacturing-related stocks span five key sectors - Technology, Consumer Non-Cyclicals, Industrials, Healthcare and Materials &amp; Resources. The wide span of industries, from semiconductors and consumer electronics to agricultural producers to shipbuilders to personal protection equipment to chemical manufacturing inputs, the 20 stocks have generated diversified returns in the 2021 year to 26 July. The 20 stocks have averaged a 15.8% total return over the period, spanning 27.9% average total returns for six Technology stocks to a 5.9% decline for four Healthcare stocks.
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 <img src='https://api2.sgx.com/sites/default/files/2021-07/Capture_23.PNG' alt='Sectors of the 20 most traded manufacturing-related stocks' />
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 <div class='content-caption'>Sectors of the 20 most traded manufacturing-related stocks</div>
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Singapore’s 20 most traded manufacturing-related stocks currently maintain a combined market value of S$98.8 billion, which represents 10.9% of the S$903.6 billion in total market capitalisation of all stocks listed on SGX. The 20 stocks almost double their impact when it comes to trading participation, with the combined S$266 million in daily turnover representing 19.6% of the combined S$1.36 billion in average daily turnover of all stocks listed on the exchange in the 2021 year to 26 July. All 20 stocks have international revenue streams, with companies based in Singapore, China, Malaysia and Thailand.  Similarly, Singapore’s manufacturing sector makes up approximately 20% of its GDP, and as reported yesterday, Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with the month of June seeing a 3.0% MoM decline, the largest MoM decline since October (click <a href="https://www.edb.gov.sg/en/about-edb/media-releases-publications.html">here</a> for more). The 3.0% MoM decline in June from May, followed preceding MoM changes of 4.4%, -0.1%, -0.4%, 1.7% and 4.5%. Technology 
As the Semiconductor Cluster expanded 26.2% YoY in 1H21 from 1H20, AEM Holdings, UMS Holdings and Frencken Group averaged 32.9% total returns over the same period. Since the end of June, the trio have generated similar gains, averaging 5.5%, which includes a dividend distribution by UMS Holdings. 
The broader Electronics Cluster expanded 23.6% in 1H21 from 1H20. Nanofilm Technologies International generated a 24.8% total return in 1H21 and was the strongest performer of the 20 stocks in the 2H21 to 26 July, with an 18.9% gain. In mid-July, Credit Suisse increased their target price on the stock by 13%, highlighting that the nanotech provider is exploring opportunities to immerse itself into the clean tech supply chain. Jeffries also initiated coverage on the stock during the week. That same week saw the global appetite for consumer technology reiterated with Apple Inc reporting it would seek to boost iPhone output by 20% in 2021. Nanofilm Technologies International also owns more than 70 patents and trademarks, with over 20 pending applications. 
Aztech Global will report its 1HFY21 (ended 30 June) financial results after the 30 July close and Venture Corporation will be announcing its 1HFY21 (ended 30 June) financial results after the 6 August close. Venture Corporation has gained 4.9% since providing a general corporate update on 23 June, highlighting that despite recent challenges of the endemic, its entities in Malaysia have been able to continue operations as an essential economic sector, enabling Venture to deliver on its customers and partner commitments. The Group also added that a new series of next-generation devices in the Lifestyle Consumer Electronics have been developed, with plans afoot to launch these products in 2H21.  Industrials 
Engineering solution provider ISDN Holdings was the strongest of the 20 most traded manufacturing stocks in the 1H21. On June 18, ISDN Holdings announced a global strategic partnership with communications solution provider Whizpace Pte Ltd to deliver wide-area Industry 4.0 and IoT solutions globally. While ISDN Holdings represents the Industrials Sector, on the outlook for the regional supply and value chains, ISDN Holdings noted in its 30 April AGM <a href="https://links.sgx.com/1.0.0/corporate-announcements/HFZENHCNN3G5DFFW/bd165beec9f607bdf9fe719ee9dd52afbbabbcb8c84a456e040225e99567bae3">Q&amp;A</a> it had been seeing the benefit of China’s broad ramp in semiconductor capex in its business, with:

<ul>
<li>geopolitical industry competition and global trade tensions diverting trade, supply chains and capital to Southeast Asia</li>
	<li>trade tensions accelerating China’s industrial push towards Industry 4.0 automation as it seeks to avoid competing with Southeast Asia on cost, and instead pushing up the value chain into advanced industry</li>
	<li>China’s technology ecosystem looking to reduce its reliance on US and European technology in favour of Asia-centric suppliers.</li>
</ul>
 

The IMF Singapore Country Report released on 16 July showed that Singapore had made significant strides in the digitalisation of production through industrial robots. The report defined Industrial robots as higher-end digitalisation products predominantly used for automation in the manufacturing sector and maintained Singapore’s stock of operational robots in the manufacturing sector has rapidly increased during the past decade, from about 600 robots in 2008 to above 17,000 robots in 2018, translating into a rise in robot density to 45 operating robots per 1,000 employees in 2018, from about 1 operating robot per 1,000 employees in 2008 (click <a href="https://www.imf.org/en/Publications/CR/Issues/2021/07/16/Singapore-2021-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-462216">here</a> for more). This makes Singapore one of the top users of industrial robots in the world with most of the industrial robots in Singapore are used in the semiconductor sub-sector. While the 20 stocks were recipients to S$437 of combined net institutional outflow in the 2021 year to 26 July, China-based Yangzijiang Shipbuilding (Holdings) was recipient to S$217 million in net institutional inflow, also doubling as the most traded of the 20 stocks over the period. In the first half of its FY21 (ended 30 June) the Group secured new orders for 100 vessels worth US$5.59 billion, surpassing the previous record largest order wins (based on total contract value) for an FY in the Group’s history previously set at US$4.97 billion in FY07. On 21 July, Yangzijiang Shipbuilding (Holdings) announced that it had entered into a sale and purchase agreement (‘SPA’) with Sanfu Shipbuilding Holdings. The SPA will see Yangzijiang Shipbuilding (Holdings) purchase of the remaining 20 per cent equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co Ltd, for an aggregate consideration of RMB 650 million, fully funded by 100 million treasury shares of Yangzijiang Shipbuilding (Holdings) and is expected to be earnings accretive for the Group. The recent performances of the 20 stocks, sorted by average daily turnover are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Singapore’s 20 most traded manufacturing-related stocks in 2021 YTD
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Average Daily Turnover YTD S$M
			</td>
			<td>
			Net Insti Inflow YTD S$M
			</td>
			<td>
			1H21 Total Return %
			</td>
			<td>
			2H21 Total Return %  
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			5,311
			</td>
			<td>
			42
			</td>
			<td>
			217
			</td>
			<td>
			52.1
			</td>
			<td>
			-2.1
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			28,121
			</td>
			<td>
			41
			</td>
			<td>
			-131
			</td>
			<td>
			-0.4
			</td>
			<td>
			-0.9
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			16,453
			</td>
			<td>
			23
			</td>
			<td>
			-344
			</td>
			<td>
			-5.5
			</td>
			<td>
			-3.0
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,510
			</td>
			<td>
			21
			</td>
			<td>
			-153
			</td>
			<td>
			1.5
			</td>
			<td>
			-1.2
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			1,306
			</td>
			<td>
			20
			</td>
			<td>
			39
			</td>
			<td>
			-16.1
			</td>
			<td>
			-13.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			1,142
			</td>
			<td>
			17
			</td>
			<td>
			-64
			</td>
			<td>
			12.3
			</td>
			<td>
			5.7
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			12,347
			</td>
			<td>
			15
			</td>
			<td>
			-51
			</td>
			<td>
			3.9
			</td>
			<td>
			2.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			848
			</td>
			<td>
			11
			</td>
			<td>
			57
			</td>
			<td>
			41.7
			</td>
			<td>
			5.3
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,419
			</td>
			<td>
			10
			</td>
			<td>
			-13
			</td>
			<td>
			-1.3
			</td>
			<td>
			0.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			4,320
			</td>
			<td>
			9
			</td>
			<td>
			45
			</td>
			<td>
			24.8
			</td>
			<td>
			18.9
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Jiutian Chemical
			</td>
			<td>
			C8R
			</td>
			<td>
			167
			</td>
			<td>
			9
			</td>
			<td>
			-4
			</td>
			<td>
			6.3
			</td>
			<td>
			0.0
			</td>
			<td>
			Materials &amp; Resources
			</td>
		</tr>
<tr>
<td>
			Medtecs Intl
			</td>
			<td>
			546
			</td>
			<td>
			443
			</td>
			<td>
			7
			</td>
			<td>
			8
			</td>
			<td>
			-9.5
			</td>
			<td>
			-5.3
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Top Glove
			</td>
			<td>
			BVA
			</td>
			<td>
			10,486
			</td>
			<td>
			7
			</td>
			<td>
			-55
			</td>
			<td>
			-25.8
			</td>
			<td>
			-3.7
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Oceanus^
			</td>
			<td>
			579
			</td>
			<td>
			875
			</td>
			<td>
			7
			</td>
			<td>
			-14
			</td>
			<td>
			40.7
			</td>
			<td>
			-5.3
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			ISDN
			</td>
			<td>
			I07
			</td>
			<td>
			316
			</td>
			<td>
			6
			</td>
			<td>
			8
			</td>
			<td>
			80.2
			</td>
			<td>
			0.4
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Riverstone
			</td>
			<td>
			AP4
			</td>
			<td>
			1,897
			</td>
			<td>
			5
			</td>
			<td>
			25
			</td>
			<td>
			15.8
			</td>
			<td>
			4.1
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			2,665
			</td>
			<td>
			5
			</td>
			<td>
			21
			</td>
			<td>
			47.5
			</td>
			<td>
			-8.7
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Frencken
			</td>
			<td>
			E28
			</td>
			<td>
			841
			</td>
			<td>
			5
			</td>
			<td>
			29
			</td>
			<td>
			44.6
			</td>
			<td>
			5.3
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Aztech Global
			</td>
			<td>
			8AZ
			</td>
			<td>
			960
			</td>
			<td>
			4
			</td>
			<td>
			-43
			</td>
			<td>
			1.5
			</td>
			<td>
			-3.1
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			UG Healthcare
			</td>
			<td>
			8K7
			</td>
			<td>
			354
			</td>
			<td>
			3
			</td>
			<td>
			-13
			</td>
			<td>
			-1.5
			</td>
			<td>
			0.0
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			98,781
			</td>
			<td>
			266
			</td>
			<td>
			-437
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			15.7
			</td>
			<td>
			-0.2
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 26 July 2021)

 

Materials &amp; Resources 
The June Industrial Production report also showed that Singapore’s Specialty Chemicals cluster expanded 19.3% in 1H21 from 1H20. A top 40 stock by turnover this year, China-based Jiutian Chemical has been Singapore’s most traded Catalist-listed stock in the 2021 year to date. The company is expected to report its 1HFY21 (ended 30 June) results in the week ending 13 August. Back on 14 May, Jiutian Chemical Group reported net profit of 90 million yuan (S$18 million) for its 1QFY21 (ended 31 March), which was 30 times its 3 million yuan net profit in 1QFY20 (click <a href="https://urldefense.com/v3/__https:/links.sgx.com/1.0.0/corporate-announcements/W6SZYNJ51UNLY977/dc6ea4af4de03eda476b63ae56f59abfd16244f6fd4be8787904a3752ca4e20a__;!!AqcgDpFm!PabP-jievRpynF8asywdJIAkiqI1ks3GF2oL77ou2IrSFbwfF8OGqnKpAmA2HIJyGb7nRQ%24">here</a> for more). Its main product, DMF, has a diversified range of applications which include being a feedstock for polyurethane and pharmaceutical goods as well as being an industrial solvent. Materials &amp; Resources was also the strongest Sector in the China stock market over the 2021 year to 26 July with the approximate 700 stocks generating a 17% median total return. PMIs &amp; Uneven Growth  
As reported earlier in the month, the SIPMM Purchasing Managers’ Index (“PMI”) registered the 12th consecutive month of expansion for the overall manufacturing sector with a 0.1 point increase to 50.8 in June 2021, with the July PMI scheduled to be released on 2 August. Beyond headline growth, a key objective of policymakers is to see less uneven growth across the various sub industries in 2H21. 
While the June Industrial Production report showed Electronics saw the greatest YoY growth in 1H21, Transport Engineering declined 0.9% YoY and the General Manufacturing Industries Cluster expanded 7.5% YoY. While Yangzijiang Shipbuilding (Holdings) gained 52.1% in 1H21 on global demand for container ships, with a 2.1% decline in the 2H21 to 26 July, Sembcorp Marine declined 16.1% in 1H21 and 13.3% in 2H21. General Manufacturing incorporates F&amp;B and on 22 July, SATS reported its PATMI was profitable for a second consecutive quarter at $6.4 million in 1QFY22 (ended 30 June), following 4QFY21 PATMI of S$0.8 million. As observed by SATS, new variants of the COVID-19 virus continue to create uncertainty about when travel restrictions will be lifted. ST Engineering which gained 3.9% in 1H21 and 2.3% in the 2H21 to 26 July, will release its 1HFY21 (ended 30 June) financial results before the market opens on 12 August. 
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Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with June’s 3.0% MoM decline being the largest MoM decline since October. Similarly, Singapore’s 20 most traded manufacturing-related stocks averaged a 15.7% gain in 1H21, followed by averaging a 0.2% decline since 30 June.  
	 
	
While the 20 stocks represent 11% of the total market value of all stocks listed on Singapore Exchange, the 20 stocks almost double their impact in daily turnover, with the combined S$266 million in average daily turnover in the 2021 YTD representing 20% of the total average daily turnover of all stocks listed on SGX.  
	 
	As the Semiconductor cluster expanded 26.2% YoY in 1H21 from 1H20, AEM, UMS and Frencken, which rank as top 50 stocks by turnover, averaged 32.9% total returns over the same period. Since the end of June, the trio have generated highly symmetrical gains of 5.5%, which includes a dividend distribution by UMS Holdings. 

 

Singapore’s 20 most traded manufacturing-related stocks span five key sectors - Technology, Consumer Non-Cyclicals, Industrials, Healthcare and Materials &amp; Resources. The wide span of industries, from semiconductors and consumer electronics to agricultural producers to shipbuilders to personal protection equipment to chemical manufacturing inputs, the 20 stocks have generated diversified returns in the 2021 year to 26 July. The 20 stocks have averaged a 15.8% total return over the period, spanning 27.9% average total returns for six Technology stocks to a 5.9% decline for four Healthcare stocks.



      
    
    Sectors of the 20 most traded manufacturing-related stocks


Singapore’s 20 most traded manufacturing-related stocks currently maintain a combined market value of S$98.8 billion, which represents 10.9% of the S$903.6 billion in total market capitalisation of all stocks listed on SGX. The 20 stocks almost double their impact when it comes to trading participation, with the combined S$266 million in daily turnover representing 19.6% of the combined S$1.36 billion in average daily turnover of all stocks listed on the exchange in the 2021 year to 26 July. All 20 stocks have international revenue streams, with companies based in Singapore, China, Malaysia and Thailand.   Similarly, Singapore’s manufacturing sector makes up approximately 20% of its GDP, and as reported yesterday, Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with the month of June seeing a 3.0% MoM decline, the largest MoM decline since October (click here for more). The 3.0% MoM decline in June from May, followed preceding MoM changes of 4.4%, -0.1%, -0.4%, 1.7% and 4.5%.  Technology  
As the Semiconductor Cluster expanded 26.2% YoY in 1H21 from 1H20, AEM Holdings, UMS Holdings and Frencken Group averaged 32.9% total returns over the same period. Since the end of June, the trio have generated similar gains, averaging 5.5%, which includes a dividend distribution by UMS Holdings.  
The broader Electronics Cluster expanded 23.6% in 1H21 from 1H20. Nanofilm Technologies International generated a 24.8% total return in 1H21 and was the strongest performer of the 20 stocks in the 2H21 to 26 July, with an 18.9% gain. In mid-July, Credit Suisse increased their target price on the stock by 13%, highlighting that the nanotech provider is exploring opportunities to immerse itself into the clean tech supply chain. Jeffries also initiated coverage on the stock during the week. That same week saw the global appetite for consumer technology reiterated with Apple Inc reporting it would seek to boost iPhone output by 20% in 2021. Nanofilm Technologies International also owns more than 70 patents and trademarks, with over 20 pending applications.  
Aztech Global will report its 1HFY21 (ended 30 June) financial results after the 30 July close and Venture Corporation will be announcing its 1HFY21 (ended 30 June) financial results after the 6 August close. Venture Corporation has gained 4.9% since providing a general corporate update on 23 June, highlighting that despite recent challenges of the endemic, its entities in Malaysia have been able to continue operations as an essential economic sector, enabling Venture to deliver on its customers and partner commitments. The Group also added that a new series of next-generation devices in the Lifestyle Consumer Electronics have been developed, with plans afoot to launch these products in 2H21.   Industrials  
Engineering solution provider ISDN Holdings was the strongest of the 20 most traded manufacturing stocks in the 1H21. On June 18, ISDN Holdings announced a global strategic partnership with communications solution provider Whizpace Pte Ltd to deliver wide-area Industry 4.0 and IoT solutions globally. While ISDN Holdings represents the Industrials Sector, on the outlook for the regional supply and value chains, ISDN Holdings noted in its 30 April AGM Q&amp;A it had been seeing the benefit of China’s broad ramp in semiconductor capex in its business, with:


geopolitical industry competition and global trade tensions diverting trade, supply chains and capital to Southeast Asia
	trade tensions accelerating China’s industrial push towards Industry 4.0 automation as it seeks to avoid competing with Southeast Asia on cost, and instead pushing up the value chain into advanced industry
	China’s technology ecosystem looking to reduce its reliance on US and European technology in favour of Asia-centric suppliers.

 

The IMF Singapore Country Report released on 16 July showed that Singapore had made significant strides in the digitalisation of production through industrial robots. The report defined Industrial robots as higher-end digitalisation products predominantly used for automation in the manufacturing sector and maintained Singapore’s stock of operational robots in the manufacturing sector has rapidly increased during the past decade, from about 600 robots in 2008 to above 17,000 robots in 2018, translating into a rise in robot density to 45 operating robots per 1,000 employees in 2018, from about 1 operating robot per 1,000 employees in 2008 (click here for more). This makes Singapore one of the top users of industrial robots in the world with most of the industrial robots in Singapore are used in the semiconductor sub-sector.  While the 20 stocks were recipients to S$437 of combined net institutional outflow in the 2021 year to 26 July, China-based Yangzijiang Shipbuilding (Holdings) was recipient to S$217 million in net institutional inflow, also doubling as the most traded of the 20 stocks over the period. In the first half of its FY21 (ended 30 June) the Group secured new orders for 100 vessels worth US$5.59 billion, surpassing the previous record largest order wins (based on total contract value) for an FY in the Group’s history previously set at US$4.97 billion in FY07. On 21 July, Yangzijiang Shipbuilding (Holdings) announced that it had entered into a sale and purchase agreement (‘SPA’) with Sanfu Shipbuilding Holdings. The SPA will see Yangzijiang Shipbuilding (Holdings) purchase of the remaining 20 per cent equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co Ltd, for an aggregate consideration of RMB 650 million, fully funded by 100 million treasury shares of Yangzijiang Shipbuilding (Holdings) and is expected to be earnings accretive for the Group.   The recent performances of the 20 stocks, sorted by average daily turnover are tabled below.




			Singapore’s 20 most traded manufacturing-related stocks in 2021 YTD
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Average Daily Turnover YTD S$M
			
			
			Net Insti Inflow YTD S$M
			
			
			1H21 Total Return %
			
			
			2H21 Total Return %  
			
			
			Sector
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			5,311
			
			
			42
			
			
			217
			
			
			52.1
			
			
			-2.1
			
			
			Industrials
			
		


			Wilmar Intl
			
			
			F34
			
			
			28,121
			
			
			41
			
			
			-131
			
			
			-0.4
			
			
			-0.9
			
			
			Consumer Non-Cyclicals
			
		


			ThaiBev
			
			
			Y92
			
			
			16,453
			
			
			23
			
			
			-344
			
			
			-5.5
			
			
			-3.0
			
			
			Consumer Non-Cyclicals
			
		


			Venture
			
			
			V03
			
			
			5,510
			
			
			21
			
			
			-153
			
			
			1.5
			
			
			-1.2
			
			
			Technology (Hardware/ Software)
			
		


			Sembcorp Marine
			
			
			S51
			
			
			1,306
			
			
			20
			
			
			39
			
			
			-16.1
			
			
			-13.3
			
			
			Industrials
			
		


			AEM
			
			
			AWX
			
			
			1,142
			
			
			17
			
			
			-64
			
			
			12.3
			
			
			5.7
			
			
			Technology (Hardware/ Software)
			
		


			ST Engineering
			
			
			S63
			
			
			12,347
			
			
			15
			
			
			-51
			
			
			3.9
			
			
			2.3
			
			
			Industrials
			
		


			UMS
			
			
			558
			
			
			848
			
			
			11
			
			
			57
			
			
			41.7
			
			
			5.3
			
			
			Technology (Hardware/ Software)
			
		


			SATS
			
			
			S58
			
			
			4,419
			
			
			10
			
			
			-13
			
			
			-1.3
			
			
			0.3
			
			
			Industrials
			
		


			Nanofilm
			
			
			MZH
			
			
			4,320
			
			
			9
			
			
			45
			
			
			24.8
			
			
			18.9
			
			
			Technology (Hardware/ Software)
			
		


			Jiutian Chemical
			
			
			C8R
			
			
			167
			
			
			9
			
			
			-4
			
			
			6.3
			
			
			0.0
			
			
			Materials &amp; Resources
			
		


			Medtecs Intl
			
			
			546
			
			
			443
			
			
			7
			
			
			8
			
			
			-9.5
			
			
			-5.3
			
			
			Healthcare
			
		


			Top Glove
			
			
			BVA
			
			
			10,486
			
			
			7
			
			
			-55
			
			
			-25.8
			
			
			-3.7
			
			
			Healthcare
			
		


			Oceanus^
			
			
			579
			
			
			875
			
			
			7
			
			
			-14
			
			
			40.7
			
			
			-5.3
			
			
			Consumer Non-Cyclicals
			
		


			ISDN
			
			
			I07
			
			
			316
			
			
			6
			
			
			8
			
			
			80.2
			
			
			0.4
			
			
			Industrials
			
		


			Riverstone
			
			
			AP4
			
			
			1,897
			
			
			5
			
			
			25
			
			
			15.8
			
			
			4.1
			
			
			Healthcare
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			2,665
			
			
			5
			
			
			21
			
			
			47.5
			
			
			-8.7
			
			
			Consumer Non-Cyclicals
			
		


			Frencken
			
			
			E28
			
			
			841
			
			
			5
			
			
			29
			
			
			44.6
			
			
			5.3
			
			
			Technology (Hardware/ Software)
			
		


			Aztech Global
			
			
			8AZ
			
			
			960
			
			
			4
			
			
			-43
			
			
			1.5
			
			
			-3.1
			
			
			Technology (Hardware/ Software)
			
		


			UG Healthcare
			
			
			8K7
			
			
			354
			
			
			3
			
			
			-13
			
			
			-1.5
			
			
			0.0
			
			
			Healthcare
			
		


			Total
			
			
			 
			
			
			98,781
			
			
			266
			
			
			-437
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			15.7
			
			
			-0.2
			
			
			 
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 26 July 2021)

 

Materials &amp; Resources  
The June Industrial Production report also showed that Singapore’s Specialty Chemicals cluster expanded 19.3% in 1H21 from 1H20. A top 40 stock by turnover this year, China-based Jiutian Chemical has been Singapore’s most traded Catalist-listed stock in the 2021 year to date. The company is expected to report its 1HFY21 (ended 30 June) results in the week ending 13 August. Back on 14 May, Jiutian Chemical Group reported net profit of 90 million yuan (S$18 million) for its 1QFY21 (ended 31 March), which was 30 times its 3 million yuan net profit in 1QFY20 (click here for more). Its main product, DMF, has a diversified range of applications which include being a feedstock for polyurethane and pharmaceutical goods as well as being an industrial solvent. Materials &amp; Resources was also the strongest Sector in the China stock market over the 2021 year to 26 July with the approximate 700 stocks generating a 17% median total return.   PMIs &amp; Uneven Growth    
As reported earlier in the month, the SIPMM Purchasing Managers’ Index (“PMI”) registered the 12th consecutive month of expansion for the overall manufacturing sector with a 0.1 point increase to 50.8 in June 2021, with the July PMI scheduled to be released on 2 August. Beyond headline growth, a key objective of policymakers is to see less uneven growth across the various sub industries in 2H21.  
While the June Industrial Production report showed Electronics saw the greatest YoY growth in 1H21, Transport Engineering declined 0.9% YoY and the General Manufacturing Industries Cluster expanded 7.5% YoY. While Yangzijiang Shipbuilding (Holdings) gained 52.1% in 1H21 on global demand for container ships, with a 2.1% decline in the 2H21 to 26 July, Sembcorp Marine declined 16.1% in 1H21 and 13.3% in 2H21. General Manufacturing incorporates F&amp;B and on 22 July, SATS reported its PATMI was profitable for a second consecutive quarter at $6.4 million in 1QFY22 (ended 30 June), following 4QFY21 PATMI of S$0.8 million. As observed by SATS, new variants of the COVID-19 virus continue to create uncertainty about when travel restrictions will be lifted. ST Engineering which gained 3.9% in 1H21 and 2.3% in the 2H21 to 26 July, will release its 1HFY21 (ended 30 June) financial results before the market opens on 12 August. 



Singapore’s Recent Manufacturing Growth Extended to Stocks 

Seatrium

Singapore’s Recent Manufacturing Growth Extended to Stocks