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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<ul>
<li>
SGX lists six stocks with market cap above S$1 billion that operate significant agriculture and food businesses. 
	 </li>
	<li>
These Agrifood plays, with a combined market cap of nearly S$40 billion, are involved in segments ranging from livestock farming and packaged foods production, to operation of orchards and plantations, as well as the processing and manufacturing of raw materials and food products. 
	 </li>
	<li>In the YTD, the three best-performing billionaire Agrifood plays were: Wilmar (+35.1%), First Resources (+18.0%) and Bumitama Agri (+17.8%). The trio averaged a total return of 23.6% over the period.</li>
</ul>
 

SGX lists six stocks with market capitalisation above S$1 billion that operate significant agriculture and food businesses. These Agrifood plays, with a combined market cap of nearly S$40 billion, are involved in segments ranging from livestock farming and packaged foods production, to operation of orchards and plantations, as well as the processing and manufacturing of raw materials and food products.

In the 2019 year-to-date, the three best-performing billionaire Agrifood plays were: Wilmar International (+35.1%), First Resources (+18.0%) and Bumitama Agri (+17.8%). The trio averaged a YTD total return of 23.6%, bringing their three-year and five-year total returns to 9.4% and 6.5% respectively.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-11/comparative%20total%20returns%20agri.png' alt='agrifood comparative total returns' />
 </figure>
 <div class='content-caption'>agrifood comparative total returns</div>
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Source: Bloomberg

 

The table below details the six billionaire Agrifood plays on SGX, sorted by market cap.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Total Return 5Y (%)
			</td>
		</tr>
<tr>
<td>
			WILMAR INTL
			</td>
			<td>
			F34
			</td>
			<td>
			25,978
			</td>
			<td>
			35.1
			</td>
			<td>
			30.4
			</td>
			<td>
			43.7
			</td>
		</tr>
<tr>
<td>
			OLAM INTL
			</td>
			<td>
			O32
			</td>
			<td>
			5,831
			</td>
			<td>
			15.3
			</td>
			<td>
			4.8
			</td>
			<td>
			-4.6
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			2,929
			</td>
			<td>
			-4.2
			</td>
			<td>
			-40.5
			</td>
			<td>
			-44.4
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			EB5
			</td>
			<td>
			2,835
			</td>
			<td>
			18.0
			</td>
			<td>
			-0.7
			</td>
			<td>
			1.7
			</td>
		</tr>
<tr>
<td>
			BUMITAMA AGRI
			</td>
			<td>
			P8Z
			</td>
			<td>
			1,225
			</td>
			<td>
			17.8
			</td>
			<td>
			-1.4
			</td>
			<td>
			-25.8
			</td>
		</tr>
<tr>
<td>
			JAPFA LTD
			</td>
			<td>
			UD2
			</td>
			<td>
			1,155
			</td>
			<td>
			-12.5
			</td>
			<td>
			-29.1
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11.6
			</td>
			<td>
			-6.1
			</td>
			<td>
			-4.8
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 22 Nov 2019)

 

Earnings Highlights of YTD Best Performers 
Wilmar (3Q ended 30 Sept 2019)

<ul>
<li>Revenue down 2.2% YoY to US$11.2 billion</li>
	<li>Net profit up 10.2% to US$447.1 million</li>
	<li>Performance driven by better results in Tropical Oils and Consumer Products as well as recognition of gain from the disposal of the Group’s discontinued operations in Brazil</li>
	<li>Outlook:
	<ul>
<li>Despite the challenging operating environment, Wilmar performed well because of its integrated and diversified business model; its operations in most countries did well in 3Q 2019</li>
		<li>Barring unforeseen circumstances, it expects to do “reasonably well” in 4Q 2019</li>
	</ul>
</li>
</ul>
For the full results release, click <a href="https://links.sgx.com/FileOpen/Wilmar_3Q2019_Financial_Results_News_Release.ashx?App=Announcement&amp;FileID=585436">here</a>. 
 

First Resources (3Q ended 30 Sept 2019)

<ul>
<li>Sales declined 19.7% YoY to US$137.6 million</li>
	<li>Gross profit down 23.9% to US$63.5 million</li>
	<li>Net profit down 28.8% to US$29.3 million</li>
	<li>Performance impacted by weaker palm oil prices, partially offset by higher sales volumes</li>
	<li>Outlook:
	<ul>
<li>Continued concerns over slower supply growth, coupled with Indonesia’s B30 biodiesel mandate in 2020, may have contributed to the recent recovery in palm oil prices</li>
		<li>The Group’s production output has picked up seasonally in 3Q 2019, which is shaping up to be the peak production quarter</li>
		<li>The Group believes long-term fundamentals of the palm oil industry remain positive on tighter global supplies, amidst continued consumption growth from importing countries and strong biodiesel demand from Indonesia</li>
	</ul>
</li>
</ul>
For the full results release, click <a href="https://links.sgx.com/FileOpen/First_Resources_3Q2019_Financial_Announcement.ashx?App=Announcement&amp;FileID=585360">here</a>. 
 

Bumitama Agri (3Q ended 30 Sept 2019)

<ul>
<li>Revenue up 1.4% YoY to IDR1.94 trillion</li>
	<li>Gross profit down 13.0% to IDR509.8 billion</li>
	<li>Net profit down 27.4% to IDR229.0 billion</li>
	<li>Higher sales volumes offset by lower average selling prices of Crude Palm Oil and Palm Kernel</li>
	<li>Outlook:
	<ul>
<li>Palm oil prices have gradually rebounded at the start of 4Q 2019, due to lower-than-anticipated production, and this improvement is expected to continue into 4Q 2019 unless demand/supply dynamics are disrupted</li>
		<li>As the long dry weather conditions have impacted the Group’s production volumes, it will continue to manage its cost structure and boost contribution from newly matured plantations</li>
	</ul>
</li>
</ul>
For the full results release, click <a href="https://links.sgx.com/FileOpen/BAL%20-%203Q2019%20-%20Financial%20Results.ashx?App=Announcement&amp;FileID=585369">here</a>.
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SGX lists six stocks with market cap above S$1 billion that operate significant agriculture and food businesses. 
	 
	
These Agrifood plays, with a combined market cap of nearly S$40 billion, are involved in segments ranging from livestock farming and packaged foods production, to operation of orchards and plantations, as well as the processing and manufacturing of raw materials and food products. 
	 
	In the YTD, the three best-performing billionaire Agrifood plays were: Wilmar (+35.1%), First Resources (+18.0%) and Bumitama Agri (+17.8%). The trio averaged a total return of 23.6% over the period.

 

SGX lists six stocks with market capitalisation above S$1 billion that operate significant agriculture and food businesses. These Agrifood plays, with a combined market cap of nearly S$40 billion, are involved in segments ranging from livestock farming and packaged foods production, to operation of orchards and plantations, as well as the processing and manufacturing of raw materials and food products.

In the 2019 year-to-date, the three best-performing billionaire Agrifood plays were: Wilmar International (+35.1%), First Resources (+18.0%) and Bumitama Agri (+17.8%). The trio averaged a YTD total return of 23.6%, bringing their three-year and five-year total returns to 9.4% and 6.5% respectively.



      
    
    agrifood comparative total returns


Source: Bloomberg

 

The table below details the six billionaire Agrifood plays on SGX, sorted by market cap.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 3Y (%)
			
			
			Total Return 5Y (%)
			
		


			WILMAR INTL
			
			
			F34
			
			
			25,978
			
			
			35.1
			
			
			30.4
			
			
			43.7
			
		


			OLAM INTL
			
			
			O32
			
			
			5,831
			
			
			15.3
			
			
			4.8
			
			
			-4.6
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			2,929
			
			
			-4.2
			
			
			-40.5
			
			
			-44.4
			
		


			FIRST RESOURCES
			
			
			EB5
			
			
			2,835
			
			
			18.0
			
			
			-0.7
			
			
			1.7
			
		


			BUMITAMA AGRI
			
			
			P8Z
			
			
			1,225
			
			
			17.8
			
			
			-1.4
			
			
			-25.8
			
		


			JAPFA LTD
			
			
			UD2
			
			
			1,155
			
			
			-12.5
			
			
			-29.1
			
			
			0.8
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.6
			
			
			-6.1
			
			
			-4.8
			
		

Source: Bloomberg &amp; StockFacts (data as of 22 Nov 2019)

 

Earnings Highlights of YTD Best Performers  
Wilmar (3Q ended 30 Sept 2019)


Revenue down 2.2% YoY to US$11.2 billion
	Net profit up 10.2% to US$447.1 million
	Performance driven by better results in Tropical Oils and Consumer Products as well as recognition of gain from the disposal of the Group’s discontinued operations in Brazil
	Outlook:
	
Despite the challenging operating environment, Wilmar performed well because of its integrated and diversified business model; its operations in most countries did well in 3Q 2019
		Barring unforeseen circumstances, it expects to do “reasonably well” in 4Q 2019
	


For the full results release, click here. 
 

First Resources (3Q ended 30 Sept 2019)


Sales declined 19.7% YoY to US$137.6 million
	Gross profit down 23.9% to US$63.5 million
	Net profit down 28.8% to US$29.3 million
	Performance impacted by weaker palm oil prices, partially offset by higher sales volumes
	Outlook:
	
Continued concerns over slower supply growth, coupled with Indonesia’s B30 biodiesel mandate in 2020, may have contributed to the recent recovery in palm oil prices
		The Group’s production output has picked up seasonally in 3Q 2019, which is shaping up to be the peak production quarter
		The Group believes long-term fundamentals of the palm oil industry remain positive on tighter global supplies, amidst continued consumption growth from importing countries and strong biodiesel demand from Indonesia
	


For the full results release, click here. 
 

Bumitama Agri (3Q ended 30 Sept 2019)


Revenue up 1.4% YoY to IDR1.94 trillion
	Gross profit down 13.0% to IDR509.8 billion
	Net profit down 27.4% to IDR229.0 billion
	Higher sales volumes offset by lower average selling prices of Crude Palm Oil and Palm Kernel
	Outlook:
	
Palm oil prices have gradually rebounded at the start of 4Q 2019, due to lower-than-anticipated production, and this improvement is expected to continue into 4Q 2019 unless demand/supply dynamics are disrupted
		As the long dry weather conditions have impacted the Group’s production volumes, it will continue to manage its cost structure and boost contribution from newly matured plantations
	


For the full results release, click here.



Three Best-Performing Billionaire Agrifood Plays Returned 24% in YTD      

Olam Group

Three Best-Performing Billionaire Agrifood Plays Returned 24% in YTD