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>Tuan Sing Holdings</h2>
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<p><strong>Under-appreciated asset play</strong></p>
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<p>Initiate coverage with BUY and SOTP-based TP of S$0.38</p>
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<p>Attractive valuation at 0.27x P/NAV or -2 SD of 5-year mean</p>
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<p>Australian hotel business set to recover with relaxation of COVID-19 measures</p>
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<li>Potential value unlocking of Gultech to transform counter into partial tech play</li>
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<p><strong>Deep value play.</strong> We initiate coverage on Tuan Sing with a BUY call and TP of S$0.38, implying upside of c.60%. We see catalysts emerging for Tuan Sing in the medium term through the (i) potential value unlocking activities of a divestment or receipt of dividend from Gul Technologies (Gultech) amongst other non-core businesses, and (ii) rebound in performance of its core investment properties post COVID-19 outbreak. The stock is currently trading at a 5-year low on a P/BV perspective (-2 standard deviation [SD]).</p>
<p><strong>Value unlocking of high growth Gul Technologies could reap Tuan Sing S$0.23 per share.</strong> Gultech’s contribution to Tuan Sing has grown by a CAGR of 26% over the past five years. Going forward, we think this may be a good time for Tuan Sing to reap dividends from Gultech. We believe that an uptrend in the semiconductor cycle could lead to further rapid growth as China’s integrated circuit production soars. In addition, a potential divestment to streamline its portfolio towards its core property business could bring in c.S$270m, in our estimates, or 23 Scts per share (based on a conservative valuation of 11.0x FY20F PE).</p>
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Tuan Sing Holdings




Under-appreciated asset play






Initiate coverage with BUY and SOTP-based TP of S$0.38


Attractive valuation at 0.27x P/NAV or -2 SD of 5-year mean


Australian hotel business set to recover with relaxation of COVID-19 measures

Potential value unlocking of Gultech to transform counter into partial tech play





Deep value play. We initiate coverage on Tuan Sing with a BUY call and TP of S$0.38, implying upside of c.60%. We see catalysts emerging for Tuan Sing in the medium term through the (i) potential value unlocking activities of a divestment or receipt of dividend from Gul Technologies (Gultech) amongst other non-core businesses, and (ii) rebound in performance of its core investment properties post COVID-19 outbreak. The stock is currently trading at a 5-year low on a P/BV perspective (-2 standard deviation [SD]).
Value unlocking of high growth Gul Technologies could reap Tuan Sing S$0.23 per share. Gultech’s contribution to Tuan Sing has grown by a CAGR of 26% over the past five years. Going forward, we think this may be a good time for Tuan Sing to reap dividends from Gultech. We believe that an uptrend in the semiconductor cycle could lead to further rapid growth as China’s integrated circuit production soars. In addition, a potential divestment to streamline its portfolio towards its core property business could bring in c.S$270m, in our estimates, or 23 Scts per share (based on a conservative valuation of 11.0x FY20F PE).

















Tuan Sing Holdings: Under-Appreciated Asset Play