APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
On Friday, Bloomberg reported that China Securities Regulatory Commission’s (CSRC) was weighing tighter rules for Chinese companies listing overseas which could have an impact on upcoming large IPOs such as ByteDance and Didi Chuxing. 
However, shortly after, on the same day, CSRC came forward to deny it. While the rumor has been dispelled quickly, one should keep in mind that it wasn’t too long ago that the SEC tightened its restrictions on Chinese companies as it sought public comments for the Holding Foreign Companies Accountable Act (HFCAA). The push and pull factors that we highlighted in our China ADRs note last year seem to remain strong with both sides wanting to limit Chinese companies listing in the US.


JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War 

JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond 

JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation 

JD Logistics (京东物流) Pre-IPO - PHIP Updates and Fine-Tuning Valuation 
JD Logistics (京东物流) Pre-IPO - Index Implications - It Will Cut Close
JD Logistics (京东物流) Pre-IPO - Bull/​Bear Case + Valuation Sensitivity

SF REIT launched its IPO bookbuild this week. Books were reportedly covered and will close this coming Monday. The company will debut on 17th May. 

SF REIT Pre-IPO -One trick pony, who’s not doing the trick.
SF REIT IPO - Don’t See a Clear Reason to Buy

Central China Management (PHIP filed) and New Hope Service have also started premarketing and both companies are looking to raise up to US$150m each. We also heard that Betta Pharma will seek approval next week. 
This week’s notable filings include ANE in Hong Kong (US$500m), Nuvoco Vistas and Chemplast Sanmar in India (US$680m and US$450m, respectively) and CTOS Holdings in Malaysia (US$290m). 
This week, we initiated coverage on Anjuke (ANJ HK), a real estate information and transaction service provider, and shared our preliminary thoughts on the valuation of Angelalign Technology (AAT HK).

Anjuke Pre-IPO - Mixed (Positive and Negative) Developments
Angelalign (时代天使) Pre-IPO: Deserves a Premium to Peers

In the US, Waterdrop Inc. (WDH US), despite closing books a day earlier and pricing its NYSE IPO at the top end, closed almost 20% below its IPO price.

Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers
Waterdrop Pre-IPO - The Negatives - Scandals, Shutdowns, Competing with Giants, Regulation 
Waterdrop IPO - Valuation Has Nearly Tripled over the past Year
Waterdrop IPO Trading - Ant’s Mutual Aid Admissions Showcase the Regulatory Overhang

We initiated coverage on Ximalaya (XIMA US) and Qiniu (QNIU US) which filed their prospectus last week. Both companies are in the midst of premarketing.

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening
Ximalaya Pre-IPO - The Negatives
Qiniu Cloud (七牛云) Pre-IPO: PaaS Doesn’t Warrant a Premium

For Hello Inc. (1883864D US), Ming Lu went on the ground and compared Hello Inc’s bike sharing services against its competitors like Meituan (3690 HK) and Didi Bike (青桔单车). 

Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable
Hello (HI): Competition on the Ground, Hard to Reach Profitability

In the Philippines, Monde Nissin Corp (0191881D PM) bookbuild is scheduled to open on Tuesday. It was reported that the company has already drawn over US$1bn of orders from investors and is in talks with over a dozen cornerstone investors. 

Monde Nissin Pre-IPO - The Positives - High Market Share
Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA
Monde Nissin Pre-IPO - Peer Comparison for Food Business
Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business
Monde Nissin Pre-IPO - Thoughts on Valuation
Monde Nissin Pre-IPO - Not Cheap but Sensible

In Thailand, Ngern Tid Lor (NTL TB) will trade on Monday. Demand for the IPO had likely been good considering that, last month, it closed its bookbuild five days early and priced at the top-end.

Ngern Tid Lor IPO Trading - Should Be a Steady Listing 
There is a flurry of IPOs coming to market in Australia. Aurora Healthcare, Australia Venue Company, and Keypath Education have kicked off their IPOs this week and will launch bookbuild this coming Monday. We will publish on Aurora Healthcare and Australia Venue Company by Monday.
Placements took a backseat this week. There was only Ascendas REIT (AREIT SP)’s placement in Singapore. This marks their second placement in under six months. This time the REIT raised US$315m to acquire the remaining 75% stake in Galaxis, in the one-north precinct. 

AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While
AREIT - Paying for Acquisition with Only Equity Doesn’t Add Up, DPU to Fall by 3-4%
Ascendas REIT Placement - Multiple Acquisitions to Be Made, Starting From US Office Properties
Ascendas REIT Placement - Smaller than the Last Deal, Should Be Accretive as Well

Credits to Clarence Chu for helping out with the note.
Accuracy Rate:Our overall accuracy rate is 74.1% for IPOs and 67.3% for Placements (Performance measurement criteria is explained at the end of the note)New IPO filings this week  

ANE (Cayman) Inc. (Hong Kong, US$500m)
Ronshine Service (Hong Kong, US$100m)
Nuvoco Vistas (India, US$680m)
Chemplast Sanmar Limited (India, US$450m)
CTOS Holding (Malaysia, US$290m)
News on Upcoming IPOs  
Hong Kong/China
China Logistics Firm ANE Files for Hong Kong IPO
JD Logistics pre-markets HK IPO
New Hope Service pre-markets US$150m IPO
Li Ruigang Starts Countdown to IPO of CMC Inc. in Hong Kong
Hangzhou Xpower Tech seeks US$300m HK IPO
Central China Management to pre-market HK IPO next week
Ronshine Service Files for Hong Kong Initial Public Offering
Books covered for SF REIT HK IPO
Chinese Ride-Hailing Giant Didi Chuxing Considers Spinning Off Its Community Group Buying Business After IPO
China Telecom targeting Rmb54.4bn Shanghai IPO
Shanghai Electric Wind Power plans Rmb2.9bn Star IPO
InnoCare Pharma kicks off A-share IPO tutorial
China Three Gorges Renewables (Group) prices Rmb22.7bn Shanghai IPO
China Is Said to Mull Tighter Rules for Firms Listing Overseas
CHINA'S CSRC DENIES MULLING TIGHTER RULES FOR OFFSHORE LISTINGS
US/China ADRs
Quwan Network Tech mulls US$300m US IPO
Ximalaya, Qiniu pre-market US IPOs
Didi Chuxing adds banks to US IPO
E-Commerce Service Valued at $235 Million Targets U.S. IPO
Ant-Backed Snowball Finance Said to Plan $300 Million U.S. IPO
Tencent-backed VIPKid mulls US$500m US IPO
India
Indian auto classified firm CarTrade to soon file for $266m IPO
Robotics company GreyOrange eyes $600 million via US listing
Chemplast Sanmar files DRHP to raise $466m via IPO
Tata Power Mulling $473 Million Renewable Energy Unit IPO
India Pesticides, KIMS get Sebi nod to launch IPOs
PowerGrid InvIT IPO subscribed 4.83 times
Wellness Forever plans up to Rs12bn IPO
Others
Aussie IPOs gather pace
Aurora Healthcare Australia seeks listing via A$415m ASX IPO
Keypath Education plans A$249m ASX listing
US pokies company Scientific Games mulls ASX-listing, hires bankers
KKR to list Australian majority-owned pub group seeking A$352m
Bitcoin miner Iris is said to weigh Australia’s first SPAC deal
Australian Venue markets A$352m ASX IPO
Malaysia’s CTOS files for M$1.2bn IPO
Malaysian PE firm Creador looking to sell 40% of its stake in CTOS Digital via IPO
Monde Nissin cooks up record Philippine IPO
Hyundai Heavy applies for KRX approval of W1trn IPO
A Twosome Place invites banks on IPO
Analysis on Upcoming IPOs

Name
Insight

Hong Kong

Anjuke
Anjuke Pre-IPO - Mixed (Positive and Negative) Developments 


Angelalign
Angelalign (时代天使) Pre-IPO: Medical Device Player with Consumer Feature 


Angelalign
Angelalign (时代天使) Pre-IPO: Deserves a Premium to Peers 


Betta Pharma
Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out 


ByteDance
ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)


ByteDance
ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 


ByteDance
ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 


ByteDance
ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 


Chaoju
Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive 


Dida
Dida Pre-IPO - Making Hay While Big Brother Retreats 


Dida
Dida Pre-IPO - Earnings Forecast and First Stab at Valuation 


Dida
Dida Pre-IPO - Peer Comparison - Lagging in Scale, Leading in Profitability 


Edding Grp
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 


Edding Grp
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 


Hanyu
Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time 


Intco Med
Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 


Kilcoy
Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War 


Kilcoy
Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained 


Kindstar
Kindstar (康圣环球) Pre-IPO: Issues with Scalability 


Kindstar
Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium? 


RemeGen

RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 


Bio-heart

Shanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway 


Toplist

Toplist China Pre-IPO - Overwhelmingly More Negatives than Positives 


Tasly

Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


WeDoctor

We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 


WeDoctor

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 


Youran Dairy

China Youran Dairy(悠然牧业) Pre-IPO - A Leader Pulling Ahead in a Fragmented Market 

India

Aadhar Housing

Aadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures 


ASK

ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel
Bharat Hotels Pre-IPO - Catching up with Peers 


Bajaj En
Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 


CMS Info
CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right


Crystal Crop
Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


NSE
NSE IPO Preview- Not Only Fast..its Risky and Expensive


NSE
National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some


LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers


Samhi Hotels

Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 


Sona Comstar

Sona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures 

Malaysia

QSR
QSR Brands Pre-IPO - As Healthy as Fast Food

The U.S.

Hello Inc

Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable 


Qiniu

Qiniu Cloud (七牛云) Pre-IPO: PaaS Doesn't Warrant a Premium 


Ximalaya

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening 


Ximalaya

Ximalaya Pre-IPO - The Negatives 



ECM Weekly (9th May 2021) - JD Logistics, Anjuke, Waterdrop, Ximalaya, Qiniu, Monde Nissin

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

CapitaLand Ascendas REIT / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/ascendas-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:39:1" rel="noopener">Ascendas Real Estate Investment Trust (AREIT SP)</a> aims to raise around US$320m (S$430m) to acquire the balance 75% stake in Galaxis. </p></div><div><p>This will be the second placement in under six months. Links to our previous coverage are below:</p></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/areit-placement-expected-to-be-dpu-accretive-but-the-acquisition-might-take-a-while" target="_blank" rel="noopener">AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While</a></li>
<li><a href="https://www.smartkarma.com/insights/areit-paying-for-acquisition-with-only-equity-doesn-t-add-up-dpu-to-fall-by-3-4" target="_blank" rel="noopener">AREIT - Paying for Acquisition with Only Equity Doesn’t Add Up, DPU to Fall by 3-4%</a></li>
<li><a href="https://www.smartkarma.com/insights/ascendas-reit-placement-multiple-acquisitions-to-be-made-starting-from-us-office-properties" target="_blank" rel="noopener">Ascendas REIT Placement - Multiple Acquisitions to Be Made, Starting From US Office Properties</a></li>
</ul></div>

Ascendas Real Estate Investment Trust (AREIT SP) aims to raise around US$320m (S$430m) to acquire the balance 75% stake in Galaxis. This will be the second placement in under six months. Links to our previous coverage are below:
AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While
AREIT - Paying for Acquisition with Only Equity Doesn’t Add Up, DPU to Fall by 3-4%
Ascendas REIT Placement - Multiple Acquisitions to Be Made, Starting From US Office Properties


Ascendas REIT Placement - Smaller than the Last Deal, Should Be Accretive as Well

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

<p><strong><em>*Unbelievable: </em></strong>DBS Group Holdings (DBS.SP) [DBS] reported 1Q21 results of SGD 2.0 bn, increasing SGD 997 mn (98.5%) on a linked quarter basis. Results were driven primarily by two factors: a) loss provisions declined SGD 567 mn (98.3%) which is bizarre in light of its troubled Indian acquisition, Lakshmi Vilas Bank (LVB), risk is not controlled; and b) fee revenue growth of SGD 604 mn (52.8%) which includes an undisclosed level of non-operating gains;</p><p><strong><em>*Watch Your Credit: </em></strong>We struggle continue to believe that DBS’ due diligence had actually caught all of LVB’s risk (see discussion below), and remain unconvinced that the moratorium exits are anything more than additional reliance on government schemes and relief programs. DBS has disclosed absolutely nothing about Shenzhen Rural Commercial Bank’s (SRCB) fundamentals. Net new NPLs continue to increase – up SGD 85 mn or increasing 5.6% on an annualized basis. Reserves should be shored up in the neighborhood of SGD 2.5bn to reflect this risk; and</p><p>*<em><strong>*Deal Distractions Mount: </strong></em> While SRCB dos not appear to be riddled with problems the way LVB is, no doubt there will be issues to contend with.  DBS apparently isn’t done with its shopping spree, being in the running for parts of Citigroup's (C.US) consumer business in Asia. Frankly, DBS needs to focus on improving its own legacy issues before it starts both taking on those of other financial institutions.</p>

*Unbelievable: DBS Group Holdings (DBS.SP) [DBS] reported 1Q21 results of SGD 2.0 bn, increasing SGD 997 mn (98.5%) on a linked quarter basis. Results were driven primarily by two factors: a) loss provisions declined SGD 567 mn (98.3%) which is bizarre in light of its troubled Indian acquisition, Lakshmi Vilas Bank (LVB), risk is not controlled; and b) fee revenue growth of SGD 604 mn (52.8%) which includes an undisclosed level of non-operating gains;*Watch Your Credit: We struggle continue to believe that DBS’ due diligence had actually caught all of LVB’s risk (see discussion below), and remain unconvinced that the moratorium exits are anything more than additional reliance on government schemes and relief programs. DBS has disclosed absolutely nothing about Shenzhen Rural Commercial Bank’s (SRCB) fundamentals. Net new NPLs continue to increase – up SGD 85 mn or increasing 5.6% on an annualized basis. Reserves should be shored up in the neighborhood of SGD 2.5bn to reflect this risk; and**Deal Distractions Mount:  While SRCB dos not appear to be riddled with problems the way LVB is, no doubt there will be issues to contend with.  DBS apparently isn’t done with its shopping spree, being in the running for parts of Citigroup's (C.US) consumer business in Asia. Frankly, DBS needs to focus on improving its own legacy issues before it starts both taking on those of other financial institutions.

DBS Group Holdings – Not Sure Whether To Laugh Or Cry

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

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.




With 13.2% price gains over the first four months of 2021, this has been the strongest start to a calendar year for the STI since 1999. The STI has also been the second strongest benchmark across the Asia Pacific in the 2021 YTD. Together the STI and TAIEX are the sole regional benchmarks to lodge YTD double-digit percentage gains.


Comprising 41% of the STI weights, together DBS, OCBC &amp; UOB saw S$1.7 billion of combined net institutional and net proprietary inflows over the past four months, while averaging 20% total returns. Globally, banks have been the strongest stock sector in the 2021 YTD.


The STI’s five strongest performers over the past four months were Yangzijiang Shipbuilding, Sembcorp Industries, Hongkong Land, Jardine Matheson and OCBC. Together, the five stocks averaged 29% total returns while the five least performing STI stocks generated a 1% decline.

STI APAC’s Second Strongest Benchmark in 2021 YTD

For the month of April, the STI added 1.7% price gains, with dividend distributions boosting the benchmark’s total return to 2.0%. The final session of April also saw the STI form a new intra-year high of 3,237.23, a level the STI has not seen since 21 January 2020.

For the first four months of the year, the STI has generated a 13.2% price gain, with dividend distributions boosting the total return to 14.0%. This means the Index is just one of two regional benchmarks that have generated double-digit percentage gains over the past four months as tabled below.



      
    
    Price change first 4 months of 2021


On a price performance basis, this has also been the strongest start to a calendar year for the STI since 1999. Back then, the Index was comprised of approximately 50 stocks. Much of the STI gains for the first four months of 1999 were formed in the month of April. In early 1999, the Ministry of Trade and Industry had forecast the year would bring -1% to +1% GDP growth, which turned out to be 5.7%, with the month of April 1999 seeing strong retail sales and industrial production reports (for March), with the latter also buoyed by a global electronics cycle.

 

Back to 2021, and April saw a string of economic observations and outlooks made for Singapore, including:



	In the month of April in 2021, Singapore’s Industrial Production was reported to be strong in March, albeit uneven with preliminary Industrial Production clusters showing levels of activity in the shipyards and aerospace firms remained low, with new orders still adversely impacted weak global oil &amp; gas markets and travel restrictions. On the other side, growth of the semiconductors segment was supported by demand from cloud services, data centers and 5G markets, which in turn was supporting precision engineering. Last week, in response to an AGM question, UMS cited industry research that stated that the global chip shortage will push more foundries to invest in capacity expansion and CAPEX, with leading foundries likely to undergo a cycle of massive equipment investment. 
	
	Singapore’s March Retail Sales are due on Wednesday 5 May at 1pm, and were up 5.2% YoY in February. Last week, STI constituent, Mapletree Commercial Trust, reported that “in tandem with the phased easing of COVID-19 protocols, monthly tenant sales in 4QFY20/21 (ended 31 March) recovered to more than 86% of pre-COVID levels. 
	
	As the MAS stated in its macroeconomic review released last week Singapore’s economic recovery continues to be uneven across sectors, with significant uncertainties and the key downside risk to the baseline outlook the prospect of vaccination schemes turning out to be less effective than expected, leading to recurrent and widespread virus outbreaks around the world.
	

 

Global Stocks Led by Banks, Semiconductor and Resources Sectors in 2021 YTD 

Based on resilient business investment, expansionary monetary policy and a steeper US yield curve, banks have been strongest stock sector across the world so far this year, even outpacing semiconductor stocks. The top quartile of global banks by market capitalisation generated median total returns of 16%, compared to 13% returns for the top quartile of global semiconductor stocks by market capitalisation and 12% for the top quartile of materials &amp; resources stocks by market capitalisation. 

An approximate cornerstone of the STI, DBS Group Holdings (“DBS”), Oversea-Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) saw S$1.7 billion of combined net institutional and net proprietary inflows over the past four months an averaged total returns of 19.7%. Combined the three banks make up 41% of the STI weights. 

In its 1Q21 Trading Update released Friday, DBS reported its quarterly net profit crossed S$2 billion for the first time in its history with loans growing 3% and deposits increasing 2% from the previous quarter, while fee income rose to a record and Treasury Markets income reached a new high.  OCBC will be providing a 1Q21 financial results before the Friday 7 May open, while UOB will be providing a 1Q21 Trading Update before the Thursday 6 May open.

The current 30 STI constituents have seen combined net institutional and net proprietary inflows of S$887 million over the past four months. Proportionate to market capitalisation, Yangzijiang Shipbuilding, Sembcorp Industries, DBS, OCBC and UOB have saw the highest of these net inflows. Other STI stocks to record net institutional and net proprietary inflows over the four months included SATS, Singapore Exchange, Jardine Cycle &amp; Carriage, Wilmar International, Hongkong Land Holdings and Jardine Matheson Holdings.

The performances of the STI stocks are tabled below and sort by the highest total returns in the 2021 year through to 30 April.




			STI Stock 
			
			
			SGX Code
			
			
			Mkt Cap S$M 
			
			
			Net Insti. &amp; Prop. Inflow YTD S$M
			
			
			Net Insti. &amp; Prop. Inflow April S$M
			
			
			Price Change April %
			
			
			Price Change YTD %
			
			
			Total Return YTD %
			
			
			Sector
			
		


			Yangzijiang Shipbuilding Hldgs
			
			
			BS6
			
			
			5,503
			
			
			163
			
			
			22
			
			
			11.7
			
			
			49.7
			
			
			49.7
			
			
			Industrials
			
		


			Sembcorp Industries
			
			
			U96
			
			
			3,786
			
			
			61
			
			
			40
			
			
			17.3
			
			
			24.0
			
			
			26.3
			
			
			Utilities
			
		


			Hongkong Land Hldgs
			
			
			H78
			
			
			15,368
			
			
			4
			
			
			-3
			
			
			-0.2
			
			
			20.7
			
			
			24.7
			
			
			Real Estate (excl. REITs)
			
		


			Jardine Matheson Hldgs
			
			
			J36
			
			
			65,795
			
			
			4
			
			
			8
			
			
			1.8
			
			
			20.9
			
			
			23.2
			
			
			Industrials
			
		


			Oversea-Chinese Banking Corp
			
			
			O39
			
			
			54,537
			
			
			507
			
			
			79
			
			
			3.8
			
			
			21.3
			
			
			21.3
			
			
			Financial Services
			
		


			DBS Group Holdings
			
			
			D05
			
			
			76,459
			
			
			868
			
			
			214
			
			
			4.5
			
			
			19.4
			
			
			20.2
			
			
			Financial Services
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			9,162
			
			
			33
			
			
			5
			
			
			3.0
			
			
			18.6
			
			
			18.6
			
			
			Consumer Cyclicals
			
		


			Singapore Airlines
			
			
			C6L
			
			
			15,003
			
			
			-201
			
			
			-192
			
			
			-8.8
			
			
			18.2
			
			
			18.2
			
			
			Industrials
			
		


			United Overseas Bank
			
			
			U11
			
			
			44,535
			
			
			321
			
			
			17
			
			
			2.9
			
			
			17.7
			
			
			17.7
			
			
			Financial Services
			
		


			Wilmar International
			
			
			F34
			
			
			32,946
			
			
			46
			
			
			-42
			
			
			-0.8
			
			
			12.3
			
			
			15.6
			
			
			Consumer Non-Cyclicals
			
		


			Singapore Exchange
			
			
			S68
			
			
			11,186
			
			
			54
			
			
			51
			
			
			4.8
			
			
			12.6
			
			
			13.5
			
			
			Financial Services
			
		


			CapitaLand
			
			
			C31
			
			
			19,355
			
			
			-32
			
			
			-66
			
			
			-1.1
			
			
			13.4
			
			
			13.4
			
			
			Real Estate (excl. REITs)
			
		


			Singapore Telecommunications
			
			
			Z74
			
			
			41,285
			
			
			-140
			
			
			-29
			
			
			2.5
			
			
			8.2
			
			
			8.2
			
			
			Telecommunications
			
		


			Dairy Farm Int Holdings
			
			
			D01
			
			
			7,846
			
			
			-22
			
			
			-12
			
			
			0.1
			
			
			5.3
			
			
			8.1
			
			
			Consumer Non-Cyclicals
			
		


			Ascendas REIT
			
			
			A17U
			
			
			12,921
			
			
			-108
			
			
			16
			
			
			2.0
			
			
			4.4
			
			
			4.9
			
			
			REITs
			
		


			Frasers Logistics &amp; Comm  Trust
			
			
			BUOU
			
			
			5,040
			
			
			-21
			
			
			-6
			
			
			1.4
			
			
			4.3
			
			
			4.3
			
			
			REITs
			
		


			Venture Corp
			
			
			V03
			
			
			5,851
			
			
			-24
			
			
			3
			
			
			0.4
			
			
			3.8
			
			
			3.8
			
			
			Technology (Hardware/ Software)
			
		


			Singapore Technologies Engg
			
			
			S63
			
			
			12,045
			
			
			-70
			
			
			-5
			
			
			1.8
			
			
			1.0
			
			
			3.6
			
			
			Industrials
			
		


			ComfortDelGro Corp
			
			
			C52
			
			
			3,728
			
			
			-16
			
			
			3
			
			
			0.6
			
			
			3.0
			
			
			3.0
			
			
			Industrials
			
		


			Genting Singapore
			
			
			G13
			
			
			10,436
			
			
			-6
			
			
			-36
			
			
			-4.9
			
			
			1.8
			
			
			2.9
			
			
			Consumer Cyclicals
			
		


			Mapletree Commercial Trust
			
			
			N2IU
			
			
			7,262
			
			
			-19
			
			
			-3
			
			
			3.3
			
			
			2.8
			
			
			2.8
			
			
			REITs
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,865
			
			
			-44
			
			
			-13
			
			
			3.2
			
			
			0.7
			
			
			2.0
			
			
			Industrials
			
		


			SATS
			
			
			S58
			
			
			4,546
			
			
			24
			
			
			-27
			
			
			-6.7
			
			
			2.0
			
			
			2.0
			
			
			Industrials
			
		


			UOL Group
			
			
			U14
			
			
			6,500
			
			
			-1
			
			
			-3
			
			
			-0.6
			
			
			-0.1
			
			
			1.8
			
			
			Real Estate (excl. REITs)
			
		


			Mapletree Logistics Trust
			
			
			M44U
			
			
			8,524
			
			
			-58
			
			
			15
			
			
			4.2
			
			
			-1.0
			
			
			0.8
			
			
			REITs
			
		


			CapitaLand Int Comm Trust
			
			
			C38U
			
			
			13,918
			
			
			-21
			
			
			0
			
			
			-0.9
			
			
			-0.5
			
			
			0.3
			
			
			REITs
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			17,960
			
			
			-149
			
			
			-46
			
			
			-3.4
			
			
			-2.7
			
			
			-0.8
			
			
			Consumer Non-Cyclicals
			
		


			Mapletree Industrial Trust
			
			
			ME8U
			
			
			6,654
			
			
			-120
			
			
			-1
			
			
			3.3
			
			
			-2.1
			
			
			-1.0
			
			
			REITs
			
		


			City Developments
			
			
			C09
			
			
			7,155
			
			
			-77
			
			
			-19
			
			
			-1.1
			
			
			-1.0
			
			
			-1.0
			
			
			Real Estate (excl. REITs)
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			4,394
			
			
			-71
			
			
			-18
			
			
			-0.4
			
			
			-4.3
			
			
			-2.7
			
			
			REITs
			
		


			Total
			
			
			 
			
			
			539,564
			
			
			887
			
			
			-49
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			1.5
			
			
			9.1
			
			
			10.2
			
			
			 
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			1.6
			
			
			4.3
			
			
			4.6
			
			
			 
			
		

Source: SGX, Bloomberg, Refinitiv (Data as of 30 April 2021)

 



STI Chalks Up Strongest Start to a Year Since 1999

<p>SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.</p><p>At the time of listing, SFREIT will own three properties located in Hong Kong, Foshan and Wuhu, all of which are modern logistics properties. The assets have an aggregated gross lettable area of approximately 307,617.5 sqm with an appraised value of HK$6.1bn, as at Mar 2021. The average occupancy of the properties was 95.3%, with a weighted average age of 3.5 years and weighted average remaining land tenure of 37.9 years.</p>

SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.At the time of listing, SFREIT will own three properties located in Hong Kong, Foshan and Wuhu, all of which are modern logistics properties. The assets have an aggregated gross lettable area of approximately 307,617.5 sqm with an appraised value of HK$6.1bn, as at Mar 2021. The average occupancy of the properties was 95.3%, with a weighted average age of 3.5 years and weighted average remaining land tenure of 37.9 years.

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CapitaLand Ascendas REIT is an industrial real estate investment trust. The Trust invests in business and science park properties, integrated development, amenities, and retail (IDAR) properties, high-specifications industrial properties and data centers, light industrial and flatted factories, and logistics and distribution centers.

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CapitaLand Ascendas REIT (CLAR SP)

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SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, aims to raise around US$300m in its Hong Kong IPO. SF REIT is sponsored by SF...

Sumeet Singh

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