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.

Equity Bottom-Up

<ul><li>Banks lead Q3 2023 net institutional inflow INSTITUTIONS were again net buyers of Singapore stocks over the five trading sessions through to Oct 5, with S$100 million of net institutional inflow, and 24 primary-listed companies conducting buybacks with a total consideration of S$38.5 million.</li><li>ComfortDelGro saw S$71 million of net institutional fund inflow in Q3 2023, after booking S$44 million of net institutional fund outflow in H1 2023.</li></ul>

Banks lead Q3 2023 net institutional inflow INSTITUTIONS were again net buyers of Singapore stocks over the five trading sessions through to Oct 5, with S$100 million of net institutional inflow, and 24 primary-listed companies conducting buybacks with a total consideration of S$38.5 million.ComfortDelGro saw S$71 million of net institutional fund inflow in Q3 2023, after booking S$44 million of net institutional fund outflow in H1 2023.

Banks lead Q3 2023 net institutional inflow

Best World International / Equity Bottom-Up

<ul><li>STI constituents that booked the highest net institutional inflow proportionate to quarter-end market cap included Sembcorp Industries, Genting Singapore and Keppel DC REIT, while Keppel Corp and Yangzijiang Shipbuilding and City Developments booked the highest net institutional outflow proportionate to quarter-end market cap.</li><li>In 1Q23 Singapore’s 100 most traded stocks averaged 3% total returns, following on from the same 100 stocks averaging 10% average total returns in 2022.</li><li>Among the 100 most traded stocks in 1Q23, the 10 that booked the highest net institutional inflow proportionate to quarter-end market capitalisation averaged 19% total returns in 1Q23, compared to a 13% decline for the 10 stocks that booked the highest net institutional outflow proportionate to quarter-end market capitalisation.</li></ul>

STI constituents that booked the highest net institutional inflow proportionate to quarter-end market cap included Sembcorp Industries, Genting Singapore and Keppel DC REIT, while Keppel Corp and Yangzijiang Shipbuilding and City Developments booked the highest net institutional outflow proportionate to quarter-end market cap.In 1Q23 Singapore’s 100 most traded stocks averaged 3% total returns, following on from the same 100 stocks averaging 10% average total returns in 2022.Among the 100 most traded stocks in 1Q23, the 10 that booked the highest net institutional inflow proportionate to quarter-end market capitalisation averaged 19% total returns in 1Q23, compared to a 13% decline for the 10 stocks that booked the highest net institutional outflow proportionate to quarter-end market capitalisation.

Singapore’s Most Traded Stocks, Flows & Performances in 1Q23  

<ul><li>The STI booked a 3.5% gain in Jan, with five REITs ranking among the seven best performing STI constituents for the month.</li><li>As 10yr UST yields declined to 3.5%, these five REITs averaged 9.5% total returns on the month, following their 16.4% average declines in total return in 2022.</li><li>Among the 100 most traded Singapore stocks in Jan, eight stocks represented the Technology Sector, averaging 11% total returns in Jan, following a 36% decline in total return in 2022.</li></ul>

The STI booked a 3.5% gain in Jan, with five REITs ranking among the seven best performing STI constituents for the month.As 10yr UST yields declined to 3.5%, these five REITs averaged 9.5% total returns on the month, following their 16.4% average declines in total return in 2022.Among the 100 most traded Singapore stocks in Jan, eight stocks represented the Technology Sector, averaging 11% total returns in Jan, following a 36% decline in total return in 2022.

STI Posts 3.5% Gain in January, led by REITs & China Outlook

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

Best World International / Forensic Accounting

<a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP),</a> a Singapore based beauty and wellness products player, has been on a back-foot for almost two years when its shares were stopped from trading on the SGX back in May 2019. This was primarily on the back of fictitious growth in China coupled with fabricated sales to one of its import agent, reported by <a href="https://www.businesstimes.com.sg/companies-markets/sales-of-drs-secret-in-china-best-worlds-best-kept-secret" target="_blank" rel="noopener">Business Times Article</a> and <a href="https://www.bonitasresearch.com/wp-content/uploads/dlm_uploads/2019/04/BonitasResearch-Short-Best_World-SGX_CGN-BBerg_BEST-Fraud-24April2019.pdf" target="_blank" rel="noopener">Bonitas Research Report</a>.
Since China was the epicenter reason of its starry financials, the regulator (SGX RegCo) had to take immediate action and consequently ordered Best to conduct an independent audit regarding its complicated business model in China. Once PwC had concluded their investigation, the SGX RegCo had asked the company to address the various disclaimer of opinions post which the company engaged BDO Advisory Pte Ltd and came up with a list of measures.
The company had also announced its newly audited results for the F18, F19 and F20 that make adjustments to the irregularities. It has complied with the regulator and also kept on publishing the results after the trading halt. The recent announcements have been very critical wherein the company has come up with its trading resumption proposal alongside a strong Q4 growth. It also has a regular track record of doing buybacks, and also did a buyback of SGD 8.6 mn in mid 2019. Thus, Best remains one of the hot topics since a couple of months.
From a forensic point of view, it is clear that there are visible green-shoots when it comes to growth, but some of the fundamentals indicate that there is a mighty chance of aggressive revenue recognition. Even if the stock gets resumed on the bourse, the fundamentals are running adrift from being strong.
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This insight does not deep dive into the audit assessment but rather assesses how the recent financials look like.
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Best World International (BEST SP), a Singapore based beauty and wellness products player, has been on a back-foot for almost two years when its shares were stopped from trading on the SGX back in May 2019. This was primarily on the back of fictitious growth in China coupled with fabricated sales to one of its import agent, reported by Business Times Article and Bonitas Research Report.
Since China was the epicenter reason of its starry financials, the regulator (SGX RegCo) had to take immediate action and consequently ordered Best to conduct an independent audit regarding its complicated business model in China. Once PwC had concluded their investigation, the SGX RegCo had asked the company to address the various disclaimer of opinions post which the company engaged BDO Advisory Pte Ltd and came up with a list of measures.
The company had also announced its newly audited results for the F18, F19 and F20 that make adjustments to the irregularities. It has complied with the regulator and also kept on publishing the results after the trading halt. The recent announcements have been very critical wherein the company has come up with its trading resumption proposal alongside a strong Q4 growth. It also has a regular track record of doing buybacks, and also did a buyback of SGD 8.6 mn in mid 2019. Thus, Best remains one of the hot topics since a couple of months.
From a forensic point of view, it is clear that there are visible green-shoots when it comes to growth, but some of the fundamentals indicate that there is a mighty chance of aggressive revenue recognition. Even if the stock gets resumed on the bourse, the fundamentals are running adrift from being strong.

This insight does not deep dive into the audit assessment but rather assesses how the recent financials look like.


Best World International: Fundamentals Still Pose Some Gray Areas

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a> is a Singapore based manufacturer, distributor and a retailor of skincare, personal care and nutritional supplement brands such as Avance, Optrimax, Foodphilo, Margaret Dabbs, DR’s Secret, Miraglo, PentaLab and Bare Feet.
SGX suspended trading of Best World shares in May 2019, following a news article and a short seller report alleging the company of fabricating sales of its China operations. SGX also called for an independent review and it was completed in July last year. The company is currently cooperating with SGX to resolve the issue but the timeline for a possible lifting of the trading suspension remains unclear.
It’s been two years since the initial allegation, yet there are too many unknown variables. At bare minimum, we expect Best World’s robust revenue and OP growth to get hampered over the next few years as the company is forced to do a number of changes to the business model, internal controls and corporate governance measures.

Best World International (BEST SP) is a Singapore based manufacturer, distributor and a retailor of skincare, personal care and nutritional supplement brands such as Avance, Optrimax, Foodphilo, Margaret Dabbs, DR’s Secret, Miraglo, PentaLab and Bare Feet.
SGX suspended trading of Best World shares in May 2019, following a news article and a short seller report alleging the company of fabricating sales of its China operations. SGX also called for an independent review and it was completed in July last year. The company is currently cooperating with SGX to resolve the issue but the timeline for a possible lifting of the trading suspension remains unclear.
It’s been two years since the initial allegation, yet there are too many unknown variables. At bare minimum, we expect Best World’s robust revenue and OP growth to get hampered over the next few years as the company is forced to do a number of changes to the business model, internal controls and corporate governance measures.

Best World International: The End Is Not Yet In Sight

Singapore

Engages in development and distribution of premium skin & personal care, beauty, health and wellness brands

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Best World International (BEST SP)

Banks lead Q3 2023 net institutional inflow

Banks lead Q3 2023 net institutional inflow INSTITUTIONS were again net buyers of Singapore stocks over the five trading sessions through to Oct...

Singapore Exchange Ltd (SGX)

Singapore’s Most Traded Stocks, Flows & Performances in 1Q23

STI constituents that booked the highest net institutional inflow proportionate to quarter-end market cap included Sembcorp Industries, Genting...

Singapore Exchange Ltd (SGX)

STI Posts 3.5% Gain in January, led by REITs & China Outlook

The STI booked a 3.5% gain in Jan, with five REITs ranking among the seven best performing STI constituents for the month. As 10yr UST yields...

Singapore Exchange Ltd (SGX)

Best World International: Fundamentals Still Pose Some Gray Areas

Best world recently made several announcements, such as addresses to independent audit report, results etc. Even though growth is visible, the...

Nitin Mangal

Best World International: The End Is Not Yet In Sight

SGX suspended trading of Best World shares in May 2019, following a news article and a short seller report alleging the company of fabricating...

Oshadhi Kumarasiri

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