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>Institutions were net buyers of Singapore stocks with a S$33 million inflow, reversing a prior S$53 million outflow.</li><li>United Overseas Bank led share buybacks with S$54.7 million total consideration, purchasing 500,000 shares at S$35.30 each.</li><li>iFAST Corporation's 1HFY25 profit before tax rose 32.7% to S$50.4 million, driven by iGB's profitability.</li></ul>

Institutions were net buyers of Singapore stocks with a S$33 million inflow, reversing a prior S$53 million outflow.United Overseas Bank led share buybacks with S$54.7 million total consideration, purchasing 500,000 shares at S$35.30 each.iFAST Corporation's 1HFY25 profit before tax rose 32.7% to S$50.4 million, driven by iGB's profitability.

iFAST Chief Lim Chung Chun Ups Shareholding

Q & M Dental Group (Singapore) / Equity Bottom-Up

<ul><li>Institutions were net sellers of Singapore stocks with a net outflow of S$53 million from August 15-21.</li><li>ISOTeam secured S$22.5 million in new contracts, boosting its order book to S$181.1 million for 24 months.</li><li>Q & M Dental Group raised S$130 million from a Multicurrency Debt Issuance Programme for organic expansion and M&A.</li></ul>

Institutions were net sellers of Singapore stocks with a net outflow of S$53 million from August 15-21.ISOTeam secured S$22.5 million in new contracts, boosting its order book to S$181.1 million for 24 months.Q & M Dental Group raised S$130 million from a Multicurrency Debt Issuance Programme for organic expansion and M&A.

Wave Of Director Acquisitions as Local Rally Takes a Breather

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The Ong directors tried every trick in the book to derail the <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong Corp (HWAH SP)</a> offer. The trump card was hiring Evercore to attract competing offers by 25 July.</li>
<li>The Board confirmed today that there are no competing offers. This is a catalyst for shareholders sitting on the fence to accept the S$0.40 per share offer.</li>
<li>The offer closes on 1 August. While meeting the 50%+ minimum acceptance condition will be a close-run, we think it will be met. The gross spread is 5.3%.     </li>
</ul>


The Ong directors tried every trick in the book to derail the Hwa Hong Corp (HWAH SP) offer. The trump card was hiring Evercore to attract competing offers by 25 July.
The Board confirmed today that there are no competing offers. This is a catalyst for shareholders sitting on the fence to accept the S$0.40 per share offer.
The offer closes on 1 August. While meeting the 50%+ minimum acceptance condition will be a close-run, we think it will be met. The gross spread is 5.3%.     


Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul>
<li>New private home sales dropped 64% MoM in Jun22; Take-up rate rebounded to ~123%</li>
<li>
<a href="https://www.smartkarma.com/entities/metro-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7401" rel="noopener">Metro Holdings (METRO SP)</a> incurred S$36.3m impairment losses amid China property headwinds</li>
<li>Chuan Park sold for S$890m, lower than S$938m reserve price</li>
</ul>


New private home sales dropped 64% MoM in Jun22; Take-up rate rebounded to ~123%

Metro Holdings (METRO SP) incurred S$36.3m impairment losses amid China property headwinds
Chuan Park sold for S$890m, lower than S$938m reserve price


ASEAN Builder's Scoop (18Jul22) - New Home Sales Fell 64% MoM, but Take-Up Rate Rebounded

<ul>
<li>The IFA considers the S$0.40 per share offer for <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong Corp (HWAH SP)</a> to be fair and reasonable. Consequently, the recommending directors recommend that shareholders accept the offer.  </li>
<li>The offer which closes on 28 June continues to be subject to a 50%+ minimum acceptance condition. The offeror including valid acceptances represents 24.86% of outstanding shares.</li>
<li>Ong directors/families (29.26% stake) will not accept the offer hoping for an increasingly unlikely superior proposal. The shares are trading tight to terms (1.3% gross spread).</li>
</ul>


The IFA considers the S$0.40 per share offer for Hwa Hong Corp (HWAH SP) to be fair and reasonable. Consequently, the recommending directors recommend that shareholders accept the offer.  
The offer which closes on 28 June continues to be subject to a 50%+ minimum acceptance condition. The offeror including valid acceptances represents 24.86% of outstanding shares.
Ong directors/families (29.26% stake) will not accept the offer hoping for an increasingly unlikely superior proposal. The shares are trading tight to terms (1.3% gross spread).


Hwa Hong’s Directors Recommend Accepting the S$0.40 Voluntary Conditional Offer

Singapore

Metro Holdings Limited operates department store, develops and invests in properties, as well as undertakes building contract works.  The Company also distributes building and construction materials.

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Metro Holdings (METRO SP)

iFAST Chief Lim Chung Chun Ups Shareholding

Institutions were net buyers of Singapore stocks with a S$33 million inflow, reversing a prior S$53 million outflow. United Overseas Bank led...

Singapore Exchange Ltd (SGX)

Wave Of Director Acquisitions as Local Rally Takes a Breather

Institutions were net sellers of Singapore stocks with a net outflow of S$53 million from August 15-21. ISOTeam secured S$22.5 million in new...

Singapore Exchange Ltd (SGX)

Hwa Hong Confirms No Competing Offers

It will be close but we think the offer meets the 50%+ minimum acceptance condition. The offer lapses at 5:30 pm on 1 August. At the last close,...

Arun George

ASEAN Builder's Scoop (18Jul22) - New Home Sales Fell 64% MoM, but Take-Up Rate Rebounded

METRO impairment losses on China prop debt; Chuan Park sold enbloc for S$890m; Thai offers land ownerhip to foreigners; Phils OFW remittance up in...

SCCM Asia Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

iFAST Chief Lim Chung Chun Ups Shareholding

Institutions were net buyers of Singapore stocks with a S$33 million inflow, reversing a prior S$53 million outflow. United Overseas Bank led...

Singapore Exchange Ltd (SGX)

Wave Of Director Acquisitions as Local Rally Takes a Breather

Institutions were net sellers of Singapore stocks with a net outflow of S$53 million from August 15-21. ISOTeam secured S$22.5 million in new...

Singapore Exchange Ltd (SGX)

Hwa Hong Confirms No Competing Offers

It will be close but we think the offer meets the 50%+ minimum acceptance condition. The offer lapses at 5:30 pm on 1 August. At the last close,...

Arun George

ASEAN Builder's Scoop (18Jul22) - New Home Sales Fell 64% MoM, but Take-Up Rate Rebounded

METRO impairment losses on China prop debt; Chuan Park sold enbloc for S$890m; Thai offers land ownerhip to foreigners; Phils OFW remittance up in...

SCCM Asia Research

Hwa Hong’s Directors Recommend Accepting the S$0.40 Voluntary Conditional Offer

We think that the offer will meet the 50%+ minimum acceptance condition. At the last close, the gross spread to the offer is 1.3%.

Arun George