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

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 <div class='content-caption'>PropNex’s Kelvin Fong ups stake, YZJ Fin maintains buyback momentum</div>
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For the 5 trading sessions that spanned Jul 15 to 21, the Straits Times Index (STI) gained 2 per cent, with the FTSE China A50 Index declining 3.5 per cent, the Hang Seng Index declining 1.7 per cent and the FTSE Bursa Malaysia KLCI gaining 1.3 per cent.  

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$65 million of net inflow, following on from S$38 million of net inflow for the preceding 5 sessions. UOB, Singapore Airlines, Singtel, Jardine Matheson Holdings and Genting Singapore led the net institutional inflows for the 5 sessions through to Jul 21.

Share buybacks

There were just 7 primary-listed stocks conducting share buybacks over the 5 sessions ending Jul 21, with a total consideration of S$1.76 million. Yangzijiang Financial Holding led the consideration tally, buying back shares at 40.0 cents per share on Jul 15 and 18. This took the total number of shares bought on its buyback mandate to 19 million shares, representing 0.48 per cent of the company’s issued shares excluding treasury shares. The share buyback resolution was approved by shareholders on Jun 8, with Yangzijiang Financial Holding establishing the S$200 million share buyback programme to increase shareholder value and improve the return of equity of the group.

Director and substantial shareholder transactions 

With earnings season fast approaching, the 5 trading sessions saw just 40 changes to director interests and substantial shareholdings filed for 17 primary-listed stocks. This included 5 company director acquisitions with no disposals filed, while substantial shareholders filed 7 acquisitions and 2 disposals. 

PropNex

Between Jul 18 and 19, PropNex executive director Kelvin Fong Keng Seong acquired 72,100 shares of the company, for a consideration of S$109,592 at S$1.52 per share. This took his deemed interest in PropNex from 8.73 per cent to 8.75 per cent. His preceding acquisitions were between Jun 16 and 17, with 101,100 shares acquired at S$1.63 per share and between May 24 and 26, with 300,000 shares acquired at S$1.70 per share.  Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019. He oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry.

P5 Capital Holdings 

Between Jul 15 and 19, P5 Capital Holdings executive director Leow Sau Wan acquired 3,211,700 shares of the Catalist-listed company at 2.5 cents per share. With a consideration of S$80,046, this took Leow’s direct interest in the company to 0.29 per cent. For its FY22 (ended Mar 31) P5 Capital Holdings reported its revenue increased 51 per cent from FY21, to S$7.2 million, mainly due to contributions from the lifestyle business which represented 91 per cent of the group’s revenue. 

Asian Pay Television Trust

On Jul 14, non-executive director and vice-chair of the Trustee-Manager of Asian Pay Television Trust, Lu Fang-Ming, acquired 300,000 units of the business trust for a consideration of S$36,500. At an average price of 12.2 cents per unit, this increased Lu’s total interest in APTT from 1.02 per cent to 1.04 per cent. His preceding acquisitions, between Sep 23 and 27, 2021 saw Lu acquire 1,888,400 units of the business trust for a consideration of 13.0 cents per unit. Lu has also been a corporate executive vice president of Hon Hai/Foxconn Technology Group since the ODM manufacturing company he co-founded was acquired by Hon Hai/Foxconn Technology Group in May 2000. 

iWOW Technology

On Jul 19, iWOW Technology : NXR 0% substantial and controlling shareholder Kau Wee Lee acquired 40,000 shares of the recently Catalist-listed company at an average price of 21.6 cents per share. Kau maintains a 47.00 per cent direct interest in the technology provider, with a 1.90 per cent deemed interest due to shares held by her husband, Soo Kee Wee. 

Inside Insights is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/propnexs-kelvin-fong-ups-stake-yzj-fin-maintains-buyback-momentum">read</a> the original version
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    PropNex’s Kelvin Fong ups stake, YZJ Fin maintains buyback momentum


For the 5 trading sessions that spanned Jul 15 to 21, the Straits Times Index (STI) gained 2 per cent, with the FTSE China A50 Index declining 3.5 per cent, the Hang Seng Index declining 1.7 per cent and the FTSE Bursa Malaysia KLCI gaining 1.3 per cent.  

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$65 million of net inflow, following on from S$38 million of net inflow for the preceding 5 sessions. UOB, Singapore Airlines, Singtel, Jardine Matheson Holdings and Genting Singapore led the net institutional inflows for the 5 sessions through to Jul 21.

Share buybacks

There were just 7 primary-listed stocks conducting share buybacks over the 5 sessions ending Jul 21, with a total consideration of S$1.76 million. Yangzijiang Financial Holding led the consideration tally, buying back shares at 40.0 cents per share on Jul 15 and 18. This took the total number of shares bought on its buyback mandate to 19 million shares, representing 0.48 per cent of the company’s issued shares excluding treasury shares. The share buyback resolution was approved by shareholders on Jun 8, with Yangzijiang Financial Holding establishing the S$200 million share buyback programme to increase shareholder value and improve the return of equity of the group.

Director and substantial shareholder transactions 

With earnings season fast approaching, the 5 trading sessions saw just 40 changes to director interests and substantial shareholdings filed for 17 primary-listed stocks. This included 5 company director acquisitions with no disposals filed, while substantial shareholders filed 7 acquisitions and 2 disposals. 

PropNex

Between Jul 18 and 19, PropNex executive director Kelvin Fong Keng Seong acquired 72,100 shares of the company, for a consideration of S$109,592 at S$1.52 per share. This took his deemed interest in PropNex from 8.73 per cent to 8.75 per cent. His preceding acquisitions were between Jun 16 and 17, with 101,100 shares acquired at S$1.63 per share and between May 24 and 26, with 300,000 shares acquired at S$1.70 per share.  Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019. He oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry.

P5 Capital Holdings 

Between Jul 15 and 19, P5 Capital Holdings executive director Leow Sau Wan acquired 3,211,700 shares of the Catalist-listed company at 2.5 cents per share. With a consideration of S$80,046, this took Leow’s direct interest in the company to 0.29 per cent. For its FY22 (ended Mar 31) P5 Capital Holdings reported its revenue increased 51 per cent from FY21, to S$7.2 million, mainly due to contributions from the lifestyle business which represented 91 per cent of the group’s revenue. 

Asian Pay Television Trust

On Jul 14, non-executive director and vice-chair of the Trustee-Manager of Asian Pay Television Trust, Lu Fang-Ming, acquired 300,000 units of the business trust for a consideration of S$36,500. At an average price of 12.2 cents per unit, this increased Lu’s total interest in APTT from 1.02 per cent to 1.04 per cent. His preceding acquisitions, between Sep 23 and 27, 2021 saw Lu acquire 1,888,400 units of the business trust for a consideration of 13.0 cents per unit. Lu has also been a corporate executive vice president of Hon Hai/Foxconn Technology Group since the ODM manufacturing company he co-founded was acquired by Hon Hai/Foxconn Technology Group in May 2000. 

iWOW Technology

On Jul 19, iWOW Technology : NXR 0% substantial and controlling shareholder Kau Wee Lee acquired 40,000 shares of the recently Catalist-listed company at an average price of 21.6 cents per share. Kau maintains a 47.00 per cent direct interest in the technology provider, with a 1.90 per cent deemed interest due to shares held by her husband, Soo Kee Wee. 

Inside Insights is a weekly column on The Business Times, read the original version



PropNex’s Kelvin Fong ups stake, YZJ Fin maintains buyback momentum

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 <div class='content-caption'>Share Buybacks</div>
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FOR the 5 trading sessions that spanned Jun 17 to 23, the Straits Times Index (STI) declined 0.2 per cent, with the FTSE China A50 Index gaining 2.8 per cent, the Hang Seng Index adding 2.5 per cent and the FTSE Bursa Malaysia KLCI falling 2.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$116 million of net inflow, following S$166 million of net outflow for the preceding 5 sessions. DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land led the net institutional inflows for the 5 sessions through to Jun 23.

 

Share buybacks

There were 27 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 23, with a total consideration of S$64.6 million, approximately half the previous week’s consideration tally. Wilmar International and Keppel Corporation again led the consideration tally, buying back shares at average prices of S$4.02, and S$6.59 respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw 70 changes to director interests and substantial shareholdings filed for 35 primary-listed stocks. This included 15 company director acquisitions with 3 disposals filed, while substantial shareholders filed 11 acquisitions and 3 disposals.

 United Hampshire US Reit

On Jun 20 and 22, United Hampshire US Reit Management non-independent non-executive director David Tuvia Goss acquired 500,000 units of United Hampshire US Reit (UHReit) at an average price of 60.9 US cents per unit. With a consideration of US$304,650 this took his direct interest in UHReit to 0.09 per cent. 
UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 (ended Mar 31) distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021.

Goss is the managing director of UOB Global Capital since September 1998. Prior to co-founding UOB Global Capital, he was president and CEO of AIG Asset Management Services in New York from March 1995, with global responsibility for AIG’s third-party asset management activities. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

 

Oiltek International

On Jun 20, Koh Brothers Eco Engineering acquired 1 million shares of Oiltek International at 23.0 cents per share. The married deal increased non-executive director Koh Keng Siang’s total interest in the integrated process and renewable energy solutions provider from 67.44 per cent to 68.14 per cent. Koh has been a non-executive director of the subsidiaries, Oiltek Sdn Bhd and Oiltek Global Energy Sdn Bhd since February 2013. He is the managing director and group CEO of Koh Brothers Group, which is the ultimate controlling shareholder of Oiltek International through its shareholding interest in Koh Brothers Eco Engineering. 
Listed on Catalist, Oiltek International operates 3 key businesses – the edible &amp; non-edible oil refinery segment, renewable energy segment, and product sales and trading segment. Oiltek International’s revenue for FY21 (ended Dec 31) grew 15.0 per cent to RM100.63 million from FY20, mainly due to new projects secured in FY21 for the group’s edible &amp; non-edible oil refinery segment.

 

Hong Fok Corporation

On Jun 17, Hong Fok Corporation executive director and joint CEO Cheong Pin Chuan acquired 201,800 shares of the company, for a consideration of S$187,665 at 93.0 cents per share. This increased his total interest in the property developer from 20.64 per cent to 20.66 per cent. He is principally involved in the group’s overall operations and management with greater emphasis in Hong Kong and has over 50 years of experience in property development at both management and board levels in Singapore and Hong Kong.

 

PropNex

Between Jun 16 and 17, PropNex executive director Kelvin Fong Keng Seong acquired 101,100 shares of the company, at an average price of S$1.63 per share. This took his deemed interest in PropNex from 8.71 per cent to 8.73 per cent. His preceding acquisitions were between May 24 and 26, with 300,000 shares acquired at S$1.70 per share. Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019.

Fong oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry. For its Q1 FY22 (ended Mar 31), PropNex reported that revenue grew 9.5 per cent year on year to S$241.6 million, with net profit declining 8.1 per cent year on year to S$14.9 million.

The company, which is Singapore’s largest listed real estate agency noted that its Q1 FY22 was impacted by the government’s new cooling measures, growing uncertainties arising from the Russian-Ukraine war, concerns over rising inflation and interest rates dampening sentiment, while limited new launches and the seasonal lull reined in sales volumes.

Looking forward, PropNex noted in May that it expects the private housing market to remain fairly resilient this year and prices could grow by 3 per cent to 5 per cent in 2022, as reflected in the 0.7 per cent price increase in Q1 2022 and higher new launch prices expected in subsequent quarters. The company also highlighted that it is well on its way to attaining its goal of having 12,000 salespersons by end 2022. It has already achieved a growth of 26.4 per cent in the number of salespersons from 8,918 as at Jan 1, 2021 to 11,268 as at Apr 11, 2022.

 Singapore Shipping Corporation

Between Jun 16 and 21, Singapore Shipping Corporation executive chairman Ow Chio Kiat acquired 225,400 shares at an average price of 28.4 cents per share. With a consideration of S$63,948, this increased his total stake in the company from 41.92 per cent to 41.97 per cent. With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. Singapore Shipping Corporation is a spin-off from Stamford Land Corporation (formerly known as Hai Sun Hup Group) when the latter de-merged its shipping and logistics businesses in 2000 to concentrate on its hotel and property businesses. 
On May 26, Singapore Shipping Corporation reported that its revenue for FY22 (ended Mar 31) increased 8.6 per cent from FY21, with attributable profit down 4.3 per cent from FY21.

 

Centurion Corporation

Between Jun 17 and 23, Centurion Corporation : OU8 0% executive director and joint chairman David Loh Kim Kang acquired 200,000 shares of the purpose-built accommodation developer and manager for a consideration of S$70,000. At 35.0 cents per share, this took his total interest from 55.40 per cent to 55.43 per cent. His preceding acquisitions were between May 20 and 26, with 1,860,400 shares also acquired at 35.0 cents per share.

 Uni-Asia Group

On Jun 23, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares at S$1.00 per share. This increased his total interest in the company from 3.44 per cent to 3.50 per cent. This closely followed his acquisition of 150,000 shares at S$1.04 per share on Jun 13 and 50,000 shares at S$S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 Sasseur Reit

On Jun 17, Sasseur Asset Management CEO Cecilia Tan Hong Lye acquired 22,000 units of Sasseur Reit at an average price of 73.8 cents per unit. This increased her direct interest in the first outlet mall Reit to be listed in Asia to 40,000 units. Tan has been the CEO of the manager of Sasseur Reit since Aug 1, 2021. She has more than 20 years of professional career experience spanning across a wide spectrum of real estate expertise in real estate investment banking, real estate direct investment, Reit management, real estate fund management and property development.

Prior to joining Sasseur Asset Management, she was the senior strategic adviser to Vito Xu, the chairman of Sasseur Group from July 2019 to June 2021.

Back on May 12, Sasseur Reit reported a record high Q1 (ended Mar 31) distributable income of S$24.7 million, which was up 4.7 per cent from Q1 2021.

 

Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/koh-brothers-group-ceo-koh-keng-siang-adds-to-his-oiltek-stake"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jun 17 to 23, the Straits Times Index (STI) declined 0.2 per cent, with the FTSE China A50 Index gaining 2.8 per cent, the Hang Seng Index adding 2.5 per cent and the FTSE Bursa Malaysia KLCI falling 2.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$116 million of net inflow, following S$166 million of net outflow for the preceding 5 sessions. DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land led the net institutional inflows for the 5 sessions through to Jun 23.

 

Share buybacks

There were 27 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 23, with a total consideration of S$64.6 million, approximately half the previous week’s consideration tally. Wilmar International and Keppel Corporation again led the consideration tally, buying back shares at average prices of S$4.02, and S$6.59 respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw 70 changes to director interests and substantial shareholdings filed for 35 primary-listed stocks. This included 15 company director acquisitions with 3 disposals filed, while substantial shareholders filed 11 acquisitions and 3 disposals.

 United Hampshire US Reit

On Jun 20 and 22, United Hampshire US Reit Management non-independent non-executive director David Tuvia Goss acquired 500,000 units of United Hampshire US Reit (UHReit) at an average price of 60.9 US cents per unit. With a consideration of US$304,650 this took his direct interest in UHReit to 0.09 per cent. 
UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 (ended Mar 31) distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021.

Goss is the managing director of UOB Global Capital since September 1998. Prior to co-founding UOB Global Capital, he was president and CEO of AIG Asset Management Services in New York from March 1995, with global responsibility for AIG’s third-party asset management activities. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

 

Oiltek International

On Jun 20, Koh Brothers Eco Engineering acquired 1 million shares of Oiltek International at 23.0 cents per share. The married deal increased non-executive director Koh Keng Siang’s total interest in the integrated process and renewable energy solutions provider from 67.44 per cent to 68.14 per cent. Koh has been a non-executive director of the subsidiaries, Oiltek Sdn Bhd and Oiltek Global Energy Sdn Bhd since February 2013. He is the managing director and group CEO of Koh Brothers Group, which is the ultimate controlling shareholder of Oiltek International through its shareholding interest in Koh Brothers Eco Engineering. 
Listed on Catalist, Oiltek International operates 3 key businesses – the edible &amp; non-edible oil refinery segment, renewable energy segment, and product sales and trading segment. Oiltek International’s revenue for FY21 (ended Dec 31) grew 15.0 per cent to RM100.63 million from FY20, mainly due to new projects secured in FY21 for the group’s edible &amp; non-edible oil refinery segment.

 

Hong Fok Corporation

On Jun 17, Hong Fok Corporation executive director and joint CEO Cheong Pin Chuan acquired 201,800 shares of the company, for a consideration of S$187,665 at 93.0 cents per share. This increased his total interest in the property developer from 20.64 per cent to 20.66 per cent. He is principally involved in the group’s overall operations and management with greater emphasis in Hong Kong and has over 50 years of experience in property development at both management and board levels in Singapore and Hong Kong.

 

PropNex

Between Jun 16 and 17, PropNex executive director Kelvin Fong Keng Seong acquired 101,100 shares of the company, at an average price of S$1.63 per share. This took his deemed interest in PropNex from 8.71 per cent to 8.73 per cent. His preceding acquisitions were between May 24 and 26, with 300,000 shares acquired at S$1.70 per share. Fong has gradually increased his deemed interest in PropNex from 7.63 per cent in February 2019.

Fong oversees the group’s training development curriculum and also administers the development of IT strategies and technology innovations to improve the group’s competitive edge in the industry. For its Q1 FY22 (ended Mar 31), PropNex reported that revenue grew 9.5 per cent year on year to S$241.6 million, with net profit declining 8.1 per cent year on year to S$14.9 million.

The company, which is Singapore’s largest listed real estate agency noted that its Q1 FY22 was impacted by the government’s new cooling measures, growing uncertainties arising from the Russian-Ukraine war, concerns over rising inflation and interest rates dampening sentiment, while limited new launches and the seasonal lull reined in sales volumes.

Looking forward, PropNex noted in May that it expects the private housing market to remain fairly resilient this year and prices could grow by 3 per cent to 5 per cent in 2022, as reflected in the 0.7 per cent price increase in Q1 2022 and higher new launch prices expected in subsequent quarters. The company also highlighted that it is well on its way to attaining its goal of having 12,000 salespersons by end 2022. It has already achieved a growth of 26.4 per cent in the number of salespersons from 8,918 as at Jan 1, 2021 to 11,268 as at Apr 11, 2022.

 Singapore Shipping Corporation

Between Jun 16 and 21, Singapore Shipping Corporation executive chairman Ow Chio Kiat acquired 225,400 shares at an average price of 28.4 cents per share. With a consideration of S$63,948, this increased his total stake in the company from 41.92 per cent to 41.97 per cent. With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. Singapore Shipping Corporation is a spin-off from Stamford Land Corporation (formerly known as Hai Sun Hup Group) when the latter de-merged its shipping and logistics businesses in 2000 to concentrate on its hotel and property businesses. 
On May 26, Singapore Shipping Corporation reported that its revenue for FY22 (ended Mar 31) increased 8.6 per cent from FY21, with attributable profit down 4.3 per cent from FY21.

 

Centurion Corporation

Between Jun 17 and 23, Centurion Corporation : OU8 0% executive director and joint chairman David Loh Kim Kang acquired 200,000 shares of the purpose-built accommodation developer and manager for a consideration of S$70,000. At 35.0 cents per share, this took his total interest from 55.40 per cent to 55.43 per cent. His preceding acquisitions were between May 20 and 26, with 1,860,400 shares also acquired at 35.0 cents per share.

 Uni-Asia Group

On Jun 23, Uni-Asia Group executive chairman Michio Tanamoto acquired 50,000 shares at S$1.00 per share. This increased his total interest in the company from 3.44 per cent to 3.50 per cent. This closely followed his acquisition of 150,000 shares at S$1.04 per share on Jun 13 and 50,000 shares at S$S$1.09 per share on Jun 9. Tanamoto was appointed the executive chairman of Uni-Asia Group in April 2020.

 Sasseur Reit

On Jun 17, Sasseur Asset Management CEO Cecilia Tan Hong Lye acquired 22,000 units of Sasseur Reit at an average price of 73.8 cents per unit. This increased her direct interest in the first outlet mall Reit to be listed in Asia to 40,000 units. Tan has been the CEO of the manager of Sasseur Reit since Aug 1, 2021. She has more than 20 years of professional career experience spanning across a wide spectrum of real estate expertise in real estate investment banking, real estate direct investment, Reit management, real estate fund management and property development.

Prior to joining Sasseur Asset Management, she was the senior strategic adviser to Vito Xu, the chairman of Sasseur Group from July 2019 to June 2021.

Back on May 12, Sasseur Reit reported a record high Q1 (ended Mar 31) distributable income of S$24.7 million, which was up 4.7 per cent from Q1 2021.

 

Inside Insights is a weekly column on The Business Times, read the original version.



Koh Brothers group CEO, Koh Keng Siang adds to his Oiltek stake

Bukit Sembawang Estates / Equity Bottom-Up

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<li>
January ’22 private home sales +3.5% MoM and was highest level of Jan month sales since 2014 (with exception of 2021). This built on the record 2021 sales, which was the highest in 8 years. 
	 </li>
	<li>
While the sector has posted c. 3% YTD and rallied c. 29% off the lows seen in March ’20 (start of COVID-19 pandemic), it is still c . 23% below the last peak seen in 2018. Sector’s P/B are currently -1 S.D. below the historical mean. 
	 </li>
	<li>The most actively traded real estate stocks with Singapore property exposure average YTD total return is relatively flattish, as compared to the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. 7 of the 10 stocks with are currently trading below their 5-year historical average P/B ratios.</li>
</ul>
 

Jan ’22 Private Home Sales +3.5%and Above Historical Jan Month Sales in 2014-2020 
According to data from Urban Redevelopment Authority (URA), Singapore saw sale of 673 new private homes excl. executive condominiums (ECs) (+3.5% MoM, -58.8% YoY) in Jan ’22 and represented the highest level of Jan sales in 2014-2020. Private homes sales in the month was largely in the Rest of Central Region (RCR) and Outside Central Region (OCR). New private home sales in 2021 was at over 13,000 units and represented the highest number since 2013. Prices in 2021 posted a 10.6% YoY gain, which was the highest since 2010. 
To recap, on 15 December, the Government announced a package of measures to cool the private homes and HDB resale markets where additional buyer’s stamp duty (ABSD) rates were raised and total debt servicing ratio (TDSR) threshold and HDB LTV limit for loans were tightened. 
In the recently announced Budget 2022, residential properties marginal property tax rates will be raised in two steps starting with the tax payable in 2023. The rates from 2024 are:

<ul>
<li>
Non-owner-occupied residential properties (inc. investment properties) will see property tax rates increased to 12-36% (vs. current 10-20%).</li>
	<li>Concurrently, property tax rates for owner-occupied homes for portion of annual value in excess of S$30,000 will also be raised to a range of 6-32% (vs. 4-16% currently).</li>
</ul>
 Real Estate Developers &amp; Operators Sector +3% YTD but still 23% Below 2018 Peak 
Looking at the sector performance, the iEdge SG Real Estate Developers &amp; Operators Index has posted c. 3% price gains in the YTD, and c. +29% off the lows in March ’20 (at the start of the COVID-19 pandemic). The index is still c. 23% below the last peak seen in 2018. 
The iEdge SG Real Estate Developers &amp; Operators Index is a free-float, market capitalization-weighted index that measures the performance of listed real estate developers and operators in Singapore.
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 <div class='content-caption'>iEdge SG Real Estate Developers</div>
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<html><body>Sector P/B Trading -1 S.D. Below Mean 
The sector’s P/B ratio is at 0.44x (vs. historical mean of 0.59x) and also -1 S.D. below the historical mean. This is close to the level last seen during the start of the pandemic in March ’20, where there was a broad-based market correction and well below the levels see in 2017.</body></html>

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 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture_14.PNG' alt='iEdge SG Real Estate Developers' />
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 <div class='content-caption'>iEdge SG Real Estate Developers</div>
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Most Actively-Traded SGX Stocks with Singapore Real Estate Exposure 
The top actively traded SGX listed stocks with Singapore real estate exposure posted a YTD total returns of -0.4%, which compares with the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. City Developments will report its FY21 results before the open on 25 Feb, UOL will report its CY21 results on 28 Feb, and Ho Bee Land will report after the 28 Feb close.  
These names have an average dividend yield of 2.7% with an average 0.6x P/B ratio. Of the 10 names with 5-year trading history, 7 of them currently have P/B ratios that are below 5-year P/B averages.

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			Stock Name 
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			Code
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			Mkt Cap S$M
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			5Y Avg. P/B
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			P/B
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			Div Yield (%)
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			2022 YTD Total Return 

			%
			</td>
		</tr>
<tr>
<td>
			City Developments
			</td>
			<td>
			C09
			</td>
			<td>
			6,657
			</td>
			<td>
			0.9
			</td>
			<td>
			0.8
			</td>
			<td>
			1.1
			</td>
			<td>
			7.8
			</td>
		</tr>
<tr>
<td>
			UOL Group
			</td>
			<td>
			U14
			</td>
			<td>
			6,164
			</td>
			<td>
			0.7
			</td>
			<td>
			0.6
			</td>
			<td>
			2.1
			</td>
			<td>
			3.0
			</td>
		</tr>
<tr>
<td>
			Frasers Property
			</td>
			<td>
			TQ5
			</td>
			<td>
			4,358
			</td>
			<td>
			0.6
			</td>
			<td>
			0.5
			</td>
			<td>
			1.8
			</td>
			<td>
			-0.9
			</td>
		</tr>
<tr>
<td>
			Ho Bee Land
			</td>
			<td>
			H13
			</td>
			<td>
			1,892
			</td>
			<td>
			0.5
			</td>
			<td>
			0.5
			</td>
			<td>
			3.5
			</td>
			<td>
			2.2
			</td>
		</tr>
<tr>
<td>
			GuocoLand
			</td>
			<td>
			F17
			</td>
			<td>
			1,810
			</td>
			<td>
			0.5
			</td>
			<td>
			0.4
			</td>
			<td>
			4.0
			</td>
			<td>
			1.3
			</td>
		</tr>
<tr>
<td>
			Wing Tai Holdings
			</td>
			<td>
			W05
			</td>
			<td>
			1,367
			</td>
			<td>
			0.4
			</td>
			<td>
			0.4
			</td>
			<td>
			1.7
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			Bukit Sembawang
			</td>
			<td>
			B61
			</td>
			<td>
			1,292
			</td>
			<td>
			1.0
			</td>
			<td>
			0.9
			</td>
			<td>
			0.8
			</td>
			<td>
			-0.4
			</td>
		</tr>
<tr>
<td>
			OUE
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,150
			</td>
			<td>
			0.4
			</td>
			<td>
			0.3
			</td>
			<td>
			1.5
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			Oxley Holdings
			</td>
			<td>
			5UX
			</td>
			<td>
			759
			</td>
			<td>
			1.1
			</td>
			<td>
			0.8
			</td>
			<td>
			1.4
			</td>
			<td>
			-4.8
			</td>
		</tr>
<tr>
<td>
			PropNex
			</td>
			<td>
			OYY
			</td>
			<td>
			629
			</td>
			<td>
			N.A.
			</td>
			<td>
			6.6
			</td>
			<td>
			5.6
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			Tuan Sing Holdings
			</td>
			<td>
			T24
			</td>
			<td>
			547
			</td>
			<td>
			0.4
			</td>
			<td>
			0.4
			</td>
			<td>
			1.3
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			APAC Realty
			</td>
			<td>
			CLN
			</td>
			<td>
			229
			</td>
			<td>
			N.A.
			</td>
			<td>
			1.4
			</td>
			<td>
			8.1
			</td>
			<td>
			-10.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			                          2.7
			</td>
			<td>
			-0.4
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 18 February 2022).
</body></html>





January ’22 private home sales +3.5% MoM and was highest level of Jan month sales since 2014 (with exception of 2021). This built on the record 2021 sales, which was the highest in 8 years. 
	 
	
While the sector has posted c. 3% YTD and rallied c. 29% off the lows seen in March ’20 (start of COVID-19 pandemic), it is still c . 23% below the last peak seen in 2018. Sector’s P/B are currently -1 S.D. below the historical mean. 
	 
	The most actively traded real estate stocks with Singapore property exposure average YTD total return is relatively flattish, as compared to the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. 7 of the 10 stocks with are currently trading below their 5-year historical average P/B ratios.

 

Jan ’22 Private Home Sales +3.5%and Above Historical Jan Month Sales in 2014-2020  
According to data from Urban Redevelopment Authority (URA), Singapore saw sale of 673 new private homes excl. executive condominiums (ECs) (+3.5% MoM, -58.8% YoY) in Jan ’22 and represented the highest level of Jan sales in 2014-2020. Private homes sales in the month was largely in the Rest of Central Region (RCR) and Outside Central Region (OCR). New private home sales in 2021 was at over 13,000 units and represented the highest number since 2013. Prices in 2021 posted a 10.6% YoY gain, which was the highest since 2010.  
To recap, on 15 December, the Government announced a package of measures to cool the private homes and HDB resale markets where additional buyer’s stamp duty (ABSD) rates were raised and total debt servicing ratio (TDSR) threshold and HDB LTV limit for loans were tightened.  
In the recently announced Budget 2022, residential properties marginal property tax rates will be raised in two steps starting with the tax payable in 2023. The rates from 2024 are:



Non-owner-occupied residential properties (inc. investment properties) will see property tax rates increased to 12-36% (vs. current 10-20%).
	Concurrently, property tax rates for owner-occupied homes for portion of annual value in excess of S$30,000 will also be raised to a range of 6-32% (vs. 4-16% currently).

  Real Estate Developers &amp; Operators Sector +3% YTD but still 23% Below 2018 Peak  
Looking at the sector performance, the iEdge SG Real Estate Developers &amp; Operators Index has posted c. 3% price gains in the YTD, and c. +29% off the lows in March ’20 (at the start of the COVID-19 pandemic). The index is still c. 23% below the last peak seen in 2018.  
The iEdge SG Real Estate Developers &amp; Operators Index is a free-float, market capitalization-weighted index that measures the performance of listed real estate developers and operators in Singapore.



      
    
    iEdge SG Real Estate Developers

Sector P/B Trading -1 S.D. Below Mean  
The sector’s P/B ratio is at 0.44x (vs. historical mean of 0.59x) and also -1 S.D. below the historical mean. This is close to the level last seen during the start of the pandemic in March ’20, where there was a broad-based market correction and well below the levels see in 2017.


      
    
    iEdge SG Real Estate Developers


Most Actively-Traded SGX Stocks with Singapore Real Estate Exposure  
The top actively traded SGX listed stocks with Singapore real estate exposure posted a YTD total returns of -0.4%, which compares with the STI’s +10%. City Developments (+7.8%), UOL (+3.0%), and Ho Bee Land (+2.2%) posted the highest YTD total returns amongst this group. City Developments will report its FY21 results before the open on 25 Feb, UOL will report its CY21 results on 28 Feb, and Ho Bee Land will report after the 28 Feb close.   
These names have an average dividend yield of 2.7% with an average 0.6x P/B ratio. Of the 10 names with 5-year trading history, 7 of them currently have P/B ratios that are below 5-year P/B averages.




			Stock Name 
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			5Y Avg. P/B
			
			
			P/B
			
			
			Div Yield (%)
			
			
			2022 YTD Total Return 

			%
			
		


			City Developments
			
			
			C09
			
			
			6,657
			
			
			0.9
			
			
			0.8
			
			
			1.1
			
			
			7.8
			
		


			UOL Group
			
			
			U14
			
			
			6,164
			
			
			0.7
			
			
			0.6
			
			
			2.1
			
			
			3.0
			
		


			Frasers Property
			
			
			TQ5
			
			
			4,358
			
			
			0.6
			
			
			0.5
			
			
			1.8
			
			
			-0.9
			
		


			Ho Bee Land
			
			
			H13
			
			
			1,892
			
			
			0.5
			
			
			0.5
			
			
			3.5
			
			
			2.2
			
		


			GuocoLand
			
			
			F17
			
			
			1,810
			
			
			0.5
			
			
			0.4
			
			
			4.0
			
			
			1.3
			
		


			Wing Tai Holdings
			
			
			W05
			
			
			1,367
			
			
			0.4
			
			
			0.4
			
			
			1.7
			
			
			0.0
			
		


			Bukit Sembawang
			
			
			B61
			
			
			1,292
			
			
			1.0
			
			
			0.9
			
			
			0.8
			
			
			-0.4
			
		


			OUE
			
			
			LJ3
			
			
			1,150
			
			
			0.4
			
			
			0.3
			
			
			1.5
			
			
			-2.9
			
		


			Oxley Holdings
			
			
			5UX
			
			
			759
			
			
			1.1
			
			
			0.8
			
			
			1.4
			
			
			-4.8
			
		


			PropNex
			
			
			OYY
			
			
			629
			
			
			N.A.
			
			
			6.6
			
			
			5.6
			
			
			0.6
			
		


			Tuan Sing Holdings
			
			
			T24
			
			
			547
			
			
			0.4
			
			
			0.4
			
			
			1.3
			
			
			0.0
			
		


			APAC Realty
			
			
			CLN
			
			
			229
			
			
			N.A.
			
			
			1.4
			
			
			8.1
			
			
			-10.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			                          2.7
			
			
			-0.4
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 18 February 2022).



SG Real Estate Sector Valuation Below Historical Mean Amidst Resilient Private Home Sales

<div>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</div>
<div></div>
<div>
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<h2>PropNex Limited</h2>
<div>
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<h3>A tireless property market</h3>
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Going strong. 9M21 revenue accounted for 87.9% of our previous estimates, and 9M21 net profit surpassed our forecasts by 15.6%. PropNex reported that its 9M21 revenue almost doubled, increasing from S$358.4m in 9M20 to S$715.5m in 9M21 mainly from higher commission income on the back of higher transactions done. Agency services accounted for S$387.5m and project marketing S$325.9m of revenue. Profit from continuing operations rose by 2.2x from S$22.8m to S$49.8m.
The higher number of transactions for resale units came on the back of lower demand for BTOs due to construction delays. We expect this will continue into 2022. Higher new home and resale prices and a strong upgrader market due to attractive HDB resale prices were other drivers. For new projects, home prices will be expected to be remain strong with higher developer costs coming about with high land prices.
Management said that FY21 dividend payout is expected to be in the range of 75%-80% of PATMI. Accordingly, we raised our final dividend estimate to 7.50 cents. 1H dividend was 5.50 cents per share.
Adjusted our FY21E and FY22E forecasts. With its strong 9M21 results, we have adjusted our FY21E revenue estimates up 13.4% to S$923.0m, and FY22E up 15.5% to S$790.1m to reflect other potential drivers, which are: 1) higher headcount which can increase market share, and 2) border reopening could increase foreign investments. Accordingly, FY21E PATMI has been adjusted up 14.2% to S$61.2m, and FY22E up 15.3% to S$49.7m.
Maintain HOLD rating, at lower fair value of S$1.94 (from S$2.00). Our target price is based on a P/E multiple of 13.68x, which is based on Forward 12-month P/E +1SD above its mean, based on past 10 quarters of average P/E. We are positive about its market leadership, strong cash holdings and market’s high property prices. FY2021 has been a strong year for PropNex, but we think earnings might be peak. The market has also largely priced in PropNex’s strong valuations.
We continue to expect strength in property prices to sustain in the near term. However, sales volumes have been seeing weakness in recent months. Further, the dwindling supply in the pipeline and fewer new launches expected points to lower transaction volume next year. Our target price implies a 4.3% upside to the last traded price.
Key Risks: Dwindling home supply, possible property cooling measures, strong growth rate might not sustain
</div>
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</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>

Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.






PropNex Limited




A tireless property market




Going strong. 9M21 revenue accounted for 87.9% of our previous estimates, and 9M21 net profit surpassed our forecasts by 15.6%. PropNex reported that its 9M21 revenue almost doubled, increasing from S$358.4m in 9M20 to S$715.5m in 9M21 mainly from higher commission income on the back of higher transactions done. Agency services accounted for S$387.5m and project marketing S$325.9m of revenue. Profit from continuing operations rose by 2.2x from S$22.8m to S$49.8m.
The higher number of transactions for resale units came on the back of lower demand for BTOs due to construction delays. We expect this will continue into 2022. Higher new home and resale prices and a strong upgrader market due to attractive HDB resale prices were other drivers. For new projects, home prices will be expected to be remain strong with higher developer costs coming about with high land prices.
Management said that FY21 dividend payout is expected to be in the range of 75%-80% of PATMI. Accordingly, we raised our final dividend estimate to 7.50 cents. 1H dividend was 5.50 cents per share.
Adjusted our FY21E and FY22E forecasts. With its strong 9M21 results, we have adjusted our FY21E revenue estimates up 13.4% to S$923.0m, and FY22E up 15.5% to S$790.1m to reflect other potential drivers, which are: 1) higher headcount which can increase market share, and 2) border reopening could increase foreign investments. Accordingly, FY21E PATMI has been adjusted up 14.2% to S$61.2m, and FY22E up 15.3% to S$49.7m.
Maintain HOLD rating, at lower fair value of S$1.94 (from S$2.00). Our target price is based on a P/E multiple of 13.68x, which is based on Forward 12-month P/E +1SD above its mean, based on past 10 quarters of average P/E. We are positive about its market leadership, strong cash holdings and market’s high property prices. FY2021 has been a strong year for PropNex, but we think earnings might be peak. The market has also largely priced in PropNex’s strong valuations.
We continue to expect strength in property prices to sustain in the near term. However, sales volumes have been seeing weakness in recent months. Further, the dwindling supply in the pipeline and fewer new launches expected points to lower transaction volume next year. Our target price implies a 4.3% upside to the last traded price.
Key Risks: Dwindling home supply, possible property cooling measures, strong growth rate might not sustain














(Non-SGX Report) PropNex Limited - A Tireless Property Market

STI Trades at Fresh 2021 Highs, Extends YTD Total Return to 18%

Singapore

PropNex Limited is an integrated real estate services group that provides real estate brokerage services for the sale and lease of residential, commercial, and industrial properties. It also offers project marketing services for new private residential developments, as well as training and administrative support services. The company was founded in 1996 and is headquartered in Singapore.

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PropNex (PROP SP)

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(Non-SGX Report) PropNex Limited - A Tireless Property Market

Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

Singapore Exchange Ltd (SGX)

STI Trades at Fresh 2021 Highs, Extends YTD Total Return to 18%

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