Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Travelsky Technology Ltd H / Equity Bottom-Up

<h2>Executive Summary</h2>
Nearing Christmas and Chinese New Year period, Travelsky's share price has typically increased between 9-20%. Investors should really consider initiating a LONG BUY in Travelsky given that valuation has been stable, an insulated business exposure from the instability caused by trade tension, and the coming of Chinese New Year period which typically brings positive sentiment for the stock. Trading at 20x PER with consistent growth in the second-largest economy in the world, the stock does not sound expensive at all. 
Please send me a message if you would like to know about some other stocks that you have an interest in. Also, please click the Appreciate button if you found this Insight helpful - its free, anonymous and helps us understand if similar Insights have an audience.

Executive Summary
Nearing Christmas and Chinese New Year period, Travelsky's share price has typically increased between 9-20%. Investors should really consider initiating a LONG BUY in Travelsky given that valuation has been stable, an insulated business exposure from the instability caused by trade tension, and the coming of Chinese New Year period which typically brings positive sentiment for the stock. Trading at 20x PER with consistent growth in the second-largest economy in the world, the stock does not sound expensive at all. 
Please send me a message if you would like to know about some other stocks that you have an interest in. Also, please click the Appreciate button if you found this Insight helpful - its free, anonymous and helps us understand if similar Insights have an audience.

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.

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 </li>
	<li>
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 </li>
	<li>
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 </li>
	<li>Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.</li>
</ul>
Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/YTD%20Returns%20ROE%20Highlights%20of%20STIs%2010%20Largest%20Industrial.png" alt="YTD Returns ROE Highlights of STIs 10 Largest Industrial ">
 </figure>
 <div class="content-caption">YTD Returns ROE Highlights of STIs 10 Largest Industrial </div>
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/10Y%20Annualised%20Total%20Returns%20Industrials.png" alt="10Y Annualised Total Returns Industrials">
 </figure>
 <div class="content-caption">10Y Annualised Total Returns Industrials</div>
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			ROE (%)
			</td>
			<td>
			5Y Avg ROE (%)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			22.2
			</td>
			<td>
			23.5
			</td>
			<td>
			3.7
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			16.4
			</td>
			<td>
			11.3
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			15.1
			</td>
			<td>
			15.3
			</td>
			<td>
			4.0
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			13.2
			</td>
			<td>
			12.6
			</td>
			<td>
			4.8
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			11.6
			</td>
			<td>
			12.6
			</td>
			<td>
			4.2
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			8.4
			</td>
			<td>
			10.0
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			6.6
			</td>
			<td>
			10.7
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			5.9
			</td>
			<td>
			9.7
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			5.1
			</td>
			<td>
			8.9
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			5.2
			</td>
			<td>
			5.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11.0
			</td>
			<td>
			12.0
			</td>
			<td>
			3.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			18.8
			</td>
			<td>
			26.1
			</td>
			<td>
			37.9
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			12.4
			</td>
			<td>
			-9.1
			</td>
			<td>
			82.2
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			4.2
			</td>
			<td>
			-3.6
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			-18.1
			</td>
			<td>
			-5.2
			</td>
			<td>
			40.5
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			18.6
			</td>
			<td>
			10.9
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			3.1
			</td>
			<td>
			-8.4
			</td>
			<td>
			23.2
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			-20.3
			</td>
			<td>
			-16.4
			</td>
			<td>
			0.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			-9.8
			</td>
			<td>
			-12.1
			</td>
			<td>
			7.3
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			-11.6
			</td>
			<td>
			-15.6
			</td>
			<td>
			-14.0
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			-2.8
			</td>
			<td>
			-3.1
			</td>
			<td>
			-10.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-0.5
			</td>
			<td>
			-3.6
			</td>
			<td>
			17.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table
</body></html>





SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 
	
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 
	
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 
	Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.

      
    
    YTD Returns ROE Highlights of STIs 10 Largest Industrial 
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.

      
    
    10Y Annualised Total Returns Industrials
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			ROE (%)
			
			
			5Y Avg ROE (%)
			
			
			Div Ind Yld (%)
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			22.2
			
			
			23.5
			
			
			3.7
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			16.4
			
			
			11.3
			
			
			4.6
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			15.1
			
			
			15.3
			
			
			4.0
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			13.2
			
			
			12.6
			
			
			4.8
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			11.6
			
			
			12.6
			
			
			4.2
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			8.4
			
			
			10.0
			
			
			3.9
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			6.6
			
			
			10.7
			
			
			3.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			5.9
			
			
			9.7
			
			
			1.1
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			5.1
			
			
			8.9
			
			
			1.8
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			5.2
			
			
			5.6
			
			
			3.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.0
			
			
			12.0
			
			
			3.5
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			18.8
			
			
			26.1
			
			
			37.9
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			12.4
			
			
			-9.1
			
			
			82.2
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			4.2
			
			
			-3.6
			
			
			8.9
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			-18.1
			
			
			-5.2
			
			
			40.5
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			18.6
			
			
			10.9
			
			
			-2.9
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			3.1
			
			
			-8.4
			
			
			23.2
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			-20.3
			
			
			-16.4
			
			
			0.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			-9.8
			
			
			-12.1
			
			
			7.3
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			-11.6
			
			
			-15.6
			
			
			-14.0
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			-2.8
			
			
			-3.1
			
			
			-10.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			-0.5
			
			
			-3.6
			
			
			17.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table



ROE Highlights of STI’s 10 Largest Industrials Constituents

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Cross Asset Strategy

<div class="content-highlight">This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.</div><h2>Macro Insights</h2>In <a href="https://www.smartkarma.com/insights/crossasean-strategy-sinister-undertones-for-indonesia-from-the-us-china-trade-war" target="_blank" data-smartkarma-citation="insights:31140" rel="noopener">CrossASEAN Strategy - Sinister Undertones for Indonesia from the US/China Trade War,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> zeros in on the loan default by the spinning arm of Indonesian Textile company Duniatex, which has been hit hard by a recent surge in Chinese imports to Indonesia. In <a href="https://www.smartkarma.com/insights/widodo-s-talking-a-big-game-but-fielding-a-faulty-team-rates-poverty-fall-cctv-traffic-fines" target="_blank" data-smartkarma-citation="insights:31188" rel="noopener">Widodo's Talking a Big Game (But Fielding a Faulty Team) / Rates, Poverty Fall / CCTV Traffic Fines,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/kevin-o-rourke" target="_blank" data-smartkarma-citation="accounts:2060" rel="noopener">Kevin O’Rourke</a> comments on the most important political and economic developments over the past week. In <a href="https://www.smartkarma.com/insights/dearth-of-dosh-summer-drift-on-the-cards" target="_blank" data-smartkarma-citation="insights:31038" rel="noopener">Dearth of Dosh: Summer Drift on the Cards,</a><a href="https://www.smartkarma.com/profiles/dr-jim-walker" target="_blank" data-smartkarma-citation="accounts:1628" rel="noopener">Dr. Jim Walker</a> puts forward his views on where markets have support in the hot, liquidity-starved months of the summer. He suggests that for the rest of this year, there's not a great deal of monetary support for a pickup in economic activity. In <a href="https://www.smartkarma.com/insights/usd-thai-baht-macro-cycle-low" target="_blank" data-smartkarma-citation="insights:31085" rel="noopener">USD/Thai Baht Macro Cycle Low,</a> Technical specialist <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> zeroes in on the Thai Baht.<a href="https://www.smartkarma.com/entities/thb" target="_blank" data-smartkarma-citation="entities:22830:1" rel="noopener">THB (USDTHB CURNCY)</a> below 31 is flagging valuation concerns with high conviction chart bottoming signals.<h2>Equity Bottom-Up Insights</h2>In <a href="https://www.smartkarma.com/insights/agm-sats-high-quality-company-continues-growth-trajectory-via-m-a-as-1-billion-sgd-budget-announced" target="_blank" data-smartkarma-citation="insights:31158" rel="noopener">AGM SATS: High-Quality Company Continues Growth Trajectory Via M&amp;A as 1 Billion SGD Budget Announced,</a><a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> circles back to <a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">Sats Ltd (SATS SP)</a> after attending the company's AGM.In <a href="https://www.smartkarma.com/insights/scc-blue-chip-you-don-t-want-to-miss" target="_blank" data-smartkarma-citation="insights:31138" rel="noopener">SCC: Blue Chip You Don’t Want to Miss,</a> our friend at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> initiate coverage of SCC with a BUY rating and a 2020E target price of Bt542.00, derived from 12.6x PE’20E, which is its 5-year trading average. They think SCC’s recent earnings release did not reflect its real underlying performance, due to a downswing in the chemical business.In <a href="https://www.smartkarma.com/insights/stubworld-sembcorp-s-lifeline-to-marine-blurs-parent-ops" target="_blank" data-smartkarma-citation="insights:31113" rel="noopener">StubWorld: Sembcorp's Lifeline To Marine Blurs Parent Ops, </a>events specialist <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> zeros in on <a href="https://www.smartkarma.com/entities/sembcorp-industries-ltd" target="_blank" data-smartkarma-citation="entities:1087:1" rel="noopener">Sembcorp Industries (SCI SP)</a> after the announcement that it issues a $2bn five-year subordinated loan to <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a>.In <a href="https://www.smartkarma.com/insights/cct-placement-level-up-germany-assets-and-only-mildly-dpu-accretive" target="_blank" data-smartkarma-citation="insights:31151" rel="noopener">CCT Placement - Level up Germany Assets and Only Mildly DPU Accretive,</a><a href="https://www.smartkarma.com/profiles/ke-yan-cfa-frm" target="_blank" data-smartkarma-citation="accounts:9" rel="noopener">Ke Yan, CFA, FRM</a> revisits <a href="https://www.smartkarma.com/entities/capitaland-commercial-trust" target="_blank" data-smartkarma-citation="entities:1077:1" rel="noopener">Capitaland Commercial Trust (CCT SP)</a> post its recent capital raising announcement.<a href="https://www.smartkarma.com/entities/1077" target="_blank" data-smartkarma-citation="entities:1077:1" rel="noopener"></a>In <a href="https://www.smartkarma.com/insights/bts-group-warrants-the-less-the-merrier" target="_blank" data-smartkarma-citation="insights:31137" rel="noopener">BTS Group Warrants - The Less the Merrier,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> analyses the state of play with <a href="https://www.smartkarma.com/entities/bts-group-holdings-pcl" target="_blank" data-smartkarma-citation="entities:15943:1" rel="noopener">BTS Group Holdings (BTS TB)</a> warrant issue. In the start of a series of report <a href="https://www.smartkarma.com/insights/home-credit-pre-ipo-part-i-the-positives-lots-to-like" target="_blank" data-smartkarma-citation="insights:31096" rel="noopener">Home Credit Pre-IPO (Part I) - The Positives - Lots to Like</a> and <a href="https://www.smartkarma.com/insights/home-credit-pre-ipo-part-ii-the-negatives-a-lot-more-to-dislike" target="_blank" data-smartkarma-citation="insights:31144" rel="noopener">Home Credit Pre-IPO (Part II) - The Negatives - A Lot More to Dislike,</a><a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> assesses this multi-finance IPO.<h2>Sector and Thematic Insights</h2>In one of an ongoing series of insights,  <a href="https://www.smartkarma.com/insights/quiddity-philippines-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:31122" rel="noopener">Quiddity Philippines M&amp;A Guide 2019,</a> the Quiddity* team (see our profiles or the footnote below) is publishing to aid investors in understanding the rules, parameters, possibilities, and processes when companies conduct mergers and acquisitions in certain markets. These insights (with a list <a href="https://www.smartkarma.com/search?q=quiddity&amp;type=insights" target="_blank" rel="noopener">here</a>) are designed to be used as a reference.In <a href="https://www.smartkarma.com/insights/snippets-24-kerry-s-thai-ipo-scb-re-arranges-its-portfolio" target="_blank" data-smartkarma-citation="insights:30546" rel="noopener">Snippets #24: Kerry's Thai IPO, SCB Re-Arranges Its Portfolio,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> identifies the five most interesting news flows/developments in Thailand over the past month. In <a href="https://www.smartkarma.com/insights/singapore-property-jump-in-new-supply-upcoming-mega-launches-to-test-buyers-appetite" target="_blank" data-smartkarma-citation="insights:31106" rel="noopener">Singapore Property – Jump in New Supply. Upcoming Mega-Launches to Test Buyers’ Appetite,</a> property specialist <a href="https://www.smartkarma.com/profiles/foo-sze-ming" target="_blank" data-smartkarma-citation="accounts:2053" rel="noopener">Royston Foo</a> analyses the recently releases residential sales figure in Singapore for June.

This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up pieces. Please find a brief summary below, with a fuller write up in the detailed section.Macro InsightsIn CrossASEAN Strategy - Sinister Undertones for Indonesia from the US/China Trade War, CrossASEAN Insight Provider Angus Mackintosh zeros in on the loan default by the spinning arm of Indonesian Textile company Duniatex, which has been hit hard by a recent surge in Chinese imports to Indonesia. In Widodo's Talking a Big Game (But Fielding a Faulty Team) / Rates, Poverty Fall / CCTV Traffic Fines, CrossASEAN Insight Provider Kevin O’Rourke comments on the most important political and economic developments over the past week. In Dearth of Dosh: Summer Drift on the Cards,Dr. Jim Walker puts forward his views on where markets have support in the hot, liquidity-starved months of the summer. He suggests that for the rest of this year, there's not a great deal of monetary support for a pickup in economic activity. In USD/Thai Baht Macro Cycle Low, Technical specialist Thomas Schroeder zeroes in on the Thai Baht.THB (USDTHB CURNCY) below 31 is flagging valuation concerns with high conviction chart bottoming signals.Equity Bottom-Up InsightsIn AGM SATS: High-Quality Company Continues Growth Trajectory Via M&amp;A as 1 Billion SGD Budget Announced,Nicolas Van Broekhoven circles back to Sats Ltd (SATS SP) after attending the company's AGM.In SCC: Blue Chip You Don’t Want to Miss, our friend at Country Group initiate coverage of SCC with a BUY rating and a 2020E target price of Bt542.00, derived from 12.6x PE’20E, which is its 5-year trading average. They think SCC’s recent earnings release did not reflect its real underlying performance, due to a downswing in the chemical business.In StubWorld: Sembcorp's Lifeline To Marine Blurs Parent Ops, events specialist David Blennerhassett zeros in on Sembcorp Industries (SCI SP) after the announcement that it issues a $2bn five-year subordinated loan to Sembcorp Marine (SMM SP).In CCT Placement - Level up Germany Assets and Only Mildly DPU Accretive,Ke Yan, CFA, FRM revisits Capitaland Commercial Trust (CCT SP) post its recent capital raising announcement.In BTS Group Warrants - The Less the Merrier,Travis Lundy analyses the state of play with BTS Group Holdings (BTS TB) warrant issue. In the start of a series of report Home Credit Pre-IPO (Part I) - The Positives - Lots to Like and Home Credit Pre-IPO (Part II) - The Negatives - A Lot More to Dislike,Sumeet Singh assesses this multi-finance IPO.Sector and Thematic InsightsIn one of an ongoing series of insights,  Quiddity Philippines M&amp;A Guide 2019, the Quiddity* team (see our profiles or the footnote below) is publishing to aid investors in understanding the rules, parameters, possibilities, and processes when companies conduct mergers and acquisitions in certain markets. These insights (with a list here) are designed to be used as a reference.In Snippets #24: Kerry's Thai IPO, SCB Re-Arranges Its Portfolio, our Thai guru Athaporn Arayasantiparb, CFA identifies the five most interesting news flows/developments in Thailand over the past month. In Singapore Property – Jump in New Supply. Upcoming Mega-Launches to Test Buyers’ Appetite, property specialist Royston Foo analyses the recently releases residential sales figure in Singapore for June. 

The Week that Was in ASEAN@Smartkarma - Indonesia Strategy, Thai Baht, and Liquidity Crunch

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

We attended the AGM of <a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">Sats Ltd (SATS SP)</a> in Marina Mandarin hotel. Shares are up 16% YTD and have more than doubled over the last five years.Going forward the company will aim to spend 1 billion SGD in bolt-on M&amp;A between FY20 and FY22. Given SATS has net cash on the balance sheet it has considerable firepower. The board has overseen a rising dividend for the last five years and will attempt to keep dividends stable (or rising) for shareholders regardless of its M&amp;A drive.SATS is a high-quality company led by a charismatic CEO, Alex Hungate, who has delivered great shareholder returns since his appointment in January 2014.ROE has consistently been above 15% from FY14 to FY19. Valuation is not cheap at 21x FY20 P/E and 3.3x P/B but is most likely deserved given its performance in the last five years.

We attended the AGM of Sats Ltd (SATS SP) in Marina Mandarin hotel. Shares are up 16% YTD and have more than doubled over the last five years.Going forward the company will aim to spend 1 billion SGD in bolt-on M&amp;A between FY20 and FY22. Given SATS has net cash on the balance sheet it has considerable firepower. The board has overseen a rising dividend for the last five years and will attempt to keep dividends stable (or rising) for shareholders regardless of its M&amp;A drive.SATS is a high-quality company led by a charismatic CEO, Alex Hungate, who has delivered great shareholder returns since his appointment in January 2014.ROE has consistently been above 15% from FY14 to FY19. Valuation is not cheap at 21x FY20 P/E and 3.3x P/B but is most likely deserved given its performance in the last five years.

AGM SATS: High Quality Company Continues Growth Trajectory Via M&A as 1 Billion SGD Budget Announced





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

Singapore

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SATS (SATS SP)

Travelsky (696): Flying for CNY

Executive Summary Nearing Christmas and Chinese New Year period, Travelsky's share price has typically increased between 9-20%. Investors should...

Henry Soediarko

ROE Highlights of STI’s 10 Largest Industrials Constituents

SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than...

Singapore Exchange Ltd (SGX)

The Week that Was in ASEAN@Smartkarma - Indonesia Strategy, Thai Baht, and Liquidity Crunch

This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable...

Angus Mackintosh

AGM SATS: High Quality Company Continues Growth Trajectory Via M&A as 1 Billion SGD Budget Announced

We attended the AGM of Sats Ltd (SATS SP) in Marina Mandarin hotel. Shares are up 16% YTD and have more than doubled over the last five years.Going...

Nicolas Van Broekhoven

Real Estate, Manufacturing and F&B Shares on the Move in 1H19

Real Estate, Manufacturing and Food & Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)