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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<ul><li>The 25 Singapore stocks most net sold by retail in May averaged 8.5% total returns, outperforming the STI's 2.9%.</li><li>Retail investors net sold S$280 million in Singapore stocks in May, while institutions net bought S$306,522.</li><li>Singapore Airlines was the most net sold stock by retail, gaining 7% in May, with a record S$2.8 billion net profit.</li></ul>

The 25 Singapore stocks most net sold by retail in May averaged 8.5% total returns, outperforming the STI's 2.9%.Retail investors net sold S$280 million in Singapore stocks in May, while institutions net bought S$306,522.Singapore Airlines was the most net sold stock by retail, gaining 7% in May, with a record S$2.8 billion net profit.

25 Most Net Sold Stocks by Retail in May Averaged 9% Total Returns

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.

Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.

Singapore Post - Australian logistics to be divested for c A$1bn

Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%, mainly due to the inclusion of the March 2024 acquisition of Border Express. This fed through to operating profit growth, which was up more than 60%. Divisional profit performance was mixed due to a number of issues but benefit was generated from internal initiatives and the postal rate increase introduced last year. However, there was no new news of the ongoing review of the Australian business.

Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%, mainly due to the inclusion of the March 2024 acquisition of Border Express. This fed through to operating profit growth, which was up more than 60%. Divisional profit performance was mixed due to a number of issues but benefit was generated from internal initiatives and the postal rate increase introduced last year. However, there was no new news of the ongoing review of the Australian business.

Singapore Post - Results boosted by M&A and reduced losses

<ul><li>In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific Index declining 8%.</li><li>The trio of STI Banks averaged a 0.7% total return while the iEdge SG Adv Manufacturing Index declined 7% and the iEdge S-REIT Index declined 5.4%.</li><li>As detailed in the table above, among the 20 stocks that booked the highest net institutional inflow in Oct, Hongkong Land, Singapore Post, Wee Hur Holdings, DFI Retail Group Holdings and SATS generated the strongest total returns on the month, averaging 15.4% total returns.</li></ul>

In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific Index declining 8%.The trio of STI Banks averaged a 0.7% total return while the iEdge SG Adv Manufacturing Index declined 7% and the iEdge S-REIT Index declined 5.4%.As detailed in the table above, among the 20 stocks that booked the highest net institutional inflow in Oct, Hongkong Land, Singapore Post, Wee Hur Holdings, DFI Retail Group Holdings and SATS generated the strongest total returns on the month, averaging 15.4% total returns.

HKL, SingPost & Wee Hur Led Net Institutional Inflow & Gainers in October

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

Singapore Post - Q1 profits more than double

Singapore

Singapore Post (SingPost) is a leading postal and eCommerce logistics provider in Asia Pacific. It offers national and international postal services, warehousing, fulfillment, international freight forwarding, and last-mile delivery, alongside mail delivery, post office services, and financial services. Headquartered in Paya Lebar, Singapore, the company traces its origins to 1858.

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

Singapore Post (SPOST SP)

25 Most Net Sold Stocks by Retail in May Averaged 9% Total Returns

The 25 Singapore stocks most net sold by retail in May averaged 8.5% total returns, outperforming the STI's 2.9%. Retail investors net sold S$280...

Singapore Exchange Ltd (SGX)

Singapore Post - Australian logistics to be divested for c A$1bn

Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics...

Edison Investment Research

Singapore Post - Results boosted by M&A and reduced losses

Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%,...

Edison Investment Research

HKL, SingPost & Wee Hur Led Net Institutional Inflow & Gainers in October

In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific...

Singapore Exchange Ltd (SGX)

Singapore Post - Q1 profits more than double

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the...

Edison Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)