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

Nanofilm Technologies International / Equity Bottom-Up

Nanofilm Technologies International (NANO SP)

<ul><li>Share buybacks by primary listed companies 24 - 30 March, 2023 DBS, OCBC, Suntec Reit, Yangzijiang Shipbuilding (Holdings) and CapitaLand Integrated Commercial Trust led the net institutional outflow for the five sessions.</li><li>On Mar 27, Acesian Partners executive director & group chief operating officer Wong Kok Chye disposed of 3,040,500 shares at S$0.065 per share.</li></ul>

Share buybacks by primary listed companies 24 - 30 March, 2023 DBS, OCBC, Suntec Reit, Yangzijiang Shipbuilding (Holdings) and CapitaLand Integrated Commercial Trust led the net institutional outflow for the five sessions.On Mar 27, Acesian Partners executive director & group chief operating officer Wong Kok Chye disposed of 3,040,500 shares at S$0.065 per share.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The MSCI revised the Adani Group weighting after reviewing FF. <a href="https://www.smartkarma.com/entities/adani-enterprises-ltd" target="_blank" data-smartkarma-citation="entities:245:1" rel="noopener">Adani Enterprises (ADE IN)</a>affected. <a href="https://www.smartkarma.com/entities/adani-green-energy-ltd" target="_blank" data-smartkarma-citation="entities:29012:1" rel="noopener">Adani Green (ADANIGR IN)</a>, <a href="https://www.smartkarma.com/entities/adani-power-ltd" target="_blank" data-smartkarma-citation="entities:247:1" rel="noopener">Adani Power (ADANI IN)</a>, and <a href="https://www.smartkarma.com/entities/adani-ports-special-economic-zone-ltd" target="_blank" data-smartkarma-citation="entities:246:1" rel="noopener">Adani Ports (ADSEZ IN)</a> not affected. </li>
<li>
<a href="https://www.smartkarma.com/entities/hongkong-land-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15465:1" rel="noopener">Hongkong Land (HKL SP)</a> is dirt cheap at 0.3x P/B. It is a China re-opening play. Plus the company is buying back shares. </li>
<li>The Nikkei didn't write an article on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba (6502 JP)</a> when everyone else did. They waited another day, with what appears to be a zinger on price at "about ¥2trln". </li>
</ul>


The MSCI revised the Adani Group weighting after reviewing FF. Adani Enterprises (ADE IN)affected. Adani Green (ADANIGR IN), Adani Power (ADANI IN), and Adani Ports (ADSEZ IN) not affected. 

Hongkong Land (HKL SP) is dirt cheap at 0.3x P/B. It is a China re-opening play. Plus the company is buying back shares. 
The Nikkei didn't write an article on Toshiba (6502 JP) when everyone else did. They waited another day, with what appears to be a zinger on price at "about ¥2trln". 


Last Week in SPACE: Adani Group, Hongkong Land, Toshiba, Haw Par, Renault/Nissan

<ul>
<li>Last November I highlighted <a href="https://www.smartkarma.com/entities/haw-par-corp-ltd" target="_blank" data-smartkarma-citation="entities:9898:1" rel="noopener">Haw Par Corp (HPAR SP)</a>'s multi-year trough levels on an implied stub valuation, and on an HPAR/<a href="https://www.smartkarma.com/entities/united-overseas-bank-ltd" target="_blank" data-smartkarma-citation="entities:113:1" rel="noopener">UOB (UOB SP)</a> ratio.</li>
<li>That trade has panned out well as the ratio steadily increased. But it remains below the 200 MDA.</li>
<li>A recovery in Tiger Balm sales is expected in Haw Par's full-year results later this month.  UOB's financials, and <a href="https://www.smartkarma.com/entities/uol-group-ltd" target="_blank" data-smartkarma-citation="entities:142:1" rel="noopener">UOL (UOL SP)</a>'s, are also due out this month.</li>
</ul>


Last November I highlighted Haw Par Corp (HPAR SP)'s multi-year trough levels on an implied stub valuation, and on an HPAR/UOB (UOB SP) ratio.
That trade has panned out well as the ratio steadily increased. But it remains below the 200 MDA.
A recovery in Tiger Balm sales is expected in Haw Par's full-year results later this month.  UOB's financials, and UOL (UOL SP)'s, are also due out this month.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/sm-investments-corp" target="_blank" data-smartkarma-citation="entities:20015:1" rel="noopener">SM Investments (SM PM)</a>, the leading Filipino conglomerate, recently announced strong 9M22 earnings, buoyed by increased economic activity and strong consumer sentiment.</li>
<li>The standout was the unlisted SM Retail segment which recorded net income of PHP 11.5bn, exceeding 2019 pre-pandemic levels. </li>
<li>The implied stub/share - net of all listcos - of PHP 208/share compares to the five-year average of PHP 273/share, and the two-year average of PHP 252 preceding Covid. </li>
</ul>



SM Investments (SM PM), the leading Filipino conglomerate, recently announced strong 9M22 earnings, buoyed by increased economic activity and strong consumer sentiment.
The standout was the unlisted SM Retail segment which recorded net income of PHP 11.5bn, exceeding 2019 pre-pandemic levels. 
The implied stub/share - net of all listcos - of PHP 208/share compares to the five-year average of PHP 273/share, and the two-year average of PHP 252 preceding Covid. 


SM Investments (SM PM): Retail Income Now Exceeds Pre-Covid Levels

<ul>
<li>The in-specie distribution is basically a forward block sale of <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>. You know it's coming. You don't know how large it is. It is not unlike a lockup situation. </li>
<li>
<a href="https://www.smartkarma.com/entities/china-hainan-rubber-industry-group" target="_blank" data-smartkarma-citation="entities:10551:1" rel="noopener">China Hainan Rubber Industry (601118 CH)</a> will start with 36% in <a href="https://www.smartkarma.com/entities/halcyon-agri-corp-ltd" target="_blank" data-smartkarma-citation="entities:18191:1" rel="noopener">Halcyon Agri (HACL SP)</a>. Founders and friends have ~10%. Getting to 50%+ will be easy.</li>
<li>The <a href="https://www.smartkarma.com/entities/swire-pacific-ltd" target="_blank" data-smartkarma-citation="entities:23726:1" rel="noopener">Swire Pacific (B)</a> / <a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (A)</a> ratio is near a 19-year low. The last time it dipped to 6% under its 3mo average, it bounced back in 4 weeks. </li>
</ul>


The in-specie distribution is basically a forward block sale of Meituan (3690 HK). You know it's coming. You don't know how large it is. It is not unlike a lockup situation. 

China Hainan Rubber Industry (601118 CH) will start with 36% in Halcyon Agri (HACL SP). Founders and friends have ~10%. Getting to 50%+ will be easy.
The Swire Pacific (B) / Swire Pacific (A) ratio is near a 19-year low. The last time it dipped to 6% under its 3mo average, it bounced back in 4 weeks. 


Last Week in Event SPACE: Tencent/Meituan, Halcyon Agri, Swire Pac, Perpetual/Pendal, OZ Minerals

Singapore

UOL Group is a leading Singapore-listed property and hospitality company with a diversified portfolio of development and investment properties, hotels, and serviced suites. The company develops residential units, commercial offices, shopping malls, and operates hotels under brands like Pan Pacific and PARKROYAL. UOL Group Limited was founded in 1963 and is headquartered in Singapore.

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UOL Group (UOL SP)

Wee Cho Yaw adds to his stake in UOL

Share buybacks by primary listed companies 24 - 30 March, 2023 DBS, OCBC, Suntec Reit, Yangzijiang Shipbuilding (Holdings) and CapitaLand...

Singapore Exchange Ltd (SGX)

Last Week in SPACE: Adani Group, Hongkong Land, Toshiba, Haw Par, Renault/Nissan

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Haw Par Corp Is Still Trading Cheap

I still like Haw Par here, and recommend going long outright or hedging against UOB (~58% of its NAV, 90% of its market cap).

David Blennerhassett

SM Investments (SM PM): Retail Income Now Exceeds Pre-Covid Levels

SMIC is benefitting from increased economic activity and buoyant consumer sentiment. Go outright long or hedge out SM Prime and BDO, in which the...

David Blennerhassett

Last Week in Event SPACE: Tencent/Meituan, Halcyon Agri, Swire Pac, Perpetual/Pendal, OZ Minerals

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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