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.

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Equity Sectors Booked Gains Across the Board in October

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

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

<ul><li><a href="https://www.smartkarma.com/entities/1414" target="_blank" data-smartkarma-citation="entities:1414:1">Frencken Group Ltd (FRKN SP)</a> is a global precision engineering company</li><li>Key divisions are Mechatronics and IMS which sell products into automotive and semiconductor industries</li><li>New Executive Director appointed in 2016 who brings big-company experience </li><li>2018 order book indications strong which should re-rate company in-line with peers</li><li>Frencken trades at 7.5x 2018 PE and 0.8x book with 4% dividend yield</li><li>Fair Value: assuming company can trade in-line with peers(12.5x 2018 PE) there is another 65% upside</li></ul>

Frencken Group Ltd (FRKN SP) is a global precision engineering companyKey divisions are Mechatronics and IMS which sell products into automotive and semiconductor industriesNew Executive Director appointed in 2016 who brings big-company experience 2018 order book indications strong which should re-rate company in-line with peersFrencken trades at 7.5x 2018 PE and 0.8x book with 4% dividend yieldFair Value: assuming company can trade in-line with peers(12.5x 2018 PE) there is another 65% upside

Discover Singapore: Frencken, Still at Discount to Peers After YTD Performance, 65% Upside to Be Had

<ul><li><a href="https://www.smartkarma.com/entities/6703" target="_blank" data-smartkarma-citation="entities:6703:1">Fu Yu Corp Ltd (FUYU SP)</a> is a small (100M USD mkt cap) Singapore based precision plastics solutions provider</li><li>Revenues have been <strong>declining for five years</strong> as management sheds loss making businesses</li><li>Net Profits have been rising as cost cutting remains effective</li><li>Large exposure to printing/packaging clients and little exposure to automotive</li><li>Company hired IR firm to help its communication with investors, but disclosure still questionable</li><li>MBO or sale of the company cannot be excluded</li><li>Very cheap valuation offsets weak operating trends</li><li>Fu Yu trades at 0.9x book, 3x ex-cash PE, 67% of mkt cap supported by cash and 8% dividend yield</li></ul>

Fu Yu Corp Ltd (FUYU SP) is a small (100M USD mkt cap) Singapore based precision plastics solutions providerRevenues have been declining for five years as management sheds loss making businessesNet Profits have been rising as cost cutting remains effectiveLarge exposure to printing/packaging clients and little exposure to automotiveCompany hired IR firm to help its communication with investors, but disclosure still questionableMBO or sale of the company cannot be excludedVery cheap valuation offsets weak operating trendsFu Yu trades at 0.9x book, 3x ex-cash PE, 67% of mkt cap supported by cash and 8% dividend yield

Discover Singapore: Fu Yu (FUYU SP); 67% of Mkt Cap Is Cash, Trading Below Book and Offers 8% Yield

Tech Sector Led in Sep, Venture now Biggest Stock in the STI Reserve List

Singapore’s 30 Biggest Hardware & Semiconductor Stocks

Singapore

Valuetronics Holdings Ltd. offers original equipment manufacturing and original design manufacturing services.  The Company serves customers in the telecommunications, industrial, commercial electronic products, and consumer electronic products industries.

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Valuetronics Holdings (VALUE SP)

Equity Sectors Booked Gains Across the Board in October

Singapore Exchange Ltd (SGX)

Discover Singapore: Frencken, Still at Discount to Peers After YTD Performance, 65% Upside to Be Had

Frencken Group Ltd (FRKN SP) is a global precision engineering company Key divisions are Mechatronics and IMS which sell products into automotive...

Nicolas Van Broekhoven

Discover Singapore: Fu Yu (FUYU SP); 67% of Mkt Cap Is Cash, Trading Below Book and Offers 8% Yield

Fu Yu Corp Ltd (FUYU SP) is a small (100M USD mkt cap) Singapore based precision plastics solutions provider Revenues have been declining for...

Nicolas Van Broekhoven

Tech Sector Led in Sep, Venture now Biggest Stock in the STI Reserve List

Singapore Exchange Ltd (SGX)

Singapore’s 30 Biggest Hardware & Semiconductor Stocks

Singapore Exchange Ltd (SGX)

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