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.

Asia’s leading multi-asset exchange

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.</strong>&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
<p>Singapore Company Update</p>
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<h2>Tuan Sing Holdings Bloomberg: TSH SP&nbsp;</h2>
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<h3>Making a case</h3>
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<p><strong>Investment Thesis:<br></strong><strong>Undervalued property play</strong>. We maintain our BUY call and TP of S$0.44. Trading at 0.3x P/NAV (between -1SD and -2SD from 3- year mean), we continue to see good value in the stock. In addition, office fundamentals favour a completion of the S$500m sale of Robinson Point which could drive a re-rating in valuation following improved balance sheet metrics.</p>
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<p><strong>Transformation into partial tech play.</strong> GulTech’s earnings have grown by a CAGR of 26% in the past five years and may be ripe for unlocking through dividends to Tuan Sing.</p>
<p><strong>Resilient property market.</strong> The Singapore private property market has held up well amid the pandemic, a successful sales launch of Peak Residences could catalyse share price.</p>
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<p><strong>Valuation</strong>:<br>Our TP of S$0.44 is based on SOTP. We assume a valuation of 11.0x FY20F PE for Gultech, a 65% discount to RNAV of S$676.8m, and a further 10% conglomerate discount. The TP represents a P/BV of 0.47x compared to the current P/BV of 0.31x (-1SD below 3-year mean of 0.42x) and peer P/BV of 0.46x.</p>
<p><strong>Where we differ:<br></strong>We are the only house covering the counter. That said, we have assumed more conservative earnings growth for GulTech.</p>
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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.
Singapore Company Update

Tuan Sing Holdings Bloomberg: TSH SP&nbsp;

Making a case


Investment Thesis: Undervalued property play. We maintain our BUY call and TP of S$0.44. Trading at 0.3x P/NAV (between -1SD and -2SD from 3- year mean), we continue to see good value in the stock. In addition, office fundamentals favour a completion of the S$500m sale of Robinson Point which could drive a re-rating in valuation following improved balance sheet metrics.

Transformation into partial tech play. GulTech’s earnings have grown by a CAGR of 26% in the past five years and may be ripe for unlocking through dividends to Tuan Sing.
Resilient property market. The Singapore private property market has held up well amid the pandemic, a successful sales launch of Peak Residences could catalyse share price.



Valuation: Our TP of S$0.44 is based on SOTP. We assume a valuation of 11.0x FY20F PE for Gultech, a 65% discount to RNAV of S$676.8m, and a further 10% conglomerate discount. The TP represents a P/BV of 0.47x compared to the current P/BV of 0.31x (-1SD below 3-year mean of 0.42x) and peer P/BV of 0.46x.
Where we differ: We are the only house covering the counter. That said, we have assumed more conservative earnings growth for GulTech.








Non-SGX Report: Tuan Sing Holdings Bloomberg: Making a Case

TSH Corporation

Non-SGX Report: Tuan Sing Holdings Bloomberg: Making a Case