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

Sri Trang Agro Industry / Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Among the 200 most traded stocks on SGX, there are seven stocks whose businesses include plantations, with products used for food. These stocks include Wilmar, Golden Agri-Res, First Resources, Sri-Trang, Agro Olam, Bumitama Agri and Del Monte Pacific.  The seven stocks averaged 25% gains in the 2021 YTD. 
	 </li>
	<li>
With its FY20 results Wilmar noted its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows. Wilmar reported 19% YoY gain in FY20 Net Profit. 
	 </li>
	<li>On Thurs, Golden Agri-Res is scheduled to report, while Olam is scheduled to report on Friday. The two strongest performing stocks of the seven over the past 12 months, Sri-Trang Agro and Del Monte Pacific reported turnaround profits for the respective periods of FY20 (ended 31 Dec) and 1HFY21 (ended 31 Oct). </li>
</ul>
 

Commodity Price Rally Fueled by US, Europe Stimulus &amp; Asia Growth 
Crude Palm Oil prices continue to trade end of 2020 levels, and follow a firmer start in early to mid-January, a retracement followed by close to two weeks of consolidation. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows.  Commodities across the board have been subject to structural repricing on a lower US Dollar fueled by significant expansionary monetary stimulus measures by the Fed Reserve and ECB. At the same time global demand has been boosted with China and India estimated to generate the strongest GDP growth rates in 2021, after China was the only major economy to report growth in 2020.  Wilmar Signals Further Growth, while Paying Record Dividend 
Last night, Wilmar International (“Wilmar”) noted in its business outlook for FY21 that its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Wilmar reported a 19% year-on-year improvement in FY20 (ended 31 Dec) net profit to US$1.5 billion with FY20 revenue at US$50.5 billion, beating consensus estimates for US$48.0 billion (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/VBTPQ8DR6ZWTSU7H/3d2aef03512148b52f4424f8291d69da3530acbcae6d1c5792f8a45f138f9590">here</a> for more). On the demand side, Wilmar noted strong volume growth was observed with consumer product sales volume up 22% for the year, medium pack and bulk was up 7%, whilst feed and industrial products was up 11%. This was attributed to increasing brand awareness and consumers’ confidence in the quality food staples which the Group produces. Recent years have seen Wilmar establish a comprehensive sales and distribution network reaching traditional retail outlets, supermarkets, convenience stores and hyper-marts, reaching about five billion consumers worldwide. 
Wilmar added that it was continuing to build, especially in China, more integrated plants in new locations and develop new high growth and complementary businesses like central kitchen, soy sauce, vinegar and yeast. This firstly widens its range of food product offerings and secondly helps to reduce manufacturing, distribution and marketing costs. While signaling the intention to grow the business in FY21, Wilmar proposed a record dividend of S$0.13 per share (including interim of S$0.04 per share paid in August 2020) and a special dividend of S$0.065 per share for its FY20. Wilmar the #5 Most Active Stock on SGX in 2021 YTD 
For the past seven weeks, Wilmar has led all of the STI stocks in it performance, with an 18% year to date gain, bringing its 12 month total return to 39% (click <a href="http://edm.sgx.com/a/hBgM4exB86%24MfB94OyyAAAAAA8l/link1?t_params=aD1RKkQv0ffVCclzUOsF0X7zRP2CsSCRkr1AJpLlKZPRqQgN%24SsnifgMWfIM2MIh1eAa97W-W7y065pnFQE">here</a> for more). The stock has been recipient to S$89 million in net institutional inflow over the seven weeks, while being the Exchange’s fifth most traded stock overall. Wilmar, also noted that in FY20, the company had bought back about S$190 million of Wilmar shares, the second highest buyback consideration on the Singapore Exchange during the year. 
As tabled below, the seven stocks among the 200 most traded stocks that have a plantation focus have averaged 25% gains in the 2021 year-to-date, bringing their average 12 month total return to 58%. 
The three strongest stocks of the seven over the 12 months were Sri Trang Agro-Industry, Del Monte Pacific and Wilmar. On 16 February, Sri Trang Agro-Industry reported a turnaround profit, with net profit at 9.5 billion baht (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/GZ87BZ2DDAXZA1OI/a220ea5f94111847ceaf847150a56bbe05d1ccbbe67069b1c5076dc59fd6c02d">here</a> for more). Back on 10 December, Del Monte Pacific reported the Group’s 1HFY21 (ended 31 Oct) EBITDA quadrupled to US$136.8 million from US$29.4 million while net profit was US$18.6 million reversing a net loss of US$75.6 million (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/TUHCA8YIXK0RIO55/451a3546102fa216869874eca2eac1acf274fb5b7de0adb20cd767740714b3df">here</a> for more).

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks with a Plantation Focus
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			2021 YTD Average Daily T/O S$M
			</td>
			<td>
			Turnover Ranking 2021 YTD
			</td>
			<td>
			Net Insti Flow S$M
			</td>
			<td>
			YTD Price Change %
			</td>
			<td>
			2020 Total Return %
			</td>
			<td>
			12M Total Return %
			</td>
			<td>
			12M Volatility %
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			34,810
			</td>
			<td>
			49.7
			</td>
			<td>
			5
			</td>
			<td>
			89
			</td>
			<td>
			18
			</td>
			<td>
			17
			</td>
			<td>
			39
			</td>
			<td>
			38
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			2,399
			</td>
			<td>
			3.5
			</td>
			<td>
			62
			</td>
			<td>
			2
			</td>
			<td>
			19
			</td>
			<td>
			-30
			</td>
			<td>
			-9
			</td>
			<td>
			37
			</td>
		</tr>
<tr>
<td>
			First Resources
			</td>
			<td>
			EB5
			</td>
			<td>
			2,541
			</td>
			<td>
			3.5
			</td>
			<td>
			63
			</td>
			<td>
			0
			</td>
			<td>
			26
			</td>
			<td>
			-31
			</td>
			<td>
			-4
			</td>
			<td>
			43
			</td>
		</tr>
<tr>
<td>
			Sri Trang Agro
			</td>
			<td>
			NC2
			</td>
			<td>
			3,164
			</td>
			<td>
			2.6
			</td>
			<td>
			72
			</td>
			<td>
			33
			</td>
			<td>
			78
			</td>
			<td>
			179
			</td>
			<td>
			289
			</td>
			<td>
			76
			</td>
		</tr>
<tr>
<td>
			Olam Intl
			</td>
			<td>
			O32
			</td>
			<td>
			5,049
			</td>
			<td>
			1.9
			</td>
			<td>
			87
			</td>
			<td>
			1
			</td>
			<td>
			3
			</td>
			<td>
			-11
			</td>
			<td>
			-7
			</td>
			<td>
			32
			</td>
		</tr>
<tr>
<td>
			Bumitama Agri
			</td>
			<td>
			P8Z
			</td>
			<td>
			928
			</td>
			<td>
			0.6
			</td>
			<td>
			131
			</td>
			<td>
			-3
			</td>
			<td>
			5
			</td>
			<td>
			-35
			</td>
			<td>
			-19
			</td>
			<td>
			43
			</td>
		</tr>
<tr>
<td>
			Del Monte Pac
			</td>
			<td>
			D03
			</td>
			<td>
			476
			</td>
			<td>
			0.4
			</td>
			<td>
			159
			</td>
			<td>
			0
			</td>
			<td>
			25
			</td>
			<td>
			69
			</td>
			<td>
			116
			</td>
			<td>
			71
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td> </td>
			<td>
			49,366
			</td>
			<td>
			62
			</td>
			<td>
			 
			</td>
			<td>
			123
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			25
			</td>
			<td>
			23
			</td>
			<td>
			58
			</td>
			<td>
			48
			</td>
		</tr>
</tbody></table>
Source: SGX, Refinitiv, Bloomberg (Data as of 22 February 2021)

 

Wilmar announced its debut in the Dow Jones Sustainability APAC Indices in mid-November last year, scoring above the 90th percentile for indicators related to raw material sourcing, human rights, labour practices, strategies for emerging markets, customer relationship management as well as risk and crisis management. Other STI companies that are a part of the Dow Jones Sustainability APAC Indices include CapitaLand, City Developments, DBS Group Holdings and ComfortDelGro Corporation.
</body></html>





Among the 200 most traded stocks on SGX, there are seven stocks whose businesses include plantations, with products used for food. These stocks include Wilmar, Golden Agri-Res, First Resources, Sri-Trang, Agro Olam, Bumitama Agri and Del Monte Pacific.  The seven stocks averaged 25% gains in the 2021 YTD.  
	 
	
With its FY20 results Wilmar noted its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows. Wilmar reported 19% YoY gain in FY20 Net Profit. 
	 
	On Thurs, Golden Agri-Res is scheduled to report, while Olam is scheduled to report on Friday. The two strongest performing stocks of the seven over the past 12 months, Sri-Trang Agro and Del Monte Pacific reported turnaround profits for the respective periods of FY20 (ended 31 Dec) and 1HFY21 (ended 31 Oct). 

 

Commodity Price Rally Fueled by US, Europe Stimulus &amp; Asia Growth   
Crude Palm Oil prices continue to trade end of 2020 levels, and follow a firmer start in early to mid-January, a retracement followed by close to two weeks of consolidation. Since the lows in early May 2020, Crude Palm Oil prices have rallied 82%, whilst raw sugar prices have similarly rallied 83% from end of April 2020 lows.  Commodities across the board have been subject to structural repricing on a lower US Dollar fueled by significant expansionary monetary stimulus measures by the Fed Reserve and ECB. At the same time global demand has been boosted with China and India estimated to generate the strongest GDP growth rates in 2021, after China was the only major economy to report growth in 2020.   Wilmar Signals Further Growth, while Paying Record Dividend  
Last night, Wilmar International (“Wilmar”) noted in its business outlook for FY21 that its oil palm plantation and sugar milling segment will benefit from higher palm oil and sugar prices. Wilmar reported a 19% year-on-year improvement in FY20 (ended 31 Dec) net profit to US$1.5 billion with FY20 revenue at US$50.5 billion, beating consensus estimates for US$48.0 billion (click here for more). On the demand side, Wilmar noted strong volume growth was observed with consumer product sales volume up 22% for the year, medium pack and bulk was up 7%, whilst feed and industrial products was up 11%. This was attributed to increasing brand awareness and consumers’ confidence in the quality food staples which the Group produces. Recent years have seen Wilmar establish a comprehensive sales and distribution network reaching traditional retail outlets, supermarkets, convenience stores and hyper-marts, reaching about five billion consumers worldwide.  
Wilmar added that it was continuing to build, especially in China, more integrated plants in new locations and develop new high growth and complementary businesses like central kitchen, soy sauce, vinegar and yeast. This firstly widens its range of food product offerings and secondly helps to reduce manufacturing, distribution and marketing costs. While signaling the intention to grow the business in FY21, Wilmar proposed a record dividend of S$0.13 per share (including interim of S$0.04 per share paid in August 2020) and a special dividend of S$0.065 per share for its FY20.   Wilmar the #5 Most Active Stock on SGX in 2021 YTD  
For the past seven weeks, Wilmar has led all of the STI stocks in it performance, with an 18% year to date gain, bringing its 12 month total return to 39% (click here for more). The stock has been recipient to S$89 million in net institutional inflow over the seven weeks, while being the Exchange’s fifth most traded stock overall. Wilmar, also noted that in FY20, the company had bought back about S$190 million of Wilmar shares, the second highest buyback consideration on the Singapore Exchange during the year.  
As tabled below, the seven stocks among the 200 most traded stocks that have a plantation focus have averaged 25% gains in the 2021 year-to-date, bringing their average 12 month total return to 58%.  
The three strongest stocks of the seven over the 12 months were Sri Trang Agro-Industry, Del Monte Pacific and Wilmar. On 16 February, Sri Trang Agro-Industry reported a turnaround profit, with net profit at 9.5 billion baht (click here for more). Back on 10 December, Del Monte Pacific reported the Group’s 1HFY21 (ended 31 Oct) EBITDA quadrupled to US$136.8 million from US$29.4 million while net profit was US$18.6 million reversing a net loss of US$75.6 million (click here for more).




			Stocks with a Plantation Focus
			
			
			SGX Code
			
			
			Mkt Cap S$M
			
			
			2021 YTD Average Daily T/O S$M
			
			
			Turnover Ranking 2021 YTD
			
			
			Net Insti Flow S$M
			
			
			YTD Price Change %
			
			
			2020 Total Return %
			
			
			12M Total Return %
			
			
			12M Volatility %
			
		


			Wilmar Intl
			
			
			F34
			
			
			34,810
			
			
			49.7
			
			
			5
			
			
			89
			
			
			18
			
			
			17
			
			
			39
			
			
			38
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			2,399
			
			
			3.5
			
			
			62
			
			
			2
			
			
			19
			
			
			-30
			
			
			-9
			
			
			37
			
		


			First Resources
			
			
			EB5
			
			
			2,541
			
			
			3.5
			
			
			63
			
			
			0
			
			
			26
			
			
			-31
			
			
			-4
			
			
			43
			
		


			Sri Trang Agro
			
			
			NC2
			
			
			3,164
			
			
			2.6
			
			
			72
			
			
			33
			
			
			78
			
			
			179
			
			
			289
			
			
			76
			
		


			Olam Intl
			
			
			O32
			
			
			5,049
			
			
			1.9
			
			
			87
			
			
			1
			
			
			3
			
			
			-11
			
			
			-7
			
			
			32
			
		


			Bumitama Agri
			
			
			P8Z
			
			
			928
			
			
			0.6
			
			
			131
			
			
			-3
			
			
			5
			
			
			-35
			
			
			-19
			
			
			43
			
		


			Del Monte Pac
			
			
			D03
			
			
			476
			
			
			0.4
			
			
			159
			
			
			0
			
			
			25
			
			
			69
			
			
			116
			
			
			71
			
		


			Total
			
			 
			
			49,366
			
			
			62
			
			
			 
			
			
			123
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			25
			
			
			23
			
			
			58
			
			
			48
			
		

Source: SGX, Refinitiv, Bloomberg (Data as of 22 February 2021)

 

Wilmar announced its debut in the Dow Jones Sustainability APAC Indices in mid-November last year, scoring above the 90th percentile for indicators related to raw material sourcing, human rights, labour practices, strategies for emerging markets, customer relationship management as well as risk and crisis management. Other STI companies that are a part of the Dow Jones Sustainability APAC Indices include CapitaLand, City Developments, DBS Group Holdings and ComfortDelGro Corporation.



Seven Stocks with a Plantation Focus Average 25% YTD Gains