- We identify 33 SGX-listed stocks that may have potential to unlock value if MAS unveils value-up requirements similar to North Asia in their market reform agenda in Nov.
For the SMID rally to sustain, value must be unlocked
- - Read this at SGinvestors.io -
- For sure, this has resulted in improved SMID performance. However, for longer-term sustained valuations, deeper reforms are needed to increase capital efficiency, increase shareholder returns and deliver greater transparency.
Lessons from Japan, Korea, China to unlock value
- Since 2023-24, Japan’s TSE, Korea’s FSC & KRX and China’s CSRC & State Council have implemented capital market reform frameworks to unlock value in their listed corporates. These ‘value-up’ frameworks converge around three broad objectives:
- - Read this at SGinvestors.io -
- improve shareholder returns and investor confidence, and
- increase transparency and governance.
- Board responsibilities have been steered towards setting and communicating time-bound targets to deliver these objectives. P/B, dividend payouts, share buybacks, returns above COE/WACC thresholds and investor dialog have been commonly emphasized by these reforms. Their respective indexes are on average +25% higher after reforms vs +13% in the year leading up to them.
Value-up reforms can strengthen SG SMID momentum
- Read more at SGinvestors.io.
