Singapore’s 5 most traded stocks with a manufacturing focus - Yangzijiang Shipbuilding, Wilmar International, ST Engineering, Venture Corp and AEM Holdings - have all performed stronger than the STI in the 2020 year to 16 June, with total returns ranging from -10.2% for ST Engineering to +57.0% for AEM.
Combined, the 5 stocks have also been recipient of S$157.1M of net buying buy institutions, with S$125.8M of the net buying between 1 January and 23 March, and S$31.3M of the net buying between 24 March and 16 June.
With a 57% gain in 2020 to 12 June, AEM has led the 5 stocks this year. The provider of test & handling solutions for semiconductor and electronics companies expects a record year in 2020 with revenue guidance for FY20 (ending 31 Dec) between S$430M and S$445M.
Following a convergence in declines over the first 12 weeks of 2020 through to 23 March, Singapore’s 5 most traded manufacturing stocks have seen much more divergent returns in the subsequent weeks through to 16 June. Total returns of the five stocks since 23 March through to 16 June have ranged from 26.3% for ST Engineering to 121.8% for AEM Holdings.
This has brought the median decline of the 5 stocks in the 2020 year to 16 June to 3.5%. At the same time the STI has generated a decline of 15.3% for the 2020 year to 16 June. The recent performances and net institutional flows of the 5 most traded manufacturing stocks are tabled below.
| Stocks | SGX Code |
Mkt Cap S$B |
Average Daily Turnover (S$M) |
31Dec19 - 23Mar20 Total Return % |
1Jan20 - 23Mar20 Net Instituition Flow (S$M) |
23Mar20 - 16Jun20 |
24Mar20 - 16Jun20 Net Instituition Flow (S$M) |
YTD Total Return % |
1Jan20 - 16Jun20 Net Instituition Flow (S$M) |
|---|---|---|---|---|---|---|---|---|---|
| Yangzijiang Shipbuilding | BS6 | 3.8 | 29.3 | -29.9 | -76.9 | 30.6 | 14.3 | -8.4 | -62.6 |
| Wilmar International | F34 | 24.7 | 25.9 | -29.6 | 51.0 | 37.2 | 25.5 | -3.5 | 76.5 |
| ST Engineering | S63 | 10.7 | 25.7 | -28.9 | 66.4 | 26.3 | -40.3 | -10.2 | 26.1 |
| Venture Corp | V03 | 4.4 | 24.4 | -22.7 | 80.4 | 26.6 | 9.9 | -2.2 | 90.3 |
| AEM | AWX | 0.9 | 20.6 | -29.2 | 5.0 | 121.8 | 21.9 | 57.0 | 26.8 |
| Total | 125.9 | 125.8 | 31.3 | 157.1 | |||||
| Average | -28.1 | 48.5 | 6.5 | ||||||
| Median | -29.2 | 30.6 | -3.5 |
Source: SGX, StockFacts Bloomberg, Refinitiv (Data as of 16 June 2020)
The 5 stocks tabled above all ranked amongst Singapore’s 30 most traded stocks by turnover in the 2020 year to 16 June. The next 5 most traded stocks with a manufacturing focus include Thai Beverage, Medtecs International, UMS Holdings, Sembcorp Marine and Hi-P International. At an average decline of the 18.7%, the median total return of these 5 stocks in the 2020 year to 16 June is closer to the STI’s decline of 15.3%. The outlier, in terms of 2020 performance to 16 June, was Medtecs International with 656.8% total returns and average daily turnover of S$7.4 million (For more details click here).
Electronics Led Singapore Exports and Manufacturing in May
This morning, Singapore Non-Oil Domestic Exports (“NODX”) were reported to decline 4.5% YoY in May, following a 9.7% YoY gain in April and a revised 16.6% YoY gain in March. Electronic exports rose 12.5% YoY in May, the strongest growth in close to three years, which followed a 0.6% YoY decline in April.
As Singapore Institute of Purchasing and Materials Management (“SIPMM”) Vice President Sophia Poh noted in early June, despite weaker supply chain operations arising from last month’s extended local circuit breaker measures, the latest improved Purchasing Managers’ Index (“PMI”) readings indicate the resilience of the local manufacturing sectors. Ms Poh also added that going forward, manufacturers are cautiously optimistic of a gradual recovery towards the latter half of the year. Singapore’s May PMI increased by 2.1 points MoM, to a slower contraction at 46.8. While this was the fourth month of contraction, the increase back to 46.8 was attributed to slower contractions in the key indexes of new orders, new exports, factory output and employment. Paralleling the May NODX report this morning, SIPMM also noted that the Electronics Sector PMI in May recorded an increase of 3.4 points from 42.8 in April to a slower contraction at 46.2.
Singapore’s Industrial Production numbers for May are scheduled to be released on 26 June. While the Biomedical Sector led Singapore’s Industrial Production growth in both April and March, Electronics and Semiconductors also reported YoY growth, albeit more marginal growth, in April.
AEM Led the 5 Most Traded Manufacturers in the 2020 YTD
With a 57% gain in 2020 to 12 June, AEM Holdings led the Singapore’s five most traded manufacturing stocks this year. AEM is a global leader offering application specific intelligent system test and handling solutions for semiconductor and electronics companies serving advanced computing, 5G and AI markets. As highlighted in a recent investor presentation (click here), AEM expects a record year in 2020, with revenue guidance for FY20 (ending 31 Dec) between S$430M and S$445M.
Other manufacturers that serve the technology industry amongst the 100 most traded this stocks this year include UMS Holdings, Hi-P International, Valuetronics and Frencken Group. These 4 stocks have averaged a 21.6% decline in total return in the 2020 year to 16 June, on the back of an average 82.3% total return in 2019.
