SGX Market Updates

SGX Listed Technology Stocks Keep Pace with Big Global Peers


PUBLISHED ON |

17 March 2021

  • Since the end of 2019, global technology indices have gained 50%, with Singapore’s 10 most traded technology stocks keeping pace with the global trend, also averaging a 50% total return. The 10 stocks have averaged 15% gains in the 2021 year-to-date.

  • The 10 stocks have also seen similar increases in their P/E and P/B valuations to their global peers, with P/E and P/B ratios ~25% higher than end of 2019 levels. This has coincided with widespread increased demand for technology products and services, in addition to the widening field of technology application.

  • Since 2020, Nanofilm Technologies and Aztech Global have listed on SGX. Since listing, Nanofilm Technologies has generated an 80% gain, while Aztech Global debuted recently on 12 March with an issue price of S$1.28. Together, the two debutants have a combined market value of S$4 billion.




Since the end of 2019, global technology indices have gained 50%, with widespread increased demand for technology products and services, in addition to the widening field of technology application. Despite technology stocks recently outpacing broader benchmarks, on an earnings basis, and in terms of book value, valuations of the largest technology stocks have increased in-line with the world’s biggest stocks, excluding technology plays. The Technology Sector has doubled its impact in most global indices over the past 10 years.

As illustrated below, Singapore’s most traded Technology stocks, which are largely manufacturing-related businesses have seen increases in their P/E and P/B ratios since the end of 2019 that are also largely in line with global peers. These stocks include AEM Holdings, Venture Corporation, UMS Holdings, ISDN Holdings, Frencken Group, Fu Yu Corporation, CSE Global and Valuetronics.



Median values



While the valuations of the aforementioned 8 technology stocks have moved much in-line with the largest global technology stocks, the performances were also on par with the 8 stocks averaging 50% total returns since the end of 2019.

In the interim both Nanofilm Technologies and Aztech Global have listed in Singapore. See


Since listing, Nanofilm Technologies International has generated an 80% gain, whilst Aztech Global debuted recently on 12 March with an issue price of S$1.28.


10 Most Traded
SGX Listed Technology Stocks
in 2021 year-to-date
SGX
Code
Market
Cap
S$M
Total Return
Since
End-2019
%
Total Return
YTD
%
Net Insti
Inflow
YTD
S$M
Net Insti
Inflow
2020
S$M
AEM AWX 1,077 97.9 13.3 -29.8 16.4
Venture Corporation V03 5,597 24.4 -0.7 -82.4 168.6
UMS 558 667 27.9 15.7 13.9 18.6
ISDN I07 276 181.2 56.8 0.4 -3.3
Nanofilm Technologies MZH 3,083 N/A 5.9 -25.6 -30.2
Frencken Group E28 606 58.5 7.6 6.1 9.9
Aztech Global 8AZ 959 N/A N/A -13.6 N/A
Fu Yu Corporation F13 230 26.4 15.1 48.1 1.3
CSE Global 544 274 2.9 13.8 7.3 -19.4
Valuetronics BN2 272 -19.2 5.9 -0.3 -20.1
Average 50.0 14.8
Total 13,043 -75.8 141.8

Note: Table does not include REITs and Business Trusts that invest in hi-tech assets, and also does not include Sunningdale Tech which is suspended.
Data as of 16 March and sourced from SGX, Refinitiv and Bloomberg.







This article is provided by SGX My Gateway.



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