SGX Market Updates

Singapore Exchange Listed Manufacturing Stocks on the Move


PUBLISHED ON |

27 June 2022

  • Singapore’s Industrial Production has booked 9% growth for the first 5 months of 2022, following 13% growth in 2021 and 7% growth posted in 2020. Resilient regional trade has also supported manufacturing industries, with Singapore’s NODX expanding for the past 18 months on y-o-y basis.

  • Singapore’s 20 most traded stocks with significant manufacturing activity generally span all key facets of Industrial Production, including electronics, chemicals, medical, precision engineering, transport engineering and general manufacturing. With combined S$200 million in daily trading turnover in the 2022 year-to-date, the 20 stocks have averaged a 4% decline in total return, bringing average annualised total returns since the end of 2019 to 13%.

  • Last week, NIO rallied 18%, with the designer, developer, jointly manufacturer and seller of premium smart electric vehicles, averaging close to 20% weekly trading ranges since its debut on 20 May, while also ranking among Singapore’s 50 most traded stocks.

  • BA.4 and BA.5 concerns also saw Riverstone and Top Glove average 6% returns last week, while some global rotation into Technology saw Frencken Group, Nanofilm Technologies, ST Engineering, ISDN Holdings, UMS Holdings, Aztech Global, AEM Holdings and Venture Corporation average 2% returns on the week.




On Friday, Singapore’s May Industrial Production (IP) was reported to grow 13.8% y-o-y, growing 8.7% for the first five months of 2022. This follows a 13.3% growth in 2021 and a 7.5% growth in 2020.

Singapore’s most traded stocks with significant manufacturing activity broadly span all facets of Singapore’s IP, including electronics, chemicals, medical, precision engineering, transport engineering and general manufacturing. Coinciding with the importance of regional trade to manufacturing, a number of these stocks are also based in Singapore’s biggest trading partners such as China, Malaysia and Indonesia.

Singapore’s 20 most traded stocks with manufacturing related activity are tabled below. Combined, the 20 stocks have booked more than S$200 million in daily trading turnover in the 2022 year-to-date while averaging a 4% decline in total return, bringing their average annualised total returns since the end of 2019 to 13%.


Most Traded SGX Listed Stocks
with Manufacturing-Related Activities
SGX
Code
Sector Total Return
Last Week
(%)
Total Return
June MTD
(%)
Total Return
2022 YTD
(%)
Annualised
Total Return
Since 2019
(%)
Annualised
Volatility
Since 2019
(%)
Wilmar International F34 Consumer Non-Cyclicals 1 -3 0 3 29
YZJ Shipbuilding BS6 Industrials -4 3 45 29 34
ST Engineering S63 Industrials 2 -2 10 6 23
Venture Corp V03 Technology (Hardware/ Software) -1 -7 -6 6 25
Thai Beverage Y92 Consumer Non-Cyclicals -1 -7 1 -9 28
AEM AWX Technology (Hardware/ Software) 0 -8 -20 37 44
UMS 558 Technology (Hardware/ Software) 1 -5 -26 17 42
First Resources EB5 Consumer Non-Cyclicals -9 -10 18 -1 38
Sembcorp Marine S51 Industrials -1 -9 32 -54 58
Frencken E28 Technology (Hardware/ Software) 7 -4 -41 12 48
NIO Inc NIO Consumer Cyclicals 18 38 N/A N/A N/A
Nanofilm Technologies MZH Technology (Hardware/ Software) 3 -2 -36 N/A N/A
Olam Group VC2 Consumer Non-Cyclicals 1 1 -10 0 29
Riverstone AP4 Healthcare 7 -5 15 29 57
Jiutian Chemical C8R Materials & Resources -5 -7 33 108 90
Top Glove BVA Healthcare 5 -23 -56 -11 65
ISDN I07 Industrials 2 -17 -34 36 56
Aztech Global 8AZ Industrials 1 -6 -3 N/A N/A
Japfa UD2 Consumer Non-Cyclicals 6 -2 1 9 41
Haw Par H02 Healthcare 0 -6 -2 -3 21
Average 2 -4 -4 13 43
Median 1 -6 -2 6 41

Source: SGX (Data as of 24 June 2022), Bloomberg & Refinitiv.



NIO, Medical & Tech Led Manufacturing-related stocks last week

NIO Inc generated an 18% gain last week, with the tradability of the stock generating close to 20% weekly trading ranges since its debut on 20 May. NIO Inc (SGX:NIO)’s stock has seen average intra-day swings in the vicinity of 660 bps between its day-high and day-lows over the past 26 sessions, with the widest trading range of 1135 bps on 20 June and the narrowest range on 28 May at 171 bps (excluding the debut session). On 9 June, NIO Inc reported 1Q22 vehicle sales growth of 24.8% y-o-y, on the back of a 28.5% y-o-y increase in EV deliveries (25.8k units). Management noted it expects total revenue in 2Q22 to grow 10.6% to 19.4% y-o-y, with EV deliveries to grow 5.0% to 14.2% y-o-y.

Last week, the medical side of Singapore’s manufacturing-related stocks posted gains with the BA.4 and BA.5 variants continuing to be closely monitored, and average daily global cases crossed above the 600,000 cases threshold on Thursday, up from the 466,000 low on 30 May. This saw Riverstone (SGX:AP4) and Top Glove (SGX:BVA) average 6% returns for the week. Catalist listings, UG Healthcare (SGX:8K7) and Medtecs International (SGX:546), which in the year-to-date rank outside the most 20 trading manufacturing related stocks, averaged 8% gains for the week. Total returns for these 4 stocks have varied from a 25% decline for Top Glove to a 533% total return for Medtecs International since the end of 2019.



Resilient regional trade has supported IP growth since 2019.

Singapore’s NODX has expanded on a y-o-y basis for the past 18 months, with exports to Indonesia, Taiwan and Malaysia leading the 12% y-o-y growth in May. Back on 25 May, MTI also maintained that Singapore’s electronics cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres. Electronics were also a main source of the May IP growth, with the semiconductors segment up 45.7% y-o-y.

week, Frencken (SGX:E28), NanoFilm Technologies (SGX:MZH), ST Engineering (SGX:S63), ISDN (SGX:I07), UMS (SGX:558), Aztech (SGX:8AZ), AEM (SGX:AWX) and Venture Corp (SGX:V03) averaged 1.8% returns, outpacing the STI’s 0.4% gain. For the 2022 year-to-date, these 8 stocks have averaged a 19% decline in total return, in-line with the technology sector which has been weighed by a 29% decline in the SOX. Higher energy prices combined with supply chain constraints and the outlook for growth deceleration has seen technology stocks across the globe the least performers in the year-to-date.







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