The iEdge SG Advanced Manufacturing Index is comprised of 110 stocks that drew 20 cents in every dollar that went to work into the Singapore stock market in 1Q23. While the Index generated a marginal 0.5% decline in total return in 1Q23, 49 of the 110 constituents booked positive returns, with 9 stocks unchanged and 52 stocks posted declines.
For 1Q23, the Index constituents booked S$52 million of net institutional inflow, led by inflow to Sembcorp Marine, ST Engineering, Thai Beverage, Tianjin Pharmaceutical Da Ren Tang, Venture Corporation, Nanofilm Technologies, Halcyon Agri, Frencken, Top Glove, and ISDN. These 10 stocks averaged a 9.0% total return in 1Q23.
The Index constituents that booked the highest net institutional inflow proportionate to quarter-end market cap in 1Q23 included Acesian Partners, ISDN and Frencken, while averaging a 28% total return. Jiutian Chemical, Yangzijiang Shipbuilding and Medtecs International booked the highest net institutional outflow proportionate to quarter-end market cap and averaged a 19% decline in total return in 1Q23.
The iEdge SG Advanced Manufacturing Index is comprised of 110 stocks that drew 20 cents in every dollar that went to work into the Singapore stock market in 1Q23. Yangzijiang Shipbuilding saw the most trading turnover in 1Q23, averaging S$42 million a day, with 20 stocks averaging more than S$1 million in traded turnover a day.
The iEdge SG Advanced Manufacturing Index booked S$52 million of net Institutional fund Inflow in 1Q23
While the iEdge SG Advanced Manufacturing Index generated a marginal 0.5% decline in total return in 1Q23, 49 of the 110 constituents booked positive returns, with 9 stocks unchanged and 52 stocks posted declines.
For 1Q23, the stocks of the iEdge SG Advanced Manufacturing Index booked S$52 million of net institutional fund inflow, led by inflow to Sembcorp Marine, ST Engineering, Thai Beverage, Tianjin Pharma Da Ren Tang, Venture Corporation, NanoFilm Technologies, Halcyon Agri, Frencken, Top Glove, and ISDN.
For the quarter, stocks of the Index that booked the highest net institutional inflow proportionate to quarter-end market capitalisation included Acesian Partners, ISDN and Frencken which averaged a 28% total return in 1Q23.
Meanwhile, Jiutian Chemical, Yangzijiang Shipbuilding and Medtecs International booked the highest net institutional outflow proportionate to quarter-end market capitalisation and averaged a 19% decline in total return in 1Q23.
As illustrated below, the 52-week low of the iEdge SG Advanced Manufacturing Index is 1,219 on 25 Oct, with the Index since gaining 18% to 1,438 on 26 Jan, decline 11% to 1,279 on 14 March, and recover 6% to return to 1,362 on 31 March.
Manufacturing is a Highly International Business
The decline in the iEdge SG Advanced Manufacturing Index into October 2022, preceded Singapore's NODX reports registering y-o-y contractions since the Oct 2022 NODX report was released on 17 November. In tandem, export data for South Korea and Taiwan have also registered y-o-y contractions since October on the weak global outlook, and some moderation to the optimistic outlook for both China's economic growth, and rapprochement with US policymakers since late January.
Aside from familiar macroeconomic drivers of growth, inflation, interest rates, geopolitical tensions, and overall financial stability, manufacturing outlooks can be also shaped by global trade trends, regional integration, Industry 4.0, and inbound foreign direct investment.
Manufacturing is expected by Enterprise Singapore to play a critical role in South East Asia's growth, with multiple initiatives at work to make it easier for goods to flow within the region, by expediting cargo clearance and cutting down paperwork. ADB's Sanchita Das sees more integrated approaches to trade and transport facilitation will help to allay two of the more costly components of the supply chain, customs, and transport connectivity, and thus provide for greater trade and better engagement in value chains. While manufacturing transformation and trade readiness are in focus with the ASEAN Declaration on Industrial Transformation to Industry 4.0 and Regional Comprehensive Economic Partnership, further integration stands to benefit operational efficiency at a company level.
Transcending value chains, acquisitions, the adoption of lean manufacturing, product differentiation and stout inventory management are among the strategic initiatives pursued by international manufacturers in recent years.
Wide Sector Representation Across Index Constituents
While the iEdge SG Advanced Manufacturing Index spans multiple sectors, Industrials, Technology, Consumer Non-Cyclical and Materials and Resources and Healthcare contribute 94 of the 110 constituents. The Sector bandwidth is not unlike Singapore's Industrial Production, which is comprised of Electronics, Chemicals, Precision Engineering, Biomedical Manufacturing, General Manufcaturing and Transport Engineering.
As detailed in the Index Methodology, revenue breakdown is a key part of the Index selection criteria obtained and based using the RBICS industry classification system as provided by iEdge research partner, FactSet. To be eligible for index inclusion, a company must belong to a RBICS Level 6 Sector as specified in the Appendix – Sector Criteria for iEdge SG Advanced Manufacturing Index. The sector criteria states that more than 40% of a company's revenue must be generated from the relevant index theme; the threshold is lowered to 30% for existing constituents. All companies are screened for sector eligibility in the annual September index review.
NIO maintained the highest weightage of iEdge SG Advanced Manufacturing Index at the end of 1Q23. It also ranked among the 15 most traded constituents of the Index in 1Q23, while also ranking among the five stocks of the Index with the narrowest bid-ask spread for the last week of the quarter. On average those five sessions saw the difference between the bid-ask spread at 29 basis points (bps), on par with ST Engineering at 28 bps.
NIO shares traded in Singapore and NYSE traded ADS are fully fungible, thus holders and shareholders can convert shares trading on SGX to ADS trading on NYSE, and vice-versa.
The 110 constituents of iEdge SG Advanced Manufacturing Index, sort by Index weight as of 31 March, are tabled below.
|iEdge SG Advanced Manufacturing Index Constituent||SGX
|Thai Beverage||Y92||9.8||15,829||-5.7||18.91||-19.04||Consumer Non-Cyclicals|
|Keppel Infra Trust||A7RU||4.7||2,621||0.6||-3.69||8.08||Utilities|
|Sri Trang Agro||NC2||2.9||1,367||7.9||0.39||-0.40||Consumer Cyclicals|
|First Resources||EB5||1.2||2,462||6.1||2.06||-3.25||Consumer Non-Cyclicals|
|Tianjin Pharma Da Ren Tang||T14||1.0||4,902||34.8||15.00||-16.42||Healthcare|
|Oceanus Group||579||0.5||307||-20.0||0.49||-0.57||Consumer Non-Cyclicals|
|Food Empire||F03||0.5||544||60.6||2.31||-4.35||Consumer Non-Cyclicals|
|Halcyon Agri||5VJ||0.4||654||3.8||8.20||-8.80||Consumer Cyclicals|
|China Sunsine||QES||0.4||454||10.6||0.12||-0.13||Materials & Resources|
|Mewah International||MV4||0.3||465||-4.6||0.44||-0.44||Consumer Non-Cyclicals|
|Marco Polo Marine||5LY||0.3||161||4.9||0.70||-0.65||Industrials|
|Hong Leong Asia||H22||0.3||512||3.0||-1.20||1.24||Consumer Cyclicals|
|Jiutian Chemical||C8R||0.2||145||-9.9||-2.68||2.51||Materials & Resources|
|Del Monte Pacific||D03||0.2||457||-29.9||-2.26||2.41||Consumer Non-Cyclicals|
|Tai Sin Electric||500||0.2||183||3.2||-0.01||0.01||Industrials|
|Yeo Hiap Seng||Y03||0.2||407||0.0||0.01||-0.01||Consumer Non-Cyclicals|
|Indofood Agri||5JS||0.1||433||1.6||0.23||-0.24||Consumer Non-Cyclicals|
|PSC Corporation||DM0||0.1||185||6.3||0.35||-0.35||Materials & Resources|
|New Toyo International||N08||0.1||92||-2.3||0.04||-0.04||Materials & Resources|
|Baker Technology||BTP||0.1||122||-7.7||0.23||-0.28||Financial Services|
|Sinostar Pec||C9Q||0.1||104||-10.0||0.02||-0.02||Energy/ Oil & Gas|
|Mermaid Maritime||DU4||0.1||103||-1.4||0.16||-0.19||Energy/ Oil & Gas|
|Broadway Industrial Group||B69||0.1||45||-16.2||-0.15||0.14||Technology|
|Chemical Industries||C05||0.1||53||3.7||0.01||-0.01||Materials & Resources|
|Tat Seng Packaging||T12||0.05||101||0.0||-0.01||0.00||Materials & Resources|
|MTQ Corp||M05||0.05||47||-6.5||-0.24||0.25||Energy/ Oil & Gas|
|Samurai 2K||Y8E||0.04||54||-20.0||0.00||0.00||Materials & Resources|
|Old Chang Kee||5ML||0.04||78||-3.0||-0.01||0.00||Consumer Cyclicals|
|Qian Hu||BCV||0.03||23||-13.0||0.02||-0.01||Consumer Non-Cyclicals|
|AP Oil International||5AU||0.03||26||2.6||-0.01||0.02||Materials & Resources|
|LHT||BEI||0.02||44||21.0||0.18||-0.18||Materials & Resources|
|Wong Fong Industries||1A1||0.02||28||-6.3||-0.01||0.01||Industrials|
|Pacific Radiance||RXS||0.02||21||55.2||-0.04||0.04||Energy/ Oil & Gas|
|ASL Marine ^||A04||0.02||25||0.0||0.00||0.00||Industrials|
|Mencast||5NF||0.02||19||-2.4||-0.02||-0.04||Energy/ Oil & Gas|
|Yamada Green Resources||BJV||0.01||20||-17.6||0.01||-0.01||Consumer Non-Cyclicals|
|Advanced Systems Automation||5TY||0.01||22||0.0||0.00||0.00||Technology|
|Zhongxin Fruit & Juice Ltd||5EG||0.01||27||-18.8||0.00||0.00||Consumer Non-Cyclicals|
|Matex International||M15||0.01||8||12.5||-0.01||0.01||Materials & Resources|
|Beng Kuang Marine||BEZ||0.01||7||-32.7||0.01||-0.01||Industrials|
|Advanced Holdings||BLZ||0.01||8||14.3||0.00||0.00||Energy/ Oil & Gas|
|AsiaPhos||5WV||0.01||8||-52.9||0.01||0.00||Materials & Resources|
|Fuxing China Group||AWK||0.004||10||-11.1||0.00||0.00||Consumer Cyclicals|
|Luxking Group||BKK||0.002||2||0.0||0.00||0.00||Materials & Resources|
See also the summary of