Weekly | Why SingPost Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,573.76 points, down 0.43% points last week.

During the last 5 trading days, $SingPost(S08.SI)$, $Gulf TH SDR(TGED.SI)$, $Delta TH SDR(TDED.SI)$ , $IFAST(AIY.SI)$ and $Top Glove(BVA.SI)$ are the top 5 weekly gainers, up 11.70%, 10.43%, 8.75%, 6.28% and 4.84% respectively.

$Siam Cement TH SDR(TSCD.SI)$, $Yanlord Land(Z25.SI)$, $CapLand China T(AU8U.SI)$, $Sinarmas Land(A26.SI)$ and $NIO Inc.(NIO.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

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Below are key analyses of the TOP 5 gainers:

1. $SingPost(S08.SI)$

• As reported by Singapore Business Review, SingPost brought its POPStop services to U Stars Supermarket. The service was initially launched at two locations, which were set to open in the following months. A phased rollout was planned across U Stars Supermarket's chain of 22 stores.

• According to Simply Wall St., it is worth noting that shares in Singapore Post have recently gained significant momentum, which has substantially inflated its P/E ratio. However, they also added that, looking ahead, the company is expected to achieve annual growth of 9.1% over the next three years, as estimated by the three analysts covering the company. With the market projected to grow by 9.9% annually, the company is positioned for comparable earnings growth.

2. $Gulf TH SDR(TGED.SI)$

• The merger between two industrial giants went through smoothly recently as shareholders of Thailand’s energy behemoth, Gulf Energy Development, and telecommunications leader, Intouch Holdings, approved the proposal for consolidation. In a recent development, Mr. Sarath Ratanavadi, CEO of GULF, Gulf Holdings (Thailand), Gulf Capital Holdings Limited, and Gulf Investment and Trading Pte. Ltd. was assigned the responsibility to buy back shares from shareholders who opposed the specified merger.

• Earlier in October, according to Thai media, it was worth noting the announcement of Google’s investment plan in Thailand, valued at 1 billion dollars, or about 36 billion baht, to build a Data Center and Cloud Region in the country. Analysts from Asia Plus Securities estimated that such an investment would have a positive effect on Thai stocks across many industries, along with identifying 10 stocks that would benefit, including those in the power plant, industrial estate, communications, and construction contracting sectors. GULF benefited from both the increased demand for electricity and the signing of a cooperation agreement with Google Asia Pacific Co., Ltd.

3. $Delta TH SDR(TDED.SI)$

• EVgo, an electric vehicle fast charging network in the US, announced that it had entered into a new memorandum of understanding with longtime technology partner Delta Electronics to jointly develop next-generation EV charging architecture. This new charging architecture was designed to provide EVgo with more control over the full customer experience while bolstering reliability, delivering increased cost savings, and enhancing energy efficiency.

• It is also worth noting that, as India ramped up efforts to establish itself as a global semiconductor manufacturing hub, Delta Electronics positioned itself as a critical partner for major chipmakers setting up operations.

• Last week, Delta highlighted the importance of integrated solutions at the seventh edition of Industrial Transformation ASIA-PACIFIC (ITAP 2024), showcasing its modular and integrated portfolio designed to optimize processes and space, address labor shortages, and enhance power dispatch and renewable energy smoothing.

4. $IFAST(AIY.SI)$

• According to the analysis from THE SMART INVESTOR, iFAST is a financial technology company operating an online platform that allows customers to buy and sell unit trusts, equities, and bonds. Notably, the fintech declared a second interim dividend of S$0.015, an increase from the prior year’s dividend of S$0.011.

• The group believed that its Hong Kong ePension division would be an important growth driver for this year and the next. iFAST also expected its digital bank division, iFAST Global Bank, to be another key growth driver for 2025.

• Last month, iFAST Global Bank, the digital banking division of iFAST Corporation, announced the launch of EzRemit, a cross-currency transfer service for its digital personal banking (DPB) customers. The service allowed the group’s DPB customers to transfer money across over 50 countries in more than 25 currencies.

5. $Top Glove(BVA.SI)$

• Top Glove Corporation Bhd reduced its net loss to RM61.81 million for the financial year ended Aug 31, 2024 (FY2024), down from RM925.22 million in FY2023, according to the company's latest quarterly report.

• Revenue rose 11% to RM2.52 billion in FY2024, up from RM2.26 billion previously, primarily due to a rise in sales volume, the company stated in a filing with Bursa Malaysia last week.

• The group’s improved performance was attributed to increased sales volume as customers continued replenishing glove inventories, leading to higher utilization rates and enhanced cost efficiency, according to the company.

• Top Glove anticipated a greater increase in sales volume in the coming quarters, with the impending high tariffs imposed by the US on China-made medical gloves.