To The Moon

As of the close on Friday,  $Straits Times Index(STI.SI)$ closed at 3,313.48 points, up 0.69% points last week.

During the last 5 trading days, $Top Glove(BVA.SI)$, $TJ DaRenTang USD(T14.SI)$, $Delta TH SDR(TDED.SI)$, $ST Engineering(S63.SI)$ and $Sri Trang Agro(NC2.SI)$ are the top 5 weekly gainers, up 25.45%, 13.30%, 7.52%, 6.28% and 5.43% respectively.

$JMH USD(J36.SI)$, $CityDev(C09.SI)$, $ComfortDelGro(C52.SI)$, $Seatrium(S51.SI)$ and $Seatrium Ltd(5E2.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $Top Glove(BVA.SI)$

• Shares of Malaysian glove manufacturer Top Glove soared sharply on Wednesday following the US announcement of significant tariff increases on a wide range of Chinese imports, including medical and surgical gloves. Tariffs on rubber medical and surgical gloves will rise from 7.5% to 25% in 2026.

• President Joe Biden announced new tariffs this week on US$18 billion (RM84.6 billion) worth of Chinese imports, including rubber medical and surgical gloves, electric vehicles, batteries, and solar cells. The measure aims to protect US industries from perceived unfair competition from China.

2. $TJ DaRenTang USD(T14.SI)$

• Tianjin Pharmcetl Da Ren Tang Grp Cp Ltd, a large-scale traditional Chinese medicine enterprise specializing in the cultivation, processing, research and development, production, and commercialization of pharmaceuticals. The company's core products include Quick Heart-Rescuing Pills, Throat-Clearing Drop Pills, Jingwanhong Ointment, Angong Niuhuang Pills, among others.

• This week, Tianjin Pharmaceutical Da Ren Tang Group and JD Health jointly held a high-level cooperation exchange meeting and announced the establishment of a deep partnership.

• On China's A-share market, Tianjin Pharmaceutical Da Ren Tang Group is gaining attention for its fundraising activities. According to Chinese media reports, on Thursday, the company saw a net inflow of funds totaling CNY 9.77 million, marking a 301.38% increase compared to the previous trading day. This included CNY 40.12 million in financing purchases and CNY 30.34 million in financing repayments. As for margin trading, 20,500 shares were sold short, leaving a current balance of 501,700 shares. On that day, a total of 579 stocks on the A-share market experienced a net inflow of funds, with Da Ren Tang ranking 60th in terms of net inflow amount.

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

• This week, the cooling of inflation in the US has reignited expectations of interest rate cuts, while OpenAI's release of GPT-4o has once again sparked excitement in the AI market. These developments have driven the market upwards, particularly benefiting technology stocks and their related sectors.

• Delta Electronics (Thailand), a subsidiary of Taiwan-listed Delta Electronics, stands as a prominent provider of power and thermal management solutions. It holds the position of the third-largest company on the SET, boasting a market capitalization of approximately 910 billion baht (S$33.2 billion).

• With a strong regional presence, Delta Electronics specializes in EV chargers, industrial automation, data center infrastructure, and energy management solutions. Moreover, it exports electronic components such as cooling fans, EMI filters, and solenoids.

4. $ST Engineering(S63.SI)$

• In a business update, Singapore Technologies Engineering reported an 18.1% increase in group revenue, reaching S$2.7 billion for the first quarter ended 31 March, 2024. The company attributed this growth to significant contributions from its commercial aerospace and defense and public security segments, both of which experienced double-digit revenue growth.

• The company has announced an interim dividend of S$0.04 per share for the quarter, which will be paid on June 5, following the record date of May 23. Singapore Technologies Engineering is on track to surpass its digital business revenue target of S$500 million by 2026.

• Citi Research has increased the target price for Singapore Technologies Engineering from S$3.76 to S$4.62.

5. $Sri Trang Agro(NC2.SI)$

• Sri Trang Agro-Industry PCL is also part of the rubber sector mentioned above, which has performed well this week. Boosted by positive market news, individual stocks in the rubber sector have risen.

• In terms of the individual stock performance of Sri Trang Agro-Industry PCL, the company, known as the world's leading and largest integrated natural rubber business operator and Thailand's largest rubber glove manufacturer, has initiated the delivery of EUDR rubber to several major branded tire manufacturers in Europe, South Korea, China, and other countries starting from May of this year. This move underscores the company's preparedness to assist European efforts to trace the origin of natural rubber, with anticipated procedures slated to be enforced by the end of this year. Similar measures are also anticipated to be adopted by countries across various regions globally in the near future.