To The Moon

Across all sectors of the Singapore stock market, the past 20 weeks have seen the Industrials Sector book the highest increase in daily trading turnover (in absolute SGD terms) as compared to 2022. 

Seatrium $Seatrium(S51.SI)$ has been a key driver of the increase in the Sector-level increase in trading activity, following the completion of the combination of Sembcorp Marine and Keppel Offshore & Marine in February.

The combined entity was formed to create a premier global player with its deep engineering heritage, to offer products, services and solutions to meet today and tomorrow’s energy needs.

According to the 1QFY23 business update, renewables and cleaner/green solutions currently comprise approximately 39% of the Seatrium group’s net order book. Seatrium has ranked among the five most traded Singapore stocks this year, with S$41.1 million of average daily turnover, compared to S$14.6 million in 2022, while Keppel Corporation $KEPPEL CORPORATION LIMITED(BN4.SI)$ has averaged S$29.6 million of average daily turnover compared to S$26.3 million in 2022.

Singapore’s 20 most traded Industrial stocks have booked net institutional fund outflows of S$54.5 million over the past 20 weeks, however last week saw S$33.6 million of net institutional fund inflows.

Seatrium led the net institutional inflows of the 20 industrials last week, in addition to Keppel Corporation, YZJ Shipbuilding (Holdings) (“YZJSH”) $YANGZIJIANG SHIPBLDG HLDGS LTD(BS6.SI)$ , ST Engineering $SINGAPORE TECH ENGINEERING LTD(S63.SI)$ and Singapore Airlines (“SIA”) $SINGAPORE AIRLINES LTD(C6L.SI)$ .

Both YZJSH and SIA were also among the three strongest performing stocks last week along with Marco Polo Marine $MARCO POLO MARINE LTD.(5LY.SI)$ . Meanwhile, among the 20 stocks, Jubilee Industries Holdings $JUBILEE INDUSTRIES HLDGS LTD(NHD.SI)$ , Singapore Post $SINGAPORE POST LIMITED(S08.SI)$ and ComfortDelGro Corporation $COMFORTDELGRO CORPORATION LTD(C52.SI)$ led the decliners last week.

On 11 May, Marco Polo Marine reported 102% YoY revenue growth for its 1HFY23 (ended 31 Mar), while on 16 May, SIA reported FY22/23 (ended 31 Mar) revenue growth of 133%. SIA also highlighted its average PAX load factor reached 85% compared to 30% in FY21/22. YZJSH’s share price gain from S$1.18 to S$1.27, coincided with the USD/CNY returning to Dec 2022 levels, above the 7.00 threshold. The Group noted in it its FY22 Annual Report has hedged over 40% of its currency exposure to USD using forward contracts to mitigate risks as most of its contract wins are denominated in USD.

Globally, the Industrial Sector has been among the four strongest performing sectors for the first 20 weeks of 2023. Much of these gains have extended to the Asia Pacific, with the Industrial Sector seeing less fragmentation and bifurcation than the Technology Sector.

The 20 most traded stocks of Singapore’s Industrial Sector maintain a combined market S$90 billion, while averaging combined daily trading turnover of just over S$200 million. This means the 20 stocks have comprised 19% of the daily trading turnover in Singapore so far this year, while maintaining around 11% of the combined market capitalisation or market value of the Singapore stock market. The recent performances and net institutional flows of Singapore’s 20 most traded Industrial stocks over the past 20 weeks are tabled below. 

Singapore’s five actively traded industrial stocks that have booked the highest net institutional inflows so far this year proportionate to the current market capitalisation includes Beng Kuang Marine $BENG KUANG MARINE LIMITED(BEZ.SI)$ , Dyna-Mac Holdings $DYNA-MAC HOLDINGS LTD.(NO4.SI)$ , Acesian Partners $ACESIAN PARTNERS LIMITED(5FW.SI)$ , Seatrium $Seatrium(S51.SI)$ and Marco Polo Marine $MARCO POLO MARINE LTD.(5LY.SI)$ .

The five stocks are trading at a premium to their book value, with mixed moves in the 2023 year to 19 May, ranging from a 69% total return for Dyna-Mac to an 8% decline for Seatrium.

On 12 April, Beng Kuang Marine announced that the Group had entered into a conditional land sale and purchase agreement to sell a part of its Batam waterfront shipyard property for S$8.64 million to a subsidiary. Prior the announcement, Beng Kuang Marine was trading at S$0.04. On 16 May, Beng Kuang Marine reported 1QFY23 (ended 31 March) gross profit increased 26.4% from 1QFY22 to S$3.18 million, with improvement in cost management and productivity initiatives, and in total the Group had an order book of S$24 million as at 31 March.  

On 11 May, Dyna-Mac Holdings reported it had won New Orders of S$270 million, bringing Net Order Book to S$608.1 million after reporting 1QFY23 (ended 31 March) revenue increased by S$19.8 million from $67.5 million in 1QFY22 to $87.3 million for 1QFY23. The increase was mainly due to higher progressive recognition achieved for the projects carried out in 1QFY23.

Meanwhile, on 27 April, Catalist-listed Acesian Partners received approval from its shareholders for the diversification of the existing business of the Group to include the proposed investment business.

https://www.sgx.com/research-education/market-updates/20230522-industrial-sector-recently-led-marco-polo-marine-yzjsh