• Coinciding with Singapore’s Jan industrial production decreasing 5.7% MoM in Jan 2024, the iEdge SG Adv Manufacturing Index lodged its weakest Jan performance since 2016, with a 6.4% decline. Since the end of Jan, the iEdge SG Adv Manufacturing Index has added a marginal 1.1%.
   
• Similar net institutional inflows to the Industrials and Technology segments of the iEdge SG Adv Manufacturing Index have seen the Index constituents book overall net institutional inflow of S$18 million in the 2024 YTD, while the rest of the Singapore stock market has booked more than S$800 million of net institutional outflow.
   
• For the Industrial segment, Yangzijiang Shipbuilding, Singapore Tech Engineering and SATS booked the highest net institutional inflow and for the Technology segment, Venture, Frencken and UMS booked the highest net institutional inflow over the period. The three Industrials averaged 3.7% gains, while the three Tech stocks averaged 9.4% gains.
   

Coinciding with Singapore’s Jan industrial production decreasing 5.7% on a seasonally adjusted Month-on-Month (MoM) basis in Jan 2024, the iEdge SG Adv Manufacturing Index lodged its weakest Jan performance since 2016, with a 6.4% decline.

The Jan industrial production gauge also expanded less than expected with 1.1% Year-on-Year (YoY) growth. Among the sub-aggregate six key clusters of Singapore’s industrial production, transport engineering increased 43.5% YoY, with precision engineering expanding 27.7% YoY and semiconductors contracting 3.4% YoY. However, at the same time, as relayed by the EDB back on 31 Jan, the local manufacturing sector expects “business sentiments to be cautiously positive in 1H24”, with the “recovering global semiconductor industry lending some support to demand, even amidst continued geopolitical and economic headwinds”. The report added that the semiconductor industry “anticipates a gradual recovery in demand as inventory levels in the end markets normalise alongside robust demand for AI-related chips”.

Since the end of Jan, that cautious positive business sentiment has seen the iEdge SG Adv Manufacturing Index add a marginal 1.1%. The Index is diversified across multiple sectors, and while in the red for the 2024 year through to 26 Feb, its broad base of constituents have comprised two gainers for every three decliners. For the 2024 year to 26 Feb, similar net institutional inflows to the Industrials and Technology segments of the iEdge SG Adv Manufacturing Index have seen the Index book overall net institutional inflow of S$18 million, while the rest of the Singapore stock market has booked more than S$800 million of net institutional outflow.

The three Manufacturing Index constituents of the Industrials Sector that have booked the highest net institutional inflow in the 2024 year to 26 Feb, included Yangzijiang Shipbuilding Holdings, Singapore Technologies Engineering and SATS. At the same time, the three constituents Manufacturing Index of the Technology Sector that have booked the highest net institutional inflow included Venture Corporation, Frencken Group and UMS Holdings.

Note ADT refers to average daily turnover, NIF refers to Net Institutional Flow. Data sourced by SGX Stock Screener and/or Refinitiv. The data in the Stock Screener is based on specific analytical conventions, and may contradict metrics provided by other data and information providers. ^Note on SGX-ST Watchlist. All Data as of 26 Feb 2024.

• Venture Corporation booked S$57.3 million in net institutional inflow in the 2024 year to 26 Feb. According to Venture’s FY23 results released on 22 Feb, revenue for FY23 (ended 31 Dec) was S$3.03 billion, a decrease of 21.7% from FY22 on softer demand across technology domains and customer inventory destocking. The group registered net profit of S$270.0 million for FY23, translating to net margin of 8.9% for FY23. Looking forward, Venture Corporation expects stronger demand schedule in 2H24 compared to 1H24. The company added that it is actively investing and building its manufacturing, engineering and total business excellence to grow further in the Life Sciences, Test & Measurement Instrumentation, Hyperscale Data Centres, Semiconductor Equipment, Advanced Industrial, Networking & Communications and Luxury Lifestyle & Wellness domains. The stock currently maintains an indicative dividend yield of 5.2%, a Refinitiv Consensus Estimate Target Price (RCETP) of S$15.067 and its current P/B ratio of 1.5x is below its 5-year P/B ratio of 1.9x.
   
• Yangzijiang Shipbuilding booked S$35.6 million in net institutional inflow year to date as of 26 Feb. According to its 1HFY23 (ended 30 June) results, 1HFY23 revenue grew 16% YoY to RMB 11.3 billion, on the back of increased shipbuilding activities. The Group's gross profit expanded 48% YoY to RMB 2.1 billion, with gross profit margin improving 4 percentage points to 19%. In its 3Q23 Business Update, the shipbuilder noted that its orderbook reached an all-time high of US$14.8 billion in total contract value as at 30 Sept 2023, noting there is strong earnings visibility up until mid-2027. With clean energy vessels accounting for about 58% of the total outstanding orderbook value of the company, Yangzijiang Shipbuilding announced on 17 Jan that it secured orders for six units of 13,000 TEU methanol dual-fuel containerships for Ocean Network Express, scheduled to be delivered from 2027 onwards. The company is expected to report its FY23 earnings this week. The stock currently maintains a dividend yield of 3.0% with the RCETP at S$1.905. Its current P/B ratio of 2.0x is at a premium to the 0.8x average P/B over the past 5 years.
   
• ST Engineering booked S$20.4 million in net institutional inflow year to date as of 26 Feb. In its latest Market Update the Group highlighted it had delivered 9MFY23 (ended 30 Sep) revenue of S$7.3 billion, a 12% increase from 9MFY22. It highlighted revenue growth in all segments, particularly a 30% rise in the Commercial Aerospace Segment, including aircraft sales of S$98 million in 1HFY23, backed by healthy growth in air travel. ST Engineering also secured S$11.7 billion worth of new contracts for 9MFY23, with a 20% rise in its total order book value, standing at S$27.5 billion as at 30 Sep 2023. ST Engineering will be releasing its financial results for its FY23 on 29 Feb before the market open. ST Engineering maintains a dividend yield of 4.0% and a P/B ratio of 5.1x, in-line with the 5-year average P/B ratio. Its RCETP is currently S$4.259.
   
• SATS booked S$12.08 million in net institutional inflow year to date as of 26 Feb. Its revenue grew three-fold YoY to S$2.48 billion in its 1HFY24 (ended 30 Sep), driven by continued recovery in the travel sector. It noted that the company is slated to benefit from passenger traffic recovery, with air cargo volume showing signs of gradual recovery amid uncertain global trade outlook. The company saw growth in global cargo volumes for the first time in 19 months in Aug 2023, and continued to see modest growth in Sep 2023. The Group also handled a significant increase in cargo tonnage for 1HFY24 compared to the same period last year. Its operating margin improved by 8.4% YoY. SATS will release its business update for the 3QFY24 on 29 Feb before the market open. The stock currently maintains a RCETP of S$3.145.
   
• Frencken Group booked S$10.5 million in net institutional inflow year to date as of 26 Feb. For its FY23 (ended 31 Dec),  Frencken Group reported revenue of S$742.9 million, a decline of 5.5% from FY22 as the technology sector continued to face challenging business condition amid the ongoing slowdown in the global semiconductor industry among many other factors. Its FY23 gross profit decreased 17.6% to S$98.0 million from S$119.0 million in FY22, with the gross profit margin contracting to 13.2% in FY23 from 15.1% in FY22. The stock currently maintains a RCETP of S$1.482.
   
• UMS Holdings booked S$6.6 million in net institutional inflow in the 2024 year to 26 Feb. For its 3QFY23, revenue fell 29% YoY to S$71.3 million, due to lower sales from both its Semiconductor and Others business, which was partially lifted by a better performance from its Aerospace business. For its 9MFY23, the Group recorded lower profits as sales declined 17% YoY to $226.4 million from S$271.4 million in 9MFY22. UMS Holdings is expected to report its FY23 results this week. The stock currently maintains a RCETP of S$1.595, indicative dividend yield of 3.6% with its 2.8x P/B at a premium to its 5-year average P/B of 2.3x.
   

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