• The iEdge SG Advanced Manufacturing Index experienced a significant increase in trading turnover in May, surging one-third higher than activity in April, and marking the most active month for Index constituents since March 2023. The Index also generated a 4.4% total return over the month. 
   
• The 10 constituents of the Index that booked the highest net institutional inflow in May averaged 13% total returns taking their average 5-month total return to 28%. Of the actively traded Index stocks, YZJ Shipbuilding, Mermaid Maritime and Marco Polo Marine booked the highest net institutional inflow proportionate to market cap. 
   
• YZJ Shipbuilding and Mermaid Maritime also ranked among the 10 actively traded Index constituents with the most gains in May, along with Broadway Industrial, Jiutian Chemical, TJ Dar Ren Tang, Medtecs Intl, Nanofilm Tech Int, UG Healthcare, Top Glove and Riverstone.   
   

Over the course of May, the STI generated a 2.6% total return, with the iEdge S-Index generating a 0.3% total return. The was only a marginal variation in expectations for continued tight financial conditions in the months ahead, which saw the trio of STI Banks average 3.6% total returns in May.  

Three of the four strongest STI performers in May, Yangzijiang Shipbuilding, SATS and Singapore Technologies Engineering are also constituents of the iEdge SG Adv Manufacturing Index. This contributed to the iEdge SG Adv Manufacturing Index outpacing the STI in May, with a 4.4% total return. The iEdge SG Adv Manufacturing Index also saw 33% more trading turnover in May compared to April, despite the same number of trading days in both months. This has coincided with an increasingly cautiously optimistic outlook for industrial-driven global growth going into 2025, fueled by both innovation and sustainability shifts.   

The iEdge SG Adv Manufacturing Index booked S$60 million net institutional outflow in May. This was primarily attributed to Seatrium booking S$169 million in net institutional outflow for the month. The 10 stocks that booked the highest net institutional outflow in May averaged a 5.2% decline in total return in May.

Close to three stocks within the Index booked net institutional inflow for every two that booked outflow. The 10 constituents of the Index that booked the highest net institutional inflow in May are tabled below. 

Note: ADT refers to average daily turnover; NIF refers to net institutional flows; TR refers to total returns

Source: SGX, Refinitiv, Bloomberg (Data as of 31 May 2024).

The 10 stocks tabled above averaged 13% total returns in May, led by a 30% gain from Yangzijiang Shipbuilding and 29% gain for Mermaid Maritime. These two stocks also booked the highest net institutional inflow proportionate to market capitalisation with the Index, followed by Marco Polo Marine. All three provided business updates/financials in May: 

• On 27 May, Yangzijiang Shipbuilding provided a 1QFY24 Business Update, highlighting its outstanding orderbook had grown to US$16.1 billion in contract value, and lean energy vessels accounted for ~ 61% of the total outstanding orderbook value. The stock formed fresh all-time highs in May, and has since added to those gains during the first session of June.   
• On 15 May, Mermaid Maritime provided a 1QFY24 Business Update, reporting US$88.0 million in revenue from rendering of services, an increase of 102% from 1QFY23 and 4% from 4QFY23, as a result of a growth of main business sectors that included Subsea IRM & Diving works, Cable Lay projects and T&I and Decommissioning projects. This saw the Group report a net profit of US$0.5 million for 1QFY24, a turnaround from a net loss of US$4.9 million in 1QFY23.
• On 13 May, Marco Polo Marine reported its 1HFY24 Financial Results, with 1HFY24 revenue growing by 10% to S$61.6 million from 1HFY23, while the Group's 1HFY24 gross profit increased 26% to S$22.2 million, with gross margins expanding by 4.5 percentage points to 36%. This was largely attributed to the strong performance of its ship chartering segment, where the Group was able to achieve higher charter rates in this financial period compared to 1HFY23.

Yangzijiang Shipbuilding and Mermaid Maritime also ranked among the 10 actively traded Index constituents with the most gains in May. The 10 constituents of the Index with average daily turnover (ADT) of at least S$10,000 over the past five months, that posted the strongest gains in May are tabled below.

Note: ADT refers to average daily turnover; NIF refers to net institutional flows; TR refers to total returns

Source: SGX, Refinitiv, Bloomberg (Data as of 31 May 2024).

On 23 May, The Ministry of Trade and Industry noted with Singapore’s 1Q24 GDP report that Singapore’s manufacturing and trade-related sectors are “expected to see a gradual pickup in growth over the course of the year”. Within the local manufacturing sector, the electronics cluster is “projected to recover gradually in the coming quarters, supported by demand for semiconductors for end-markets such as smartphones, PCs and AI”.

Broadway Industrial Group (BIGL) has seen its share price gradually gain over the first five months of 2024, from S$0.088 to S$0.173 at the end of May, with a S$0.005 per share dividend taking the total return to 104%. The company has not released a 1QFY24 Business Update, since it reported 2HFY23 & FY23 Financial Results on 29 February. For its 2HFY23, BIGL delivered a net profit of S$3.9 million, reversing the net loss of S$1.5 million recorded in 2HFY22. The earnings turnaround was on the back of a 6.7% increase in 2HFY23 revenue to S$132.3 million, driven mainly by a small rebound in the Hard Disk Drive (HDD) industry towards the end of the period, and the inclusion of small contributions from the Group’s Precision Engineering Business, which commenced operations in May 2023. Looking ahead, the key growth drivers for its Enterprise HDD Business include the recovery of hyperscale demand, the rise of Heat Assisted Magnetic Recording (HAMR) platforms, the potential of generative AI, in addition to HDD markets expected to fuel exabyte expansion into 2028. 

On 22 April, Nanofilm Technologies International provided a 1QFY24 Business Update, reporting revenue growth of 19% from 1QFY23, led by a recovery in its consumer business. The smartphone subsegment emerged as the largest contributor to the Group’s 1QFY24 revenue stream, with a 44% share within the Computer, Communications, and Consumer Electronics (3C) segment. The onboarding of a new customer contributed significantly to the growth. The Group’s 1QFY24 Results briefing transcript can be found here. 

The next actively traded Index constituent stock outside of the 10 tabled above that posted the strongest gains in May was Micro-Mechanics (Holdings). On 30 April, Micro-Mechanics (Holdings) reported its 3QFY24 Financial Results. The manufacturer of high precision tools and parts used in the semiconductor industry, reported that its 3QFY24 net profit increased 12.8% to S$1.8 million from 3QFY23, despite an 8.7% decline in Group revenue to S$13.6 million during the quarter. The Group noted efforts to control costs and that its sales to the US and Singapore markets were partially buffered by higher sales in China, Malaysia and Taiwan which are markets for its process-critical consumable tools and parts used in chip packaging processes. 

Further Resources and Research 

• Weekly Fund Flow Report: Data Reports - Singapore Exchange (SGX) 
• iEdge SG Advanced Manufacturing Index: Factsheet| Methodology
• Market Update: 5 Manufacturing Stocks Attracting a Surge in Trading Volume in 2024 | Marginal NODX Contraction in 1Q24 Paralleled Decline in Manufacturing Index 

Recent Financial Results/Business Updates

• Yangzijiang Shipbuilding: Yangzijiang Shipbuilding 1Q2024 Business Updates | Yangzijiang Shipbuilding Annual Report 2023 
• ST Engineering: ST Engineering 1Q2024 Market Updates | ST Engineering Annual Report 2023 
• SATS: SATS 2HFY2024 Financial Results | SATS 3QFY2024 Business Update 
• ThaiBev:  ThaiBev 1HFY2024 Financial Results Presentation 
• Riverstone:  Riverstone Holdings 1QFY2024 Corporate Presentation 
• Broadway Industrial: Broadway Industrial Group Annual Report 2023 
• Mermaid Maritime: Mermaid Maritime 1QFY2024 Financial Results | Mermaid Maritime FY2023 Financial Report 
• Jiutian Chemical Group: Jiutian Chemical Group Annual Report 2023 
• Micro-Mechanics:  Micro-Mechanics 3QFY2024 Financial Results | Micro-Mechanics Annual Report FY2023 

Related Analyst Reports

• Yangzijiang Shipbuilding: DBS - Yangzijiang Shipbuilding update : Making New Highs | CGS-CIMB - Yangzijiang Shipbuilding update : Record-high FY23F net profit likely 
• ST Engineering: DBS - SIA Engineering update : Entering India’s exciting aviation market | DBS - ST Engineering update : Record profits with room for growth 
• SATS: DBS - SATS: Onto the next stage of growth
• ThaiBev:  DBS - Thai Beverage Public Company update : Early green shoots of beer business recovery | Beansprout - AIS SDR: Singtel-backed telco in Thailand  
   

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