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Singapore Exchange (SGX SP) Upcoming New Initiatives May Give SGX The Boost It Needs
SGX saw improved trading velocity in Aug 21 as volumes remained above prepandemic levels. Total futures open interest rose by 3.5% mom, indicating strong risk management demand. There is impending competition with the launch of HKEX’s AShare Index Futures. SGX revised its guidelines to make Special Purpose Acquisitions Companies (SPAC) more attractive. Maintain HOLD with the same target price of S$11.65.
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Delfi Ltd Biding time for growth
■ In a recent NDR with Delfi, the management shared its concerns on shortterm uncertainties as consumption remains affected by Covid-19. ■ Beyond Covid-19, Delfi is positioning for growth through optimising its portfolio offerings and enhancing service levels. ■ We think the Philippines could be a potential market of growth with the introduction of other brands within its portfolio from adjacent categories.
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CGS CIMB |
CGS CIMB |
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Sembcorp Industries Gathering wind
■ Recent industry sources reported that SCI has bagged a 180MW wind power contract in SECI’s tranche XI tender; pricing similar to previous contracts. ■ LNG price spike has minimal impact on SCI’s merchant power in Singapore and UK. But higher coal prices are a key risk in India though well guided. ■ We also see little impact from power crunch in China as its coal power plant in Chongqing has been written down to zero equity. Maintain Add. ■ SCI is one of our top 3 midcap ESG picks for Singapore; it has clear target to up profit from sustainable solutions and renewable energy to 10GW by 2025.
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Wilmar International Adani Wilmar IPO back on track
■ The processing status of the Adani Wilmar draft prospectus is back to “under process” as at 24 Sep. ■ This is a positive as it suggests the listing of Adani Wilmar is back on track. ■ We see the potential listing of Adani Wilmar and better 2H results as potential catalysts for the stock. Reiterate Add with unchanged target price of S$6.15.
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Check out our compilation of Target Prices
