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Venture, Dairy Farm, Top Glove Added to MSCI’s Global Standard Indexes

SGX Research
  • Changes from MSCI’s May 2018 Semi-Annual Review of its Equity Indexes will take effect from tomorrow, with five stocks listed on SGX impacted by the revisions.
  • Venture Corp will be added to the MSCI Singapore Index, Dairy Farm International will be included in the MSCI Hong Kong Index, and Top Glove Corp will be added to the MSCI Malaysia Index. Hutchison Port Holdings Trust and StarHub will be removed from the MSCI Singapore Index and included in the MSCI Singapore Small Cap Index.
  • In the 2018 YTD, Venture shares have generated a total return of 6.1%, while Dairy Farm has registered a total return of 12.6%, and Top Glove has posted a total return of 22.6%. This brings the one-year total returns for these three stocks to 68.3%, 11.0% and 106.7% respectively.

Changes from MSCI’s May 2018 Semi-Annual Review of its Equity Indexes – which were unveiled earlier this month – will take effect from tomorrow (1 June 2018). Five SGX stocks – Venture Corp, Dairy Farm International, Top Glove Corp, Hutchison Port Holdings Trust and StarHub – are impacted by the changes:

MSCI Global Standard Indexes SGX-Listed Additions SGX-Listed Deletions
MSCI Singapore Index Venture Corp Hutchison Port Holdings Trust and StarHub
MSCI Hong Kong Index Dairy Farm Intl  –
MSCI Malaysia Top Glove Corp  –

Source: MSCI

Apart from Hutchison Port Holdings Trust and StarHub, three other stocks – GuocoLand, SIA Engineering Co and Wheelock Properties – will also be added to the MSCI Singapore Small Cap Index.

For the release on the May 2018 Index Review, click here.

For the full list of constituent changes for the MSCI Global Standard Indexes, click here.

Name SGX Code Market Cap S$M 30 May Closing Price Total Return YTD % 1 Year Total Return % 3 Year Total Return % P/E (x) Dvd Ind Yld % GICS Sub Ind
Venture Corp V03 5,933 20.65 6.06 68.3 200.6 14.8 2.8 Electronic Manufacturing Services
Dairy Farm Intl*^ D01 16,246 8.95 12.59 11.0 4.9 30.0 2.4 Food Retail
Top Glove Corp^ BVA 4,382 3.43 22.63 106.7 N/A~ 32.9 0.9 Health Care Supplies

*SGD equivalents shown for Dairy Farm Intl which is traded in USD.

^Secondary listing
~ Listed on 28 June 2016

Source: Bloomberg & SGX StockFacts (Data as of 30 May 2018)

Venture Corp

Venture is an electronics manufacturing services provider with capabilities that include design and development, product and process engineering, supply chain management, as well as product refurbishment and technical support. It manages a portfolio of more than 5,000 products and solutions, and continues to expand into new product categories by collaborating with existing and new customers. Headquartered in Singapore, the Group comprises more than 30 companies with global clusters in Southeast Asia, Northeast Asia, America and Europe, and employs over 12,000 people worldwide.

For the quarter ended 31 March 2018, Venture reported a 72% YoY jump in attributable net profit to S$83.7 million, while revenue gained 1.5% to S$856.0 million, despite a weaker US dollar and heightened geopolitical uncertainty.

Looking forward, Venture said it plans to grow its pool of strategic partnerships and technological diversity, with expansion into new and adjacent ecosystems. These ongoing and new initiatives are expected to support the Group’s endeavours to build sustainable growth and performance.

For the full financial results, click here.

In the 2018 year-to-date, Venture shares have generated a total return of 6.1%, bringing its one-year and three year total returns to 68.3% and 200.6% respectively.

Dairy Farm International

Dairy Farm, a member of the Jardine Matheson Group, is a leading pan-Asian retailer. Together with its associates and joint ventures, it operates over 7,100 outlets – including supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings stores and restaurants – and employs some 200,000 people. Dairy Farm has a primary listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore.

For the first quarter of 2018, Dairy Farm said it saw higher YoY sales and underlying earnings, although the trading environment was quite varied across the Group’s formats.

Its Health and Beauty Division, as well as key associates Maxim’s and Yonghui, recorded strong overall performances, which more than offset continuing weakness in the Food Division, while IKEA’s profits were flat. Regionally, North Asia continued to drive the Group’s performance, with particularly strong results in Hong Kong, while Southeast Asia remained challenging, Dairy Farm noted in its Interim Management Statement.

For the full statement, click here.

In the 2018 year-to-date, Dairy Farm shares have generated a total return of 12.6%, bringing its one-year and three-year total returns to 11.0% and 4.9% respectively.

Top Glove

Top Glove, the world’s largest manufacturer of gloves, is primary-listed on the Bursa Malaysia Stock Exchange Main Board, with a secondary listing on SGX Mainboard. It is one of the component stocks of the FTSE Bursa Malaysia Mid 70 Index and the FTSE Bursa Malaysia Top 100 Index. With over 2,000 customers worldwide, Top Glove exports its products to more than 195 countries and employs 13,000 staff.

For the second quarter ended 28 February 2018, Top Glove reported a 37.7% YoY jump in profit after tax to RM215.9 million, while sales revenue rose 12.6% to RM958.4 million. The significant increase in sales volume was mainly due to higher demand for natural rubber gloves, particularly from the emerging markets of Asia ex-Japan and Eastern Europe, where healthcare awareness and hygiene standards are rising.

To support its ambitious growth agenda, Top Glove will continue to pursue strategic expansion via organic and inorganic routes. The Group is in the process of constructing two new manufacturing plants, and in the final phase of its proposed acquisition of Aspion Sdn Bhd, which will allow the Group to deliver innovative surgical glove products for its global customers, thereby boosting its product mix and access to new markets.

By early 2019, and following its latest acquisition, Top Glove is projected to have 40 factories, comprising 34 glove factories and six supporting plants, 693 glove production lines, and an annual production capacity of 64.3 billion gloves.

For the full financial results, click here.

In the 2018 year-to-date, Top Glove shares have generated a total return of 22.6%, bringing its one-year total return to 106.7%.

Did You Know?

The MSCI Singapore Index is designed to measure the performance of the large- and mid-cap segments of the Singapore market. With 26 constituents and a combined market capitalisation of nearly S$300 billion, the Index covers approximately 85% of the free float-adjusted market capitalisation of the Singapore equity universe. Financial stocks have the largest weighting in the Index at 52.2%, followed by Real Estate at 14.6%.

The MSCI Malaysia Index is designed to measure the performance of the large- and mid-cap segments of the Malaysian market. With 46 constituents and a combined market capitalisation of nearly US$150 billion, the index covers about 85% of the Malaysian equity universe. Financial stocks have the largest weighting in the Index at 33.7%, followed by Utilities at 13.8%.

The MSCI Hong Kong Index is designed to measure the performance of the large- and mid-cap segments of the Hong Kong market. With 48 constituents and a combined market capitalisation of nearly US$550 billion, the index covers approximately 85% of the free float-adjusted market capitalisation of the Hong Kong equity universe. Financial stocks have the largest weighting in the Index at 35.8%, followed by Real Estate at 25.4%.