The market value of global technology stocks has tripled over the past five years to US$23 trillion. Since global technology stocks were re-rated at the beginning of 2016, Singapore’s five most traded technology stocks that have been listed for the duration, generated median total returns close to 500%, ranging from a 203% total return for Venture Corporation to an 11,135% total return for AEM Holdings. All five have provided 3QFY21 (ended 30 Sep) Business Updates, with four of the five stocks reporting last week.
These Business Updates have come as the recent EDB Business Expectations Report maintained manufacturing optimism was largely led by the semiconductors segment which continues to expect robust demand from the 5G market, cloud services and data centres. On a global scale, industry association SEMI maintains the global semiconductor manufacturing equipment market is expected to continue growing at a 9.6% CAGR from 2021 through to 2026. This is amid supportive trends led by various technological advancements such as the utilisation of AI solutions and the integration of connected devices with IoT. The Philadelphia Stock Exchange Semiconductor Index has gained 40.3% in the 2021 year to 12 Nov, while the five aforementioned Singapore-listed technology stocks have averaged 51% total returns. The performances of the five stocks are tabled below.
Five Most Traded Technology Stocks Listed on SGX (that have been listed since 2015) |
Code |
Mkt Cap S$M |
4Q21 to 12 Nov Total Return % |
YTD Net Insti Inflow S$M |
YTD Total Return % |
9MFY21 YoY Revenue Growth % |
Total Return % (since 31 Dec 2015) |
Venture |
V03 |
5,535 |
6 |
-159 |
2 |
1 |
203 |
AEM |
AWX |
1,481 |
18 |
28 |
41 |
-22 |
11,135 |
UMS |
558 |
920 |
2 |
31 |
63 |
53 |
491 |
Frencken |
E28 |
1,042 |
5 |
29 |
89 |
25 |
1,455 |
ISDN |
I07 |
285 |
4 |
2 |
62 |
23 |
257 |
Average |
7 |
51 |
2,708 |
||||
Median |
5 |
62 |
491 |
Source: SGX, Refinitiv, Bloomberg (Data as of 12 Nov 2021)
While the five above tabled stocks represent some 1% of the total combined market capitalisation of all stocks listed in Singapore the five contribute close to 5% of the combined day-to-day turnover. AEM Holdings, UMS Holdings, Frencken Group and ISDN Holdings all provided 3QFY21/9MFY21 Business Updates last week. Highlights were as follows:
While not among the top six traded technology stocks by turnover, Grand Venture Technology is one of 27 stocks among the 200 most actives in 2021 that have seen day-to-day turnover surge 10-fold or more from 2020 levels. The Group is also currently pursuing a transfer from the Catalist Board to the Mainboard. Back on 3 Nov, Grand Venture Technology provided its 3QFY21/9MFY21 business update, highlighting 115% YoY revenue growth in the semiconductor segment to $62.5 million in 9MFY21, attributed to the global ramp up in demand for semiconductor chips, in tandem with the macro demand for digitalisation, smart electronics, cloud computing, 5G, electric vehicles, artificial intelligence, and IoT. This saw the semiconductor segment make up 73% of its 9MFY21 total revenue, up from 67% in 9MFY20.
Also on 3 Nov, when reporting 9MFY21 revenue had grown by 0.8% YoY, Venture Corporation noted that for the next 12 months, it expects several new products to be launched into the markets globally, including products uniquely emanating from Venture’s R&D labs and manufacturing sites. The Group is also seeing strong trends in New Product Introductions activities, which are expected to flow through to mass production at its manufacturing sites over the next 12 months. With Venture maintaining it is at a crucial stage in its strategic evolution, it also noted on 3 Nov that it has established two panels comprising specialists in selected fields have been established to support the Group’s strategic directions. On 8 Nov, Venture Executive Chairman Wong Ngit Liong acquired 200,000 shares of the company at an average price of S$18.73 per share, taking his direct interest in Venture from 7.04% to 7.11%. Mr Wong's preceding acquisition of Venture shares via market transactions were back in 2017 with 400,000 shares of Venture purchased at S$15.26 per share in September and 271,600 shares purchased at S$12.51 per share in July of that year. The acquisitions in July 2017 and November 2021 were both conducted when Venture was trading at an 18x earnings multiple.
With an average daily turnover of S$9.2 million, Nanofilm Technologies International has ranked as Singapore’s fourth most traded Technology stock this year, with the 13% decline in total return in the 2021 year to 12 Nov, trimming its total return since listing on 29 Oct 2020 to 48.6%. Back on 14 Oct, Nanofilm Technologies International announced the appointment of Mr Gary Ho as Chief Executive Officer, while noting that the Group continued to build up its revenue pipeline in 3QFY21, with multiple strategic projects under development and an increasing number of New Product Introduction projects that will contribute positively to revenue in 4QFY21 and beyond.
As maintained by the Semiconductor Industry Association, semiconductors power the modern world and enable the systems and products that we use to work, communicate, travel, entertain, harness energy, treat illness, make new scientific discoveries, and more. The demand for semiconductors has impacted both the Singapore manufacturing sector in 2021, in addition to a number of its most traded technology stocks.
Created by SGX | Sep 12, 2024
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