5 Small & Mid-Cap Local Companies with vested interest from Temasek Holding

Temasek Holdings is currently in the limelight after its Chinese tech stocks suffer a fallout from the regulatory tightening. Despite that, it has achieved an annual total shareholder return of around 14% since 1974.

For the last year FY2021, the portfolio’s total shareholder return came in at a whopping 25%, on back of improvement in global sentiment despite the ongoing COVID-19 pandemic.

However, Temasek and its subsidiaries do invest in some of the locally listed small and mid-sized companies too.

In this article, we will be looking at these 5 such companies, which are:

• CSE Global Limited (SGX: 544)
• Jumbo Group Limited (SGX: 42R)
• Nanofilm Technologies International Limited (SGX: MZH)
• Asian Pay Television Trust (SGX: S7OU)
• AEM Holdings Limited (SGX: AWX)

1) CSE Global Limited (SGX: 544)

Listed on Singapore Exchange since 1999, CSE Global Limited (“CSE Global”) is a global technologies company with an international presence spanning the Americas, Asia Pacific, Europe, Middle East and Africa.

The Group now has more than 1,400 employees worldwide and operates a network of 42 offices across the globe, generating more than 90 percent of its revenues outside its home market.

Temasek’s wholly owned subsidiary, Heliconia Capital Management Pte Ltd., is the largest shareholder for CSE Global, with a 24.79% stake in the company.

Meanwhile, CSE Global has achieved a total shareholder return of 18.44% for the past 1 year, with capital appreciation (5.5 Singapore cents per share) taking up most of the returns.

2) Jumbo Group Limited (SGX: 42R)

Jumbo Group Limited (“Jumbo”) is one of Singapore’s leading multi-dining concept F&B establishments. It has a portfolio of 7 F&B brands - JUMBO Seafood, HACK IT, NG AH SIO Bak Kut Teh, Zui Teochew Cuisine, Chao Ting Pao Fan, Kok Kee Wonton Noodle and XINYAO Hainanese Chicken Rice, operates 3 Tsui Wah Hong Kong style "Cha Chaan Teng" outlets as a franchisee in Singapore and co-own the Singapore Seafood Republic brand which has three outlets, operated under the franchise model in Japan.

Heliconia Capital Management Pte Ltd. is one of the shareholders for Jumbo, with a 1.23% stake in the company.

umbo has achieved a total shareholder return of –3.08% for the past 1 year, mainly due to the ongoing pandemic which has hampered its operation performance, which resulted in the negative return for its shareholders.

3) Nanofilm Technologies International Limited (SGX: MZH)

Listed on the Mainboard of Singapore Exchange on 30 October 2020, Nanofilm Technologies International Limited (“Nanofilm”) is a leading provider of nanotechnology solutions in Asia, leveraging its proprietary technologies, core competencies in R&D, engineering and production, to provide technology-based solutions across a wide range of industries.

Nanofilm’s solutions serve as key catalysts in enabling its customers to achieve high value-add advancements in their end-products in an environmentally sustainable manner.

Temasek Holdings Pte Ltd. Is one of the substantial shareholders for Nanofilm, with a 5.23% stake in the company.

Despite a negative total shareholder return of more than 35% in the past 3 months, mainly due to financial results missing analysts' expectation, Nanofilm still managed to achieve a positive total shareholder return of 34% for the past 1 year.

4) Asian Pay Television Trust (SGX: S7OU)

Asian Pay Television Trust (“APTT”) is a business trust constituted on 30 April 2013 under the laws of the Republic of Singapore and registered under Chapter 31A of the Business Trusts Act (“BTA”). APTT’s investment mandate is to acquire controlling interests in and to own, operate and maintain mature, cash generative pay-TV and broadband businesses in Taiwan, Hong Kong, Japan and Singapore.

Currently, Temasek Holdings Pte Ltd. Holds a 4.99% stake in APTT, just shy of the 5% threshold, in becoming one of the substantial shareholder in the trust.

At the same time, APTT has achieved a positive total shareholder return of 25.64% for the past 1 year, given the majority of the returns came from capital appreciations.

5) AEM Holdings Limited (SGX: AWX)

AEM Holdings Limited (“AEM”) is a global leader offering application specific intelligent system test and handling solutions for semiconductor and electronics companies serving advanced computing, 5G and AI markets. These activities are carried out through AEM Holdings’ subsidiaries in Asia, Europe and North and Central Americas.

Temasek Holdings Pte Ltd. is one of the largest substantial shareholders for AEM, with a 8.94% stake in the company.

With the surge in demand for semiconductors, AEM has achieved a total shareholder return of 43.37% and 40.06% respectively for the 6 month and 1 year period.

Conclusion

To conclude, these companies that are partially owned by Temasek and its subsidiaries have a rather mixed performance in the past year.

Investors who wish to invest in them should still examine the company’s financial performance and their business nature.

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