SGX Has Listed 5 New Singapore Depository Receipts: What Can Investors Expect?

An earlier version of the article appeared on The Smart Investor website.

It has been nearly a year since Singapore Exchange Limited (SGX: S68), or SGX, introduced Singapore Depository Receipts (SDRs) into the market.

SDRs are a tie-up between SGX and the Stock Exchange of Thailand (SET) to allow investors in both countries to invest in blue-chip stocks.

Local investors have access to three Thai-listed blue-chip stocks, namely Airports of Thailand (SGX: TATD), CP All (SGX: TCPD), and PTT Exploration & Production (SGX: TPED).

This initiative broadens the list of choices for investors and allows them to invest in sectors they may not have access to when it comes to Singapore-listed stocks.

The good news is that SGX has announced the listing of five new SDRs from 1 April 2024.

They are Advanced Info Services, Delta Electronics, Gulf Energy Development, Kasikornbank, and Siam Cement Group.

With these five new stocks, the eight Thai SDRs will now cover more than 40% of the SET50 benchmark index with each of the SDRs representing a different sector.

We introduce each of the five new SDRs and provide a summary of their business along with their latest financial results.

Advanced Info Services (SGX: TADD)

Advanced Info Services, or AIS, is Thailand’s largest telecommunications and mobile phone operator with a 48% revenue market share and 90% nationwide coverage.

AIS is also 23.3% owned by a unit of Singtel (SGX: Z74).

2023 saw the telco’s revenue grow 4.2% year on year to THB 138.6 billion with total revenue inching up 1.8% year on year to THB 188.9 billion.

Net profit increased by 12% year on year to THB 29.1 billion.

AIS expects the 5G market to continue growing this year as consumers choose 5G plans with higher data offerings.

The company had a market capitalisation of S$22.6 billion as of 1 April 2024.

Delta Electronics (SGX: TDED)

Delta Electronics is Thailand’s largest electronics manufacturer and derives its revenue principally from the US, China, and Germany.

The manufacturer reported a strong set of results for 2023 with revenue jumping 23.6% year on year to THB 148.2 billion.

Net profit grew 20.1% year on year to THB 18.4 billion.

The company believes that demand for its products will continue to grow, especially in the electronic mobility and digitalisation segments.

Delta Electronics had a market capitalisation of S$34.5 billion as of 1 April 2024.

Gulf Energy Development (SGX: TGED)

Gulf Energy is Thailand’s largest private power producer with a portfolio of gas-fired and renewable power projects.

The company had a market capitalisation of S$19.1 billion as of 1 April 2024.

The utility player’s revenue for 2023 climbed 21.1% year on year to THB 114.1 billion while its net profit surged by 30% year on year to THB 14.9 billion.

Gulf Energy expects its 2024 revenue to increase by between 25% to 30% from projects that are scheduled to commence commercial production such as gas-fired projects and solar rooftop projects.

Kasikornbank (SGX: TKKD)

Kasikornbank was rated Thailand’s best domestic bank last year and has a market capitalisation of S$10.9 billion as of 1 April 2024.

For 2023, the lender saw its net interest income improve by 11.6% year on year to THB 148.4 billion.

Operating profit increased by 11.2% year on year to THB 192.7 billion while net profit jumped close to 19% year on year to THB 45.1 billion.

Its loan book, however, saw a marginal 0.2% year-on-year dip in 2023 but the bank is targeting loan growth of between 3% to 5 year on year for 2024

ROE stood at 8.3% for 2023 and Kasikornbank hopes to grow this to double-digit levels by 2026.

Siam Cement Group (SGX: TSCD)

Siam Cement Group, or SCG, is Thailand’s largest conglomerate with three core divisions – cement-building materials, chemicals, and packaging.

The company had a market capitalisation of S$12.9 billion as of 1 April 2024.

Excluding fair value adjustments, SCG’s net profit for 2023 would have grown by 21% year on year.

Management expects to continue growing its business by securing government infrastructure projects and is also entering the integrated energy transition solutions business to deliver solar energy to the residential market, factories, and industrial estates.

Get Smart: Access to more businesses

Investors should cheer the release of these five new SDRs as they now have access to even more businesses that are listed in Thailand.

This move broadens the list of stocks they can invest in and offers more choices than what can be found in SGX alone.

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The article was written by Royston Yang for The Smart Investor.

Disclosure: Royston Yang owns shares of Singapore Exchange Limited.