For the globe to achieve the Sustainable Development Goals by 2030 and net zero emissions by 2050, the UN Environment Programme maintains significant investment in sustainable and resilient infrastructure is required. The OECD estimates US$7 trillion per year is needed up to 2050 for investment in infrastructure that meets the development goals.
Paralleling increased focus this year on a lower carbon, more climate resilient future, multiple Singapore-listed stocks have continued to press ahead with pivots to sustainable energy and fuel-efficient transportation solutions. According to the International Energy Agency, the volatile global energy situation in 2022 accelerated the growth in renewable energy, which is expected to transform the global power mix through 2027 and become the largest source of electricity. On the maritime front, the International Maritime Organisation (IMO) have introduced the Energy Efficiency Existing Ship Index and the Carbon Intensity Indicator rating, which came into effect in January 2023, as part of its strategy to reduce greenhouse gas emissions from ships.
The 2023 year to 8 Sep has seen the STI generate a 3.0% total return, while the three strongest constituents of the benchmark have averaged 46.5% total returns. These three stocks include Sembcorp Industries, Keppel Corporation and Yangzijiang Shipbuilding. The trio have all pivoted to more sustainable infrastructure or more fuel efficient solutions. The fourth STI stock which has also made such a pivot, is Seatrium, which has averaged a 1.4% total return over the past 36 weeks.
Seatrium has also booked the highest net institutional inflow in the Singapore stock market this year, followed by Sembcorp Industries.
Most Traded Energy Infrastructure & Ship/Automobile Transportation Solutions |
Code |
Avg Daily Trading T/O in 2023 (S$M) |
Mkt Cap (S$M) |
Friday Close |
CCY |
Refinitiv Consensus Estimate Target Price |
Refinitiv Consensus Estimate Target Price CCY |
MTD Px Chg % |
QTD Total Return % |
Net Insti. Flow (S$M) |
YTD Total Return % |
Seatrium |
S51 |
$43.7 |
$9,550 |
$0.14 |
SGD |
0.179 |
SGD |
-3.4 |
12.0 |
200.4 |
1.4 |
YZJ Shipbldg SGD |
BS6 |
$35.1 |
$6,835 |
$1.73 |
SGD |
1.894 |
SGD |
2.4 |
15.3 |
47.9 |
32.4 |
Keppel Corp |
BN4 |
$28.5 |
$12,001 |
$6.81 |
SGD |
7.973 |
SGD |
-1.9 |
3.6 |
-177.4 |
51.3 |
Sembcorp Ind |
U96 |
$28.0 |
$9,126 |
$5.12 |
SGD |
6.399 |
SGD |
-4.3 |
-10.2 |
165.5 |
55.7 |
Jardine C&C |
C07 |
$12.8 |
$12,699 |
$32.13 |
SGD |
35.516 |
SGD |
-3.9 |
-6.6 |
19.0 |
17.5 |
ComfortDelGro |
C52 |
$8.6 |
$2,707 |
$1.25 |
SGD |
1.489 |
SGD |
-1.6 |
10.3 |
11.6 |
7.7 |
SamuderaShipping |
S56 |
$3.8 |
$404 |
$0.75 |
SGD |
N/A |
N/A |
1.4 |
-11.0 |
-4.9 |
17.2 |
Kep Infra Tr |
A7RU |
$3.3 |
$2,757 |
$0.49 |
SGD |
N/A |
N/A |
-1.0 |
-2.6 |
-34.5 |
-2.1 |
NIO Inc. USD OV |
NIO |
$2.8 |
$21,290 |
$10.15 |
USD |
13.642 |
USD |
-2.8 |
6.8 |
4.5 |
2.2 |
Source: SGX, Refinitiv, Bloomberg (Data as of 8 September 2023, with Consensus Price Targets as of 11 Sep Morning Session). Note the above list of stocks have averaged trading turnover this year that ranks among the 50 most traded Singapore stocks on a day to day basis.
The performances of the four stocks are tabled above, with the table also including other actively traded stocks that have signaled a pivot in the near future. For instance:
The two STI stocks, Keppel Corporation and Sembcorp Industries, pursing strategic pivots to sustainable energy which include solar and wind assets, and two STI stocks, Yangzijiang Shipbuilding and Seatrium pursuing more fuel-efficient maritime solutions are contributing between 10 cents to 15 cents in every dollar that is going to work in the stock market each trading day.
All four stocks are also currently trading below their Refinitiv consensus estimates Target Prices. These Target Prices can be found in the SGX Stock Screener, and typically represent an analyst's opinion of the stock performance over the next 18 months.
Seatrium
Seatrium joined the STI this year and has ranked as #6 most traded stock this year with its net order book at S$19.7 billion with projects lined up to 2030. This comprises S$7.9 billion or 40% renewables and cleaner/green solutions. New Order wins in 1H23 included Seatrium’s largest offshore renewable project yet. As part of a consortium, Seatrium will construct three 2GW HVDC Offshore Converter Platforms for TenneT. These will be the biggest and most powerful HVDC Offshore Converter Platforms in the industry and serve TenneT’s three offshore wind farm projects off the coast of Netherlands, to enable Europe to be the world’s first climate neutral continent.
Yangzijiang Shipbuilding
Yangzijiang Shipbuilding has ranked as #8 most traded stock this year, which has followed on from its breakthrough into clean energy vessels, as well as higher dual-fuel vessel demand which drove its order wins in 2022. Its current total outstanding order book amounts to an all-time high of US$14.7 billion for a total of 181 vessels. This is comprised of 91 containerships of which 51 are dual fuel, 53 Bulk vessels, 8 LNG/LPG/LEG and 29 oil tankers. The clean energy vessel orders have experienced a significant increase, representing 56% of the total contract value as of 30 June 2023, compared to the 23% recorded on 30 June 2022.
Keppel Corporation
Keppel Corporation has ranked #11 most traded stock this year. Keppel’s infrastructure division comprised around two-thirds of its 1H23 revenue, and consists of an integrated power business, as well as a decarbonisation and a sustainability solutions business. In 1HFY23, Keppel’s renewable energy portfolio grew to 3.0GW, making up over 60% of its total energy portfolio of 4.9GW, with projects across the spectrum of solar (1.95GW), wind (0.96GW)and hydro power (0.09GW). The 4.9 GW portfolio is on a gross basis and includes projects under development with 64% of capacity operational while 36% is under development.
Sembcorp Industries
Sembcorp Industries has ranked as #13 most traded stock this year. With 2.1GW of renewables projects added in 1H2023, its gross renewables capacity has reached 11.9GW with 8.6GW of capacity installed and 3.3GW under development. Note that Sembcorp Industries’ total balanced energy portfolio of capacity installed and under development is 19.4GW. Of the 8.6GW installed gross capacity, 5.4GW is in China and 2.3GW is in India.
Did you know?
Unlike conventional energy, renewables energy is not baseload and does not generate electricity 24/7. The power generation depends on the plant load factor (PLF) of the renewable energy asset such as the irradiance level (for solar) and wind resource (for wind assets). As a theoretical/ indicative guide if the PLF was between 13% to 15% for solar assets in Singapore in 2022 and assuming SP Group HDB flat average consumption, 1.0 GW of power could power over 270,000 four-room HDB flats in a year!
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