VENTURE CORPORATION LIMITED (SGX:V03)
Malaysia Lockdown - Impact On SGX Companies
- Malaysia shuts down non-essential activities, bars citizens from going overseas and foreigners from entering the country for about 2 weeks starting today till end-March.
Companies/sector affected by Malaysia lockdown
Manufacturing impact
- Venture Corp (SGX:V03): More than half of its manufacturing facilities are in Malaysia (Johor, Penang).
- UMS Holdings (SGX:558): 2% of FY2019 revenue is from Malaysia; plants mostly in Malaysia (Penang).
- Hi-P International (SGX:H17): 0.6% of FY2018's revenue is from Malaysia.
- Riverstone Holdings (SGX:AP4): No impact because gloves are classified as essentials.
Manpower impact
- ComfortDelGro (SGX:C52): 21% (c.5,200) of staff are Malaysians but only 40 are working in Malaysia.
- F&B service companies: Most have a small and manageable number of Malaysian workers due to the foreign dependency ratio ceiling.
Potential beneficiaries
- Ascott Residence Trust (SGX:HMN), CDL Hospitality Trusts (SGX:J85), Far East Hospitality Trust (SGX:Q5T): Hotels could see a rise in demand during this period as companies seek lodging for their Malaysian employees.
- Centurion Corp (SGX:OU8): Centurion could see a rise in demand for beds for workers during this period.
Yeo Kee Yan CMT
DBS Group Research
|
https://www.dbsvickers.com/
2020-03-18
SGX Stock
Analyst Report
18.500
SAME
18.500
