Benefiting from global supply chain transfers, the Pan-Southeast Asia region has had strong economic performance in recent years, and technological fields such as the Internet have continued to flourish. Today, $Huatai-PB CSOP SGX Pan Southeast (513730.SH)$ It hit a new high once again. Over the past year, this ETF product has accumulated a cumulative increase of more than 43%.

This product is the first domestic ETF to invest in the Pan-Southeast Asian technology industry. It is also the first Shanghai (Shanghai Stock Exchange) new (SGX) interlinked product in the entire market.

It mainly tracks the Southern East-East Asia iEdge Southeast Asia+ Technology Index ETF ( $CSOP SEA TECH ETF S$ (SQQ.SG)$ ), the latter is also the first ETF in Singapore to provide investment opportunities in the Southeast Asian and Indian technology industries.

According to the official website of the Southern Dongying iEdge Southeast Asia+ Technology Index ETF, according to the industry classification, the distribution industries and shares of its individual holdings are: 33.1% of non-essential consumer goods, 32.5% of technology, 20.71% of telecommunications, and 13.36% of industry, respectively.

The top five largest stock positions are:

grab

$Grab Holdings (GRAB.US)$ It is the second US listed company in Southeast Asia. It was founded in Malaysia in 2012 and moved its headquarters to Singapore in 2014. Currently, it has covered 8 countries and over 500 cities and towns in Southeast Asia.

Grab first started with the ride-hailing app GrabTaxi, then gradually expanded into takeout and payment businesses — so to be precise, Grab is the “Southeast Asian version of 'Didi+Meituan+Alipay'”.

Not long ago, Grab issued a report that exceeded expectations: third-quarter revenue increased 17% year over year to $0.716 billion; turned a loss into profit and recorded a net profit of 15 million US dollars; the company raised its full-year performance guidelines, and expected revenue to be between 2.76 billion and 2.78 billion US dollars. After the release of this financial report, Grab increased by more than 10% a day, and a few days ago hit a high stock price point in the past two years.

Tokai Group

Second largest holding stock $Sea (SE.US)$ (Donghai Group) is known as the “Little Tencent in Southeast Asia,” and Tencent does have shares in the company. According to Donghai Group's 2017 listing prospectus, Tencent held 39.8% of the shares at the time, and was the largest shareholder of Donghai Group. Li Xiaodong, founder from Tianjin, held 20.7% of the shares, but after a few years, Tencent's shareholding ratio dropped to 18.7%.

Previously, for a long period of time, Donghai Group was viewed by the outside world as a myth of making wealth, and its stock price had risen more than 23 times in 4 years. With the help of the three major businesses of “Shopee, Garena, and SeaMoney,” Li Xiaodong has built a commercial empire for Donghai Group that includes e-commerce, games, and finance.

In 2023, the company achieved its first annual profit in 14 years since it was founded. The financial report handed over this month also exceeded analysts' expectations: revenue increased 30.8% year over year to 4.3 billion 28.23 million US dollars, and net profit for the third quarter reached 0.153 billion US dollars, turning a loss into a profit.

delta

Teda Electric, the third largest holding stock, is the Thai subsidiary of **** electronics manufacturer Delta Electric, and is also the latter's most important production base for electric vehicle components. Of the top ten charging operators in Thailand, 5 are Teda Electric customers, with a total market share of up to 30%.

Since it was listed in Thailand in 1995, TEDA has become the largest stock by market capitalization in the Thai stock market. At one point, the market value even surpassed that of the parent company Delta Electric, and is known as the “king of Thai electronics stocks.”

Wipro

$Wipro (WIT.US)$ From India. The company was founded in 1945 as a plant and refined oil manufacturer, then wanted to transform computers and software in the 70s, and is now an Indian IT outsourcing giant and one of the world's leading IT service providers.

In fiscal year 2023, Wipro achieved revenue of 11.2 billion US dollars, an increase of 14% over the previous year, with the American business accounting for nearly 60%.

Astra

Astra is one of the largest listed companies in Indonesia. It is also the company with the most diversified business among the top five major technology stocks in Southeast Asia. Its business covers automobiles, financial services, heavy equipment, mine construction and energy, agriculture, infrastructure and logistics, information technology, and real estate.

AHM, a joint venture between Astra and Honda established in 1971, has become the market leader for two-wheelers in Indonesia, and Astra is also the largest car dealer in Indonesia.

Southeast Asia's technology industry is rapidly rising

Southeast Asia includes a total of 11 countries, with Singapore, Malaysia, Indonesia, Vietnam, the Philippines, and Thailand as the core six.

As the global industrial landscape evolves, driven by factors such as demographic dividends, domestic demand expansion, infrastructure improvements, and industrial transfers, Southeast Asia's economic development potential is strong, and the technology industry is rapidly rising.

CITIC Securities pointed out that on the one hand, the Southeast Asian economy is expected to continue to improve, giving priority attention to the development of Indonesia, Vietnam, and Malaysia; on the other hand, Southeast Asia continues to undertake international industrial transfers and rapid development of the digital economy. It is recommended to focus on opportunities in electronics manufacturing, automobile production, and the digital economy.

Edit/Rocky