SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Jardine Strategic Holdings / Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer among Singapore Industrials stocks that report majority of their revenues to ASEAN. It registered a share price decline of 1.2% in the YTD, taking its 10Y average annualised total return to 17%. 
	 </li>
	<li>
VICOM’s vehicle testing and non-vehicle testing businesses registered growth at the top and bottom lines in FY19, and it also has a lower debt to asset ratio than the industry average. 
	 </li>
	<li>Apart from VICOM, SBS Transit and Jardine Matheson Holdings were the other two strongest performers over the past decade. They generated average annualised total returns of 7% and 5% respectively over the 10Y period ending 24 April, vs the FTSE ASEAN All-Share Index’s average annualised total return of 0.6%.</li>
</ul>
 

Over the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer of Singapore’s Industrials stocks that report the majority of their revenues across the 10 ASEAN states. The leading provider of vehicle inspection and technical testing services has seen its share price decline by just 1.2% in the 2020 year through to 24 April, taking its 10 year average annualised total return to 17%.

VICOM – Singapore’s Pioneer in Vehicle Inspection

As maintained by its Chairman, Lim Jit Poh, VICOM had a comparatively good year in 2019 despite the slowdown in the economy. Mr Lim highlighted in the <a href="https://links.sgx.com/1.0.0/corporate-announcements/904EC56WVWVIOGXU/eb9009636f3803346ebe0a5452334f61048cc48d62980a26d3fd015d20469e7b">Annual Report</a> for FY19 (ended 31 Dec) that:

<ul>
<li>Both VICOM’s vehicle testing and non-vehicle testing businesses registered growth at the top and bottom lines in FY19;</li>
	<li>Excluding the one-time exceptional gain of S$7.7 million arising from the surrender of its present premises at 18 Teban Gardens Crescent to Jurong Town Corporation FY18, VICOM would have registered a higher growth of 5.0% or $1.3 million in net profit attributable to shareholders in FY19; and</li>
	<li>VICOM also managed to capture a bigger share of the inspection pie. In total, its seven centres inspected 462,718 vehicles in FY19, 1,630 or 0.4% more than the 461,088 in FY18.</li>
</ul>
VICOM also maintains a lower debt to asset ratio than the industry average and ensures that the company stays on the cutting edge of testing and inspection technology, with seven centres conveniently located island wide. Its inspection and testing services also now span fields that include mechanical, biochemical, civil engineering and non-destructive testing, in both Singapore and the region.

Singapore’s Largest ASEAN Industrial Plays by Market Value

Singapore’s 10 largest capitalised Industrial stocks that report the majority of their revenue across the 10 ASEAN states are tabled below. The list includes as many as three constituents of the Straits Times Index.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock Name
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Average Daily Turnover 2020 YTD S$M
			</td>
			<td>
			Net Institutional Inflow 2020 YTD S$M 
			</td>
			<td>
			YTD Total Return %
			</td>
		</tr>
<tr>
<td>
			JMH USD
			</td>
			<td>
			J36
			</td>
			<td>
			49,033
			</td>
			<td>
			24.1
			</td>
			<td>
			-10
			</td>
			<td>
			-8.0
			</td>
		</tr>
<tr>
<td>
			JSH USD
			</td>
			<td>
			J37
			</td>
			<td>
			35,986
			</td>
			<td>
			14.2
			</td>
			<td>
			-10
			</td>
			<td>
			-20.1
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			3,342
			</td>
			<td>
			17.5
			</td>
			<td>
			-142
			</td>
			<td>
			-40.9
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,098
			</td>
			<td>
			23.8
			</td>
			<td>
			-194
			</td>
			<td>
			-39.9
			</td>
		</tr>
<tr>
<td>
			SIA Engineering
			</td>
			<td>
			S59
			</td>
			<td>
			1,972
			</td>
			<td>
			1.5
			</td>
			<td>
			-3
			</td>
			<td>
			-37.6
			</td>
		</tr>
<tr>
<td>
			SingPost
			</td>
			<td>
			S08
			</td>
			<td>
			1,564
			</td>
			<td>
			3.1
			</td>
			<td>
			-8
			</td>
			<td>
			-25.2
			</td>
		</tr>
<tr>
<td>
			SBS Transit
			</td>
			<td>
			S61
			</td>
			<td>
			907
			</td>
			<td>
			0.3
			</td>
			<td>
			-5
			</td>
			<td>
			-24.0
			</td>
		</tr>
<tr>
<td>
			VICOM
			</td>
			<td>
			V01
			</td>
			<td>
			677
			</td>
			<td>
			0.3
			</td>
			<td>
			-1
			</td>
			<td>
			-1.2
			</td>
		</tr>
<tr>
<td>
			HRnetGroup
			</td>
			<td>
			CHZ
			</td>
			<td>
			490
			</td>
			<td>
			0.2
			</td>
			<td>
			2
			</td>
			<td>
			-21.6
			</td>
		</tr>
<tr>
<td>
			COSCO SHP SG
			</td>
			<td>
			F83
			</td>
			<td>
			481
			</td>
			<td>
			0.8
			</td>
			<td>
			-1
			</td>
			<td>
			-34.8
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-25.3
			</td>
		</tr>
</tbody></table>
 Source: SGX StockFacts, Bloomberg, Thomson Reuters (data as of 24 April)

The three stocks tabled above that have been the strongest performers over the past 10 years include VICOM, SBS Transit and Jardine Matheson Holdings. The latter two stocks generated average annualised total returns of 7% and 5% respectively over the 10 year period ending 24 April. This compared to the FTSE ASEAN All-Share Index’s average annualised total return of 0.6% over the period. In total, six of the nine stocks tabled above, that were listed for the tenure, beat the broad benchmark over the 10 years.

Like the broader group of ASEAN stocks, the mid-cap to small-cap stocks of the Industrials Sector have marginally outperformed the large-caps in the 2020 year to 24 April. While the above 10 stocks averaged a 25.3% decline in total return for the period, the next 10 Singapore-listed Industrials stocks that report the majority of their revenue to ASEAN averaged a 20.2% decline in total return. This included stocks such as Chip Eng Seng, Low Keng Huat, BRC Asia, Boustead Projects, Lian Beng Group, Wee Hur Holdings, KSH Holdings, Hock Lian Seng Holdings, Tai Sin Electric and Lum Chang Holdings. Similar observations were made across the Industrial Sectors of all the ASEAN exchanges, in addition to ASEAN stocks in general.

ASEAN Economic Outlook

ASEAN’s population of more than 600 million represents the third-most populous geographical region in the world, after South Asia and East Asia. Indonesia, the Philippines and Vietnam are the three most populous states, representing around 70% of the collective ASEAN population. The regional bloc is now the world’s sixth-largest economy, with a gross domestic product (GDP) of nearly US$3 trillion. It is forecast to be the fourth-largest economy in the world by 2030, after the US, China and the EU.

In its <a href="https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020">World Economic Outlook report</a> released earlier this month, the International Monetary Fund (IMF) projected the ASEAN-5 countries to post a combined GDP growth of 7.8% in 2021, after contracting 0.6% this year. For next year, Malaysia’s real gross domestic product (GDP) is seen rising at a rate of 9%, the fastest among the ASEAN-5 countries. The other ASEAN-5 members – Indonesia, Thailand, the Philippines and Vietnam – are forecast to grow by 8.2%, 6.1%, 7.6% and 7% respectively in 2021.

Global growth is also expected to rebound to 5.8% in 2021, as economic activity normalises from very low levels, after contracting 3% this year due to the COVID-19 impact, the report added.
</body></html>





In the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer among Singapore Industrials stocks that report majority of their revenues to ASEAN. It registered a share price decline of 1.2% in the YTD, taking its 10Y average annualised total return to 17%.  
	 
	
VICOM’s vehicle testing and non-vehicle testing businesses registered growth at the top and bottom lines in FY19, and it also has a lower debt to asset ratio than the industry average. 
	 
	Apart from VICOM, SBS Transit and Jardine Matheson Holdings were the other two strongest performers over the past decade. They generated average annualised total returns of 7% and 5% respectively over the 10Y period ending 24 April, vs the FTSE ASEAN All-Share Index’s average annualised total return of 0.6%.

 

Over the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer of Singapore’s Industrials stocks that report the majority of their revenues across the 10 ASEAN states. The leading provider of vehicle inspection and technical testing services has seen its share price decline by just 1.2% in the 2020 year through to 24 April, taking its 10 year average annualised total return to 17%.

VICOM – Singapore’s Pioneer in Vehicle Inspection

As maintained by its Chairman, Lim Jit Poh, VICOM had a comparatively good year in 2019 despite the slowdown in the economy. Mr Lim highlighted in the Annual Report for FY19 (ended 31 Dec) that:


Both VICOM’s vehicle testing and non-vehicle testing businesses registered growth at the top and bottom lines in FY19;
	Excluding the one-time exceptional gain of S$7.7 million arising from the surrender of its present premises at 18 Teban Gardens Crescent to Jurong Town Corporation FY18, VICOM would have registered a higher growth of 5.0% or $1.3 million in net profit attributable to shareholders in FY19; and
	VICOM also managed to capture a bigger share of the inspection pie. In total, its seven centres inspected 462,718 vehicles in FY19, 1,630 or 0.4% more than the 461,088 in FY18.

VICOM also maintains a lower debt to asset ratio than the industry average and ensures that the company stays on the cutting edge of testing and inspection technology, with seven centres conveniently located island wide. Its inspection and testing services also now span fields that include mechanical, biochemical, civil engineering and non-destructive testing, in both Singapore and the region.

Singapore’s Largest ASEAN Industrial Plays by Market Value

Singapore’s 10 largest capitalised Industrial stocks that report the majority of their revenue across the 10 ASEAN states are tabled below. The list includes as many as three constituents of the Straits Times Index.




			Stock Name
			
			
			Stock Code
			
			
			Mkt Cap S$M
			
			
			Average Daily Turnover 2020 YTD S$M
			
			
			Net Institutional Inflow 2020 YTD S$M 
			
			
			YTD Total Return %
			
		


			JMH USD
			
			
			J36
			
			
			49,033
			
			
			24.1
			
			
			-10
			
			
			-8.0
			
		


			JSH USD
			
			
			J37
			
			
			35,986
			
			
			14.2
			
			
			-10
			
			
			-20.1
			
		


			SATS
			
			
			S58
			
			
			3,342
			
			
			17.5
			
			
			-142
			
			
			-40.9
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,098
			
			
			23.8
			
			
			-194
			
			
			-39.9
			
		


			SIA Engineering
			
			
			S59
			
			
			1,972
			
			
			1.5
			
			
			-3
			
			
			-37.6
			
		


			SingPost
			
			
			S08
			
			
			1,564
			
			
			3.1
			
			
			-8
			
			
			-25.2
			
		


			SBS Transit
			
			
			S61
			
			
			907
			
			
			0.3
			
			
			-5
			
			
			-24.0
			
		


			VICOM
			
			
			V01
			
			
			677
			
			
			0.3
			
			
			-1
			
			
			-1.2
			
		


			HRnetGroup
			
			
			CHZ
			
			
			490
			
			
			0.2
			
			
			2
			
			
			-21.6
			
		


			COSCO SHP SG
			
			
			F83
			
			
			481
			
			
			0.8
			
			
			-1
			
			
			-34.8
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			-25.3
			
		

 Source: SGX StockFacts, Bloomberg, Thomson Reuters (data as of 24 April)

The three stocks tabled above that have been the strongest performers over the past 10 years include VICOM, SBS Transit and Jardine Matheson Holdings. The latter two stocks generated average annualised total returns of 7% and 5% respectively over the 10 year period ending 24 April. This compared to the FTSE ASEAN All-Share Index’s average annualised total return of 0.6% over the period. In total, six of the nine stocks tabled above, that were listed for the tenure, beat the broad benchmark over the 10 years.

Like the broader group of ASEAN stocks, the mid-cap to small-cap stocks of the Industrials Sector have marginally outperformed the large-caps in the 2020 year to 24 April. While the above 10 stocks averaged a 25.3% decline in total return for the period, the next 10 Singapore-listed Industrials stocks that report the majority of their revenue to ASEAN averaged a 20.2% decline in total return. This included stocks such as Chip Eng Seng, Low Keng Huat, BRC Asia, Boustead Projects, Lian Beng Group, Wee Hur Holdings, KSH Holdings, Hock Lian Seng Holdings, Tai Sin Electric and Lum Chang Holdings. Similar observations were made across the Industrial Sectors of all the ASEAN exchanges, in addition to ASEAN stocks in general.

ASEAN Economic Outlook

ASEAN’s population of more than 600 million represents the third-most populous geographical region in the world, after South Asia and East Asia. Indonesia, the Philippines and Vietnam are the three most populous states, representing around 70% of the collective ASEAN population. The regional bloc is now the world’s sixth-largest economy, with a gross domestic product (GDP) of nearly US$3 trillion. It is forecast to be the fourth-largest economy in the world by 2030, after the US, China and the EU.

In its World Economic Outlook report released earlier this month, the International Monetary Fund (IMF) projected the ASEAN-5 countries to post a combined GDP growth of 7.8% in 2021, after contracting 0.6% this year. For next year, Malaysia’s real gross domestic product (GDP) is seen rising at a rate of 9%, the fastest among the ASEAN-5 countries. The other ASEAN-5 members – Indonesia, Thailand, the Philippines and Vietnam – are forecast to grow by 8.2%, 6.1%, 7.6% and 7% respectively in 2021.

Global growth is also expected to rebound to 5.8% in 2021, as economic activity normalises from very low levels, after contracting 3% this year due to the COVID-19 impact, the report added.



VICOM Amongst Singapore’s Most Defensive Stocks in 2020 YTD 

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Wilmar, Japfa and Golden-Agri have led Singapore’s 10 most traded Agriculture, Food and Beverage stocks for the first eight sessions of 2020. The 10 stocks averaged 13% total returns in 2019, with their median return at 17% outpacing regional and global peers. 
	 </li>
	<li>
Sheng Siong Group, Koufu Group, SATS and First Resources all report at least four-fifths of their revenue to Singapore. The four stocks saw S$88 million in net institutional inflow in 2019, with average/median total returns of 22%/23%.  
	 </li>
	<li>Of the four stocks, Koufu Group generated the strongest total return in 2019 (+29%), was third strongest of the 10, while achieving 25% YoY growth in 9MFY19 NPAT. Proportionate to market value, Koufu also saw the highest net institutional inflow (5%) of the 10 stocks. </li>
</ul>
 

The IMF is expected to confirm on 20 January that the growth rate of Global GDP slowed to a 10 year low in 2019. Hence, it may be of little surprise that global Agriculture, Food and Beverage (“F&amp;B”) stocks, that are largely consumption-dependent, generated marginal declines last year with a 1% median decline in total return.

Almost half of the Global Agriculture, F&amp;B stocks are listed across Asia Pacific exchanges, with the significant regional proportion also generating a 1% median decline in total return.

In Singapore, the relevant contingent of close to 40 Agriculture, F&amp;B stocks generated a 3% median total return in 2019. At the same time, valuations of the Singapore stocks are highly competitive with a 22x median P/E ratio, similar to the 19x median P/E ratio for the close to 1800 relevant stocks across Asia Pacific. 

Singapore’s 10 most traded stocks with significant Agriculture, F&amp;B businesses currently maintain a median P/E of 23x. The 10 stocks generated a median total return of 17% in 2019. By comparison the median total return of the top quartile of Agriculture, F&amp;B stocks listed both globally, and Asia Pacific was 12%.
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-01/Agri%20F%26B.PNG' alt='Agriculture and F&B' />
 </figure>
 <div class='content-caption'>Agriculture and F&B</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
Total returns for the 10 most traded Agriculture, F&amp;B stocks in 2019 ranged from -36% for Dairy Farm International to +46% for Thai Beverage PCL. Seven of the 10 stocks generated positive returns for 2019. The individual performances of the 10 stocks, which contributed S$63 million a day to 2019 trading turnover are sort by the most traded stock in 2019, in the table below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap (S$M)
			</td>
			<td>
			2019 Volatility
			</td>
			<td>
			2019 Price Change
			</td>
			<td>
			2019 Total Return
			</td>
			<td>
			2020 Price Change YTD
			</td>
			<td>
			2019 Average Daily Turnover (S$M)
			</td>
			<td>
			2019 Net Insti Flow (S$M)
			</td>
		</tr>
<tr>
<td>
			WILMAR INTERNATIONAL
			</td>
			<td>
			F34
			</td>
			<td>
			27,587
			</td>
			<td>
			19%
			</td>
			<td>
			32%
			</td>
			<td>
			36%
			</td>
			<td>
			6%
			</td>
			<td>
			20.0
			</td>
			<td>
			241
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			22,351
			</td>
			<td>
			29%
			</td>
			<td>
			46%
			</td>
			<td>
			49%
			</td>
			<td>
			0%
			</td>
			<td>
			14.9
			</td>
			<td>
			187
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			5,692
			</td>
			<td>
			16%
			</td>
			<td>
			9%
			</td>
			<td>
			13%
			</td>
			<td>
			1%
			</td>
			<td>
			8.7
			</td>
			<td>
			33
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			3,056
			</td>
			<td>
			45%
			</td>
			<td>
			-4%
			</td>
			<td>
			-2%
			</td>
			<td>
			2%
			</td>
			<td>
			6.7
			</td>
			<td>
			-8
			</td>
		</tr>
<tr>
<td>
			DAIRY FARM INTL HLDGS
			</td>
			<td>
			D01
			</td>
			<td>
			10,365
			</td>
			<td>
			26%
			</td>
			<td>
			-38%
			</td>
			<td>
			-36%
			</td>
			<td>
			0%
			</td>
			<td>
			6.6
			</td>
			<td>
			-40
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			EB5
			</td>
			<td>
			2,978
			</td>
			<td>
			26%
			</td>
			<td>
			23%
			</td>
			<td>
			25%
			</td>
			<td>
			-1%
			</td>
			<td>
			1.7
			</td>
			<td>
			13
			</td>
		</tr>
<tr>
<td>
			SHENG SIONG GROUP
			</td>
			<td>
			OV8
			</td>
			<td>
			1,894
			</td>
			<td>
			15%
			</td>
			<td>
			17%
			</td>
			<td>
			21%
			</td>
			<td>
			2%
			</td>
			<td>
			1.6
			</td>
			<td>
			21
			</td>
		</tr>
<tr>
<td>
			JAPFA
			</td>
			<td>
			UD2
			</td>
			<td>
			1,109
			</td>
			<td>
			37%
			</td>
			<td>
			-21%
			</td>
			<td>
			-18%
			</td>
			<td>
			4%
			</td>
			<td>
			1.4
			</td>
			<td>
			-18
			</td>
		</tr>
<tr>
<td>
			OLAM INTERNATIONAL
			</td>
			<td>
			O32
			</td>
			<td>
			5,831
			</td>
			<td>
			22%
			</td>
			<td>
			10%
			</td>
			<td>
			14%
			</td>
			<td>
			1%
			</td>
			<td>
			1.0
			</td>
			<td>
			14
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP
			</td>
			<td>
			VL6
			</td>
			<td>
			430
			</td>
			<td>
			22%
			</td>
			<td>
			25%
			</td>
			<td>
			29%
			</td>
			<td>
			1%
			</td>
			<td>
			0.8
			</td>
			<td>
			20
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			26%
			</td>
			<td>
			10%
			</td>
			<td>
			13%
			</td>
			<td>
			1%
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			24%
			</td>
			<td>
			13%
			</td>
			<td>
			17%
			</td>
			<td>
			1%
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX Stockfacts, Thomson Reuters, Bloomberg (Data as of 13 January 2020)

By comparison, Singapore’s 10 most traded stocks in 2019 with an energy focus generated a median 23% total return for the year, on a much higher median volatility of 41% (click <a href="https://www.sgx.com/research-education/market-updates/20200113-23-median-gains-most-active-energy-linked-stocks-2019">here</a> for more). Likewise the 10 most traded manufacturing stocks which included F&amp;B manufacturers Wilmar International and Thai Beverage PCL also generated a higher median return of 34%, on higher volatility of 32% (click <a href="https://www.sgx.com/research-education/market-updates/20200102-big-manufacturing-stocks-beat-pmis-2019">here</a> for more). 

Singapore Focused Agriculture, Food and Beverage Stocks Averaged 22% Total Returns in 2019 

Back on 21 November, the  Ministry Of Trade and Industry reported that Growth in Singapore’s accommodation &amp; food services sector accelerated in 3Q19 from both 2Q19 and 3Q18. Food services expansion was attributed to  higher sales volumes at fast food outlets, restaurants and other eating places (click <a href="https://www.singstat.gov.sg/-/media/files/news/gdp3q2019.pdf?fireglass_rsn=true">here</a> for more).

The four of the 10 most traded Agriculture, F&amp;B stocks that reported at least four-fifths of their revenue to Singapore in their last financial year, all generated gains in 2019 with a median total return of 23% and average return of 22%, underpinning the consistency of their returns in 2019. All four stocks were recipient to net institutional inflow for the year, which totalled S$88.2 million. 
 

Koufu Group NPAT +25% in 9MFY19

Of the four stocks, Koufu Group generated the strongest total return in 2019, while also achieving 25% YoY growth in 9MFY19 (ended 30 Sep) net profit after tax.

Koufu Group was also the third strongest performer of the 10 stocks in 2019, after Thai Beverage PCL and Wilmar International. Proportionate to market capitalisation as of the end of 2019, Koufu Group saw the highest net institutional inflow of all 10 stocks in 2019, at 4.7%. Sheng Siong Group and Wilmar International saw the next highest net institutional inflow proportionate to year-end market capitalisation at 1.1% and 0.9% respectively.

Koufu Group Executive Chairman and CEO Pang Lim reported in November that (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/V7X0JQJTUH4218LT/6a4e9219cff1ea815d48860a2bcf807a4fb263626e30f77a47222481c6145423">here</a> for more) that Koufu Group had:

<ul>
<li>Continued to step up the expansion of its F&amp;B network across its chain of food courts, coffee shops, F&amp;B concept stores and restaurant business segments. This has been with a view to expand its market share and bring new food varieties to consumers. 
	 </li>
	<li>Made good strides in its organic expansion, increasing its network of food courts and coffee shops to 65 outlets across both segments. This is expected to increase further as the Group continues to seek and secure new strategic locations, with a focus on hospitals, commercial malls, educational institutions and new housing estates. 
	 </li>
	<li>Seen its high-growth tea beverage brands, R&amp;B Tea and Supertea, surpass the expected 25 outlets to hit a new target of 29 by end-2019. After opening five new R&amp;B Tea outlets in 3QFY19, it had secured another 10 new locations which were slated to open progressively from 4Q19 to FY20.</li>
</ul>
 

Koufu Group is expected to report FY19 results in the last week of February. 
</body></html>





Wilmar, Japfa and Golden-Agri have led Singapore’s 10 most traded Agriculture, Food and Beverage stocks for the first eight sessions of 2020. The 10 stocks averaged 13% total returns in 2019, with their median return at 17% outpacing regional and global peers. 
	 
	
Sheng Siong Group, Koufu Group, SATS and First Resources all report at least four-fifths of their revenue to Singapore. The four stocks saw S$88 million in net institutional inflow in 2019, with average/median total returns of 22%/23%.   
	 
	Of the four stocks, Koufu Group generated the strongest total return in 2019 (+29%), was third strongest of the 10, while achieving 25% YoY growth in 9MFY19 NPAT. Proportionate to market value, Koufu also saw the highest net institutional inflow (5%) of the 10 stocks. 

 

The IMF is expected to confirm on 20 January that the growth rate of Global GDP slowed to a 10 year low in 2019. Hence, it may be of little surprise that global Agriculture, Food and Beverage (“F&amp;B”) stocks, that are largely consumption-dependent, generated marginal declines last year with a 1% median decline in total return.

Almost half of the Global Agriculture, F&amp;B stocks are listed across Asia Pacific exchanges, with the significant regional proportion also generating a 1% median decline in total return.

In Singapore, the relevant contingent of close to 40 Agriculture, F&amp;B stocks generated a 3% median total return in 2019. At the same time, valuations of the Singapore stocks are highly competitive with a 22x median P/E ratio, similar to the 19x median P/E ratio for the close to 1800 relevant stocks across Asia Pacific. 

Singapore’s 10 most traded stocks with significant Agriculture, F&amp;B businesses currently maintain a median P/E of 23x. The 10 stocks generated a median total return of 17% in 2019. By comparison the median total return of the top quartile of Agriculture, F&amp;B stocks listed both globally, and Asia Pacific was 12%.



      
    
    Agriculture and F&B


Total returns for the 10 most traded Agriculture, F&amp;B stocks in 2019 ranged from -36% for Dairy Farm International to +46% for Thai Beverage PCL. Seven of the 10 stocks generated positive returns for 2019. The individual performances of the 10 stocks, which contributed S$63 million a day to 2019 trading turnover are sort by the most traded stock in 2019, in the table below.




			Name
			
			
			Code
			
			
			Mkt Cap (S$M)
			
			
			2019 Volatility
			
			
			2019 Price Change
			
			
			2019 Total Return
			
			
			2020 Price Change YTD
			
			
			2019 Average Daily Turnover (S$M)
			
			
			2019 Net Insti Flow (S$M)
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			27,587
			
			
			19%
			
			
			32%
			
			
			36%
			
			
			6%
			
			
			20.0
			
			
			241
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			22,351
			
			
			29%
			
			
			46%
			
			
			49%
			
			
			0%
			
			
			14.9
			
			
			187
			
		


			SATS
			
			
			S58
			
			
			5,692
			
			
			16%
			
			
			9%
			
			
			13%
			
			
			1%
			
			
			8.7
			
			
			33
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3,056
			
			
			45%
			
			
			-4%
			
			
			-2%
			
			
			2%
			
			
			6.7
			
			
			-8
			
		


			DAIRY FARM INTL HLDGS
			
			
			D01
			
			
			10,365
			
			
			26%
			
			
			-38%
			
			
			-36%
			
			
			0%
			
			
			6.6
			
			
			-40
			
		


			FIRST RESOURCES
			
			
			EB5
			
			
			2,978
			
			
			26%
			
			
			23%
			
			
			25%
			
			
			-1%
			
			
			1.7
			
			
			13
			
		


			SHENG SIONG GROUP
			
			
			OV8
			
			
			1,894
			
			
			15%
			
			
			17%
			
			
			21%
			
			
			2%
			
			
			1.6
			
			
			21
			
		


			JAPFA
			
			
			UD2
			
			
			1,109
			
			
			37%
			
			
			-21%
			
			
			-18%
			
			
			4%
			
			
			1.4
			
			
			-18
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			5,831
			
			
			22%
			
			
			10%
			
			
			14%
			
			
			1%
			
			
			1.0
			
			
			14
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			430
			
			
			22%
			
			
			25%
			
			
			29%
			
			
			1%
			
			
			0.8
			
			
			20
			
		


			Average
			
			
			 
			
			
			 
			
			
			26%
			
			
			10%
			
			
			13%
			
			
			1%
			
			
			 
			
			
			 
			
		


			Median
			
			
			 
			
			
			 
			
			
			24%
			
			
			13%
			
			
			17%
			
			
			1%
			
			
			 
			
			
			 
			
		

 Source: SGX Stockfacts, Thomson Reuters, Bloomberg (Data as of 13 January 2020)

By comparison, Singapore’s 10 most traded stocks in 2019 with an energy focus generated a median 23% total return for the year, on a much higher median volatility of 41% (click here for more). Likewise the 10 most traded manufacturing stocks which included F&amp;B manufacturers Wilmar International and Thai Beverage PCL also generated a higher median return of 34%, on higher volatility of 32% (click here for more). 

Singapore Focused Agriculture, Food and Beverage Stocks Averaged 22% Total Returns in 2019 

Back on 21 November, the  Ministry Of Trade and Industry reported that Growth in Singapore’s accommodation &amp; food services sector accelerated in 3Q19 from both 2Q19 and 3Q18. Food services expansion was attributed to  higher sales volumes at fast food outlets, restaurants and other eating places (click here for more).

The four of the 10 most traded Agriculture, F&amp;B stocks that reported at least four-fifths of their revenue to Singapore in their last financial year, all generated gains in 2019 with a median total return of 23% and average return of 22%, underpinning the consistency of their returns in 2019. All four stocks were recipient to net institutional inflow for the year, which totalled S$88.2 million. 
 

Koufu Group NPAT +25% in 9MFY19

Of the four stocks, Koufu Group generated the strongest total return in 2019, while also achieving 25% YoY growth in 9MFY19 (ended 30 Sep) net profit after tax.

Koufu Group was also the third strongest performer of the 10 stocks in 2019, after Thai Beverage PCL and Wilmar International. Proportionate to market capitalisation as of the end of 2019, Koufu Group saw the highest net institutional inflow of all 10 stocks in 2019, at 4.7%. Sheng Siong Group and Wilmar International saw the next highest net institutional inflow proportionate to year-end market capitalisation at 1.1% and 0.9% respectively.

Koufu Group Executive Chairman and CEO Pang Lim reported in November that (click here for more) that Koufu Group had:


Continued to step up the expansion of its F&amp;B network across its chain of food courts, coffee shops, F&amp;B concept stores and restaurant business segments. This has been with a view to expand its market share and bring new food varieties to consumers. 
	 
	Made good strides in its organic expansion, increasing its network of food courts and coffee shops to 65 outlets across both segments. This is expected to increase further as the Group continues to seek and secure new strategic locations, with a focus on hospitals, commercial malls, educational institutions and new housing estates. 
	 
	Seen its high-growth tea beverage brands, R&amp;B Tea and Supertea, surpass the expected 25 outlets to hit a new target of 29 by end-2019. After opening five new R&amp;B Tea outlets in 3QFY19, it had secured another 10 new locations which were slated to open progressively from 4Q19 to FY20.

 

Koufu Group is expected to report FY19 results in the last week of February. 



Singapore Agriculture, F&B Stocks Outpaced Peers in 2019 





Singapore’s Mid-Cap Stocks performed in-line with the stocks of the same market capitalisation across Asia in 2019. Of Singapore’s 40 most traded Mid-Cap Companies, 19 Companies outpaced the STI in 2019. 
	 
	
Of the 40 Mid-Cap Companies, the five strongest performers in 2019 included Hi-P International, SBS Transit, Bumitama Agri, SIA Engineering and Oxley Holdings. SBS Transit was also amongst the five best performers of the Mid-Cap Companies in 2018.   
	 
	The 10 Mid-Cap Companies among the group of 40 that saw the highest net institutional inflows proportionate to their year-end market capitalisation, averaged a 23% total return in 2019, with their median total return at 14%. 

In 2019, Singapore’s Mid-Cap Stocks that encompass both companies and trusts performed in-line with stocks of the same range in market capitalisation across Asian exchanges. In Singapore, performances were led by the relevant sized REITs which are discussed in more detail here.

Singapore’s Mid-Cap Stocks are generally categorised as listed corporations or trusts with a market capitalisation ranging from above S$1 billion to below S$6 billion as of the end of 2019. The constituents of the FTSE ST Mid-Cap Index maintain a similar range in market capitalisation.

40 Most Traded Mid-Cap Companies in Singapore

Excluding REITs and Business Trusts, Singapore’s 40 most traded Mid-Cap Companies averaged a 10% total return in 2019, with their median total return at 7%. The performance of these 40 Companies was, on average, in-line with the returns of the Straits Times Index (‘STI’) as discussed here. In total, 19 of the Companies outpaced the STI with an average 24% total return, while 21 Companies did not keep in pace with the STI averaging a 3% decline in total return.

The group of 40 Mid-Cap companies include six current constituents of the STI. However the five strongest performing of the 40 stocks in 2019 were all non-STI stocks. These five stocks were Hi-P International, SBS Transit, Bumitama Agri, SIA Engineering and Oxley Holdings.

Two of the five companies, Hi-P International and SBS Transit reported net profit growth for their 9MFY19 through to 30 Sep. SIA Engineering also reported net profit growth for its 1HFY19/20 through to 30 Sep and Oxley Holdings also reported net profit for its 1QFY20 through to 30 Sep was $9.4 million, compared to a restated net loss of $3.9 million in its 1QFY19.



      
    
    SG Mid Cap 


SBS Transit was also amongst the five best performers of the group in the preceding year, along with Japfa, Sheng Siong Group, ComfortDelGro and Haw Par Corporation. Hi-P International also led the current of Mid-Cap companies in total returns for 2017, with Oxley Holdings also amongst 2017’s best performers.

Five Mid-Caps with Largest Net Institutional Inflows All Outpaced STI

Overall, the 40 Mid-Cap Companies were recipient of S$143.6 million in net institutional outflow in 2019.

All five stocks that were recipient to the largest net institutional inflows of the 40 companies in 2019 outpaced the STI for the year. These five stocks were ComfortDelGro Corp, SATS, Hi-P International, GuocoLand and Sheng Siong Group. The broader group of 10 stocks that were recipient to the largest net institutional inflows among the 40 companies last year averaged 18% total returns, with the median total return at 13%. Meanwhile, the 10 stocks that saw the largest net institutional outflows in 2019 averaged a 4% decline in total return, with the median decline in total return at 8%.  

With net institutional inflows ranked proportionate to market capitalisation as of the end of 2019, the average of the 10 stocks that ranked the highest in the more congruent measure averaged a 23% total return with the median total return at 14%. These 10 stocks were Hi-P International, ComfortDelGro Corp, Sheng Siong Group, GuocoLand, Thomson Medical Group, SBS Transit, SATS, First Resources, Singapore Press Holdings and Singapore Post.

The full list of the 40 most traded Mid-Cap companies in 2019, sort by year-end market capitalisation are tabled below.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Price Change 2019
			
			
			Volatility 2019
			
			
			Total Return 2019
			
			
			Total Return 2018
			
			
			Total Return 2017
			
			
			Net Insti Inflow (S$M)
			
			
			Average Daily Turnover 2019 (SS$,000)
			
		


			OLAM INTERNATIONAL
			
			
			BS6
			
			
			5,767
			
			
			10%
			
			
			22%
			
			
			14%
			
			
			-16%
			
			
			6%
			
			
			13.9
			
			
			1,017
			
		


			SATS
			
			
			V03
			
			
			5,658
			
			
			9%
			
			
			16%
			
			
			13%
			
			
			-7%
			
			
			11%
			
			
			33.2
			
			
			8,694
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,155
			
			
			11%
			
			
			21%
			
			
			15%
			
			
			14%
			
			
			-16%
			
			
			70.9
			
			
			18,153
			
		


			FRASERS PROPERTY
			
			
			T39
			
			
			4,946
			
			
			2%
			
			
			17%
			
			
			7%
			
			
			-17%
			
			
			39%
			
			
			2.0
			
			
			425
			
		


			VENTURE CORP
			
			
			S58
			
			
			4,673
			
			
			16%
			
			
			31%
			
			
			21%
			
			
			-29%
			
			
			115%
			
			
			-4.8
			
			
			19,936
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			U96
			
			
			4,389
			
			
			-10%
			
			
			46%
			
			
			-7%
			
			
			-11%
			
			
			86%
			
			
			13.6
			
			
			34,451
			
		


			UNITED INDUSTRIAL CORP
			
			
			S51
			
			
			4,111
			
			
			5%
			
			
			14%
			
			
			6%
			
			
			-17%
			
			
			21%
			
			
			-4.3
			
			
			168
			
		


			SEMBCORP INDUSTRIES
			
			
			H17
			
			
			4,089
			
			
			-10%
			
			
			23%
			
			
			-8%
			
			
			-15%
			
			
			9%
			
			
			-90.3
			
			
			8,046
			
		


			SINGAPORE PRESS HOLDINGS
			
			
			E5H
			
			
			3,476
			
			
			-7%
			
			
			21%
			
			
			-2%
			
			
			-7%
			
			
			-21%
			
			
			14.9
			
			
			10,359
			
		


			SIA ENGINEERING CO
			
			
			CC3
			
			
			3,159
			
			
			24%
			
			
			20%
			
			
			29%
			
			
			-25%
			
			
			-3%
			
			
			-6.2
			
			
			1,457
			
		


			MANDARIN ORIENTAL INTL
			
			
			S08
			
			
			3,092
			
			
			-12%
			
			
			28%
			
			
			-10%
			
			
			4%
			
			
			50%
			
			
			-0.5
			
			
			579
			
		


			FIRST RESOURCES
			
			
			Z25
			
			
			3,010
			
			
			23%
			
			
			26%
			
			
			25%
			
			
			-14%
			
			
			0%
			
			
			13.5
			
			
			1,672
			
		


			GOLDEN AGRI-RESOURCES
			
			
			EB5
			
			
			2,993
			
			
			-4%
			
			
			45%
			
			
			-2%
			
			
			-34%
			
			
			-11%
			
			
			-7.8
			
			
			6,699
			
		


			HAW PAR CORP
			
			
			OV8
			
			
			2,827
			
			
			6%
			
			
			16%
			
			
			15%
			
			
			8%
			
			
			27%
			
			
			-12.0
			
			
			874
			
		


			SEMBCORP MARINE
			
			
			S59
			
			
			2,762
			
			
			-14%
			
			
			33%
			
			
			-14%
			
			
			-16%
			
			
			35%
			
			
			-56.3
			
			
			7,797
			
		


			FRASER AND NEAVE
			
			
			UD2
			
			
			2,494
			
			
			0%
			
			
			15%
			
			
			3%
			
			
			-32%
			
			
			26%
			
			
			-10.6
			
			
			166
			
		


			STARHUB
			
			
			BSL
			
			
			2,459
			
			
			-19%
			
			
			24%
			
			
			-13%
			
			
			-33%
			
			
			8%
			
			
			-93.1
			
			
			3,973
			
		


			YANLORD LAND GROUP
			
			
			O32
			
			
			2,337
			
			
			-1%
			
			
			29%
			
			
			4%
			
			
			-22%
			
			
			26%
			
			
			-15.8
			
			
			2,500
			
		


			GUOCOLAND
			
			
			5CP
			
			
			2,319
			
			
			9%
			
			
			15%
			
			
			13%
			
			
			-16%
			
			
			28%
			
			
			25.1
			
			
			471
			
		


			SINGAPORE POST
			
			
			G92
			
			
			2,104
			
			
			2%
			
			
			15%
			
			
			6%
			
			
			-24%
			
			
			-14%
			
			
			7.9
			
			
			2,738
			
		


			HOTEL PROPERTIES
			
			
			H02
			
			
			2,006
			
			
			7%
			
			
			17%
			
			
			10%
			
			
			-6%
			
			
			5%
			
			
			4.5
			
			
			301
			
		


			SHENG SIONG GROUP
			
			
			5UX
			
			
			1,864
			
			
			17%
			
			
			15%
			
			
			21%
			
			
			18%
			
			
			1%
			
			
			21.4
			
			
			1,624
			
		


			RAFFLES MEDICAL GROUP
			
			
			A50
			
			
			1,828
			
			
			-9%
			
			
			17%
			
			
			-7%
			
			
			0%
			
			
			-20%
			
			
			-20.5
			
			
			1,350
			
		


			TIANJIN ZHONG XIN PHARM CO-S
			
			
			W05
			
			
			1,752
			
			
			-1%
			
			
			22%
			
			
			2%
			
			
			-2%
			
			
			-1%
			
			
			-7.5
			
			
			359
			
		


			THOMSON MEDICAL GROUP
			
			
			B61
			
			
			1,692
			
			
			-12%
			
			
			30%
			
			
			-12%
			
			
			-42%
			
			
			5%
			
			
			14.6
			
			
			802
			
		


			HO BEE LAND
			
			
			M04
			
			
			1,603
			
			
			2%
			
			
			13%
			
			
			6%
			
			
			0%
			
			
			24%
			
			
			-3.0
			
			
			147
			
		


			WING TAI HOLDINGS
			
			
			F17
			
			
			1,553
			
			
			5%
			
			
			12%
			
			
			7%
			
			
			-12%
			
			
			47%
			
			
			-7.5
			
			
			686
			
		


			OXLEY HOLDINGS
			
			
			TQ5
			
			
			1,501
			
			
			22%
			
			
			30%
			
			
			26%
			
			
			-45%
			
			
			72%
			
			
			0.6
			
			
			809
			
		


			BUMITAMA AGRI
			
			
			T14
			
			
			1,390
			
			
			29%
			
			
			29%
			
			
			34%
			
			
			-13%
			
			
			-8%
			
			
			-3.0
			
			
			326
			
		


			OUE
			
			
			LJ3
			
			
			1,344
			
			
			4%
			
			
			19%
			
			
			13%
			
			
			-22%
			
			
			8%
			
			
			-0.5
			
			
			342
			
		


			HI-P INTERNATIONAL
			
			
			P8Z
			
			
			1,232
			
			
			73%
			
			
			51%
			
			
			101%
			
			
			-51%
			
			
			327%
			
			
			28.4
			
			
			6,978
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			S41
			
			
			1,212
			
			
			-17%
			
			
			13%
			
			
			-14%
			
			
			-7%
			
			
			47%
			
			
			-34.1
			
			
			617
			
		


			HONG LEONG FINANCE
			
			
			H15
			
			
			1,198
			
			
			5%
			
			
			12%
			
			
			11%
			
			
			-2%
			
			
			32%
			
			
			-12.4
			
			
			319
			
		


			SBS TRANSIT
			
			
			B16
			
			
			1,194
			
			
			42%
			
			
			22%
			
			
			47%
			
			
			12%
			
			
			21%
			
			
			9.2
			
			
			224
			
		


			FIRST SPONSOR GROUP
			
			
			S61
			
			
			1,106
			
			
			9%
			
			
			17%
			
			
			11%
			
			
			2%
			
			
			7%
			
			
			0.4
			
			
			42
			
		


			GL
			
			
			U06
			
			
			1,101
			
			
			10%
			
			
			14%
			
			
			13%
			
			
			-10%
			
			
			13%
			
			
			-1.3
			
			
			299
			
		


			CHINA AVIATION OIL SINGAPORE
			
			
			F99
			
			
			1,092
			
			
			20%
			
			
			25%
			
			
			24%
			
			
			-33%
			
			
			19%
			
			
			-4.3
			
			
			915
			
		


			SILVERLAKE AXIS
			
			
			H13
			
			
			1,081
			
			
			-1%
			
			
			29%
			
			
			3%
			
			
			-25%
			
			
			19%
			
			
			-13.2
			
			
			982
			
		


			JAPFA
			
			
			ADN
			
			
			1,081
			
			
			-21%
			
			
			37%
			
			
			-18%
			
			
			45%
			
			
			-43%
			
			
			-18.3
			
			
			1,367
			
		


			SINARMAS LAND
			
			
			A26
			
			
			1,064
			
			
			0%
			
			
			41%
			
			
			1%
			
			
			-36%
			
			
			-4%
			
			
			-1.6
			
			
			34
			
		


			Average
			
			
			 
			
			
			 
			
			
			6%
			
			
			24%
			
			
			10%
			
			
			-13%
			
			
			25%
			
			
			 
			
			
			 
			
		


			Median
			
			
			 
			
			
			 
			
			
			4%
			
			
			21%
			
			
			7%
			
			
			-15%
			
			
			12%
			
			
			 
			
			
			 
			
		

As discussed here, total returns are accumulative returns and assume dividends are reinvested into units or shares on the ex-dividend date. Note 2019 best performers do not include CITIC Envirotech or United Engineers due to recent developments in cash offers. A formal exit offer was made for CITIC Envirotech on 3 January (click here) with an exit offer price of S$0.55 a share that represents a 68.5% premium over the VWAP of S$0.326 for the three month period up to and including 1 Nov 2019. Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 31 December 2019).



Hi-P Int, SBS Transit & Bumitama Led Mid-Cap Companies in 2019 

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 </li>
	<li>
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 </li>
	<li>
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 </li>
	<li>Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.</li>
</ul>
Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/YTD%20Returns%20ROE%20Highlights%20of%20STIs%2010%20Largest%20Industrial.png" alt="YTD Returns ROE Highlights of STIs 10 Largest Industrial ">
 </figure>
 <div class="content-caption">YTD Returns ROE Highlights of STIs 10 Largest Industrial </div>
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/10Y%20Annualised%20Total%20Returns%20Industrials.png" alt="10Y Annualised Total Returns Industrials">
 </figure>
 <div class="content-caption">10Y Annualised Total Returns Industrials</div>
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			ROE (%)
			</td>
			<td>
			5Y Avg ROE (%)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			22.2
			</td>
			<td>
			23.5
			</td>
			<td>
			3.7
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			16.4
			</td>
			<td>
			11.3
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			15.1
			</td>
			<td>
			15.3
			</td>
			<td>
			4.0
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			13.2
			</td>
			<td>
			12.6
			</td>
			<td>
			4.8
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			11.6
			</td>
			<td>
			12.6
			</td>
			<td>
			4.2
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			8.4
			</td>
			<td>
			10.0
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			6.6
			</td>
			<td>
			10.7
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			5.9
			</td>
			<td>
			9.7
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			5.1
			</td>
			<td>
			8.9
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			5.2
			</td>
			<td>
			5.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11.0
			</td>
			<td>
			12.0
			</td>
			<td>
			3.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			18.8
			</td>
			<td>
			26.1
			</td>
			<td>
			37.9
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			12.4
			</td>
			<td>
			-9.1
			</td>
			<td>
			82.2
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			4.2
			</td>
			<td>
			-3.6
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			-18.1
			</td>
			<td>
			-5.2
			</td>
			<td>
			40.5
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			18.6
			</td>
			<td>
			10.9
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			3.1
			</td>
			<td>
			-8.4
			</td>
			<td>
			23.2
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			-20.3
			</td>
			<td>
			-16.4
			</td>
			<td>
			0.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			-9.8
			</td>
			<td>
			-12.1
			</td>
			<td>
			7.3
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			-11.6
			</td>
			<td>
			-15.6
			</td>
			<td>
			-14.0
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			-2.8
			</td>
			<td>
			-3.1
			</td>
			<td>
			-10.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-0.5
			</td>
			<td>
			-3.6
			</td>
			<td>
			17.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table
</body></html>





SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 
	
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 
	
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 
	Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.

      
    
    YTD Returns ROE Highlights of STIs 10 Largest Industrial 
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.

      
    
    10Y Annualised Total Returns Industrials
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			ROE (%)
			
			
			5Y Avg ROE (%)
			
			
			Div Ind Yld (%)
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			22.2
			
			
			23.5
			
			
			3.7
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			16.4
			
			
			11.3
			
			
			4.6
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			15.1
			
			
			15.3
			
			
			4.0
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			13.2
			
			
			12.6
			
			
			4.8
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			11.6
			
			
			12.6
			
			
			4.2
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			8.4
			
			
			10.0
			
			
			3.9
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			6.6
			
			
			10.7
			
			
			3.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			5.9
			
			
			9.7
			
			
			1.1
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			5.1
			
			
			8.9
			
			
			1.8
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			5.2
			
			
			5.6
			
			
			3.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.0
			
			
			12.0
			
			
			3.5
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			18.8
			
			
			26.1
			
			
			37.9
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			12.4
			
			
			-9.1
			
			
			82.2
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			4.2
			
			
			-3.6
			
			
			8.9
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			-18.1
			
			
			-5.2
			
			
			40.5
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			18.6
			
			
			10.9
			
			
			-2.9
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			3.1
			
			
			-8.4
			
			
			23.2
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			-20.3
			
			
			-16.4
			
			
			0.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			-9.8
			
			
			-12.1
			
			
			7.3
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			-11.6
			
			
			-15.6
			
			
			-14.0
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			-2.8
			
			
			-3.1
			
			
			-10.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			-0.5
			
			
			-3.6
			
			
			17.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table



ROE Highlights of STI’s 10 Largest Industrials Constituents





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

Singapore

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SATS (SATS SP)

VICOM Amongst Singapore’s Most Defensive Stocks in 2020 YTD

In the first 17 weeks of 2020, ComfortDelGro subsidiary VICOM was the strongest performer among Singapore Industrials stocks that report...

Singapore Exchange Ltd (SGX)

Singapore Agriculture, F&B Stocks Outpaced Peers in 2019

Wilmar, Japfa and Golden-Agri have led Singapore’s 10 most traded Agriculture, Food and Beverage stocks for the first eight sessions of 2020....

Singapore Exchange Ltd (SGX)

Hi-P Int, SBS Transit & Bumitama Led Mid-Cap Companies in 2019

Singapore’s Mid-Cap Stocks performed in-line with the stocks of the same market capitalisation across Asia in 2019. Of Singapore’s 40 most...

Singapore Exchange Ltd (SGX)

ROE Highlights of STI’s 10 Largest Industrials Constituents

SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than...

Singapore Exchange Ltd (SGX)

Real Estate, Manufacturing and F&B Shares on the Move in 1H19

Real Estate, Manufacturing and Food & Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)