SGX Market Updates

Singapore Healthcare Sector Outperforms Regional Benchmark in YTD


PUBLISHED ON |

08 November 2016

  • The SGX All Healthcare Index has generated a 6.4% total return in the year-to-date, and maintains a dividend yield of 5.9%. This compares with the MSCI AC Asia Pacific Asia ex-Japan Health Care Index, which has declined 2.4% in Singapore dollar terms over the same period, and maintains a yield of 1.2%. The three best-performing components of the SGX All Healthcare Index are Singapore Medical Group (+165.2%), Health Management International (+65.9%) and Singapore O&G (+58.0%).

  • The three Health Care trusts listed on SGX – First REIT, Parkway Life REIT and RHT Health Trust – have a combined market capitalisation of S$3.2 billion and have averaged a dividend-inclusive total return of 15.9% in the YTD. Both First REIT and PLife REIT reported earnings for the three months ended 30 September 2016 last month, while RHT will release its September quarter results tomorrow after the market close.

  • HC Surgical Specialists was the latest healthcare company to list on SGX on 3 November 2016. It offered 30 million placement shares at S$ 0.27 each, with no public tranche, raising a total of S$8.1 million. The stock closed at S$0.55 on its trading debut, reflecting a 103.7% gain over its issue price.



Singapore’s healthcare sector has a combined market value of more than S$30 billion. According to the Global Industry Classification Standards (GICS®), the industry can be broken down into the following sub-segments – Health Care Equipment, Health Care Supplies, Health Care Services, Health Care Facilities, Biotechnology, and Pharmaceuticals.

The city-state also plays a key role in Asia’s healthcare industry, where multiple opportunities and challenges exist in the ongoing supply and demand for health services across the region. A recent Market Update published on 25 October 2016 highlighted the key drivers of Asia’s Healthcare Sector.


SGX Healthcare Index

The SGX All Healthcare Index comprises stocks that report at least half their revenues from healthcare in the last financial year, as well as REITs with investments in healthcare facilities. The Index, which is free-float and market capitalisation-weighted, consists of 27 constituents with a total market capitalisation of S$33.2 billion. The weightings of index components are capped at a maximum 10% at each periodical rebalance, so that it is better diversified across a range of stocks.

The SGX All Healthcare Index has generated a 6.4% total return in the year-to-date and maintains a dividend yield of 5.9%. This compares with the MSCI AC Asia Pacific Asia ex-Japan Health Care Index, which has declined 2.4% in Singapore dollar terms over the same period, and maintains a dividend yield of 1.2%.

The five best-performing constituents of the SGX All Healthcare Index are Singapore Medical Group (+165.2%), Health Management International (+65.9%), Singapore O&G (+58.0%), ISEC Healthcare (+31.1%) and Pharmesis International (+20.0%). They averaged a total return of 68.0% in the year-to-date and maintain an average dividend yield of 1.6%.

The table below details the five best-performing stocks of the SGX All Healthcare Index, sorted by YTD total returns. Click on each stock to visit its profile page on SGX StockFacts.


NameSGX CodeMarket Cap
in S$M
Total Return
YTD %
Total Return
1 Yr %
Total Return
3 Yrs %
P/EP/BROE %Dvd Ind Yld %GICS® Sub Industry Name
Singapore Medical Group5OT119165.2200.0299.6163.310.86.9N/AHealth Care Services
Health Management Intl58833665.978.9289.450.85.912.60.4Health Care Facilities
Singapore O&G41X27358.075.7N/A42.910.429.82.3Health Care Facilities
ISEC Healthcare40T14931.18.5N/A29.32.78.32.1Health Care Facilities
Pharmesis IntlBFK1020.0-4.06.771.60.50.5N/APharmaceuticals
Average 68.071.8198.671.66.111.61.6

Source: SGX, Bloomberg & SGX StockFacts (data as of 7 November 2016)



Healthcare Trusts

Of the 32 REITs and six stapled trusts listed on Singapore Exchange, two are classified by GICS® as Health Care REITs. They are First Real Estate Investment Trust and Parkway Life Real Estate Investment Trust.

Health Care REITs are trusts engaged in the acquisition, development, ownership, leasing, management and operation of properties serving the health care industry, including hospitals, nursing homes, and assisted living properties.

RHT Health Trust, categorised by GICS® under the sub-segment of Health Care Facilities, is the first business trust listed on SGX with India-based healthcare assets. It has a portfolio of 12 Clinical Establishments, four Greenfield Clinical Establishments and two Operating Hospitals located across India.

First REIT, Parkway Life REIT and RHT Health Trust have a combined market capitalisation of S$3.2 billion. In the year thus far, they have averaged a dividend-inclusive total return of 15.9%, bringing their one-year and three-year total returns to 16.6% and 50.4% respectively.

For the quarter ended 30 September 2016, First REIT reported a distribution per unit (DPU) of 2.12 Singapore cents, up 1.9% from the year-ago quarter. PLife REIT reported a DPU of 3.06 Singapore cents for the September quarter, down 8.8% YoY. First REIT registered a 6.3% YoY increase in net property income to S$26.6 million and a 6.5% rise gross revenue to S$26.9 million. For PLife REIT, its net property income gained 8.0% to S$26.2 million, while gross revenue rose 8.2% to S$28.1 million.

RHT Health Trust will report results for its second quarter ended 30 September 2016 after the market close tomorrow.

Parkway Life REIT, First REIT, and RHT Health Trust have weightings of 9.94%, 9.97% and 8.52% respectively in the SGX All Healthcare Index.

The table below details the three Health Care trusts, sorted by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.


NameSGX CodeMarket Cap
in S$M
Total Return
YTD %
Total Return
1 Yr %
Total Return
3 Yrs %
P/BDvd Ind Yld
%
Price vs
12M High %
Price vs
12M Low %
Parkway Life REITC2PU151313.015.622.81.54.9-6.113.5
First REITAW9U100916.215.246.11.36.5-5.720.2
RHT Health TrustRF1U70418.418.982.21.08.7-16.64.8
Average15.916.650.41.36.7

Source: SGX, Bloomberg & SGX StockFacts (data as of 7 November 2016)

 

Latest Healthcare IPO

Earlier this month, HC Surgical Specialists (HCSS) listed on the Catalist board. It offered 30 million placement shares at S$ 0.27 each, with no public tranche, raising a total of S$8.1 million. The stock closed at S$0.55 on its 3 November trading debut, reflecting a 103.7% gain over its IPO price.

Of the S$6.2 million in net proceeds raised, S$2.8 million will go towards expanding HCSS’s business operations, while S$2.2 million will be designated for working capital, and the remaining S$1.2 million will be used to purchase equipment and for renovation work.

HC Surgical Specialists, with a current market capitalisation of S$83.4 million, is a medical services company which provides endoscopic procedures through a network of 10 clinics in Singapore. Its procedures include gastroscopies, colonoscopies, and general surgery services with a focus on colorectal procedures. The company’s clinics also provides treatments for haemorrhoids, anal abscesses, anal fissures, gallstones and inflammation of the gallbladder, hernias, colorectal cancer, stomach cancer, colonic diverticular disease, and cysts and lipomas. Click here for the company website.





This article is provided by SGX My Gateway.



SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.












SGX Stock / REIT Search

Advertisement

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement