SGX Market Updates

Singapore Healthcare Stocks Kick Off 2017 on Strong Note


PUBLISHED ON |

18 January 2017

  • The SGX All Healthcare Index has generated a 0.7% total return in the January MTD, following a total return of 6.0% in the 2016 calendar year. This brings its five-year annualised total return to 11.2%.

  • The 10 best-performing constituents of the SGX All Healthcare index averaged MTD and one-year total returns of 9.8% and 22.2% respectively. These stocks outperformed the 10 largest Healthcare securities in Asia Pacific, which averaged MTD and one-year total returns of 0.4% and 2.7% respectively.

  • The five best-performing constituents of the SGX All Healthcare Index in the MTD are International Healthway Corporation (+32.0%), Pharmesis International (+25.0%), AsiaMedic (+10.4%), Talkmed Group (+6.9%) and iX Biopharma (+5.4%). They averaged a total return of 15.9% in the MTD and maintain an average dividend yield of 4.2%.



Singapore’s healthcare sector has a combined market value of about 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 6 January highlighted the performance of Singapore’s Healthcare Sector Leaders in 2016.

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$32.5 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. More information on the historical performance and schematics of the Index can be found here.

The SGX All Healthcare Index has generated a 0.7% total return in the January month-to-date, following a total return of 6.0% in the 2016 calendar year. This brings its five-year annualised total return to 11.2%.

The 10 best-performing constituents of the SGX All Healthcare index averaged MTD and one-year total returns of 9.8% and 22.2% respectively, maintaining a dividend yield of 3.5%. These stocks outperformed the 10 largest Healthcare securities in Asia Pacific, which averaged MTD and one-year total returns of 0.4% and 2.7% respectively. These 10 largest Healthcare securities in Asia Pacific maintain a dividend yield of 1.6%.

The 10 largest Healthcare securities in Asia Pacific are listed in Sydney, Mumbai and Shanghai, with seven of the 10 in Tokyo. These 10 stocks have a market capitalisation of S$327 billion.

The five best-performing constituents of the SGX All Healthcare Index in the MTD were International Healthway Corporation (+32.0%), Pharmesis International (+25.0%), AsiaMedic (+10.4%), Talkmed Group (+6.9%) and iX Biopharma (+5.4%). They averaged a total return of 15.9% in the MTD and maintain an average dividend yield of 4.2%.

The table below details the 10 best performers of the SGX All Healthcare Index, sorted by MTD total returns. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Market
Cap
S$M
Total
Return
MTD
%
Total
Return
1 Yr
%
Total
Return
3 Yrs
%
P/E P/B ROE
%
Dvd Ind
Yld %
GICS® Sub Industry Name
Intl Healthway Corp 5WA 111 32.0 -25.0 -80.0 N/A 0.5 -5.5 N/A Health Care Facilities
Pharmesis Intl BFK 12 25.0 25.0 13.6 574.6 0.6 -0.1 N/A Pharmaceuticals
AsiaMedic 505 30 10.4 13.8 -26.0 N/A 1.7 -15.7 N/A Health Care Services
Talkmed Grp 5G3 710 6.9 18.8 N/A 19.3 13.3 73.4 4.2 Health Care Services
iX Biopharma 42C 189 5.4 -36.4 N/A N/A 4.7 -31.8 N/A Pharmaceuticals
Medtecs Intl Corp 546 26 4.3 9.1 -25.0 25.8 0.3 1.2 N/A Health Care Supplies
Raffles Medical Grp BSL 2587 4.2 14.6 51.7 36.0 4.0 11.6 1.3 Health Care Facilities
Singapore Medical Grp 5OT 126 3.4 177.8 240.9 172.8 11.4 6.9 N/A Health Care Services
Parkway Life REIT C2PU 1440 3.4 17.9 21.5 21.3 1.4 6.6 5.0 Health Care REITs
Healthway Medical Corp 5NG 93 3.0 6.3 -50.7 N/A 0.5 -0.1 N/A Health Care Services
Average 9.8 22.2 18.2 141.6 3.8 4.7 3.5

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)



The table below details the 10 largest healthcare stocks in Asia Pacific, sorted by market capitalisation.

Name Exchange Market
Cap
S$Bln
Total
Return
MTD
%
Total
Return
1 Yr
%
P/E P/B ROE
%
Dvd Ind
Yld %
CSL ASX 48.8 2.2 7.0 28.1 13.4 46.8 1.7
Takeda Pharmaceutical Co TSE 47.2 -0.4 -10.3 25.1 2.1 7.6 3.8
Astellas Pharma Inc TSE 42.1 -2.9 2.0 16.5 2.8 16.1 2.2
Otsuka Holdings Co TSE 39.5 12.0 47.4 43.4 2.0 4.4 1.8
Sun Pharmaceutical Indus NSE 32.5 1.1 -18.8 32.8 4.9 16.5 0.2
Eisai Co TSE 24.1 -2.3 -6.8 26.1 3.4 12.7 2.3
Chugai Pharmaceutical Co TSE 23.9 2.7 -7.6 33.2 3.0 9.1 1.5
Hoya Corp TSE 23.1 -2.7 7.2 22.6 4.2 16.9 1.6
Shanghai Raas Blood Products Co SSE 22.7 -5.0 -3.1 66.3 9.4 13.7 0.1
Shionogi & Co TSE 22.6 -1.1 10.5 23.7 3.6 15.3 1.2
Average 0.4 2.7 31.8 4.9 15.9 1.6

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)



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 1.9 % in the MTD, bringing their one-year and three-year total returns to 24.0% and 57.9% respectively.

Parkway Life REIT, First REIT, and RHT Health Trust have weightings of 9.76%, 9.85% and 8.93% 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.

Name SGX
Code
Market
Cap
S$M
Total
Return
MTD
%
Total
Return
1 Yr
%
Total
Return
3 Yrs
%
P/E P/B ROE
%
Dvd Ind
Yld %
GICS® Sub Industry Name
Parkway Life REIT C2PU 1440 3.4 17.9 21.5 21.3 1.4 6.6 5.0 Health Care REITs
First REIT AW9U 988 2.4 17.7 50.6 24.3 1.2 8.5 6.6 Health Care REITs
RHT Health Trust RF1U 742 0.0 36.5 101.7 21.5 1.0 5.7 7.9 Health Care Facilities
Average 1.9 24.0 57.9 22.4 1.2 6.9 6.5

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)






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