SGX Market Updates

SGX Healthcare Index Outperformed Asian Benchmark in YTD


PUBLISHED ON |

29 August 2017

  • In the 2017 year-to-date, the SGX All Healthcare Index has registered a price gain of 2.7%, outperforming the MSCI AC Asia ex Japan Health Care Index’s 1.9% in Singapore dollar terms.

  • The five best-performing index constituents have averaged a price return of 63.8% in the year-to-date: Suntar Eco-City (+113.3%), International Healthway Corp (+76.0%), STAR Pharmaceutical (+44.8%), Singapore Medical Group (+42.5%), and Healthway Medical Corp (+42.4%).

  • Many Singapore-listed healthcare providers are leveraging on the industry’s favourable demand trends, expanding into regional and/or global markets to meet growing patient needs. Among the 10 constituent stocks with the highest weightings in the SGX All Healthcare Index, six of them own and/or operate healthcare facilities and assets, including clinics and hospitals, located outside Singapore.




The SGX All Healthcare Index

The SGX All Healthcare Index is a free-float, market capitalisation-weighted index that measures the performance of the listed healthcare sector in Singapore.

Currently, the five largest components by index weight are Parkway Life REIT, Top Glove Corp, Haw Par Corp, First REIT and IHH Healthcare. These five stocks make up more than half the index, and in the 2017 year-to-date, they have averaged a price return of 7.3%. Haw Par Corp generated the highest price return of 21.1% over the period.

In the 2017 year-to-date, the SGX All Healthcare Index has registered a price gain of 2.7%, outperforming the MSCI AC Asia ex Japan Health Care Index’s 1.9% in Singapore dollar terms.


YTD Index Price Moves
YTD SGX All Healthcare Index vs Straits Times Index Price Moves

Source: Bloomberg (data as of 28 August 2017)



The five best-performing index constituents have averaged a price return of 63.8% in the year-to-date. They are Suntar Eco-City (+113.3%), International Healthway Corp (+76.0%), STAR Pharmaceutical (+44.8%), Singapore Medical Group (+42.5%), and Healthway Medical Corp (+42.4%).

The table below details the 29 stocks in the SGX All Healthcare Index, sorted by index weight. Click on the stock name to see its profile page on StockFacts.

Name SGX
Code
Weight
%
Price
S$
Market Cap
S$m
Price Change
YTD
%
Price Change
1 Yr
%
P/E GICS Sub Ind Name
Parkway Life REIT C2PU 11.0 2.700 1,634 14.4 9.8 16.8 Health Care REITs
Haw Par Corp H02 10.8 11.010 2,422 21.1 24.8 18.8 Pharmaceuticals
Top Glove Corp Bhd BVA 10.5 1.755 2,201 6.4 15.5 22.9 Health Care Supplies
First REIT AW9U 10.3 1.350 1,051 6.7 2.7 23.7 Health Care REITs
IHH Healthcare Bhd Q0F 9.8 1.885 15,531 -11.9 -14.3 53.4 Health Care Facilities
RHT Health Trust RF1U 8.6 0.855 691 -6.6 -15.8 5.5 Health Care Facilities
Raffles Medical Group BSL 7.8 1.120 1,983 -21.7 -25.6 27.8 Health Care Facilities
TZXP T14 5.5 1.090 1,751 24.6 39.7 12.8 Pharmaceuticals
Riverstone Holdings AP4 4.9 1.085 804 23.3 22.6 19.8 Office Services & Supplies
Health Management Intl 588 3.5 0.645 529 1.2 56.1 59.2 Health Care Facilities
Q&M Dental Group QC7 2.7 0.630 501 -11.9 -10.0 13.2 Health Care Services
Cordlife Group P8A 2.5 0.825 208 -15.8 -33.5 N/A Health Care Services
Talkmed Group 5G3 2.0 0.615 808 20.6 22.4 22.8 Health Care Services
HC Surgical Specialists 1B1 1.7 0.620 93 0.8 N/A 60.2 Health Care Services
Healthway Medical Corp 5NG 1.4 0.047 150 42.4 67.9 N/A Health Care Services
Singapore Medical Group 5OT 1.3 0.620 280 42.5 106.7 38.0 Health Care Services
International Healthway Corp 5WA 1.2 0.088 146 76.0 125.6 N/A Health Care Facilities
iX Biopharma 42C 1.1 0.240 153 -14.3 -12.7 N/A Pharmaceuticals
ISEC Healthcare 40T 0.8 0.310 160 5.1 0.0 23.3 Health Care Facilities
Singapore O&G 1D8 0.8 0.465 222 -20.9 -21.2 24.9 Health Care Facilities
Techcomp Holdings T43 0.6 0.290 80 31.8 20.8 16.7 Health Care Distributors
Medtecs International Corp 546 0.4 0.050 27 8.7 -5.7 18.9 Health Care Supplies
AsiaMedic 505 0.3 0.070 27 4.5 16.7 N/A Health Care Services
QT Vascular 5I0 0.1 0.011 19 -86.3 -84.7 N/A Health Care Equipment
Suntar Eco-City BKZ 0.1 0.320 20 113.3 45.5 15.5 Pharmaceuticals
STAR Pharmaceutical AYL 0.1 0.210 10 44.8 16.7 6.8 Pharmaceuticals
Camsing Healthcare BAC 0.1 0.950 29 13.1 15.9 N/A Distributors
UG Healthcare Corp 41A 0.1 0.240 46 -15.8 -28.4 18.9 Health Care Supplies
Pharmesis International BFK 0.0 0.250 6 -50.0 -37.5 N/A Pharmaceuticals
Average 8.5 11.4 24.8

Source: SGX, Bloomberg & SGX StockFacts (data as of 28 August 2017)



Tapping Healthcare Demand Beyond Singapore

Many Singapore-listed healthcare providers are leveraging on the industry’s favourable demand trends – such as Asia’s rapidly ageing population, increase in lifestyle diseases, rising disposable incomes and higher per capita healthcare spending – and are expanding into regional as well as global markets to meet growing patient needs.

Among the 10 constituent stocks with the highest weightings in the SGX All Healthcare Index, six of them – Parkway Life REIT, First REIT, IHH Healthcare, RHT Health Trust, Raffles Medical Group and Health Management International – all own and/or operate healthcare facilities and assets, including clinics, hospitals and treatment centres, located outside Singapore. PLife REIT, First REIT and IHH, which have the highest index weightings, are detailed below.


Parkway Life REIT

Parkway Life Real Estate Investment Trust is one of Asia’s largest listed healthcare REITs by asset size. It owns the largest portfolio of strategically located private hospitals in Singapore, comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital. It also owns 44 high quality nursing home and care facility properties in various prefectures of Japan, and strata-titled units/lots at Gleneagles Intan Medical Centre Kuala Lumpur in Malaysia. The REIT, with a market capitalisation of S$1.6 billion on SGX, has the highest weighting – at 10.9% – in the SGX All Healthcare Index.

On 25 July, PLife REIT reported a 10.3% YoY rise in distribution per unit (DPU) to 3.32 Singapore cents for the three months ended 30 June 2017. Gross revenue for the period increased 1.1% YoY to S$27.7 million, while net property income gained 1.4% YoY to S$25.9 million. (click here for the earnings release)

With rising domestic  inflation, PLife REIT’s Singapore properties are set to enjoy a 1.27% increase in Minimum Guaranteed Rent for the 11th year of lease term (23 August 2017 to 22 August 2018) over the total rent payable for the previous year, it said in the earnings statement. The trust also has no long-term debt refinancing needs till 2019, with all-in cost of debt lowered from 1.4% to 1.1%. With the adoption of prudent capital and risk management strategies, its interest rate exposure has been largely hedged, insulating it from any related headwinds.


First REIT

First Real Estate Investment Trust has a portfolio of 18 properties – ranging from nursing homes to hospitals – located in Indonesia, Singapore and South Korea. The trust has a market capitalisation of over S$1 billion and a weighting of 10.2% in the SGX All Healthcare Index.

On 17 July, First REIT posted a 1.4% YoY gain in distribution per unit (DPU) to 2.14 Singapore cents for the three months ended 30 June 2017. Gross revenue and net property income for the quarter rose 3.3% YoY and 3.2% YoY to S$27.5 million and S$27.2 million respectively. (click here for the earnings release)

With its sponsor PT Lippo Karawaci Tbk having a strong pipeline of over 40 healthcare assets in Indonesia for acquisition, the trust plans to acquire one or two high-quality properties this year to further boost its income stream, Victor Tan, Acting Chief Executive Officer of Bowsprit Capital Corporation, the manager of the REIT, said in its results statement.


IHH Healthcare

IHH Healthcare, the second largest healthcare group in the world by market capitalisation, is listed on Bursa Malaysia and the Mainboard of SGX. Its operations span Malaysia, Singapore, Turkey and India. The stock has a market capitalisation of S$15 billion on SGX, and a weighting of 9.8% in the SGX All Healthcare Index.

On 23 August, IHH reported a 12% YoY rise in revenue to RM2.77 billion for the three months ended 30 June 2017, as profit after tax and minority interests rose 29% YoY to RM316.6 million. This was due to sustained growth in inpatient admissions and the ramp up of new hospitals, including Gleneagles Hong Kong, as well as Turkey’s Acibadem Altunizade Hospital and Acibadem Atakent University Hospital. Tokuda Group and City Clinic Group in Bulgaria, acquired in June 2016 and since consolidated into Acibadem, also contributed to the higher revenue. (click here for the earnings release)

IHH Chief Executive Officer Tan See Leng said in the earnings statement that the Group continues to believe in sustained demand for quality private healthcare in its home and key growth market of Greater China. “We look forward to our next phase of growth, especially in Greater China, where we have laid out plans to make it our fifth home market after Malaysia, Singapore, Turkey and India,” he added.







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.












Stock / REIT Search

Advertisement
Advertisement