SGX Market Updates

Regional Healthcare Stocks Leading the World in 2018 YTD


PUBLISHED ON |

16 April 2018

  • The SGX All Healthcare Index has gained 4.6% in the 2018 YTD, similar to the MSCI AC Asia Pacific Health Care Index returns of 4.7%, and higher than the MSCI World Health Care Index decline of 2.1%.

  • The five largest capitalised stocks of the SGX All Healthcare Index include IHH Healthcare Bhd, Top Glove Corp Bhd, Haw Par Corp, Raffles Medical Group and Tianjin Zhong Xin Pharm Group. All five stocks have gained in the YTD, with average total returns of 11.6% and median total returns of 5.7%.

  • Of these five stocks, the strongest two stocks both in the 2018 YTD and past 12M maintain a strong product focus – Top Glove Corp, with a product presence in virtually every corner of the globe, and Haw Par Corp, with a global consumer base for its Tiger Balm products.




Longevity and population growth continues to rise across Asia Pacific, which has seen a directional correlation of expenditure on healthcare services.

As maintained by the World Bank in 2016 (click here), East Asian and Pacific economies are aging more rapidly than economies elsewhere. In Singapore, the Ministry of Health estimate (click here) that in 2015, one in eight Singaporeans were aged 65+, which will grow to one in four Singaporeans aged 65+ by 2030. Aside from the impact of demographics and increased heath care spending, the Sector is expanding regionally in both depth and span as existing providers expand their scope, med techs roll out innovative solutions, and new providers list on exchanges.



SGX All Healthcare Index

The SGX All Healthcare Index is a free-float, and diversified market capitalisation-weighted index that measures the performance of Singapore’s listed healthcare sector. Its past competitive performance since the end of 2014, in terms of total returns, is illustrated below.


SGX All Healthcare Index Total Returns (%)

Source: SGX StockFacts & Bloomberg (Data as of 13 April 2018).



The SGX All Healthcare Index has gained 4.6% in the 2018 YTD, similar to the MSCI AC Asia Pacific Health Care Index returns of 4.7%, and higher than the MSCI World Health Care Index decline of 2.1%.

The five largest capitalised stocks of the SGX All Healthcare Index include IHH Healthcare Bhd, Top Glove Corporation Bhd, Haw Par Corporation, Raffles Medical Group, Tianjin Zhong Xin Pharm Group. All five stocks have gained in the 2018 year thus far, with average total returns of 11.6% and median total returns of 5.7%.



Recent Gains of Top Glove Corp & Haw Par Corp

Of the five aforementioned stocks, the two strongest performers in both the 2018 year-to-date and past 12 months were Top Glove Corporation Bhd and Haw Par Corporation. Both stocks maintain a strong product focus and have also cited similar business highlights of accessing new markets/channels, widening the product mix, and increased use of digitisation and technology to optimise/enhance operational efficiency.

Top Glove Corporation Bhd reiterated with its 2QFY18 (ending 28 Feb) results, it will continue to pursue strategic expansions via the organic and non-organic routes, and noted:

  • It is in the process of constructing two new manufacturing facilities;
  • It will continue to explore mergers and acquisitions opportunities, as well as new set-ups in synergistic industries, towards faster and more efficient growth. For instance, the acquisition of Aspion Sdn. Bhd targeted for completion at the end of April, provides synergistic effects in terms of access to new markets and product mix; and
  • The Group is also progressing well on its digital adoption journey and will continue to embrace technological advancements, which will enable Top Glove to enhance its product quality and operational efficiency.


As noted by Haw Par Corporation Chairman, Dr Wee Cho Yaw in the recent released FY17 Annual Report:

  • In 2018, Haw Apr Corporation will continue to enlarge the consumer base for Tiger Balm products by deepening distribution into more channels and providing a wider range of products;
  • Digitisation and innovation that are changing consumer habits are shaping the ways Haw Par reaches out to consumers; and
  • In line with increasing market demand for Tiger Balm range of products, Haw Par has been investing incapacity scale-up and will continue to focus on harnessing technology to optimise operational efficiency.


SGX All Healthcare Index Constituent Performances

The constituents of the SGX All Healthcare Index are tabled below. To see more details on each stock in SGX StockFacts click on the stock name.


Name SGX
Code
Market
Cap
S$M
13 April
Closing Price
$
YTD
Total
Return
%
12M
Total
Return
%
GICS Sub Industry
IHH Healthcare Q0F 16,891 2.050 5.7 6.0 Health Care Facilities
Top Glove Corp BVA 4,354 3.410 27.5 110.3 Health Care Supplies
Haw Par Corp H02 2,947 13.370 17.8 36.0 Pharmaceuticals
Raffles Medical Group BSL 2,037 1.150 2.7 -21.0 Health Care Facilities
Tianjin Zhong Xin Pharm Group* T14 2,022 0.975 4.6 -3.1 Pharmaceuticals
ParkwayLife REIT C2PU 1,676 2.770 -6.3 15.7 Health Care REITs
First REIT AW9U 1,050 1.340 -2.1 10.4 Health Care REITs
TalkMed Group 5G3 920 0.700 2.9 -10.9 Health Care Services
Riverstone Hldgs AP4 786 1.060 -1.9 25.0 Office Services & Supplies
RHT Health Trust RF1U 636 0.785 -5.1 -10.7 Health Care Facilities
Health Management Intl 588 540 0.645 -1.8 -1.3 Health Care Facilities
Q & M Dental Group Singapore QC7 485 0.610 -0.8 -11.9 Health Care Services
OUE Lippo Healthcare 5WA 289 0.130 4.0 20.8 Health Care Facilities
Clearbridge Health 1H3 268 0.550 54.9 N/A Health Care Services
Healthway Medical Corp 5NG 231 0.051 -5.6 23.8 Health Care Services
Singapore Medical Group 5OT 227 0.500 -13.0 -13.0 Health Care Services
Cordlife Group P8A 183 0.725 -8.2 -31.3 Health Care Services
Singapore O&G 1D8 174 0.365 -17.0 -45.7 Health Care Facilities
ISEC Healthcare 40T 155 0.300 -4.8 3.7 Health Care Facilities
iX Biopharma 42C 100 0.155 -26.2 -44.6 Pharmaceuticals
HC Surgical Specialists 1B1 100 0.670 -2.8 19.7 Health Care Services
TechComp Hldgs T43 98 0.355 26.8 73.2 Health Care Distributors
Aoxin Q & M Dental Group 1D4 84 0.220 4.8 12.5 Health Care Services
UG Healthcare Corp 41A 38 0.198 -10.0 -20.0 Health Care Supplies
QT Vascular 5I0 30 0.015 25.0 -61.5 Health Care Equipment
Camsing Healthcare BAC 26 0.880 7.3 5.4 Distributors
Medtecs International Corp 546 25 0.045 -8.2 -15.1 Health Care Supplies
AsiaMedic 505 21 0.053 -14.5 -39.5 Health Care Services
Suntar Eco-City BKZ 11 0.170 N/A 21.4 Pharmaceuticals
Star Pharmaceutical AYL 7 0.154 -44.0 -1.9 Pharmaceuticals
Pharmesis Intl BFK 4 0.191 -17.0 -51.2 Pharmaceuticals

Note: SGD performance and capitalisation equivalents shown for Tianjin Zhong Xin Pharm Group traded in USD.
Source: SGX StockFacts & Bloomberg (Data as of 13 April 2018).







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