• 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.

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).