SGX Market Updates

5 Largest, Best-Performing SGX F&B Stocks Average 20% YTD Total Return


PUBLISHED ON |

19 February 2019

  • In Jan 2019, Consumer Staples and Consumer Discretionary were top net buy sectors after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. Consumer Staples was also ranked the 4th best-performing sector with a total return of 8.4%.

  • The 10 largest F&B stocks on SGX with a market capitalisation of above S$200 million that were best performers in the YTD have a combined market cap of over S$36 billion. The 10 stocks are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the region.

  • Among them, the five best performers in the YTD were: Thai Beverage (+35.5%), QAF (+21.4%), Olam (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These five stocks have averaged a total return of +19.9% in the YTD, bringing their 1Y and 3Y total returns to -9.1% and +49.8% respectively.




SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion. Among these, more than 40 belong to the Consumer Staples sector, while the remainder are classified under the Consumer Discretionary segment.

The retail and distribution of packaged foods and meats, production of agricultural goods, as well as beverage manufacturers like breweries are categorised under the Consumer Staples sector. This segment is typically regarded as defensive, as companies in this sector are involved in the non-cyclical businesses of food, beverages and other household items.

Given the backdrop of slower global growth and higher macro risks, analysts have recommended investors to focus on stocks with robust balance sheets, stable earnings and good dividends. In its Singapore Strategy 2019 report published last month, RHB Research rated the Consumer space “Overweight”, highlighting it as a defensive sector pick.

Last month, the International Monetary Fund (IMF) cut its global growth forecasts for 2019 and 2020 to 3.5% and 3.6% respectively for the second time in three months. In a January update of its World Economic Outlook report, the global lending agency cited weakness in Europe and some emerging markets, and noted that failure to resolve trade tensions could further destabilise a slowing global economy. Other key risks include a bigger-than-expected slowdown in China and a possible "No Deal" Brexit.

In January 2019, Consumer Staples and Consumer Discretionary were top net buy sectors on SGX after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. In particular, Thai Beverage PCL attracted the second-highest net inflow of S$49.3 million during the month. Consumer Staples was also ranked the fourth best-performing sector with a total return of 8.4%.

SGX Jan19 Sector Returns

The 10 largest food and beverage stocks on SGX with a market capitalisation of above S$200 million that were the best performers in the 2019 year-to-date have a combined market capitalisation of over S$36 billion. These 10 plays are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the Asia-Pacific region.

Among the 10, the 5 best performers in the YTD were: Thai Beverage PCL (+35.5%), QAF Ltd (+21.4%), Olam International (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These 5 stocks have averaged a total return of +19.9% in the YTD, bringing their one-year and three-year total returns to -9.1% and +49.8% respectively.


The table below details the 10 largest F&B stocks above S$200 million that were best performers in the YTD, sorted by YTD total returns.

Name SGX
Code
Market
Cap
S$m
YTD
Total
Return
(%)
1Y
Total
Return
(%)
3Y
Total
Return
(%)
P/E
(x)
ROE
(%)
Div Yld
(%)
THAI BEVERAGE Y92 20,468 35.5 -2.0 33.0 20.8 16.3 2.0
QAF LTD Q01 408 21.4 -30.8 -18.8 72.5 0.8 8.5
OLAM INTL O32 6,142 17.0 -8.0 35.3 13.1 8.2 3.9
JB FOODS BEW 212 12.9 34.3 249.6 4.9 29.0 1.5
INDOFOOD AGRI RESOURCES 5JS 300 12.6 -38.9 -50.0 47.2 0.3 3.0
FIRST RESOURCES EB5 2,725 11.7 2.4 -5.0 15.0 15.1 2.0
DELFI LTD P34 886 9.8 1.8 -28.5 30.2 10.7 1.6
BUMITAMA AGRI P8Z 1,182 9.7 -0.3 -0.7 9.8 17.9 3.9
FRASER AND NEAVE F99 2,666 8.9 -21.4 -0.3 20.2 6.1 2.5
JAPFA LTD UD2 1,458 8.2 69.8 77.5 17.4 13.1 0.7
Average   14.8 0.7 29.2 25.1 11.7 2.9

Source: StockFacts & Bloomberg (data as of 15 Feb 2019)







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