SGX Market Updates

Singapore’s Largest Consumer Staples Stocks Returned 34% in YTD


PUBLISHED ON |

24 April 2019

  • In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year 2018. It was also amongst the top net buy sectors for the quarter, garnering total institutional inflows of S$61.5 million.

  • The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion, and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore. 

  • Among the 20, the 5 best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They averaged a YTD total return of +33.8%.




Second-Best Performing Sector in 1Q19

In the first quarter of 2019, Consumer Staples was the second-best performing sector on SGX with a total return of +13.9%, after Information Technology’s +28.6% total return. Consumer Staples’ strong performance in 1Q19 also reverses the -2.9% total return it generated in calendar year 2018.

Consumer Staples was also among the top net buy sectors for the January-March quarter, garnering total institutional inflows of S$61.5 million, according to SGX data. This comprised inflows of S$50.3 million, S$9.0 million, and S$2.2 million for January, February and March 2019 respectively.



Geographical Diversity

The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.

In the 2019 year-to-date, these 20 largest Consumer Staples stocks have averaged a total return of +12.9%, bringing their one-year and three-year total returns to -1.4% and +22.6% respectively. They have also averaged a price-earnings ratio of 24.5x and a dividend indicated yield of 2.5%.

Among the 20, the 5 best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They have averaged a YTD total return of +33.8%.

Note that earlier this month, Jakarta Stock Exchange-listed PT Indofood Sukses Makmur Tbk, controlled by Indonesian tycoon Anthoni Salim, offered S$0.28 per share to take Indofood Agri Resources private.

The table below details the 20 largest Consumer Staples stocks on SGX, sorted by YTD total return.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
P/E
(x)
Dividend
Ind Yield
%
INDOFOOD AGRI RESOURCES* 5JS 391 46.6 -10.5 -49.0 NA 2.5
QAF LTD Q01 492 44.4 -14.4 -9.3 59.5 5.9
THAI BEVERAGE PCL Y92 20,719 38.0 6.1 27.9 21.2 2.0
GOLDEN AGRI-RESOURCES E5H 3,757 20.4 -15.4 -26.9 NA 2.0
FIRST RESOURCES EB5 2,931 19.5 15.5 0.8 17.9 1.9
WILMAR INTL F34 23,034 17.3 17.8 11.1 14.8 2.9
BUMITAMA AGRI P8Z 1,251 16.9 4.8 -6.8 12.0 3.8
OLAM INTL O32 6,094 15.8 -13.7 22.7 21.0 3.9
YEO HIAP SENG Y03 568 12.0 -11.7 -22.1 47.3 2.0
MEWAH INTL MV4 420 10.0 -4.7 2.3 20.6 2.4
DEL MONTE PACIFIC D03 276 8.8 -39.6 -54.0 11.9 NA
FOOD EMPIRE HOLDINGS F03 291 6.7 -15.1 126.4 12.2 1.2
JB FOODS BEW 188 4.8 13.7 224.7 5.1 3.3
OLD CHANG KEE 5ML 96 4.6 8.8 41.0 18.6 3.8
DELFI LTD P34 856 4.5 -6.3 -41.6 29.8 1.6
BREADTALK GROUP CTN 476 3.7 -10.1 79.3 39.2 1.8
FRASER & NEAVE F99 4,131 3.6 -2.1 64.3 19.9 2.5
SHENG SIONG GROUP OV8 1,579 -1.9 5.3 32.9 22.1 3.3
JAPFA LTD UD2 1,287 -5.5 43.8 2.6 8.9 0.7
DAIRY FARM INTL D01 14,320 -11.4 -0.5 26.1 116.3 2.7
Average 12.9 -1.4 22.6 24.9 2.5

Source: Bloomberg & StockFacts (data as of 22 April 2019)
* Privatisation offer announced by parent.




SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$135 billion. More than 40 of these 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 producers like soft drink makers and breweries, fall under the Consumer Staples sector.

Defensive Nature

Given the backdrop of slower global growth and increased macro risks, analysts have recommended investors to focus on sectors with robust balance sheets, stable earnings and decent valuations. In a report published earlier this month, RHB Research maintained its overweight rating on the Consumer space, pointing to “pockets of opportunities” in companies with strong attributes. “We continue to favour players with market exposure to the region that are likely to benefit from stronger GDP growth and higher domestic consumption,” the brokerage added.

Earlier this month, the International Monetary Fund (IMF) cut its global growth outlook to the lowest rate since the Global Financial Crisis, forecasting 3.3% growth in 2019, down from a 3.5% projection made in January. In its latest World Economic Outlook report, the agency cited downside risks from ongoing global trade tensions, as well as a slowdown in several major economies, including the Eurozone, Latin America, the US and the UK.







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