SGX Market Updates

Highlights of Small Cap Index’s Greater China-Related Best Performers


PUBLISHED ON |

12 June 2019

  • The 51-member FTSE ST Small Cap Index tracks the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. Among the constituents, 15 report more than 20% of revenues to the Greater China region. Comprising 14 companies and one business trust, they have a combined market cap of over S$7 billion.

  • In the YTD, the three best-performing Greater China-related constituents of the Small Cap Index were: Hi-P (+50.1%), Asian Pay TV Trust (+39.4%) and Ying Li (+19.8%). The trio averaged a YTD total return of +36.4%.

  • Hi-P, Ying Li and Asian Pay TV Trust report 55%, 100% and 100% of their revenues respectively to the Greater China region, and are involved in the businesses of electronics manufacturing, commercial real estate and communications services.




The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index representing the performance of small-capitalised companies, which pass size, free float and liquidity screens and trade on SGX Mainboard. The Index comprises 51 constituents with a combined market cap of nearly S$40 billion, ranging from S$48 million to over S$2 billion.

Of the 51 Index constituents, 15 report more than 20% of their full-year revenues to the Greater China region, which spans Mainland China, Hong Kong, Macau and Taiwan. Comprising 14 companies and one business trust, the constituents have a combined market cap of over S$7 billion, ranging from over S$200 million to more than S$900 million.



YTD Performances of Greater China-Related Index Constituents

In the 2019 year-to-date, the three best-performing Greater China-related constituents of the Small Cap Index were: Hi-P International (+50.1%), Asian Pay TV Trust (+39.4%) and Ying Li International (+19.8%). The trio averaged a YTD total return of +36.4%, bringing their one-year and three-year total returns to -11.6% and +85.2% respectively.

The two stocks – Hi-P and Ying Li – and one trust – Asian Pay TV Trust – report 55%, 100% and 100% of their revenues respectively to the Greater China region. They are involved in the businesses of electronics manufacturing, commercial real estate and communications services.

The table below details the 15 Greater-China related constituents of the FTSE ST Small Cap Index, sorted by YTD total returns.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
12M Div
Ind Yld
(%)
Rev From
Greater
China
Region
(%)
HI-P INTL H17 973 50.1 0.3 310.3 3.7 55.7
ASIAN PAY TV TRUST S7OU 243 39.4 -50.8 -53.3 29.9 100
YING LI INTL 5DM 355 19.8 15.8 -1.4 NA 100
UMS HOLDINGS 558 333 15.5 -23.0 63.1 7.0 20.9
SIIC ENVIRONMENT BHK 782 11.0 -25.1 -49.1 6.7 100
HONG LEONG ASIA H22 389 8.2 -43.3 -28.7 NA 87.7
Q&M DENTAL GROUP QC7 401 2.9 -3.0 -26.4 1.6 27.2
VALUETRONICS LTD BN2 269 -3.0 -11.5 64.9 6.7 100
BREADTALK GROUP CTN 440 -3.7 -23.0 47.7 1.9 34.4
CHINA SUNSINE CHEMICAL CH8 552 -5.1 -25.3 197.2 4.7 61.8
GEO ENERGY RESOURCES RE4 215 -5.6 -27.9 64.3 9.0 80.6
DELONG HOLDINGS BQO 651 -6.3 14.5 1503.5 9.3 100
CITIC ENVIROTECH CEE 815 -7.4 -34.3 -43.5 3.6 97.0
MM2 ASIA 1B0 285 -22.2 -47.3 -30.0 NA 33.9
BEST WORLD INTL CGN 740 -48.3 7.8 220.5 3.7 89.8
Average 3.0 -18.4 149.3 5.9

Source: Bloomberg & StockFacts (data as of 10 June 2019)



In the YTD, the three least-performing Greater China-related constituents of the Small Cap Index were: Best World International (-48.3%), mm2 Asia (-22.2%) and CITIC Envirotech (-7.4%). The trio, which report 89.8%, 33.9% and 97% of their revenues to the Greater China region, averaged a -26.0% total return over the period.



China Sees Slower Growth

China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with declines in industrial output, retail sales growth and manufacturing activity, data released recently showed. This has fuelled economists’ expectations that the government will roll out more stimulus measures to bolster growth.

Last week, the International Monetary Fund (IMF) cut its growth forecasts for China’s gross domestic product to 6.2% from 6.3% in 2019, and to 6% from 6.1% in 2020, citing heightened uncertainty over the trade spat. 

Chinese central bank governor Yi Gang said in a media interview last week that there is “tremendous” room to adjust monetary policy if the trade war deepens, and signalled that he is not committed to defending the nation’s currency at a particular level.







This article is provided by SGX My Gateway.



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