SGX Market Updates

Three Largest, Best-Performing SGX Consumer Plays Returned 31% in 7M19


PUBLISHED ON |

13 August 2019

  • In July, Consumer Staples was the top net buy sector on SGX, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks that month, Wilmar ranked second with inflows of S$27.9 million.

  • In 7M2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over this period, the segment generated a total return of +20.0%, double the benchmark STI’s total return of +10.3%. 

  • The three largest and best-performing Consumer Staples stocks in 7M2019 were: ThaiBev (+40.0%), Wilmar (+30.4%) and Golden Agri (+22.8%), which generated an average total return of +31.1%.




SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$100 billion. Among these, more than 100 belong to the consumer discretionary sector, while the remainder are classified under the consumer staples segment.

Consumer Staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

Consumer Staples was the top net buy sector in the month of July, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks, Wilmar International ranked second with inflows of S$27.9 million, after its China subsidiary received regulatory approval to list on the Shenzhen Stock Exchange later this year.

Between January and July 2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over the first seven months of the year, the segment generated a total return of +20.0%, double the benchmark Straits Times Index’s (STI) total return of +10.3%.



Institutional Inflows for Consumer Staples Sector

Source: SGX data



The 10 largest capitalised Consumer Staples stocks on SGX have a combined market cap of about 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 7M2019, these 10 largest Consumer Staples plays averaged a total return of +8.6%, bringing their one-year and three-year total returns to -0.3% and +8.6% respectively. They also average a 12-month dividend indicated yield of 3.0%.

The three largest best performers among the 10 were: Thai Beverage (+40.0%), Wilmar International (+30.4%) and Golden Agri-Resources (+22.8%). Over 7M2019, they averaged a total return of +31.1%, bringing their one-year and three-year total returns to +17.1% and +5.0% respectively.

The table below details the 10 largest Consumer Staples stocks on SGX, sorted by 7M2019 total returns.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
P/E
(x)
Dividend
Ind Yield
%
THAI BEVERAGE Y92 20,970 40.0 12.3 -11.9 20.6 2.0
WILMAR INTL F34 25,206 30.4 31.4 40.1 15.0 2.6
GOLDEN AGRI-RESOURCES E5H 3,820 22.8 7.5 -13.1 NM* 1.9
OLAM INTL O32 6,277 20.0 -9.7 12.5 20.9 3.8
SHENG SIONG GROUP OV8 1,759 11.3 12.0 30.6 24.1 2.9
FRASER & NEAVE F&N 4,159 5.6 -7.2 43.0 15.6 2.6
FIRST RESOURCES EB5 2,376 2.4 -1.3 4.1 16.5 2.1
BUMITAMA AGRI P8Z 999 -3.7 -13.2 -8.5 10.7 4.7
DAIRY FARM INTL D01 13,110 -15.1 -5.1 23.8 NM* 3.0
JAPFA LTD UD2 913 -28.0 -29.5 -34.2 7.1 4.1
Average 8.6 -0.3 8.6    

Source: Bloomberg & StockFacts (data as of 31 July 2019)
* NM: Not Meaningful







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