SGX Market Updates

SGX 5 Best-Performing Transport-Linked Plays Returned 50% in YTD


PUBLISHED ON |

24 October 2019

  • SGX lists more than 20 transport-related stocks, which include companies that provide air, road, rail and sea transport, as well as businesses that supply ancillary services to these transport operators.

  • There are 12 transport-linked stocks on SGX with a market cap above S$100 million. These players provide logistics, shipping, subway, bus, taxi as well as air transportation, and also include companies that offer support services to the airline industry.

  • In the YTD, the 5 best-performing transport-linked plays with market cap above S$100 million were: Penguin Intl (+128.1%), SBS Transit (+56.5%), First Ship Lease Trust (+26.7%), SIA Engineering (+19.3%), and ComfortDelGro Corp (+17.3%). These five have averaged a total return of 49.6% in the YTD.




SGX lists more than 20 transport-related stocks, which include companies that provide air, road, rail and sea transport, as well as businesses that supply ancillary services to these transport operators.

There are 12 transport-linked plays on SGX with a market capitalisation above S$100 million. These operators provide logistics, shipping, subway, bus, taxi as well as air transportation, and also include companies – like SIA Engineering and SATS – that offer support services to the airline industry.

Most of these 12 operators – which have a combined market cap of about S$32 billion – are highly diversified in terms of the scope of their businesses, as well as their geographical exposure, deriving revenues from across the Asia Pacific region. 6 of them are in the shipping industry, 3 in the airline and airline services sector, while 2 provide land transport services, and one is in logistics. 3 of them – ComfortDelGro, SATS and Singapore Airlines – are also constituents of the benchmark Straits Times Index (STI).

In the 2019 year-to-date, the 5 best-performing transport-linked plays with market cap above S$100 million were: Penguin International (+128.1%), SBS Transit (+56.5%), First Ship Lease Trust (+26.7%), SIA Engineering (+19.3%), and ComfortDelGro (+17.3%). These 5 – comprising 4 stocks and one business trust – have averaged a total return of 49.6% in the YTD, bringing their 3-year and 5-year total returns to 39.4% and 26.2% respectively.

The table below details the performances of the 12 transport-linked plays on SGX with market cap above S$100 million, sorted by YTD total return.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
3 Yr
%
Total
Return
5 Yr
%
PENGUIN INTL BTM 145 128.1 188.8 7.9
SBS TRANSIT S61 1,278 56.5 92.0 178.9
FIRST SHIP LEASE TRUST D8DU 101 26.7 -66.7 -41.8
SIA ENGINEERING S59 2,935 19.3 -18.9 -30.0
COMFORTDELGRO CORP C52 5,263 17.3 2.0 16.1
SATS LTD S58 5,524 8.8 14.6 95.9
SINGAPORE POST S08 2,115 7.1 -32.3 -40.6
SINGAPORE SHIPPING CORP S19 122 3.4 25.9 37.3
SINGAPORE AIRLINES C6L 10,797 -0.9 -1.9 9.7
PAN OCEAN CO AZY 2,828 -9.1 20.2 -8.0
COSCO SHIPPING INTL F83 627 -13.6 7.5 -50.9
PACC OFFSHORE SERVICES U6C 181 -44.1 -68.6 -85.0
Average 16.6 13.6 7.4

Source: Bloomberg & StockFacts (data as of 23 Oct 2019)



Hike in Bus and Train Fares

Earlier this month, Singapore’s Public Transport Council (PTC) said it would raise bus and train fares by 7% from 28 December 2019, the maximum allowable increase under this year’s fare review exercise. The council attributed the hike to higher costs of running the public transport system, largely due to a worldwide rise in energy prices as well as staff wages. 

This will translate into an increase of 9 Singapore cents per journey for adult commuters using travel cards, which make up about 65% of all public transport trips in the city-state. The hike also translates into a S$132.5 million annual revenue increase for Public Transport Operators, with SBS Transit Rail and SMRT Trains seeing additional revenues of about S$18.8 million and S$40.2 million respectively. SBS Transit – which is approximately 75%-owned by ComfortDelGro – operates Singapore’s North East MRT Line and Downtown Line.

According to DBS Research, positive effects of the fare hike will accrue only to rail operators SBS Transit Rail and SMRT Trains, as bus revenues fall under the government’s Bus Contracting Model and public bus transport operators do not undertake fare revenue risks.







This article is provided by SGX My Gateway.



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