SGX Market Updates

SGX's 5 Best-Performing Tech Stocks Averaged 78% Return in 2019 YTD


PUBLISHED ON |

02 December 2019

  • SGX lists at least 15 IT stocks with market cap above S$100 million. These 15 companies have operations that span key technology segments, including electronics manufacturing, precision engineering, plastic injection moulding, semiconductors, printed circuit boards, as well as software services and solutions.

  • Among the 15, the 5 best performers in the YTD were: AEM (+126.6%), Hi-P (+81.3%), Procurri (+68.5%), UMS (+66.0%) and CSE Global (+46.3%). They averaged a total return of 77.7% over the period, bringing their 3Y and 5Y total returns to 391.0% and 486.7% respectively.

  • Singapore’s electronics manufacturing output edged up 0.4% YoY in Oct, the first advance after 7 straight months of decline, EDB data showed. This positive reversal reinforces the view that the electronics cluster may have bottomed out in mid-2019, and is beginning to see “some green shoots”, OCBC Treasury Research noted in a report published last month.




SGX lists at least 15 Information Technology stocks with market capitalisation of more than S$100 million. These 15 companies – which have a combined market cap of more than S$10 billion – own businesses that span key technology segments, including electronics contract manufacturing, precision engineering, plastic injection moulding, semiconductors, printed circuit boards, as well as software services and solutions.

In the 2019 year-to-date, these 15 tech plays with market cap above S$100 million averaged a total return of 31.7%, bringing their three-year and five-year total returns to 185.5% and 227.2% respectively.

The 5 best performers among them in the YTD were: AEM Holdings (+126.6%), Hi-P International (+81.3%), Procurri Corp (+68.5%), UMS Holdings (+66.0%) and CSE Global (+46.3%). They averaged a total return of 77.7% over the period, bringing their 3Y and 5Y total returns to 391.0% and 486.7% respectively.


The table below details the 15 technology stocks with market cap above S$100 million on SGX, sorted by market cap.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
3 Yr
%
Total
Return
5 Yr
%
VENTURE CORP V03 4,543 18.9 86.2 164.9
HI-P INTL H17 1,214 81.3 277.1 182.4
SILVERLAKE AXIS 5CP 1,122 6.4 -13.8 -48.6
UMS HLDGS 558 477 66.0 121.2 204.5
AEM HLDGS AWX 461 126.6 1499.4 2038.9
ELEC & ELTEK E16 388 19.9 92.4 50.1
VALUETRONICS HLDGS BN2 326 21.2 85.1 202.7
GP INDUSTRIES G20 295 4.4 23.6 28.3
CSE GLOBAL 544 267 46.3 48.4 7.7
MICRO-MECHANICS 5DD 250 13.4 153.7 318.6
SUNNINGDALE TECH BHQ 242 -5.6 36.0 73.2
CREATIVE TECH C76 221 -22.4 214.4 47.7
CHUAN HUP HLDGS C33 218 17.4 52.1 56.9
PROCURRI CORP BVQ 122 68.5 8.6 0.0
INNOTEK LTD M14 101 12.7 98.4 80.1
Average 31.7 185.5 227.2

Source: Bloomberg & StockFacts (data as of 29 Nov 2019)



Sino-US Trade Talks Continue

More than a year into the US-China trade dispute, electronics manufacturers – in Singapore and around the world – continue to grapple with uncertainty, as supply chains are remapped across the industry landscape amidst rising procurement costs, fractured partnerships and factory relocations.

The US is poised to impose an additional 15% tariff on about US$156 billion of Chinese products on 15 December. It is widely expected that those tariffs will be averted if a deal is struck, but China is pressing for rollbacks of previous tariffs.

Last week, US President Donald Trump said Washington was in the “final throes” of a deal aimed at defusing the trade war with China, a few days after Chinese President Xi Jinping expressed his desire for a trade agreement.



“Green Shoots” Emerge

Despite slower growth in the domestic economy, Singapore’s electronics manufacturing output edged up 0.4% YoY in October, the first advance after seven straight months of decline, according to data released last month by the Economic Development Board (EDB). The infocomms and consumer electronics segment expanded the most at 23.8%, followed by data storage at 4.2%, and computer peripherals at 3.6%.

This positive reversal reinforces the view that Singapore’s electronics cluster may have bottomed out in mid-2019, and is beginning to see “some green shoots”, OCBC Treasury Research noted in a report published last month.

Likewise last month, industry grouping SEMI said that North America-based manufacturers of semiconductor equipment posted US$2.1 billion in billings worldwide in October, the first YoY increase since October 2018, and the highest level since last December.







This article is provided by SGX My Gateway.



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