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Industrial Mid-Cap stocks averaged 8% YTD total return

Industrial Mid-Cap stocks averaged 8% YTD total return

  • There are 12 mid-cap stocks that are categorised to the Industrials sector with an average market capitalisation of S$2.2 bn, that averaged an 8.0% total return in the year thus far.
  • Of the dozen Industrial stocks, the best five performing in the year thus far were Pan Ocean Co (+39.3%), Keppel Telecommunications (+22.7%), Neptune Orient Lines (+19.6%), SMRT Corporation (+10.1%), and China Merchants Holdings (+8.7%).

In the 2015 year thus far, the FTSE ST Mid Cap Index has gained 4.7%, with dividends boosting its returns to 5.5%. While the FTSE ST Mid Cap Index is made up of 50 constituents – there are as many as 77 stocks listed on Singapore Exchange (SGX) that maintain a market capitalisation of S$10 billion and S$1 billion that do not include STI constituents. These 77 stocks includes many of the constituents of the FTSE ST Mid Cap Index.

Of these 77 Mid-cap stocks there are 12 stocks that represent the Global Industry Classification Standard (GICS®) Industrials sector. These 12 stocks average a market capitalisation of S$2.2 billion, and averaged 8.0% gain in the year thus far. The 8.0% return consists of price returns and any dividend distributions that may have been paid over the two months. These 12 stocks also maintain a dividend yield of 2.7%.

The five largest mid-cap Industrials stocks, Yangzijiang Shipbuilding, Singapore Post, SATS, SMRT Corporation, and Neptune Orient Lines have a combined market capitalisation of S$17.7 billion. They maintained a price gain of 7.8% in the year thus far, with dividends boosting their averaged return to 8.0%.

Details of the relevant Mid-cap Industrials stocks are listed in the table below. More information may be found on SGX StockFacts. Today's SGX My Gateway Report will present the entire 77 Mid-Cap stocks – please click here to subscribe.

Company Name SGX Code Mkt Cap S$M % Price Change YTD % Change - Dividend Adj. YTD % Price Change[1 Year] % Change - Dividend Adj. [3 Years] % Change - Dividend Adj. [5 Years] Dvd Yld (%)
Yangzijiang Shipbuilding (Holdings) BS6 4,694.0 1.7 1.7 7.9 10.2 32.1 4.5
Singapore Post S08 4,292.6 4.2 4.8 50.9 139.5 145.2 3.1
SATS S58 3,500.5 3.6 3.6 5.3 55.0 63.3 4.1
SMRT Corporation S53 2,648.5 10.1 10.1 68.1 8.4 3.9 1.7
Neptune Orient Lines N03 2,600.5 19.6 19.6 6.4 -24.4 -42.2 -
United Engineers U04 1,741.5 -3.1 -3.1 57.7 59.1 104.7 2.5
United Envirotech U19 1,551.0 0.0 0.0 30.4 348.5 497.8 0.2
COSCO Corporation (Singapore) F83 1,164.4 -7.1 -7.1 -24.6 -51.8 -53.0 1.0
Gallant Venture 5IG 1,133.9 -4.1 -4.1 -23.0 -23.0 -4.1 -
China Merchants Holdings (Pacific) C22 1,117.3 8.7 8.7 17.1 90.0 150.9 8.0
Pan Ocean Co.* TO9 1,022.9 39.3 39.3 -19.8 -95.1 -96.9 0.0
Keppel Telecommunications & Transportation K11 1,004.4 22.7 22.7 -0.5 62.6 49.2 1.9

Source: S&P Capital IQ (data as of 27 Feb 2015) * note market capitalisation and performances based on performance of primary counter traded in South Korea

The ten largest capitalised stocks are detailed further below.

Yangzijiang Shipbuilding (Holdings)

Yanzijiang Shipbuilding (Holdings) is the largest mid-cap Industrials stock with a market capitalisation of S$4.7 billion, and the stock maintains a dividend yield of 4.5%.

Last week, the company announced that their revenue for the financial year ended 31 December 2014, increased by 7.1% to RMB 15.4 billion (click here to view). In a recent corporate update, Yangzijiang Shipbuilding reported that they had secured a total of 41 effective shipbuilding contracts with an aggregate value of US$1.8 billion in year 2014 with six outstanding options consisting of two units of 10,000TEU containerships, two units of 36,500DWT bulk carriers and two units of 2,700TEU containerships carried forward to year 2015.

The company website is: www.yzjship.com

Singapore Post

Singapore Post is the second largest mid-cap Industrials stock with a market capitalisation of S$4.3 billion and the stock maintains a dividend yield of 3.1%.

Three weeks ago, the company announced that it has acquired an additional 1,754,157 ordinary shares in the capital of GD Express Carrier Berhad ("GDEX"), an associated company of Singapore Post whose shares are quoted and traded on the Main Market of Bursa Malaysia Securities Berhad, via reinvestment of RM2,438,279 (approximately S$923,590 based on the exchange rate of RM2.64 to S$1) cash dividend from GDEX pursuant to its dividend reinvestment plan (click here to view).

The company website is: www.singpost.com

SATS

SATS is the third largest mid-cap Industrials stock with a market capitalisation of S$3.5 billion and the stock maintains a dividend yield of 4.1%.

On 23 July 2014, a share buy-back resolution was passed for SATS. For the month of January, SATS repurchased a total number of 3,000,000 shares with a total consideration of S$8,793,147.12.The maximum number of shares authorized for the buy-back transaction was 22,448,073. As of end of January, by way of acquisition, SATS had purchased a cumulative amount of 15,333,000 shares under the 23 July resolution. This represented 1.37% of the company's issued shares (excluding treasury shares) as at the date of the share buy-back resolution.

The company website is: www.sats.com.sg

SMRT Corporation

SMRT Corporation is the fourth largest mid-cap Industrials stock with a market capitalisation of S$2.6 billion and the stock maintains a dividend yield of 1.7%.

On 29 January 2015, the company reported that their revenue for the third quarter period ended 31 December 2014, increased by 6.8% to S$313.2 million (click here to view). Recently, SMRT Corporation won the "Delivering value through risk management" award at the Institute of Risk Management's Global Risk Awards 2015.

The company website is: www.smrt.com.sg

Neptune Orient Lines

Neptune Orient Lines is the fifth largest mid-cap Industrials stock with a market capitalisation of S$2.6 billion.

Three weeks ago, the company announced that it has, through its wholly-owned subsidiary in Singapore, APL Logistics Ltd ("APLL"), incorporated a new company in Myanmar, namely APL Logistics (Myanmar) Company Limited ("APLL Myanmar"), to grow its Logistics business. APLL Myanmar is wholly owned by APLL and one of its key business objectives is to liaise with local agents and/or third party service providers who are authorized to undertake warehousing and logistics services (click here to view).

The company website is: www.nol.com.sg

United Engineers

United Engineers has a market capitalisation of S$1.7 billion and the stock maintains a dividend yield of 2.5%.

Last week, the company announced that their revenue for the full year ended 31 December 2014, increased by 92.9% to S$3.2 billion (click here to view). The Group's major businesses comprise Property Development, Property Rental & Services, Engineering and the businesses of its 67.6% subsidiary WBL Corporation, which primarily engages in China Property, Technology and Engineering, Manufacturing & Distribution (EMD). With effect from November 2014, WBL has divested its Automotive business.

The company website is: www.uel.com.sg

United Envirotech

United Envirotech has a market capitalisation of S$1.6 billion and the stock maintains a dividend yield of 0.2%.

In February 2014, UEL was awarded an Engineering, Procurement and Construction (EPC) contract, valued at RMB580 million, from Fujian Haixia Environmental Protection Co. Ltd (Fujian Haixia) to construct a 200,000 m3/day municipal wastewater treatment plant in Fuzhou City, Fujian Province, China. Upon completion, the plant will be the largest wastewater treatment plant using the Membrane Bioreactor (MBR) technology in China.

The company website is: www.unitedenvirotech.com

COSCO Corporation (Singapore)

COSCO Corporation (Singapore) has a market capitalisation of S$1.2 billion and the stock maintains a dividend yield of 1.0%.

Two weeks ago, the company announced that their revenue for the Financial Year ended 31 December 2014, increased by 21.5% to S$4.3 billion (click here to view). As at 31 December 2014, the Group's order book stood at US$8.4 billion with progressive deliveries up to 2017. This order book is subject to revision from any new or cancellation of orders that may arise. New orders received in 2014 include nine bulk carriers, eight platform supply vessels, four emergency response/rescue/field support vessels, four subsea supply vessels, three livestock carriers, one jack-up rig, one accommodation barge, one floating accommodation unit and one module carrier.

The company website is: www.cosco.com.sg

Gallant Venture

Gallant Venture has a market capitalisation of S$1.1 billion.

Last week, the company reported that their revenue for the full year ended 31 December 2014, increased by 25.5% to S$2.3 billion (click here to view). On 11 February 2014, Gallant Venture signed a Memorandum of Understanding with GMF AeroAsia, a subsidiary of Indonesian flag carrier PT Garuda Indonesia (Persero) Tbk. ("Garuda"), to develop Bintan Island into a tourism and aviation hub. Gallant Venture is developing a regional airport in Bintan, adjacent to the proposed Maintenance, Repairs and Overhauls ("MRO") facilities,and will provide a dedicated terminal for Garuda to operate as their regional hub. GMF AeroAsia and Gallant Venture will jointly develop the MRO business.

The company website is: www.gallantventure.com

China Merchants Holdings (Pacific)

China Merchants Holdings (Pacific) has a market capitalisation of S$1.1 billion and the stock maintains a dividend yield of 8.0%.

Last week, the company reported that their revenue for the full year ended 31 December 2014, increased by 7.1% to HK$2.0 billion (click here to view). China Merchants Holdings (Pacific) net profit for the year ended 31 December 2014 amounted to HK$1.1 billion, an increase of 18% compared to the previous year. Net profit from continuing operations increased 17% from HK$848.4 million in 2013 to HK$995.5 million in 2014. The increase in net profit was mainly due to higher profit contribution from the toll road operations and the gain on disposal of property development business.

The company website is: www.cmhp.com.sg

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Geoff Howie
Geoff Howie

Mr Howie is the Singapore Exchange's Market Strategist - and the key contributor to the educational content and market insights of SGX My Gateway. He is also part of the Associate Faculty at SIM University,  educating students on the fundamentals of investing. 

He previously held lead broking and strategist roles across the Asia Pacific offices of a large international futures broker. Outside of his 15 year career in the financial markets he has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament.

Following High School in Hong Kong, he attended University of Queensland, receiving a Bachelors and Master's degree in Economics, the latter extending into deferred PhD work after receiving the highest grading for first-mover research and modelling conducted on the Shanghai economy.

Mr Howie's other notable achievements include receiving two Hong Kong Securities Institute Outstanding Achievers awards for the 2005 year.