06 October 2017
SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD
  • 20 of the biggest and active stocks with a China head office have averaged a market capitalisation-weighted total return of 39.8% in the year to date. This compares with the Shanghai Stock Exchange Composite Index’s (SHCOMP) +8.0% (in SGD terms).
  • The 20 biggest stocks maintain market capitalisation-weighted P/E and P/B ratios of 11.2x and 1.3x respectively, below 17.6x and 1.9x respectively for the SHCOMP. Nine of these stocks maintain higher ROEs than the SHCOMP’s 10.7%.
  • The five best performers among the 20 stocks in the YTD are Delong Holdings, Yangzijiang Shipbuilding, China Sunsine Chemical Holdings, Yanlord Land and China Aviation Oil. They maintain an average ROE of 16.2%.

SGX lists 110 China-related enterprises, whose principal place of business, or head office, is in China. These companies have a combined market capitalisation of approximately S$25.3 billion and come from a diverse range of industries.

The 20 largest capitalised of these stocks that are actively traded on SGX have a combined market capitalisation of S$23.4 billion. In the 2017 year to date, these 20 biggest China-related enterprises have averaged a market capitalisation-weighted total return of +39.8%, compared to the 8.0% in SGD terms for the Shanghai Stock Exchange Composite Index (SHCOMP).

Valuations 

 

From a valuation perspective, SGX’s 20 biggest China-related enterprises maintain a market capitalisation weighted price-to-earnings (P/E) and price-to-book (P/B) ratios of 11.2x and 1.3x respectively, lower than the 17.6x and 1.9x for the SHCOMP.

 

While the market capitalisation-weighted average Return on Equity (ROE) for the 20 stocks at 8.8% is lower than the SHCOMP Index’s 10.7%, nine of them maintain higher ROEs than the SHCOMP. They are Zhongmin Baihui Retail Group, Straco Corp, Delong Hldgs, China Sunsine Chemical Hldgs, Yanlord Land Group, China Jinjiang Environment, China Aviation Oil, Sunpower Group and Citic Envirotech. These nine stocks have an average ROE of 19.2%.

 

Note that if we exclude the ROE of the one stock among the 20 biggest SGX-listed China-related enterprises that has a negative ROE, the market capitalisation average ROE of the 19 stocks stands at 12.0%, higher than that of the Index at 10.7%.

 

Source: SGX, Bloomberg (data as of 5 October 2017)

 

The five best performers among the 20 stocks in the year thus far were: Delong Holdings, Yangzijiang Shipbuilding, China Sunsine Chemical Holdings, Yanlord Land and China Aviation Oil. They have an average ROE of 16.2%.

 

The 20 biggest SGX-listed China related enterprises are tabled below. Click on the hyperlinked stock name to see the profile of each stock in SGX StockFacts.

 

Name

SGX Code

Market Cap S$M

Price S$

Total Return YTD %

P/E (x)

P/B (x)

ROE %

Dvd Ind Yld %

Yangzijiang Shipbuilding

BS6

5,814

1.460

85.1

12.0

1.2

10.1

2.7

Yanlord Land Group

Z25

3,645

1.875

45.4

5.1

0.9

17.0

2.3

Tianjin Zhong Xin Pharm Co

T14

2,282

1.486

20.2

12.5

1.3

10.6

4.0

Citic Envirotech

CEE

1,693

0.750

8.2

16.9

1.9

12.4

1.0

SIIC Environment Hldgs

BHK

1,395

0.535

-6.8

11.9

0.9

7.7

1.8

China Aviation Oil

G92

1,384

1.690

24.1

11.1

1.5

14.1

2.5

China Everbright Water

U9E

1,142

0.445

-10.3

15.3

0.9

5.9

0.8

China Jinjiang Environment

BWM

959

0.775

-3.8

7.0

1.1

15.5

6.4

Straco Corp

S85

731

0.855

15.8

14.8

3.1

22.0

2.9

Cosco Shipping Intl

F83

649

0.290

3.6

N/A

2.8

-107.4

N/A

EC World REIT

BWCU

607

0.775

8.2

10.8

0.8

8.3

7.7**

Sunpower Group

5GD

465

0.630

23.7

15.8

1.9

13.1

0.2

Dasin Retail Trust

CEDU

451

0.830

7.5*

N/A

N/A

N/A

3.6

China Sunsine Chemical Hldgs

CH8

415

0.850

74.6

7.1

1.3

19.5

1.7

Midas Hldgs

5EN

380

0.200

-7.0

10.7

0.4

4.4

N/A

BHG Retail REIT

BMGU

369

0.750

23.3

12.4

0.9

7.3

6.6

Ying Li Intl Real Estate

5DM

368

0.143

-4.0

21.9

0.4

2.0

N/A

Delong Hldgs

BQO

214

2.120

631.0

1.7

0.3

20.1

N/A

Sino Grandness Food Industry

T4B

211

0.215

-1.6

3.5

0.4

8.4

N/A

Zhongmin Baihui Retail Group

5SR

194

1.000

-11.0

15.1

5.8

39.0

4.4

Average

 

 

 

46.3

11.4

1.5

6.8

3.2

Market Cap Weighted Average

 

 

 

39.8

11.2

1.3

8.8

 

Source: Bloomberg & SGX StockFacts (data as of 05 October 2017).*From IPO Price

**Based on annualised estimations

 

Previous Market Updates on China-Focused Plays

 

§  6 Sep 2017 : FTSE ST China Index up 18% in 2017 YTD – Click here

§  15 Sep 2017: 20 Largest China Plays returned 27% in the YTD – Click here

§  19 Sep 2017: China-Focused Materials Stocks Led Sector’s YTD Gains – Click here

§  22 Sep 2017: ASEAN Plays Poised to Gain from China’s Belt & Road Initiative (OBOR) – Click here

§  29 Sep 2017: SGX China Environmental Plays in Spotlight as China Goes Green – Click here


My Gateway & SGX StockFacts

cid:image007.png@01D2BDD0.57B4CE40

 

My Gateway

 

SGX’s investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

 

 

cid:image007.png@01D2BDD0.57B4CE40

 

SGX StockFacts

 

Whether you are seeking new or established companies to invest in, SGX StockFacts can provide you with the information you need to identify and understand the stocks that best fit your investment strategy. Visit now at sgx.com/stockfacts.

www.sgx.com

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the “SGX Group Companies”) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore.  The information in this document is subject to change without notice. This  document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.