18 January 2017
Singapore Healthcare Stocks Kick Off 2017 on Strong Note
  • The SGX All Healthcare Index has generated a 0.7% total return in the January MTD, following a total return of 6.0% in the 2016 calendar year. This brings its five-year annualised total return to 11.2%.
  • The 10 best-performing constituents of the SGX All Healthcare index averaged MTD and one-year total returns of 9.8% and 22.2% respectively. These stocks outperformed the 10 largest Healthcare securities in Asia Pacific, which averaged MTD and one-year total returns of 0.4% and 2.7% respectively.
  • The five best-performing constituents of the SGX All Healthcare Index in the MTD are International Healthway Corporation (+32.0%), Pharmesis International (+25.0%), AsiaMedic (+10.4%), Talkmed Group (+6.9%) and iX Biopharma (+5.4%). They averaged a total return of 15.9% in the MTD and maintain an average dividend yield of 4.2%.

Singapore’s healthcare sector has a combined market value of about S$30 billion. According to the Global Industry Classification Standards (GICS®), the industry can be broken down into the following sub-segments – Health Care Equipment, Health Care Supplies, Health Care Services, Health Care Facilities, Biotechnology, and Pharmaceuticals.

 

The city-state also plays a key role in Asia’s healthcare industry, where multiple opportunities and challenges exist in the ongoing supply and demand for health services across the region. A recent Market Update published on 6 January highlighted the performance of Singapore’s Healthcare Sector Leaders in 2016.

 

SGX Healthcare Index

 

The SGX All Healthcare Index comprises stocks that report at least half their revenues from healthcare in the last financial year, as well as REITs with investments in healthcare facilities. The Index, which is free-float and market capitalisation-weighted, consists of 27 constituents with a total market capitalisation of S$32.5 billion. The weightings of index components are capped at a maximum 10% at each periodical rebalance, so that it is better diversified across a range of stocks. More information on the historical performance and schematics of the Index can be found here.

 

The SGX All Healthcare Index has generated a 0.7% total return in the January month-to-date, following a total return of 6.0% in the 2016 calendar year. This brings its five-year annualised total return to 11.2%.

 

The 10 best-performing constituents of the SGX All Healthcare index averaged MTD and one-year total returns of 9.8% and 22.2% respectively, maintaining a dividend yield of 3.5%. These stocks outperformed the 10 largest Healthcare securities in Asia Pacific, which averaged MTD and one-year total returns of 0.4% and 2.7% respectively. These 10 largest Healthcare securities in Asia Pacific maintain a dividend yield of 1.6%.

 

The 10 largest Healthcare securities in Asia Pacific are listed in Sydney, Mumbai and Shanghai, with seven of the 10 in Tokyo. These 10 stocks have a market capitalisation of S$327 billion.

 

The five best-performing constituents of the SGX All Healthcare Index in the MTD were International Healthway Corporation (+32.0%), Pharmesis International (+25.0%), AsiaMedic (+10.4%), Talkmed Group (+6.9%) and iX Biopharma (+5.4%). They averaged a total return of 15.9% in the MTD and maintain an average dividend yield of 4.2%.

 

The table below details the 10 best performers of the SGX All Healthcare Index, sorted by MTD total returns. Click on each stock to visit its profile page on SGX StockFacts.

 

Name

SGX Code

Market Cap in S$M

Total Return MTD %

Total Return 1 Yr %

Total Return 3 Yrs %

P/E

P/B

ROE %

Dvd Ind Yld %

GICS® Sub Industry Name

Intl Healthway Corp

5WA

111

32.0

-25.0

-80.0

N/A

0.5

-5.5

N/A

Health Care Facilities

Pharmesis Intl

BFK

12

25.0

25.0

13.6

574.6

0.6

-0.1

N/A

Pharmaceuticals

AsiaMedic

505

30

10.4

13.8

-26.0

N/A

1.7

-15.7

N/A

Health Care Services

Talkmed Grp

5G3

710

6.9

18.8

N/A

19.3

13.3

73.4

4.2

Health Care Services

iX Biopharma

42C

189

5.4

-36.4

N/A

N/A

4.7

-31.8

N/A

Pharmaceuticals

Medtecs Intl Corp

546

26

4.3

9.1

-25.0

25.8

0.3

1.2

N/A

Health Care Supplies

Raffles Medical Grp

BSL

2587

4.2

14.6

51.7

36.0

4.0

11.6

1.3

Health Care Facilities

Singapore Medical Grp

5OT

126

3.4

177.8

240.9

172.8

11.4

6.9

N/A

Health Care Services

Parkway Life REIT

C2PU

1440

3.4

17.9

21.5

21.3

1.4

6.6

5.0

Health Care REITs

Healthway Medical Corp

5NG

93

3.0

6.3

-50.7

N/A

0.5

-0.1

N/A

Health Care Services

Average

 

 

9.8

22.2

18.2

141.6

3.8

4.7

3.5

 

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)

 

The table below details the 10 largest healthcare stocks in Asia Pacific, sorted by market capitalisation.

 

Name

Exchange

Market Cap in S$Bln

Total Return MTD %

Total Return 1 Yr %

P/E

P/B

ROE %

Dvd Ind Yld %

CSL

ASX

48.8

2.2

7.0

28.1

13.4

46.8

1.7

Takeda Pharmaceutical Co

TSE

47.2

-0.4

-10.3

25.1

2.1

7.6

3.8

Astellas Pharma Inc

TSE

42.1

-2.9

2.0

16.5

2.8

16.1

2.2

Otsuka Holdings Co

TSE

39.5

12.0

47.4

43.4

2.0

4.4

1.8

Sun Pharmaceutical Indus

NSE

32.5

1.1

-18.8

32.8

4.9

16.5

0.2

Eisai Co

TSE

24.1

-2.3

-6.8

26.1

3.4

12.7

2.3

Chugai Pharmaceutical Co

TSE

23.9

2.7

-7.6

33.2

3.0

9.1

1.5

Hoya Corp

TSE

23.1

-2.7

7.2

22.6

4.2

16.9

1.6

Shanghai Raas Blood Products Co

SSE

22.7

-5.0

-3.1

66.3

9.4

13.7

0.1

Shionogi & Co

TSE

22.6

-1.1

10.5

23.7

3.6

15.3

1.2

Average

 

 

0.4

2.7

31.8

4.9

15.9

1.6

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)

 

Healthcare Trusts

 

Of the 32 REITs and six stapled trusts listed on Singapore Exchange, two are classified by GICS® as Health Care REITs. They are First Real Estate Investment Trust and Parkway Life Real Estate Investment Trust.

 

Health Care REITs are trusts engaged in the acquisition, development, ownership, leasing, management and operation of properties serving the health care industry, including hospitals, nursing homes, and assisted living properties.

 

RHT Health Trust, categorised by GICS® under the sub-segment of Health Care Facilities, is the first business trust listed on SGX with India-based healthcare assets. It has a portfolio of 12 Clinical Establishments, four Greenfield Clinical Establishments and two Operating Hospitals located across India.

 

First REIT, Parkway Life REIT and RHT Health Trust have a combined market capitalisation of S$3.2 billion. In the year thus far, they have averaged a dividend-inclusive total return of 1.9 % in the MTD, bringing their one-year and three-year total returns to 24.0% and 57.9% respectively.

  

Parkway Life REIT, First REIT, and RHT Health Trust have weightings of 9.76%, 9.85% and 8.93% respectively in the SGX All Healthcare Index.

 

The table below details the three Health Care trusts, sorted by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.

 

 

Name

SGX Code

Market Cap in S$M

Total Return MTD %

Total Return 1 Yr %

Total Return 3 Yrs %

P/E

P/B

ROE %

Dvd Ind Yld %

GICS® Sub Industry Name

Parkway Life REIT

C2PU

1440

3.4

17.9

21.5

21.3

1.4

6.6

5.0

Health Care REITs

First REIT

AW9U

988

2.4

17.7

50.6

24.3

1.2

8.5

6.6

Health Care REITs

RHT Health Trust

RF1U

742

0.0

36.5

101.7

21.5

1.0

5.7

7.9

Health Care Facilities

Average

 

 

1.9

24.0

57.9

22.4

1.2

6.9

6.5

 

Source: SGX, Bloomberg & SGX StockFacts (data as of 17 January 2017)


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