|06 October 2017|
|SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD|
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).
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.
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
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