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Best-Performing IT Stocks Averaged 95% Total Return in YTD
  • Singapore’s IT sector comprises 77 stocks as classified by GICS®, and averaged a total return of 5.8% in the September month-to-date. In comparison, the MSCI AC Asia ex-Japan IT Index generated a total return of 2.7% in Singapore dollar terms over the same period. The domestic IT sector also generated a market cap-weighted total return of 7.6% in the year-to-date.
  • The five best-performing IT stocks in terms of total returns in the year-to-date are Jadason Enterprises (+130.0%), 8telecom International Holdings (+107.6%), CEI (+92.3%), Fischer Tech (+74.8%) and AEM Holdings (+71.7%). These five averaged a YTD total return of 95.3%.
  • The five IT stocks with the highest dividends are Karin Technology Holdings (10.4%), Global Testing Corporation (9.5%), CDW Holding (9.1%), UMS Holdings (8.2%) and Excelpoint Technology (7.0%). Their average yield is 8.9%.


Singapore’s Information Technology (IT) sector comprises companies that offer software and IT services, manufacturers and distributors of technology hardware and equipment such as communications equipment, cellular phones, computers & peripherals, electronic equipment as well as related instruments and semiconductors.


Vibrant Sector, Strong Support

The domestic IT sector has seen strong government support, and is also the third-most popular technology destination for professionals. The government plans to invest a sum of US$14 billion in the smart nation programme over the next five years. Investments in advanced manufacturing and engineering also reached US$2.4 billion, while funding for innovation and technology research totalled US$2.1 billion. More information can be found here.

Singapore recently ranked number one in the Network Readiness Index as published in the Global Information Technology Report 2016 (Click here). The Networked Readiness Index 2016 measures how well an economy is using information and communications technology to improve competitiveness and welfare. In PwC’s Cities of Opportunity Index (click here), Singapore came in second, while in technology readiness, which is a sub-index of the Cities of Opportunity Index, the city-state took pole position.  


According to a MarketLine report published in August 2016, client computing & peripherals is the largest segment of Singapore’s IT hardware market, accounting for 58.5% of the market's total value. The IT hardware market includes all physical components and equipment essential to computing, such as network infrastructure , security hardware and appliances, computing and peripherals and storage infrastructure. Singapore’s IT hardware segment is forecast to grow to S$2.4 billion in 2020, reflecting an increase of 20.2% from 2015. Of the 77 stocks in Singapore’s IT sector, 51 stocks or 66.2% are categorised as technology hardware and equipment under the Global Industry Classification System (GICS®).

Strong Relative Performance 

Singapore’s IT sector, which comprises 77 stocks, averaged a total return of 5.8% in the September month-to-date. In comparison, the MSCI AC Asia ex-Japan IT Index generated a total return of 2.7% in Singapore dollar terms over the same period.

For the month of July and August 2016, the IT sector averaged market cap-weighted total returns of 4.6% and 7.8% respectively, bringing total returns in the year thus far to 7.6%. The IT industry previously generated a market cap-weighted total return of 14.8% in the first eight months, making it  the third-best performing sector behind Consumer Staples (+25.1%) and REITs (+15.6%) as illustrated below.

Market Cap-Weighted Total Returns of 12 GICS ® Sectors (%) in First Eight Months of 2016



Source: SGX, Bloomberg & Thomson Reuters (data as of 31 August 2016).

In the year thus far, Singapore’s five best-performing IT stocks in terms of total returns are Jadason Enterprises (+130.0%), 8telecom International Holdings (+107.6%), CEI (+92.3%), Fischer Tech (+74.8%) and AEM Holdings (+71.7%). They averaged a YTD total return of 95.3%. Four of the five are in the technology hardware and equipment sub-segments of the IT industry.

The five best performers are listed in the table below, which is sorted by total returns. Click on each stock to visit its profile page on SGX StockFacts.

Name Market Cap in S$M Total Return YTD % Total Return 1 Yr % Total Return 3 Yrs % P/E P/B Dvd Ind Yld % GICS®  Industry Group Name
Jadason Enterprises 16.7 130.0 64.3 -53.1 N/A 0.4 N/A Technology Hardware & Equipment
8telecom Intl Hldgs 16.2 107.6 138.2 220.6 20.0 0.2 N/A Technology Hardware & Equipment
CEI 72.4 92.3 102.1 186.7 7.0 1.8 1.7 Technology Hardware & Equipment
Fischer Tech 85.3 74.8 97.0 166.1 6.4 0.8 2.0 Technology Hardware & Equipment
AEM Hldgs 21.6 71.7 89.8 -45.2 3.3 0.9 1.0 Semiconductors & Semiconductor Equipment
Average 95.3 98.3 95.0 9.2 0.8 1.5

Source: SGX, Bloomberg & SGX StockFacts (data as of 20 September 2016)

*8Telecom International Holdings Co. Ltd distributed  a special one-tier tax-exempt dividend of S$0.904 for each ordinary share held by entitled shareholders as on 24 March 2016 and paid on 25 July 2016.

Dividend Yields Above Benchmark

In terms of dividends, the 77 stocks of Singapore’s IT sector maintain an average yield of 4.6%. This compares with a dividend yield of 1.7% for the MSCI AC Asia ex-Japan IT Index. The five stocks with the highest yields are Karin Technology Holdings (10.4%), Global Testing Corporation (9.5%), CDW Holding (9.1%), UMS Holdings (8.2%) and Excelpoint Technology (7.0%). Their average yield is 8.9%. 

The five highest-yielding IT stocks are listed in the table below, which is sorted according to yields. Click on each stock to visit its profile page on SGX StockFacts.

Name Market Cap in S$M Total Return YTD % Total Return 1 Yr % Total Return 3 Yrs % P/E P/B Dvd Ind Yld % GICS®  Industry Group Name
Karin Tech Hldgs 60 -5.1 -12.0 4.8 25.0 0.5 10.4 Technology Hardware & Equipment
Global Testing Corp 37 13.6 46.1 69.0 8.2 0.5 9.5 Semiconductors & Semiconductor Equipment
CDW Hldg 56 -14.0 -25.0 1.0 78.5 0.6 9.1 Semiconductors & Semiconductor Equipment
UMS Hldgs 262 28.7 37.9 102.2 9.2 1.4 8.2 Semiconductors & Semiconductor Equipment
Excelpoint Tech 40 30.7 7.1 -2.1 6.5 0.5 7.0 Technology Hardware & Equipment
Average 10.8 10.8 35.0 25.5 0.7 8.9

Source: SGX, Bloomberg & SGX StockFacts (data as of 20 September 2016)

 

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