Our Singapore stock exchange (SGX) offers more than 700 stocks in total.
These 700+ Singapore stocks consist of blue chips, dividend stocks, growth stocks, value stocks, penny stocks etc. So, where do investors start from?
Some of the key screening criterias investors use to categorise stocks include dividend yield, price to earning (P/E) ratio, sharebuy back and more.
Here, we’ve compiled a top SGX stock list (non-exhaustive) according the various criterias for your reference.
Top Dividend Yield
High dividend stocks in Singapore are generally attractive as we are not required to pay for our capital/dividend gains. If the portfolio gets big enough, we may eventually be able to replace our active income which is taxable with one that isn’t. However, investors should not just simply buy stocks that provide that highest yields, simply because the total returns for stocks do not just consist of dividend gains, but capital gains as well. For example, if a stock gives out 10% in dividend yield in a particular year, but share price drops 20% in that year, the overall return for this stock is in fact negative. Therefore, it is important for investors to dig deeper into the companies before investing in them. Below is a list of some of the top yielding dividend stocks in SGX with consistent payouts over the past 3 years, providing a good base for investors to start researching deeper.
Dividend yield (consistent over past 3 years)
Asian Pay TV Tr: 11.30% – 14.4%
Global Inv: 8.9% – 9.6%
Cache Log Trust: 8.2% – 9.4%
HPH Trust: 7.5% – 10.0%
Accordia Golf Trust: 8.0% – 9.3%
Sabana Reit: 7.4% – 9.9%
SoilbuildBizReit: 8.0% – 8.4%
Lippo Malls Trust: 7.1% – 8.1%
Lowest P/E Ratio (trailing)
Generally, when we are looking at P/E ratio, we prefer to see a lower number, as it’s a basic measure of how much we are paying for $1 worth of earnings. Purchasing a stock with a lower P/E means that the cost is cheaper since we are paying lesser for every $1 worth of earnings. However, a stock with a lower P/E is not always a better investment than one with a higher one, and investors should not simply buy stocks with the lowest P/E. For example, if a company with a P/E of 30 can grow revenue and earnings faster than one with a P/E of 5, then it may justify a higher price for future higher earnings. Sometimes, a company’s shares may be trading at low P/E due to problems at the individual company which cause the share price to be depressed as investors foresee problems with future value. Therefore, it is not sufficient to only use P/E ratio to determine whether to invest in the stock. Nonetheless, with some research done, it may be possible to uncover undervalued gems using P/E ratio. Below is a list of some of the lowest trailing P/E ratio stocks in SGX which are relatively liquid.
Trailing P/E Ratio (relatively liquid)
Swee Hong: 1.5
Ley Choon: 3.2
HongkongLand USD: 3.4
Sino Grandness: 4.7
Yanlord Land: 5.0
GSS Energy: 5.5
Silverlake Axis: 5.6
Lowest P/B Ratio
Looking at stocks with low P/B ratio is a handy approach to finding undervalued companies. A P/B ratio of less than 1 means the stock is trading at less than its Book Value, which can signify that the stock is undervalued. However, investors should not simply buy stocks with the lowest P/B ratio. If a company is trading for less than its book value, it may mean that the market believes the asset value is overstated, or the company is earning a weak return on its assets. Another concern is that in Singapore, around 80% of Assets are stated at Fair Value, while only 10% of Liabilities are stated at Fair Value, hence inflating the Book Value, resulting in many companies with P/B ratio of less than 1. Nevertheless, a proper analysis of the fundamentals with the help of several metrics can help investors find quality bargains. Below is a list of some of the lowest P/B ratio stocks in SGX which are relatively liquid.
P/B Ratio (relatively liquid)
China Sports: 0.12
Nico Steel: 0.28
Anchor Resources: 0.34
Kris Energy: 0.35
Rex Intl: 0.36
Top Share Buy Back
A company can choose to buy back its shares for various reasons. Buying back shares is an easy way to make a business look more attractive to investors. The Earnings Per Share (EPS) is usually boosted as the share buyback reduces the outstanding shares in the market. When the company feels that the shares are undervalued, a share buyback can be used to pump up the stock price. Sometimes, a company may choose to buy back its shares when it has a lot of cash on the books but little growth opportunities. Below is a list of companies in SGX which have conducted the most number of share buyback in 2017.
Share buyback (2017)
SIA Engineering: 66
Zhongmin Baihui: 49
Global Palm Res: 31
Bumitama Agri: 26
New Silkroutes: 20
Duty Free Intl: 17
Highest Net Earnings Growth
Net Earnings Growth measures the year-on-year in bottom line net profits made from each dollar of sales for reinvestment into the business or dividend distribution to shareholders after taking into account all costs and expenses. Naturally, high net earnings growth is usually associated with strong businesses in which shareholders can benefit greatly from. This figure can be used together with P/E ratio to get the Price/Earnings to Growth (PEG) ratio to better evaluate if a stock is a good buy. Below is a list of the top few companies that achieved the highest net earnings growth over the past 3 years in SGX.
Net Earnings Growth (past 3 years)
Food Empire: 101% – 6970%
Jasper Inv: 99% – 1764%
Moya Asia: 136% – 493%
Allied Tech: 104% – 513%
Mewah Intl: 157% – 227%
Best World: 103% – 242%
OKP: 104% – 175%
Ntegrator Intl: 95% – 126%
Highest Total Shareholder Return
Total shareholder return tracks the total capital gains for shareholders over a period of time. Shareholders who were sharp enough to purchase the correct stocks at the right prices had the best returns. While it is good to take note of what these best performing stocks are, it is also important to know that investors should not buy these stocks simply based on the fact that they produced stellar results previously. More analysis needs to be done to assess if the specific company can continue to experience the same rate of growth in future. Below is a list of some of the stocks in SGX that rewarded shareholders with the highest returns over the past 3 years.
Shareholder Returns (past 3 years)
Best World: +1511%
800 Super: +392%
Moya Asia: +245%
We hope this specially curated list was helpful for you to identify stocks based on the key criterias. However, the key downside of stock screening is the risk of being caught in a value trap. For example, taking a look at low P/B ratio as a criteria, Yuuzoo seems relatively undervalued. However, a quick but vital look in the history of the stock would show investors that negative news and a strong downtrend plagues it.
Our point is, investors cannot solely rely on any single criteria to determine which stocks to purchase. Analysing stocks usually takes time and effort. Other than stock screeners, investors are likely to flock to Singapore stock forums like HardwareZone (HWZ) or Value Buddies to get stock insights and tips.
There’s a new age alternative to stock forum, without the complications and trolling (yes we know). You guessed right, it’s InvestingNote. It’s become the go-to-place for investors to get the latest updates on the entire stock market and more.
We’ve seen people discussing investing strategies, latest happenings in bitcoin, global macro outlook and even doing reporting live reporting of AGMs!
Source of data: Shareinvestor.com.
InvestingNote does not issue a buy or sell recommendation on any security, and any research paper published by The Signal Blog is purely for informative purposes. This research is based on current public information, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates and forecasts contained herein are as of the date hereof and are subject to change without prior notification. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual InvestingNote users. InvestingNote users should consider whether the information in this research is reliable, and suitable for their particular circumstances and, if appropriate, seek professional advice. The price and value of investments referred to in this research and the investment income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments.