In the previous post, we talked about that one stock everyone was crazy over in 2017.
Now, let us look at what are the top 3 stocks with the highest returns in 2017:
Delong takes the top spot with the best performing stock of the year with a whopping 813+% return in 2017. AEM takes the second spot at 484+% while Jiutian Chemical took the 3rd spot at 483+%.
Let’s take a quick look at what each stock’s company does:
Delong Holdings Limited is an investment holding company that was listed in 1999. The Company is principally engaged in the manufacture and sale of hot-rolled steel coil (HRC), with the People’s Republic of China as its principal market. The Company operates through manufacture and sale of hot-rolled steel coils and billets segment. The Company’s other operations include finance leasing.
Highlights taken from its company factsheet:
-Delong presently operates three steel mills with a combined annual steel production capacity of 3.6 million tonnes.
-Currently amongst the top 10 steel producers in Hebei Province, the PRC
-Delong owns 3 major subsidaries: Asia Paragon International Limited (British Virgin lslands) (100%), Delong Asset Management (Hong Kong) Limited (100%), Dexin Steel Pte Ltd (Singapore) (100%)
-These 3 subsidiaries also own many other subsidiaries.
Notable Events In 2017
For the year of 2017, Delong has been queried a total of 4 times by SGX regarding trading activities, the Company’s first quarter results and also the entry into a Binding Memorandum of Understanding.
In the official response to the trading queries, the company and board stated that there’s no explanation for the unusual movement in price.
Surprisingly, Delong had no share buyback in 2017.
Delong was also one of the top performing stocks that gained 42.6% for the month of January, as reported by Geoff Howie @Geoff_Howie, author of the weekly SGX My Gateway Report and the weekly Business Times column Inside Insights. Here’s the post: https://www.investingnote.com/posts/528194
Currently, Delong’s trailing PE ratio is 1.45 and it’s P/B ratio is at 0.45.
AEM was the second top performing stock in 2017 with 484.34% capital gain. Initially incorporated and listed in 2000, the company changed its name to AEM in 2007.
AEM provides solutions in equipment systems, precision components, plating and related manufacturing services across various industries. It operates through three segments: equipment systems solutions (ESS), precision component solutions (PCS) and others. The ESS segment provides customized system solutions involving high-speed motion and mechanical design to both mass volume manufacturers and technology development laboratories. The PCS segment designs, develops and manufactures precision engineering products used in the electronics, life sciences, instrumentation and aerospace industries. The others segment develops processes and associated chemical product formulations for surface finishing in the electronics industry, including de-flashing, solder dipping and plating of the leads of semiconductor components and connectors. Its equipment solutions include mechanical design and programmable logic control (PLC).
According to their 2016 annual report, they have 3 manufacturing plants located in Singapore, Malaysia (Penang) and China (Suzhou). They have a global market presence through their network of sales offices, associates and distributors, spanning across Asia, Europe and the United States.
It is interesting to note that AEM was a loss-making company back in 2014. However, they had a strong and successful turnaround, in which one of our users, @kennychia, mentioned in his blog back in 2016 https://www.investingnote.com/posts/38200:
“Management have been aggressive with their corporate restructuring since taking over AEM. For instance, in FY14 they disposed of their subsidiary, MCT, which was running losses for several years, to fund the growth of their core equipment and services business. In FY15, they exited from the stagnant plating business to further support its growth in its core businesses.”
Image screenshot taken from Shareinvestor.com
Notable Events In 2017
AEM had a surprising 13 times share buyback within 250 trading days in a year!
Most of the share buybacks occurring within the last quarter of the year between November and December. AEM only had 1 trading query by SGX in August.
A post tagged with AEM also became the 2nd most commented post in our community, with a total of 1978 comments. This is the post: https://www.investingnote.com/posts/124560
Currently, AEM’s trailing PE ratio is 15.84 while its P/B ratio is at 7.14.
Jiutian Chemical Group Limited
Taking up the 3rd spot of 2017’s top performing stocks, is Jiutian Chemical Group Limited.
Jiutian Chemical was incorporated in Singapore on 30 November 2004 and listed on 2006.
The Company, through its subsidiary, Anyang Jiutian Fine Chemical Co Ltd, is principally engaged in the manufacture and production of methanol, dimethylformamide (“DMF”) and methylamine. The Group is also engaged in the processing and sale of consumable carbon dioxide and oxygen. The Group’s business is divided into three main business divisions, namely, the methanol division producing methanol; the DMF division, producing DMF as its main product and methylamine as its secondary product; and the gas division, producing consumable carbon dioxide and oxygen.
The Group sells its products to customers in China, which include customers in Henan, the surrounding provinces adjacent to Henan, namely Hebei, Shaanxi, Shanxi, Hubei, Shandong, Jiangsu and Anhui, and provinces in the Yangtze Delta Region, namely, Jiangsu and Zhejiang. Some of its customers are manufacturers of downstream products that use methanol, methylamine and DMF, while others, especially those located further away in the Yangtze Delta Region, are trading firms that distribute these chemicals to customers that use these chemicals in their manufacturing processes.
Notable Events In 2017
Jiutian Chemical had a total of 1 trading query throughout 2017.
The company had some major management changes which included a new appointment of the CEO and change of CFO.
It was also one of the most traded stocks in 2017, with total traded volume at 4.97 billion shares.
Little is known publicly about Jiutian Chemical Group Limited. There is no official website for this business.
Currently, it’s trailing PE ratio is 15.046 and it’s P/B ratio is at 1.11.
What do you think about these 3 stocks that did exceptionally well in 2017?
Will they continue to outperform the rest for 2018?
Growth or Speculation?
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