The term “billionaire” gets thrown around quite often these days. While the definition of billionaire typically refers to an individual with a net worth of at least USD 1 billion, some lists like Forbes Singapore’s 50 Richest also include married couples or family accumulated wealth.
In an SGX Market Update report earlier this week, SGX highlighted a list of some of the best-performing stocks in 2021 on SGX with a market capitalisation of at least S$1 billion.
While there are 89 primary-listed stocks on the SGX with a market capitalisation of at least $1 billion, some of these companies like DBS, Singtel and Singapore Airlines, are owned by large institutional shareholders as opposed to being owned by a small group of individuals.
In this week’s edition of 4 Stocks This Week, we take a closer look at 4 of the best-performing companies on the SGX in 2021 that can be considered “billionaire stocks”, and the ownership structure behind them.
iFAST Corporation (SGX: AIY)
An established regional fintech player, iFAST Corporation (SGX: AIY) is a wealth management platform FinTech platform with asset under administration (AUA) of about $18.38 billion (as of 30 September 2021). Started in the year 2000, iFAST was listed on the SGX mainboard in 2014.
iFAST share price has been on an absolute tear since March 2020. On 30 March 2020, iFAST share price was at $0.792. As of 22 October 2021, the share price is at $9.60, or a gain about 12 times over the last 19 months! For year-to-date (YTD) performance for 2021, iFAST has generated a return of about 230% for its shareholders.
iFAST share price increase is backed by a set of impressive results over the last 19 months. On 23 October 2021, iFAST released its 9M2021 performance, which shows revenue of about $161.6 million, a 33% increase as compared to the $122.0 million revenue it recorded in 9M2020. Even then, 9M2020 performance was also a 33% increase compared to 9M2019. So iFAST has been seeing strong, double-digit growth in consecutive years.
Net profits are likewise growing at $23.2 million for 3Q2021, which is an increase of about 64% compared to the same period last year.
iFAST market capitalisation is currently about $2.73 billion and iFAST founder Lim Chung Chun currently owns about 20% of iFAST (worth about $546 million), with SPH owning about 15% of the company (worth about $409 million)
The Hour Glass (SGX: AGS)
The Hour Glass (SGX: AGS) is a brand that many would be familiar with. The company is one of the world’s leading specialist watch retailers with an established presence in twelve key cities in Asia.
Despite the pandemic, The Hour Glass has seen its profit increase, with net income after tax increasing 9% for FY2021 to $84.5 million. This is despite revenue being lower by about 1% for FY2021 ($743 million) compared to FY2020 ($749 million). Over the past 5 years, The Hour Glass has seen its net income after tax increasing year on year.
The company’s share price has likewise been performing well. It has gone from $0.536 on 30 March 2020, to $1.75 as of 22 October 2021, or an increase of more than 3 times in just 19 months. YTD return for 2021 is currently about 120%.
The Hour Glass currently has a market capitalization of about $1.18 billion. Based on the information presented in their Annual Report 2020, we can see that about 48% of the company is owned by a holding company TYC Investment Pte Ltd. This put the TVC Investment Pte Ltd ownership of The Hour Glass worth about $568 million.
According to Annual Report disclosure, Founders Dr Henry Tay and Dato’ Dr Jannie Chan Siew Lee (the two were founders of the company and were formerly married) are deemed to be substantial shareholders of The Hour Glass due to their interest in TVC Investment Pte Ltd. Dr Henry Tay also owns about 9.20% of the shares ($108 million) directly as an individual investor.
Thomson Medical Group (SGX: A50)
Thomson Medical Group (SGX: A50) is also another company familiar to most of us in Singapore. It started in 1979 and is known for providing healthcare services for women and children, focusing on Obstetrics & Gynaecology and Paediatrics.
In August 2021, Thomson Medical Group announced a robust net profit of $16.9 million for FY2021 based on total revenue of $240.4 million. This is a significant improvement as compared to the $98.0 million loss the year before.
Over the past 12 months, Thomson Medical Group’s share prices have increased from $0.047 (23 October 2020) to $0.089 (22 October 2021), or an increase of about two times. The company’s market capitalisation is currently at $2.32 billion. YTD return in 2021 is currently at 76%.
Lim Eng Hock, better known to most of us as Peter Lim, currently owns about 89.5% of Thomson Medical Group. This puts his current ownership value in Thomson Medical Group at about $2.06 billion.
Straits Trading (SGX: S20)
Founded in the 1880s, Straits Trading (SGX: S20) was once the world’s largest tin producer, and it still owns a majority stake in the world’s third-largest tin producer today – Malaysia Smelting Corporation Berhad. However, the company is better known today for its diversified property portfolio, which includes Straits Real Estate, ARA Asset Management, and its stake in Far East Hospitality Holdings.
In its 1H2021 results announcement, Straits Trading saw its profit after tax and non-controlling interest at $122.6 million, as compared to $5.5 million during the same period last year. Not surprisingly, Straits Trading share prices have been doing well over the past year, increasing from $1.55 (23 October 2020) to $3.52 (22 October 2021). YTD return is currently at 69.9%.
Straits Trading is 70% owned by Cairns Pte.Ltd. According to the disclosure on its Annual Report, there are a few entities that are deemed interested in the shares of Straits Trading due to the ownership structure of Cairns Pte.Ltd.
Earlier this year, Straits Trading also announced the launch of its Straits Trading Shareholders’ Club. This is essentially a shareholder-only club that allows the company to connect directly with its shareholders. According to the company’s management, this would enable the company to have direct contact with its shareholders during a period where meetings and physical events are not possible due to COVID-19.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.